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For Microsoft, Market Dominance Isn't Enough

chemstar writes "Last summer Orlando Ayala, then the top sales executive at Microsoft Corp., sent an e-mail titled 'Microsoft Confidential' to senior managers laying out a strategy to dissuade governments across the globe from choosing cheaper alternatives to the ubiquitous Windows operating system. Ayala's e-mail told executives that if a deal involving governments or large institutions looked doomed, they were authorized to draw from a special internal fund to offer software at a steep discount, or free, if necessary. Steve Ballmer, the Microsoft chief executive, was sent a copy of the e-mail. The memo, which focused on system software for desktop computers, specifically targeted Linux, a still small but emerging competitor. "Under NO circumstances lose against Linux," Ayala said." Perhaps that's because, as roomisigloomis writes, "Seems that MS' licensing practices are working against the company," pointing out this article which "suggests that open source, Linux and other software is actively being sought."

152 of 685 comments (clear)

  1. Microsoft can't dominate the BSD Babe! by Anonymous Coward · · Score: 4, Funny

    How can BSD be dying when it has a mascot like this?! Linux needs to get its act together if it's going to compete with the kind of hot chicks and gorgeous babes that BSD has to offer!

    You just can't take Linux seriously when its fronted by losers like these. You Linux groupies need to find some sexy girls like her! I mean just look at this girl! Doesn't she make you hard? I know this little hottie floats my boat! This guy looks like he is about to cream his pants standing next to such a fox. As you can see, no man can resist this sexy little cock teaser. Even this old bearded Unix guru is apparently unable to take his eyes off her!

    Join the campaign for more cute open source babes today!

    1. Re:Microsoft can't dominate the BSD Babe! by Anonymous Coward · · Score: 5, Funny

      This is the best argument I have ever seen for open source.

    2. Re:Microsoft can't dominate the BSD Babe! by studious+jew · · Score: 5, Informative

      Hey, most of the pics at that site are mine. I went to LinuxWorld 2000 in NYC, and while my friend was playing Quake 3 all day, I was busy snapping choice shots of Ceren's (her name) hot bod! No fair!

    3. Re:Microsoft can't dominate the BSD Babe! by ePhil_One · · Score: 4, Funny
      Its bad enough the damned stories on Slashdot repeat, now the comments are repeating too!

      When will the madness end!

      --
      You are in a maze of twisted little posts, all alike.
    4. Re:Microsoft can't dominate the BSD Babe! by Bob+McCown · · Score: 5, Funny

      No kidding, all Microsoft has is this loser

    5. Re:Microsoft can't dominate the BSD Babe! by stinkfoot · · Score: 3, Funny

      yeah, but i bet she can't dance like monkey boy ballmer.

    6. Re:Microsoft can't dominate the BSD Babe! by Syberghost · · Score: 2, Funny

      If she was dressed like a penguin, I'd hit it.

    7. Re:Microsoft can't dominate the BSD Babe! by Gendou · · Score: 3, Informative

      No. Any photograph becomes the intellecual property of the photographer (not the subject or model) the moment it is taken. Depending on circumstances, there may be restrictions or limitations on using photographs of someone for commercial purposes (especially in advertising) without permission, and that's why "model release forms" exist, but a photographer still has complete copyright on all photographs he takes.

    8. Re:Microsoft can't dominate the BSD Babe! by r3dfiv3 · · Score: 2, Funny

      yeah, hot chicks in penguin suits... nice.

    9. Re:Microsoft can't dominate the BSD Babe! by AlanS2002 · · Score: 2, Interesting

      Damn, that is one fine chick. My fav BSD chick is here.Then there is this hottie. Damn pics like this make me want to use BSD more.

      --
      Not all conservatives are stupid,
      but it is true that most stupid people are conservative.
      - Hume
  2. It's not shocking... by thrillbert · · Score: 2, Flamebait

    I hate to make this comparison, but...

    Taking control of Europe was not enough for Hittler. He wanted to control the entire world. What we have with MS, is very much the same thing. A trillion dollars is no longer enough to feed all the hungry piranhas, and that's not what it's all about either. It's the recognition and the power that comes with being "an executive at Microsoft"..

    Basically, this is no longer just about an operating system. This is about a way of life. MS is deeply entrenched in many other business, and we don't even notice. While we're watching them twirl their left fist at us, their right hand is getting ready to slap us in the face.

    I only hope that we're waking up to this fact early enough...

    ---
    Death is only a state of mind.

    Only it doesn't leave you much time to think about anything else.

    1. Re:It's not shocking... by dj_paulgibbs · · Score: 2, Insightful

      Halman: Perhaps we both have less freedom than we imagine.

  3. that's great by kipsate · · Score: 5, Funny

    So, if you want to have Microsoft software for free, you know what to do!

    --
    My karma ran over your dogma
    1. Re:that's great by tuffy · · Score: 5, Insightful
      So, if you want to have Microsoft software for free, you know what to do!

      Ah, but Microsoft software is free only if your time is worthless.

      ;)

      --

      Ita erat quando hic adveni.

    2. Re:that's great by eXtro · · Score: 4, Insightful

      The same is true for any other software though, there's really nothing significant about the comment. Linux is free, but if I want to use it as the infrastructure for my company then I need to invest manhours into it, whether my own or somebody elses. Depending on which flavour of zealot you ask you'll get a different answer as to which is more expensive in terms of man hours required to implement that infrastructure.

    3. Re:that's great by Loki_1929 · · Score: 4, Funny

      " So, if you want to have Microsoft software for free, you know what to do!"

      Download it from Kazaa?

      Oh, wait, I forgot to RTFA.

      --
      -- "Government is the great fiction through which everybody endeavors to live at the expense of everybody else."
    4. Re:that's great by tuffy · · Score: 2, Insightful
      The same is true for any other software though

      Naturally, but people (and management types in particular) are liable to forget that fact when $(SOFTWARE COMPANY) rep offers $(EXPENSIVE SOFTWARE PACKAGE) free of charge - and that's highly unfortunate.

      --

      Ita erat quando hic adveni.

    5. Re:that's great by Walter+Wart · · Score: 4, Insightful

      I'm afraid it's a little short-sighted. To understand this one has to think a little, not just fall back to a reflexive non-thinking response like "Government, taxes, bad, yuck."
      <OL>
      <LI>The initial one may be free. The upgrade certainly won't be.
      <LI>If the TCO of a Linux server is less than that of a Microsoft one the free disk is a false economy.
      <LI>If there are no alternatives Microsoft can apply monopoly pricing at some future date. This will raise the price at the next go-around. The only reason they are offering a more reasonable price is that there are credible threats.
      <LI>Your taxes are not the only place you spend money. If governments go to Linux/Open Source/Free Software alternatives to Windows/Office/etc will be more readily available in general. The price you pay for your open source software will be lower. And even if you go with MS it will have to lower its prices to compete with its OS competitors.

      --
      The man who never alters his opinion is like the stagnant water and breeds Reptiles of the Mind -- William Blake
    6. Re:that's great by GreyyGuy · · Score: 4, Insightful

      Sure... you get it free this year. Then when you have everything installed and all the people trained, do you expect them to be as generous the next time?

      The OS and Office are their only cash sources. They can't afford to give them away forever.

      The first one is always free.

    7. Re:that's great by 1u3hr · · Score: 2
      Sure... you get it free this year.

      That is the reason that MS is quite happy that in developing countries that 99% of people, and companies, and government offices, use pirated MS software. They own the market, at no cost to them. If the local economy starts to get somewhere then they start to actually pressure govts to crack down on piracy (rather than just making statements deploring it). After organisations have built systems around MS software, the easiest thing for them to do is just buy the next upgrade once there is a credible threat of being shut down.

      This has the very desirable effect of wiping out any local competition, as they just go out of business, as their stuff is pirated too, but they have no external income.

      This happened in Hong Kong a few years ago. Used to be that you just bought a PC, and it came "fully loaded" at no extra charge, with whatever software you wanted. Now vendors mostly sell with legal OEM installs. Starting to happen now in China.

    8. Re:that's great by mormop · · Score: 2, Informative

      The funniest one's gotta be the British government. They were sold the line that kitting the UK gov out with Windows would get them a £100 million discount over the first three years with a kick back when other governemts bought the same system making the British Government ( a public body that ethically should not directly involve itself in the workings of individual businesses) a Microsoft Business Partner.

      So far no other government's bought it so no kickback, it runs on Passport which the EU declared violates European Data Protection law and once MS is installed end to end you can see the discount evaporating.

      Gullible, I'll bet. At the beginning the gov. ripped out Linux servers that had been in place for years running UK Online, a system that had received many international awards for excellence and replaced it with MS stuff that only worked with IE5 and has been pilloried for being a bad deal for end users, badly designedand over complicated to navigate.

      Apparently, MS donated £11 million to UK aids charities around this time and in exchange for this was paid £15 million for a crap system. Funnily enough this leaves the charities £4 million worse off than if the gov. had donated the money straight to them.

      Of course to suggest that the government was forming partnerships based on the desire of the prime minister to be seen with rich and famous people would be terribly cynical.

      --
      Hmmmmmm..... Deep fried and look like Squirrel.
  4. It's Captain Stupendous, Master of the Obvious! by Violet+Null · · Score: 5, Insightful

    It's not the price, really. Corporations and governments are willing to pay the price of Windows to ensure that they have support and stability. But the licensing of Windows -- product activation and the like -- are what's really kicking Microsoft's teeth in. Consumers are willing to overlook a lot, but not things that actively make their life harder, for no personal gain for them.

    1. Re:It's Captain Stupendous, Master of the Obvious! by Random+Frequency · · Score: 3, Informative

      Product activation isn't present in the corporate editions of microsoft software.

    2. Re:It's Captain Stupendous, Master of the Obvious! by JonnyElvis42 · · Score: 5, Funny

      the licensing of Windows -- product activation and the like -- are what's really kicking Microsoft's teeth in

      Awww, why do licensing and product activation get to have all the fun?

    3. Re:It's Captain Stupendous, Master of the Obvious! by zonix · · Score: 2, Insightful
      Consumers are willing to overlook a lot, but not things that actively make their life harder, for no personal gain for them.

      Don't forget the forced upgrades hand in hand with the nullification of the economic value of your old software.

      z
      --
      What would an EWOULDBLOCK block, if an EWOULDBLOCK could block would? -- me
    4. Re:It's Captain Stupendous, Master of the Obvious! by Foochar · · Score: 4, Informative

      Actually you don't need an EA (Enterprise Agreement) to get products without product activation. Open Business media does not require product activation, and can be acquired with a purchase of as few as 5 licenses. You still have to have a license key for Open Business, but you never transmit any hardware information to Microsoft.

      --
      "You can't fight in here! This is the war room" --Dr. Stra
    5. Re:It's Captain Stupendous, Master of the Obvious! by The+Bungi · · Score: 3, Interesting
      tell me what support does MS give that say redhat does not?

      I once had a RH "support rep" send me an email with an attachment with technical info on how to make a particular IDE controller card work under RH6 that included the phrase "if you were an idiot and did 'x', then this is how you blah blah blah...".

      Would not being insulted count?

    6. Re:It's Captain Stupendous, Master of the Obvious! by gcalvin · · Score: 5, Insightful

      I've had opportunities to call Red Hat tech support and Microsoft tech support. On the whole, I've felt much more insulted by Microsoft tech support. I find the tedious exercise of going through some phone jockey's troubleshooting script highly insulting -- to my intelligence, and to the value of my time. Red Hat was much quicker to connect me with a human who had some real technical knowledge, and wasn't just following a script. If such a tech had said something along the lines of "...if you were an idiot and did 'x'..." I would have taken it in the spirit it was offered. I'd rather have quick, clear, correct answers than sympathetic but incompetent hand-holding.

    7. Re:It's Captain Stupendous, Master of the Obvious! by wcbarksdale · · Score: 3, Funny

      Moreover, I'd rather have condescending technical support than a condescending operating system.

    8. Re:It's Captain Stupendous, Master of the Obvious! by IamTheRealMike · · Score: 3, Insightful
      And did you report this rep? What did Redhat say? Did they apologise?

      I'm sure you're being honest, but given your track record as somebody rabidly pro-MS and often anti-Linux, allegations against random redhat employees carry less weight than they otherwise would.

    9. Re:It's Captain Stupendous, Master of the Obvious! by The+Bungi · · Score: 2, Insightful
      And did you report this rep?

      No. Two reasons. First, the rep was just forwarding me information that's available in the public domain. I had no quarrel with that - rather with them using that as documentation handed out to paying customers. Second, I don't have the time or humor to do something like that, especially since my claim to fame was having bought a boxed RH set instead of downloading it. Had I been an enterprise customer, I'd probably would have made a fuss about it. But even then, I have trouble imagining what I'd get from doing that at all.

      but given your track record as somebody rabidly pro-MS and often anti-Linux

      This may come as a shock to you, but I'm not "rabidly" pro or anti anything. I like Linux and use it every day. I do however use the right tool for the job. Linux isn't always the solution and Windows is not always the problem.

      Hope that helps.

    10. Re:It's Captain Stupendous, Master of the Obvious! by swillden · · Score: 2

      One of the first things you learn doing this sort of work is that people who say they know what they are doing [and even act like they do] rarely have any idea at all.

      What about those who call up and explain in great detail, with absolutely correct use of terminology and a clear exposition of the analysis already done, what, precisely, is going wrong? Complete with extensive references to section and paragraph of all of the relevant documentation.

      The problem, of course, is that the clueless tier 1 guys don't know enough to understand that all of the above is a strong indicator that if the problem were simple, or if the fix were documented, the call would never have been placed. Again, I can understand that, and it's fine, except when it results in 30 minutes of wasted effort executing a script that I'm perfectly aware from the beginning will not solve the problem, and just may muck up something else!

      --
      Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
  5. Not an uncommon business practice.. by Gortbusters.org · · Score: 5, Insightful

    To want to beat out the competition.

    Many large corporations drive prices down to crush the little guy.

    --
    --------
    Free your mind.
    1. Re:Not an uncommon business practice.. by michaelepley · · Score: 3, Informative

      There is a huge difference between driving down prices (legal) and giving away your product for free (illegal). This legal rule captures the more general principal that price discrimination (charging different prices according to the purchasers ability or desire to pay) is highly economically inefficient and should be avoided.

    2. Re:Not an uncommon business practice.. by Monkelectric · · Score: 3, Funny
      Not only that, having a special fund for discounts is *very* common. When I was a sysadmin at a major university, if I wanted 50% off sun equiptment all I had to do was use the word "Dell" in a sentence. Curiously the products were still overpriced.

      Sun was/is so bent on destroying linux, when I discussed our setup with their sales engineers they were *throwing in* Cobalt Raq web servers to replace our linux web servers because they didnt want us running linux. They didnt see the irony :) (cobalt raq's run linux)

      --

      Religion is a gateway psychosis. -- Dave Foley

    3. Re:Not an uncommon business practice.. by Jason+Earl · · Score: 5, Insightful

      Sun is willing to give OpenOffice away for free, and they even will happily give you the source code. What exactly is the difference between giving away OpenOffice and giving away Microsoft Office?

      Answer: there isn't any difference other than the fact that you probably like Sun, and you don't like Microsoft.

      The fact of the matter is that, despite what Microsoft says publicly, the cost of MS Office and Windows is definitely a factor. Competing with Free Software in the long run is going to require that Microsoft lower their prices substantially. This is especially true when you are talking about key accounts like governments and large institutions. Microsoft will do what it takes to maintain these accounts.

      The good news is that Microsoft can't really afford to lower the prices on their core products of Windows and MS Office. Sure, they have billions in the bank, but that doesn't mean that they want to become a charity. Microsoft currently has a price/earnings ratio of about 30. That means that Wall Street expects a very healthy amount of growth from Microsoft. As these discounts cut into Microsoft's profit margins and revenues then this trend will negatively effect MSFT's stock price. $43 billion is a lot of money for a business to have in the bank, but it is peanuts compared to the amount of wealth that Microsoft executives have tied up in their stock.

      When push comes to shove Microsoft execs will defend their stock price at all costs, and that means coercing more money out of their current customers, not less.

    4. Re:Not an uncommon business practice.. by Catbeller · · Score: 2, Insightful

      "Sun is willing to give OpenOffice away for free, and they even will happily give you the source code. What exactly is the difference between giving away OpenOffice and giving away Microsoft Office?"

      The power of monopoly. And the fact it is illegal to use the wealth and power from one monopoly to create another.

      Not that Ashcroft would care.

    5. Re:Not an uncommon business practice.. by BrianH · · Score: 2, Interesting

      Ah, but there's a difference. Linux can survive in a world where all software is free, but Microsoft cannot! If Microsoft were to give ALL of their software away, they would only last as a company so long as their cash reserves held out (which wouldn't be long considering that their stocks would quickly become worthless). Microsoft giving their software away would delay the widespread adoption of Linux, but in the long term it would be beneficial to us...Linux would still be standing long after the MS behemoth collapsed.

      --

      There is nothing so pathetic as seeing a beautiful young theory roughed up by a tough gang of facts.
    6. Re:Not an uncommon business practice.. by DNS-and-BIND · · Score: 2, Interesting
      With $43,300,000,000.00 in cash on hand (not to mention borrowing ability) Microsoft can discount its sales well into the next century, long after linux and the PC platform it runs on are history. Just in case you need an idea to imagine just how much cash this is, it's enough to:
      • Pay off the national debt of Russia
      • Purchase the entire U.S. airline industry
      • Make 216 box-office flops on the magnitude of Waterworld
      --
      Shutting down free speech with violence isn't fighting fascism. It IS fascism!
    7. Re:Not an uncommon business practice.. by hey! · · Score: 4, Interesting

      Well...

      Looking at it the other way, there's no way to get people to use an alternative office package except by giving it away. This is certain proof that MS has a monopoloy in office suites.

      Let's stipulate for the time being that this monopoly was legally obtained. What's the differnce between Microsoft giving away its software and Sun giving aways Star Office? The difference is that in one case it will be done to stifle competition and the other case to preserve or increase competition.

      So while you can argue that "they are doing the same thing", the effect on the public interest is exactly opposite.

      --
      Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
    8. Re:Not an uncommon business practice.. by Jason+Earl · · Score: 2, Insightful

      Ok then, what shall we do in 10 years when OpenOffice is the de-facto standard and it comes pre-installed on every machine and has 99% of the market. In that case OpenOffice's price will almost certainly "stifle competition." What shall we do then?

      If it hadn't been for the fact that Microsoft started wielding their market share in ways that made their customers uncomfortable no one would be interested in OpenOffice in the slightest. In this case the market is working just fine all by itself. Creating a bunch of rules about what can be bundled with an operating system is only likely to make things worse, not better.

    9. Re:Not an uncommon business practice.. by DogIsMyCoprocessor · · Score: 3, Insightful

      Sorry, but Microsoft has been found to be a monopoly in a court of law. They don't have the same rights as non-monopolies. Legal fact. Get over it.

      --

      "And this is my boy, Sherman. Speak, Sherman." "Hello." "Good boy."

    10. Re:Not an uncommon business practice.. by Chris+Burke · · Score: 2, Interesting

      Ok then, what shall we do in 10 years when OpenOffice is the de-facto standard and it comes pre-installed on every machine and has 99% of the market. In that case OpenOffice's price will almost certainly "stifle competition." What shall we do then?

      Create a new piece of office software that reads the de-facto standard OpenOffice format perfectly, eliminating any practical need to keep using OpenOffice, because OpenOffice is Free Software.

      If it hadn't been for the fact that Microsoft started wielding their market share in ways that made their customers uncomfortable no one would be interested in OpenOffice in the slightest. In this case the market is working just fine all by itself.

      Wait... So the OS monopolist abuses that monopoly to gain a monoploy in office software. It then gouges the customers for years, increasing the price of their product while the price of everything else in the computing world goes down. They produce incremental improvements that do little other than generate files older versions can't read to dissuade anyone from staying with older versions. They continue to tighten the screws and introduce ever more onerous licensing terms, funding their ventures to monopolize even more markets they wouldn't have even been able to think about if there was competition in their main market. Would-be competitors can't even give their software away because they don't read the monopolist's secret file format perfectly. The lock-in is so tight that it takes a couple more cranks on the screwdriver before the customer winces and says "gee, maybe we should think about using something else".

      And you say this is an example of the market working just fine.

      I'm stunned.

      --

      The enemies of Democracy are
    11. Re:Not an uncommon business practice.. by swillden · · Score: 3, Insightful

      Yes, I don't agree with the law. Apparently Mr. Ashcroft doesn't either.

      I guess both of you wish that gasoline cost $10 per gallon and was only sold at subsidiaries of Standard Oil.

      There are very good reasons why the Sherman Anti-Trust Act and follow-on legislation were passed, and your lack of understanding of both history and economics don't devalue them one bit.

      I personally can't wait for Linux to achieve Total World Domination

      What's interesting here is why open source appears to be the only viable competitor to Microsoft's dominance (and it actually *isn't* a competitor yet, and we don't really know for sure that it ever will be). Why does it require such a bizarre, apparently socialist structure to compete with MS? Because any ordinary product from would be pinned to the wall by Microsoft's monopoly power, which is being allowed to run virtually unconstrained. Only the ghost-like, hydra-headed and essentially non-commercial nature of open source makes Linux a viable competitor. That should tell you something about just how nasty monopolies can be.

      Even if a Democrat gains the whitehouse in the next election there isn't much of a chance that the DOJ will go after Microsoft again.

      Of course not. MS gives plenty of cash to both sides.

      Microsoft won't be a monopoly by the time that the government looks at this case again.

      I'm far less certain of that than you are, unless you're just trying to imply that the government will never look at it again. Don't get me wrong, I think it is likely. I run nothing but Linux on any of my systems (well, I'm considering moving my firewall to OpenBSD), and I don't think it's that far from being a viable competitor on the desktop. It's clearly a powerful competitor in the server market and it's currently making heavy inroads into the embedded market and preparing to really attack the PDA and cellphone markets. However, MS is a determined, wealthy, smart, ruthless and insanely powerful competitor.

      --
      Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
    12. Re:Not an uncommon business practice.. by RoLi · · Score: 2, Insightful
      Ok then, what shall we do in 10 years when OpenOffice is the de-facto standard and it comes pre-installed on every machine and has 99% of the market. In that case OpenOffice's price will almost certainly "stifle competition."

      No, it's open source. As such it is guaranteed to be available from multiple sources such as SuSE, Mandrake, debian, Sun, etc.

    13. Re:Not an uncommon business practice.. by Mr.+Piddle · · Score: 2, Insightful

      Ok then, what shall we do in 10 years when OpenOffice is the de-facto standard and it comes pre-installed on every machine and has 99% of the market. In that case OpenOffice's price will almost certainly "stifle competition." What shall we do then?

      Enjoy it. OpenOffice.org is GPL'd software. It comes with a human-readable XML file format. It works well. What more do you want?

      Also, with a completely open non-proprietary file format, anyone who wants to create an alternative office suite has the opportunity to create full interoperability with OpenOffice.org.

      --
      Vote in November. You won't regret it.
  6. What do we really expect? by hesiod · · Score: 5, Insightful

    I hate Microsoft as much as the next geek, but really, what do we expect from a company? Companies aim to make as much money as possible -- excluding not-for-profit & charitables -- so why should anyone be surprised that they do anything within their power to make their software as widespread as possible?

    It seems to me that every time there is a posting about something else MS does, it's the same old stuff: they want more market share, just like everyone else. That's it, it should be expected by now.

    Keep in mind that I am not excusing them for any unethical practices, just something that nags at me.

    1. Re:What do we really expect? by Jason1729 · · Score: 5, Insightful

      Selling a product below cost or giving it away for free to make it difficult for competitors to get a foothold is called dumping, and it violates anti-trust laws.

      This is exactly why Standard Oil and AT&T were split up.

      When you say a company should do anything within their power to make their software as widespread as possible, do you include illegal things? Maybe a campaign of assassinating prominant open source developers until nobody is willing to work on Linux.

      Jason
      ProfQuotes

    2. Re:What do we really expect? by jasonbw · · Score: 4, Funny

      If Gates has a net worth of about, what?, $45 B, i'd assume that Balmer has at least $1 B. If i was in Balmers shoes, i'd cash out and spend the rest of my life trying not to dance on camera.

    3. Re:What do we really expect? by pmz · · Score: 2, Interesting

      Companies aim to make as much money as possible -- excluding not-for-profit & charitables -- so why should anyone be surprised that they do anything within their power to make their software as widespread as possible?

      Yes, but to do this for the long-term requires a modesty that Microsoft seems incapable of. Business is always give and take to make sure the customers willingly come back. Microsoft, on the other hand, is pretty much just take-take-take, where customers come back willing or not.

    4. Re:What do we really expect? by hesiod · · Score: 2, Insightful

      > If i was in Balmers shoes, i'd cash out and spend the rest of my life trying not to dance on camera.

      That's a good point, one which a friend and I were discussing just last night. Why do people who have a billion dollars feel the need to continue amassing more? They cannot spend that much money in a lifetime (without throwing it away or investing in more businesses). Is there really so much greed that they can't just be happy where they are?

      I'm not Ballmer and I never want to do the monkey-boy.

    5. Re:What do we really expect? by Dr+Caleb · · Score: 3, Interesting
      Why do people who have a billion dollars feel the need to continue amassing more?

      They don't feel that need. You don't make a billion dollars by being stupid.

      They are addicted to the risk. The risk of losing it all. The risk of a bad decision. No adrenelyn rush like it.

      --
      "History doesn't repeat itself, but it does rhyme." Mark Twain
  7. Dumping? by Amazing+Quantum+Man · · Score: 5, Insightful

    Maybe the EU should look into dumping charges against MS, if they offer to give it away for "free"...

    --
    Fascism starts when the efficiency of the government becomes more important than the rights of the people.
  8. Handout! by w3weasel · · Score: 5, Funny

    As the chair of my neighborhood gardenclub, we have been considering implementing a new server rack with either Win3k and MSSQL to track the movment and eating habits of chinch bugs. Given our modest budget, it currently looks as though we will have to forgo using MS products in favor of OSS/FS alternatives. Can I have my free software now?

    --

    Just as irrigation is the lifeblood of the Southwest, lifeblood is the soup of cannibals. -- Jack Handy

    1. Re:Handout! by DuckDuckBOOM! · · Score: 2, Funny

      ...Win3k...
      - - - snip - - -

      [ISN NewsBeam Wed 9/22/3115]

      During his keynote address at the E^3 conference on Ultima Moor, Emperor William Gates XLVIII announced yet another delay in the release of the Windows 3000 operating system. He attributed this latest setback to a "minor security issue" in Hypernet Explorer 159.0. His Supreme Excellency declined to respond to numerous follow-up questions, characterizing the security concerns as "nothing to worry about," and stating that the problem would be resolved prior to release "later this century." He then had the questioners executed.

      The problem may, however, be more serious than Emperor Gates was willing to admit. Our source on Microsoft Planet (tm), speaking on condition of anonymity, claims that, under certain conditions, receipt of a Hypernet message containing the "Code Red" worm will cause Hypernet Explorer to open a rift in the space-time continuum, sucking its user into the ninth dimension. Only light casualties among non-sentient developers have been reported thus far.

      Microsoft is said to be looking into this phenomenon as a possible anti-piracy measure.

      - - - snip - - -

      --
      Life is like surrealism: if you have to have it explained to you, you can't afford it.
  9. Yeah! by xmutex · · Score: 2, Funny

    How dare a company try to increase its profits and make more money?! How dare a business try to best its competitors in the marketplace?!

    I for one am disgusted and only hope that this evil is vanquished!

    --

    jack's bicycle is music to my ears
    1. Re:Yeah! by jedidiah · · Score: 2, Interesting

      The rules change once a court has declared you an abusive monopoly.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    2. Re: Yeah! by Black+Parrot · · Score: 4, Funny


      > I once offered to mow the lawn of my neighbor for 50 cents less than whatever she normally pays the usual kid and I ended up spending 6 months in prison for it.

      Leave the gun at home when you want to make an old lady an offer she can't refuse.

      --
      Sheesh, evil *and* a jerk. -- Jade
    3. Re:Yeah! by pmz · · Score: 2, Interesting

      How dare a company try to increase its profits and make more money?! How dare a business try to best its competitors in the marketplace?!

      I for one am disgusted and only hope that this evil is vanquished!


      To aim for increased profits at the expense of the health of the global free marketplace is downright evil, in my book. Microsoft is the enemy of free trade and must be brought under control.

  10. You get what you deserve by Slack0ff · · Score: 2, Insightful

    Any company with a bussness stratagy that has the words "at all costs" in it really has some f'ed up company heads. I mean think about it microsoft wants everyone on there systems cause everyone knows there is no such thing as "fre windows" especially with some of the newer business plans microsoft has been tossing around. Here ends the rambling; It is miss spelled? i dont care.

    --
    Everyday You see me is the worst day of my life -Office Space
  11. Antitrust? by 10Ghz · · Score: 5, Insightful

    Isn't this illegal? Here we have a convicted monopoly selling it's products at a loss to shut out a smaller competitor. Isn't that illegal?

    --
    Lesbian Nazi Hookers Abducted by UFOs and Forced Into Weight Loss Programs - -all next week on Town Talk.
    1. Re:Antitrust? by HowlinMad · · Score: 3, Interesting

      Its illegal in the Unisted States, and probably many other countries as well. However, it may not be illegal in all countries FWIW.

    2. Re:Antitrust? by hipster_doofus · · Score: 2

      How would you prove that MS is selling its product at a loss? I'm sure their margin is much higher than it needs to be and they're just offering bare-bones pricing because they know that can make it up in service contracts and add-on software purchases.

      You get your foot in the door any way you can and then make your money by selling the extras. It happens all the time in the business world.

      --
      Five Dolla Moddy-Moddy? ;->
    3. Re: Antitrust? by Black+Parrot · · Score: 5, Insightful


      > Isn't this illegal? Here we have a convicted monopoly selling it's products at a loss to shut out a smaller competitor. Isn't that illegal?

      Not under Republican administrations.

      --
      Sheesh, evil *and* a jerk. -- Jade
    4. Re:Antitrust? by hipster_doofus · · Score: 3, Insightful

      That's no different than a cell phone company giving a phone away for free to get you to sign a two-year service contract. They're taking an initial loss in order to realize a long-term gain.

      --
      Five Dolla Moddy-Moddy? ;->
    5. Re:Antitrust? by NetSettler · · Score: 2, Insightful

      Isn't this illegal? Here we have a convicted monopoly selling it's products at a loss to shut out a smaller competitor. Isn't that illegal?

      Linux does no different, except the price it "sells" its wares for is zero. Certainly it is taking a loss, and if you ask people its explicit purpose is to shut out a competitor. At the point where Linux "sales" exceed Microsoft's sales, will that make Linux the "wrong thing" because it "sells its products at a loss to shut out a smaller competitor"?

      From timothy's summary: Ayala said." Perhaps that's because, as roomisigloomis writes, "Seems that MS' licensing practices are working against the company," pointing out this article which "suggests that open source, Linux and other software is actively being sought."

      It's also possible that this means that the idea of "selling at all" is working against it. That is, Linux is destroying any possibility of competing on the wares themselves, and leaving only the option of competing on service. That's hardly an intended free market effect, so it's a bit hypocritical for the people pushing that strategy to be criticizing Microsoft for doing the same.

      It's certainly true that Microsoft is too big. I'd like to see more market variability. But being beaten out by Linux and having only a choice of Linux is not market variability either. IMO, it's a case of a cure that's as bad as the sickness. At least with Microsoft, when I want something done, I didn't have to pay the entire development cost of what I wanted in order to get some response because someone else might want that thing, too. With free software, there's no one who stands to make subscription money on the mere development of extensions and fixes, so I stand to get charged more for anything not available out of the box.

      Plus, the creators of Microsoft have a motivation to make their products solid first time, because they'll lose sales otherwise. They might not do it always, but they are motivated. The makers of free software presently have competition, and so are motivated to compete. But once they've knocked down that competition, I suspect they'll get lazy and start releasing buggy versions first time out of the box, making me pay if I want a working version. Why? Because that's what the economic model makes profitability, and businesses seek profit. You're kidding yourself if you think the availability of free software is going to make people into kinder, gentler people.

      --

      Kent M Pitman
      Philosopher, Technologist, Writer

    6. Re:Antitrust? by NorthDude · · Score: 2, Interesting

      What competitor?

      Redhat
      Suse Mandrake
      To name a few...

      If I remember correctly, those are all business who sell's Linux based operating system.
      Direct competitors to Microsoft I would think...

      --


      I'd rather be sailing...
    7. Re:Antitrust? by Darth · · Score: 2, Informative


      Linux does no different, except the price it "sells" its wares for is zero. Certainly it is taking a loss, and if you ask people its explicit purpose is to shut out a competitor. At the point where Linux "sales" exceed Microsoft's sales, will that make Linux the "wrong thing" because it "sells its products at a loss to shut out a smaller competitor"?

      "Linux" is not a company. "Linux" is not a business entity. "Linux" is not subject to rules and regulations like it was one of those things, because it isnt. Microsoft is.
      Red Hat, SuSE, Caldera, Mandrake....they are all businesses. They sell sevices and some proprietary software in their distributions. None of them are selling under their costs to try to shut out a competitor.

      It isnt dumping for linux to be free (as in beer).

      Plus, the creators of Microsoft have a motivation to make their products solid first time,

      I cannot think of a single software product from microsoft that was solid the first time. There's a reason for the saying that you should never install a microsoft product before it hits version 3.


      because they'll lose sales otherwise.

      Unless they're a monopoly and can dictate terms to the clients.

      The makers of free software presently have competition, and so are motivated to compete.

      The makers of free software will always have competition because they compete with each other. If there is an ideological disagreement or a methodological disagreement, the project will be forked and compete against itself.

      But once they've knocked down that competition, I suspect they'll get lazy and start releasing buggy versions first time out of the box, making me pay if I want a working version.

      If they get lazy and start releasing buggy versions, they'll lose their project to another maintainer or it'll be forked and continue under more competent leadership.

      And they cannot make you pay for a working version because of the licensing scheme. The only way they could do that is if the copyright holder on it released a buggy version under GPL and a non-buggy version under a proprietary license. The result from that would simply be that the buggy version would be fixed by the community who uses it and would replace the proprietary version and the original copyright holder would be ostracised for his underhandedness.

      --
      Darth --
      Nil Mortifi, Sine Lucre
  12. My own experience by Hugonz · · Score: 5, Insightful
    Well, it seems to be working. i worked hard here in Mexico for a company that I will not disclose. They were to offer a set-top box to an ISP, using the Geode procesor. They wanted the box with linux and they were actively encouraged by the ISP to do so.

    After a while, we discovered that we were only being used as a tool of negotiation to get lower prices for WinCE licensing... it seems that using Linux as a disuasve weapon was effective. It seemed that they would do anything not to lose to Linux

    1. Re: My own experience by Black+Parrot · · Score: 5, Informative


      > It seemed that they would do anything not to lose to Linux

      They're crapola software engineers, but they do understand the concept of a landslide. If cutting over to Linux ever becomes the 'in' thing to do - for whatever reason, good or bad - then Microsoft stock will share a spot in the bathroom beside SCO's. Unlike IBM, Microsoft can't adopt free software and live off hardware sales and technical services.

      This is raw survival for Microsoft. If it were almost anyone else I'd feel sorry for them.

      --
      Sheesh, evil *and* a jerk. -- Jade
  13. Are you suggesting ... by burgburgburg · · Score: 4, Funny
    that Microsoft, our Microsoft, would use aggressive, monopolistic behavior to cement their market dominance, diminish the long-term prospects of competitors and violate European laws regarding the behavior of companies in a market-leading position? Or that it would the money in this special fund to target developing, needy, poor nations who would be in no position to question Microsoft's activities once they were locked in to a Microsoft solution?

    I'm shocked. Shocked!

  14. Not good enough. by grub · · Score: 2, Insightful


    a special internal fund to offer software at a steep discount, or free, if necessary

    What about the support, source code, DRM crud? Sorry, but when MS says "Free" you have to look for the fine print.

    --
    Trolling is a art,
  15. A sign of maturity by b.foster · · Score: 5, Interesting
    In the past, Microsoft has mainly concerned itself with positioning Windows NT based servers against the superior Linux-based products from Debian, Red Hat, and Caldera.

    This memo demonstrates an important shift in their strategy: they are now in a position where they are competing against Linux on thedesktop, having lost many key battles on the server side. This means that, despite religious crusades and many rifts in the Open Source community, the competition between such projects as KDE, GNOME, and XFree86 has produced better products that are now able to compete on a level playing field with the Windows XP desktop. We know this only because Microsoft said so itself.

    Eight years ago when I first started running Linux, I knew it wasn't ready for the desktop. During the internet gold rush of the late 1990s I knew it still wasn't ready for the desktop. But today it is. There is no turning back now - unless Microsoft manages to lock us out of our PCs they will have no chance to reverse the tide, and Windows will lose in the end.

    1. Re:A sign of maturity by IamTheRealMike · · Score: 3, Informative
      In the past, Microsoft has mainly concerned itself with positioning Windows NT based servers against the superior Linux-based products from Debian, Red Hat, and Caldera.

      Windows NT is fading away. Win2003 is a good piece of work from what I've seen/heard - I wouldn't be so fast to declare Linux superior, not any more. If you think Microsoft are just going to sit still while Linux motors on, think again. They move fast too.

      This memo demonstrates an important shift in their strategy: they are now in a position where they are competing against Linux on thedesktop, having lost many key battles on the server side.

      I'm pretty sure Windows has a higher market share in the server side of things (still). Sure, Linux is growing quickly, and it's hurting Windows, but it's easy to forget amidst all the hype that Linux is still the little guy, even after all these years.

      The last bit of the rant I can't agree with either. Desktop Linux is not "ready", where by ready I mean I would be happy giving it to most reasonably intelligent computer users. We're not there yet, the software generally needs more spit and polish, and we need to get software installation really nailed. Too much stuff is just currently plain old broken (menus anybody?)

    2. Re:A sign of maturity by PhrackCreak · · Score: 2, Insightful
      Windows NT is fading away. Win2003 is a good piece of work from what I've seen/heard - I wouldn't be so fast to declare Linux superior, not any more.


      Do you have anything like uptime statistics, historical vulnerability records, or ANYTHING to actually back up this claim? You are believing an image that has been carefully constructed by the marketing department at microsoft.
      --
      - You don't know how to maintain a station wagon either!
  16. Those heartless bastards by TopShelf · · Score: 3, Insightful
    Courtois also said Microsoft sometimes gave away software to "very low income countries." He cited a program where Microsoft donated software in South Africa and helped train teachers to use it.

    Of course, if MS had charged them full price, they'd be pilloried for contributing to the "digital divide."

    --
    Stop by my site where I write about ERP systems & more
  17. Microsoft? Doing something we don't like? Hwah? by American+AC+in+Paris · · Score: 4, Funny
    Jeez. It's like Slashdot is doing everything in it's power to turn into a one-trick show. News Flash: Microsoft Still Doing Things That Piss Us Off!

    Random Businessman 1: "We're doomed! Only a miracle can save us now!"
    Hysterical Woman: "We need Linux! Tux, where are you?? Save us!"
    Random Businessman 2: "Look! Up there!"
    cut to shot of Tux, soaring above city. Tux looks down, smiles and waves
    Chorus of Schoolchildren: "Tux!!!!"

    Yes kids, tune in next week when Tux saves the world from the evil clutches of Microsoft yet again ...

    --

    Obliteracy: Words with explosions

  18. Re:And the dripping irony is by Misch · · Score: 4, Funny

    Yeah, but the uniforms of the Microsoft soldiers have patches, and more patches, and even more layers of patches... and you can still see their underwear through the holes left behind.

    --

    --You will rephrase your request for me to go to hell. Goto statements are not acceptable programming constructs
  19. Legal? by quantaman · · Score: 4, Interesting

    If I recall correctly here in Canada at least it's illegal to sell your product below cost with the purpose of driving your competitors out of buisness. Now this is also traditionally very hard to prove expecially when you take annual licensing costs and support into the equation, and I guess the competitors would have to be some of the distro vendors (Redhat, Mandrake, etc.). Do other nations (US and European nations) have similar laws that might come into play here?

    --
    I stole this Sig
    1. Re:Legal? by stratjakt · · Score: 4, Insightful

      What's below cost?

      It costs maybe 25 cents to produce a copy of Windows 2003.

      Dev costs are already written off/recouped.

      Software isn't a tangible product. It only "costs" what people are willing to pay.

      --
      I don't need no instructions to know how to rock!!!!
    2. Re:Legal? by forgetmenot · · Score: 2, Informative

      25 cents a copy? Maybe if you JUST focus on manufacturing the actual cds. don't forget though, a company like MS isn't just a one-shot-get-the-product-out-the-door-and-fold-won der. Where did the software to put on those cd's come from? Plus there is ongoing research to fund, advertising to pay for, company salaries, lobbying, etc., that all contribute to overall comany overhead and expenses. How do you think that's all paid for? The money tree? This all contributes to the end price of a product. Basic Economics 101. And because MS is so huge and because expenses are so high, even if they slashed the prices of their products to razor-thin margins and covered just their overhead and no profit - they STILL could never lower Windows/Office's product prices low enough to beat the price of Linux (free to dirt-cheap).

    3. Re:Legal? by uptownguy · · Score: 2, Insightful

      ...but somehow, forgetmetnot, I think you intentionally chose to overlook the above poster's point: If an artifical restriction (i.e. "law") is put into place making it illegal to sell "below cost" then you better believe that a company with enough incentive will find a way to make it product "cost" as little as possible. Why couldn't a company like Microsoft claim that it costs 25 cents a copy? According to the letter of the law, that'd be true. Does this seem unfair or something? What about silly laws by overly regulatory lawmakers or judicial activists who won't let market forces do their thing? Some people might find that unfair.

      I'm guessing from the posts I've been reading that quite a lot of people here on Slashdot have never actually worked in a large organization. Fair enough. But let me tell you: Company-wide memos sent out by senior sales staff (think: "used car salesman with a better sportcoat") urging other salespeople to offer steep discounts isn't really anything unusual.

      Damned if they do, damned if they don't. If they do, then you'll have posters like forgetmenot claiming that Microsoft is a monopoly illegally flexing its muscle. If they don't you'll have some competitor (yes, even Linux) undercutting Microsoft's price(remember, Linux is FREE...)

      Free enterprise is messy. (I was going to write "It sure doesn't look like a bunch of geeks studying for C-Sci finals are really qualified to talk econ 101, but what do I know..." but then I figured I'd get modded a troll for sure...)

      --


      I would have to say that explosives are the most abused technology in all of history.
  20. Fist o' Sand by Shadow+Wrought · · Score: 2, Insightful
    It makes sense that the harder they push and the more aggresive they are, that the less business they will get. In case you hadn't noticed, most of the world isn't eactly singing the accolades of the US right now. Part of that can easily be attributed to the arrogant self righteousness of our foreign policy.

    So now one of the US's foremost companies is going to try and squeeze other countries to use their system? Other countries can do little about our government's arrogance, but they sure can do something about Microsoft's!

    Besides which, investing in open source allows them to grow their own in house experts to learn and take care of the software.

    --
    If brevity is the soul of wit, then how does one explain Twitter?
  21. The funny part by Otter · · Score: 5, Funny
    Chris O'Rourke, a Microsoft employee, has described attending Linux World, a trade fair in California, where he "purported to be an independent computer consultant working with several K12 school districts," according to his e-mail, which was sent on Aug. 20 last year. K-12 schools include students from ages to 5 to 18.

    "Ha!" O'Rourke wrote in the e-mail to his colleagues, referring to his assumed identity. "In general, people bought this without question ... hook, line and sinker."

    O'Rourke said his goal was to glean intelligence about the competition. His guise, he said, "got folks to open up and talk." O'Rourke did not respond to a fax and voice-mail message seeking comment.

    While I still haven't figured out why I should be outraged that Microsoft's sales force, you know, sells stuff, that bit made me laugh. Like this guy is James Bond, successfully impersonating a consultant. I've worked the KDE booth at Linux conferences, alongside teenagers who know even less about the IT business than I do -- Steve Ballmer himself could walk up to the booth and unless he was sweating and screaming, "Developers! Developers!" no one would recognize him.

    I mean, do Microsoft sales people have horns and a tail? Why would anyone doubt him?

    1. Re:The funny part by ThePlague · · Score: 3, Funny

      If they had horns and a tail, wouldn't that make it easier for them to pass themselves off as *BSD advocates?

    2. Re:The funny part by irix · · Score: 4, Funny

      That's OK - I am planning to attend a Microsoft Developer conference posing as an MCSE to see what "intelligence" I can gather. Let's check out my disguise:

      • "Visual Studio .NET Developer Program" golf shirt - check
      • well ironed khakis - check
      • lingo ... "You should consider developing your solution using the managed Windows .NET environment! Bah, Linux is for academics and tinkerers." - check
      Yup, all set. We'll see who buys what "hook line and sinker".

      :-)

      --

      Do you even know anything about perl? -- AC Replying to Tom Christiansen post.
  22. Market Neccessity by DarkBlackFox · · Score: 5, Insightful

    Seems to me the business/government market has clung to MS for the sole purposes of familiarity and ease of support. Hire any MCSE off the street and you have qualified support personell. Have a problem, call up Redmund and tell them about it.

    Windows has kept essentially the same for the past few years, minus a few "enhancements" (a.k.a. extra features not many people need). This facilitates people turning their heads towards more customizeable software, where a kernel can be compiled for any given specific purpose, and only the required software runs.

    Aside from the incredibly cheap software itself, the unmatched compatibility-for-purpose, and customizability make Open Source a very viable solution for previously proprietary, overpriced, "as is out of box" software. And as potential support people and developers materialize out of the mould, it's getting more and more serious consideration.

    It's just plain sick of Microsoft that they would consider just giving their multi-thousand dollar software away simply to keep market share. Wonder how that would make me feel, if I were a business owner. Knowing I paid $2,500 for an enterprise server, when a friend of mine's business gets it free just so they remain a Microsoft customer. Really would make me consider the alternatives all the more, for fear of getting played like a fiddle by the monster of dominance.

    1. Re:Market Neccessity by DarkBlackFox · · Score: 2, Insightful

      Wrong.

      Yes and no. Yes, there are various iterations of Windows (NT vs 95, 2k vs 98/ME, combine the two into XP). However, each iteration is still fundamentally based on the same coding concepts presented in Windows 3.1. I've seen many articles and forums highlighting exactly what bits of code were recycled, and I'm sure a google will produce the same results. Some DLL's, for example, are still identical to those in 3.1, and not necessarily all are as stable as their re-use would imply. Granted, Joe Computer User could care less, so long as they have a stable product to use, but that's just it- Microsoft has a proven history of producing unstable products for the desktop (Win95 A, B, C, Win98 and it's pay for bug-fix, 98SE, the still disasterous WinME). Granted again, their stability has come a long way with the introduction of the NT kernel to the consumer market, however, a truely stable shipped product would not require service packs.

      As for compiling a kernel, I don't know how to either. I mentioned it because some businesses may wish to compile one to suit their needs, if they have a particular application or neccessity which a custom would fit better than a stock. Imagine a system that runs just a webserver and it's required dependancies, rather than loading graphics drivers and sound drivers, and various other things that wouldn't be required to initialize a network connection and run a webserver. Also, try getting a system like that from Microsoft. Essentially, you can custom create an operating system that does JUST what you want it to do, and do it well, rather than do many things at a fraction of capacity.

  23. Re:And the dripping irony is by Eberlin · · Score: 3, Interesting

    Actually, the greatest irony about it all is that these ads help support Slashdot -- a public forum known for its big share of people that don't support MS. So I say take the ad money, smile, say thank you, and walk away.

  24. Article HERE (fucking Doubleclick) by Anonymous Coward · · Score: 2, Informative

    Copyright © 2003 The International Herald Tribune | www.iht.com

    For Microsoft, market dominance doesn't seem enough
    Thomas Fuller/IHT International Herald Tribune
    Wednesday, May 14, 2003
    Discounts for biggest users are aimed at keeping software rivals at bay

    BRUSSELS More than 90 percent of the world's personal computers run on Microsoft software. For Orlando Ayala, that was not enough.

    Last summer, Ayala, then the top sales executive at Microsoft Corp., sent an e-mail titled "Microsoft Confidential" to senior managers laying out a strategy to dissuade governments across the globe from choosing cheaper alternatives to the ubiquitous Windows operating system.

    Ayala's e-mail told executives that if a deal involving governments or large institutions looked doomed, they were authorized to draw from a special internal fund to offer software at a steep discount, or free, if necessary. Steve Ballmer, the Microsoft chief executive, was sent a copy of the e-mail.

    The memo, which focused on system software for desktop computers, specifically targeted Linux, a still small but emerging competitor. "Under NO circumstances lose against Linux," Ayala said.

    This memo as well as other e-mails and internal Microsoft documents obtained by the International Herald Tribune offer a rare glimpse into the inner workings of a company with so much cash - $43.4 billion, as of December - that it can aggressively discount its products in a bid to protect its huge market share amid the wreckage of the technology sector.

    The documents show the muscle that the world's largest software company is prepared to use to protect its dominance, including a relatively benign form of corporate spying and discounts to capture "big plays" - a Microsoft term for deals involving the world's biggest clients.

    Yet these sales tactics also come with risks. The covert intelligence gathering - including one case where a Microsoft employee attended a Linux trade show pretending to be a consultant to an elementary school - raises questions about whether Microsoft has pulled back from the aggressive business practices that got it into so much trouble with antitrust regulators in the 1990s.

    Perhaps more importantly, certain discounts may run afoul of European market regulators, who are currently investigating claims that Microsoft violated antitrust laws.

    Discounting is a normal corporate practice. But under European law, companies that hold a dominant market position, such as Microsoft, are prohibited from offering discounts that are designed to block competitors from the market.

    Microsoft has been concerned with the legality of its discounts in the past, at one point consulting a London law firm on a specific discount plan.

    But in an interview Wednesday, the chairman of Microsoft operations in Europe, Africa and the Middle East, Jean-Philippe Courtois, defended the use of the special fund described in Ayala's e-mail, saying it was part of a strategy to be "competitive" and "relevant" in the market for big government and educational deals.

    "Linux is obviously a key competitor," Courtois said. Rivals use similar tactics, he said.

    Sun Microsystems Inc., for example, "is giving away StarOffice to basically governments and schools," he said. The suite of programs runs on both Windows and Linux systems.

    Courtois also said Microsoft sometimes gave away software to "very low income countries." He cited a program where Microsoft donated software in South Africa and helped train teachers to use it.

    Ayala's memo says the discounting fund could be used for "developed and developing countries" but says an "initial focus" was being put on Latin America, Africa, the Middle East, India and China.

    In his e-mail, Ayala focused on governments and large institutions. A separate memo obtained by the IHT shows a discounting program for corporate customers worldwide. Two days after Ayala sent his memo, Mike Sinneck, head of Microsoft's services depa

  25. Passive Resistence (acording to Gandhi) by famazza · · Score: 4, Interesting

    And those are the steps of the passive resistence:

    • 1. ignore - they ignore the problem and doesn't even recognizes it as significant
      2. ridicularize - they ridicularize the resistence as if it would avoid more people to join the movement
      3. worry - they worry and notice that it is really a problem, but it could be easily avoided.
      4. fight - they fight against the resistence with all its power.
      5. lose - they lose the battle and assumes that they must live with the new reality.

    That's the way it has always worked, from Gandhi to Luther King. All we need to do is keep living our lives with Linux (and FreeSoftware).

    --

    -=-=-=-=
    I know life isn't fair, but why can't it ever be un-fair in MY favor!?
    1. Re:Passive Resistence (acording to Gandhi) by Anonymous Coward · · Score: 2, Funny

      While Linux is riducularizing Microsoft, they should also insultarize and ignorificate them too! This will lead to both increased market competization and increased humorification.

  26. Re:And the dripping irony is by lpp · · Score: 2, Informative

    You're assuming that the "cause" of slashdot is to promot Linux, or to counter Microsoft.

    The stated "cause" of Slashdot is right there under it's icon, on every page.

    "News for Nerds. Stuff that matters."

    The direct "cause" of Slashdot (and OSDN and all of it's pretties) is money. It may have been different at one point, like when it was first started, and even until it became part of OSDN. But now, it is a business. They make business decisions.

    Just like Linux advocates who work for Microsoft...their personal desire to see Linux "win" doesn't change the fact that the company they work for is in it for the money.

    Ho-hum...

    _lpp

  27. So Obvious by Jason+Earl · · Score: 5, Insightful

    The reason that Microsoft is concerned about governments is that they know that governments have the power to set de-facto standards. If a business partner sends me an unreadable document I can probably work something out with him or her. If the government demands that any electronic communication be in a particular format, that's the format that you use. What's more, nearly everyone has at least some business contact with the government. If a government switches to StarOffice/OpenOffice then you can bet that within a few years StarOffice formats will be the standard in that particular country for almost everything. It won't matter that it some ways OpenOffice isn't as good as MS Word, because it is definitely "good enough," the price is right, and it is the format that you need to use to communicate with the government.

    Large institutions are a similar deal. If your University demands that you turn in your assignments in Microsoft Office formats, then you don't use WordPerfect or OpenWriter (or if you do you make sure to double check the formatting with MS Office before actually turning the assignment in. Likewise, if you supply parts to Ford Motor Company and they require that documents you submit be in MS Word format, then you don't use something else.

    Microsoft can't afford to lose these big accounts. If they do their entire monopoly will start to unravel around them. It is far better business for Microsoft to give away software to these key accounts than to lose them to the competition.

    1. Re:So Obvious by Jason+Earl · · Score: 3, Insightful

      Microsoft has been beating their competitors over the head for years by being "good enough" at a lower price. Microsoft executives were part of the wave that put commodity PC hardware everywhere, do you think that they don't know what commodity software is likely to do to their business plan?

      Microsoft knows that in the long run the OS and the office suite (and a whole pile of other software) are going to become commodity products. That is why they are willing to lose so much money starting up some of their other businesses. Microsoft's current business plan has serious problems.

      However, in the short term Microsoft has huge profit margins on Windows and MS Office. As long as they can keep up the appearance that they have a workable business model they get to rake in billions of dollars in cash, and, more importantly, they get to sell their stock options at an astronomically high price/earnings ratio. In other words, Microsoft's current business plan is part shell game and part extortion racket.

      Microsoft could make Linux and OpenOffice disappear tomorrow simply by drastically reducing prices. Only the hardest core of the Free Software movement would be interested in Linux and OpenOffice if Windows and MS Office cost 30% of their current price, and Microsoft has that much profit margin to give. The reason that Microsoft doesn't respond this way is that the Microsoft executives are more concerned about their own personal fortunes (tied up primarily in MSFT stock) than in the longterm health of the company. If Microsoft lowered prices to compete with Linux then MSFT stock would drop like a rock.

      Eventually Microsoft will lower prices to compete with Linux, but they won't do so until they have no other choice.

  28. This is a good thing by btakita · · Score: 2

    Competition is a good thing for both Microsoft and OSS.

    OSS causes Microsoft to lower its prices so people can afford it.

    Microsoft gives "inspiration" for OSS developers to "catch up" and provide more features.

    OSS will also do its own innovation for Microsoft to emulate.

    IT makes everything more efficient and out standard of living goes up.

    Everybody wins.

  29. We'd hope they'd stop breaking the law by burgburgburg · · Score: 4, Interesting
    Microsoft does not have the right to further it's monopoly and break US and EU laws just because they want more market share. They're not like everyone else. They are a civil judgement recognized monopoly. The rules are different when you're a monopoly.

    Also, most of us can easily imagine Microsoft salespeople approaching cash-poor, needy, developing nation government ministers with their "The first ones free" pitch, only to come back later when the government has set up some mission critical application and announcing "Time to pay the piper" .

  30. Because they're longer scared of Anti-Trust by Anonymous Coward · · Score: 3, Informative

    Looks like Microsoft has lost all fear of the anti-trust implications of their actions.

    I have to blame our dear president. I don't think he'd allow the Microsoft anti-trust case to go forward no matter how damning the evidence.

    I like some of Bush's decisions, but he really sold out when he told DOJ's trust-busters to dismiss the Microsoft case. It was such a strong case too...

    Bush has lost my 2004 vote over this alone.

  31. But ... by zonix · · Score: 2, Insightful

    But in this case the corporation in question has a monopoly - traditionally, they should be required to play by different rules than corporations which do not.

    z
    --
    What would an EWOULDBLOCK block, if an EWOULDBLOCK could block would? -- me
    1. Re:But ... by Catbeller · · Score: 3, Insightful

      "MS clearly does not have a monopoly "

      It does in the U.S. That Finding of Fact is permanent, legal, and binding. Their is no room for opinion: they are a monopoly. They must play by monopolist rules, which means they can't use the the market power and the wealth generated by that monopoly to dominate new markets.

      The reason we do it that way is to prevent a total takeover, horizontally and vertially, of all markets by a small number of supercorporations, or even just ONE corporation.

      If such laws were not passed early in the 20th century, Standard Oil would probably own all of the major businesses in the U.S. today.

      Antitrust varies from country to country, and frankly we don't really bother to enforce ours, during this admin. So other countries by default have stronger laws.

  32. Illegal Monopoly by meehawl · · Score: 5, Informative
    there is nothing wrong with this. If Microsoft "donates" or "discounts" its products for whatever "spin reason" they want to put on it, it's totally legal. It's dubious, but legal.
    Under US law you are totally wrong. It is illegal for a company that enjoys a monopoly in one area of business to use financial or "tying" arrangements to extend that monopoly into other areas. That was what MS was found guilty of. Sherman Act. Go look it up. It's there for a very good reason: a small dose of regulation to try to promote a healthy dose of fair competition so that the end consumers benefit.
    --

    Da Blog
  33. How do you undercut a free product? by PhxBlue · · Score: 2, Interesting

    You can't bid lower than zero! Even if Microsoft gives their software away for free, you still have to figure in the time and money you'll have to spend dealing with VBS bugs, SQL Server bugs, DRM bugs--oops, that's a feature--and so on.

    I don't think this strategy is anticompetitive, since Linux is free (beer); but I also don't think it will be all that helpful for Microsoft, even in the short term.

    --
    !#@%*)anks for hanging up the phone, dear.
  34. Somebody get that company a CISSP! by Spyder · · Score: 4, Insightful

    As a goon in the network brute squad for an enormous and paranoid company, I'm gonna say: How come all of these high level memos get out? Ok granted they've been able to keep their source code contained, but executive memos like this should be at approximitly the same sensitivity level. I could, if I were petty, ask why we should trust security and operation processes from a company that seems either not know what they are, or at least how to follow them. The information in the memo is not a great suprise to any market observer, but it could be, as experessed in other comments, legally damning.

    --
    Spyder
  35. Ho-Hum by 4of12 · · Score: 5, Interesting

    So what's the surprise about this? Given the recent SEC filing, there's no surprise.

    A significant step will be if MS decides that Linux is enough of a presence in the low-end server market (the one they're desperately trying to enter so there is some genuine growth of the company) that they decide to forgo the double leveraging strategy of tying products like SQL server, Exchange, and perhaps some parts of .NET so tightly to Windows. You know, like come out with a Linux version of these products to gain market share for them? If Linux keeps growing, then this will happen some day.

    Secondly, the variable pricing strategy of Windows and affiliated software has already been in effect overseas: it's considered so damn expensive that illicit copies are endemic. Another way of viewing it is that people willing to pay zero dollars but pay the hidden cost of enduring the risk of running illicit MS software (what that risk really costs is a matter for insurance actuaries).

    Those warez users have already made their own decision, with MS out of the loop, about the discount they want and what they are willing to pay for.

    Furthermore, if MS clamps down tightly on "piracy" via more sophisticated technical measures, then they may end up losing this base of warez customer that just might possibly in the future begin sending money towards Redmond after they've become addicted to MS ware.

    It's all very strange.

    --
    "Provided by the management for your protection."
  36. too little, too late by Connie_Lingus · · Score: 2

    Microsoft is dead, they just haven't smelled themselves lately...hasn't anyone told Big Steve that it is impossible to compete with FREE?

    $42.3bUS (or whatever)...wow, that's a lot of money, but not even close to enough to compete, in the long run, with OSS. It's inevitable that MS closed-loop model will go the way of the Wooly Mammoth. Linux is the disruptive technology that will bring Microsoft to its knees.

    --
    never bring a twinkie to a food fight.
  37. Correction by studious+jew · · Score: 3, Informative

    Ceren was 17 1/2 at the time those pics were shot (by me), and that was February 2000. So she's 20 now. Quite legal.

  38. MS products "free" like cocaine is "free" by dh003i · · Score: 4, Insightful

    These products are "free" like cocaine is "free". Free for the first buy. Free for the second buy. Free as long as it takes for you to be completely addicted and dependent -- then it's a leg and an arm.

    MS will not continue giving it's products away for zero cost to anyone. They will do so long enough to ensure dependency, then charge full price. If they kept on giving it away at zero cost, they'd go out of business, despite everyone using their products. That's obviously not what they want. Their plan is obviously to make governments and citizens dependent on MS software using mechanisms like the Word incompatability fiasco.

    At the very least, all government agencies should require that the formats in which they store information are completely OPEN and FREELY AVAILABLE for anyone to implement.

  39. Watching MS "fight" Open Source is like... by Anonymous Coward · · Score: 2, Insightful

    ...watching the last Dinosaurs do everything in thier power to draw down the asteroids.

    These guys are *so* missing the point that they can't even comprehend the big picture.

    Well, here it is, MS-boyz. Not that it will help.

    *Everything* that you hold dear about the way your company is. That's the secret. That's the gimmick.

    It's not pricing that's driving organizations to OS en masse.

    It's not security that's giving them your current and former customers motivation to migrate.

    It's not a desire to contro thier own destinies that has governments around the globe cheering "free the source" and "All GNUs is good GNUs"

    It's not the fact that your entire customer base is at, or just below the threshold of "having been put through too pain and oppression (YES!! OPRRESSION is the word!!) just from ONE vendor."

    It isn't that the companys leadership is severley out of touch with the needs and sentiment of the marketplace.

    It isn't that we are entering a new era when companies such as yours simply can not compete against volunteer services (i.e. Open Source / Free Software programmer-teams)

    Here's the secret.

    It's all of that.

    The platonic archetypical Form, the essence, the very nature of software megacorp is the problem. You are losing because of WHO YOU ARE, not because of any one thing you are doing.

    If you can make the change, transform your enterprise completely, great. You will still be around 10 yrs from now. Of course, you'll be just another OS/FS programmer-team, albeit a large one. And hey, a lot of us would welcome you.

    But as you are, you're a dinosaur. And the more you try to be a dinosaur, the sooner you'll pull down those asteroids.

    So go on. Fiddle with the licenses some more. Give your software away to anyone who suggests they're tinking of migrating to Linux/ free software. Spew more lies, obfuscation, FUD, and marketspeak into the public's ear. "Embrace extend, and extinguish" to your heart's content.

    We'll raise a toast to your valiant struggle and determination to fight to the very last. It's not much as virtues go, but if it's all you got, use it.

    And after the toast, we'll log back on and make some more changes to our software, publish them, and wait for feedback from our Users.

    The Users know the difference between a friend and a predator.

    The Users Know.

    The Users Know.

  40. Then they fight you by evronm · · Score: 2, Interesting

    In the 70's, there was a phenomenon known as, IIRC, the $30,000 coffee mug.

    Essentially what happened was Hitachi was offering a much cheaper alternative to one of IBM's mainframe products, and when Hitachi salesman came by to give their bids, they'd give managers a mug with a Hitachi logo on it.

    Managers soon discovered that if they had this mug on their desk when the IBM saleman came in, said IBM salesman would lower the price of the competing product by $30,000. Hence the $30,000 coffee mug.

    We all know what happened to IBM's market leading position shortly after this. And now Microsoft is on the same path.

    In fact, it looks like they're quite desperate. In Ghandi's "first they ignore you, then they laugh at you, then they fight you, then you win", we're clearly well into the "they fight you stage".

    "Then you win" is not far behind...

  41. That figures by matsmats · · Score: 3, Insightful

    The Norwegian government resigned last year from their deal with Microsoft for delivering software to the whole administration to look at alternatives. Linux was mentioned as one of the possible ways to go.

    Last week Steve Ballmer visited to have a meeting with the Minister of Administration. The most published result from the talk was that the government get disclosure of the source code. And probably, according to this, got an opportunity to renegotiate for a better deal.

    Just an example. But what it means is that Linux and Open Source gives (large) organizations a hand in negotiating price and conditions with Microsoft. I'm not sure if that means anything to the Open Source Movement at all.

    I'm not even sure if that's good for Open Source. Expensive and closed Microsoft is good for OSS, because that means Linux et al is where to go for open systems. If large corporations (in Norway, the government, military and one large corporation now has access to Microsofts source code) can get to the insides, that means a lot of resources that could go to the public good is kept locked up by MS anyway.

  42. Microsoft's foot shooting by Punk+Walrus · · Score: 5, Informative
    I work for a very large company that uses thousands of MS machines, and when Microsoft said after Win2K, they would no longer let us site license, we started to look at alternatives. Microsoft said "there is no way to get Product activation disabled, you must account for every computer." They stood to make millions from us, they must have thought.

    So we started a policy that banned XP for "security reasons" and made a sweet deal with Red Hat. Unless you had a valid reason to use an XP product, you used Win2K or Linux. Linux meant that we could use older machines on our server farms and pay virtually nothing because, funny enough, Red Hat gave us a site license for support. Not that we use it (or need to) very much.

    Suddenly, Microsoft "produced" a disk with Product activation disabled (sort of, it's kind of complicated), but claimed all kinds of voodoo like it had a copy protection so complex, we couldn't burn a new one from the master... even sector-by-sector copying. Bollocks. You could use any XP disk, just as long as you followed the directions MS gave us for the "master CD." Now we have a lot of the CDs all over the place, with a site key (and no, I won't give it to you, use Linux and be free) and the "process" to make it work legally by our contract. It took them two years to backpedal that far.

    It's weird, because for so long, Windows was essentially "free" (although, not legally) because until WinXP, more than half the people I knew had "borrowed" an OS CD from "somewhere." Microsoft knew that (I mean, come on), and like a drug pusher, made sure the buyer was hooked before they started charging (my proof is how they made MSIE a dominant browser over Netscape). But it's not that easy anymore. Linux desktops are getting better and better, and while Windows is easier to use for the most part, it's lack of flexibility, anti-customer anticompetitive stance, and their brazen arrogance in the field is really dulling their blade.

    But in this case, I can't fault them for trying to give away freebies, I mean, trade shows do that all the time. But what we should really be wary of is when they get politics involved, and claim stuff like DeCSS is proof that Linux should be banned in the US or something equally as stupid to us techies, but is all greek to your average politician who could be $wayed by $ome other thing$...

    __________________________________________________
    www. - where else can you get blogged to death?

  43. What support and stability? by Karl+Cocknozzle · · Score: 5, Interesting
    Corporations and governments are willing to pay the price of Windows to ensure that they have support and stability.

    What support? MS requires you to PAY for technical support. Their web-site is extremely user-unfriendly, a real PITA to get useful information out of. In the end, if you want support for Microsoft software, you pay for it in the form of a Full-time Employee who supports your network, or by buying "Per Incident" support from MS.

    What stability? There's a new "Security Patch" issued every two days that must be thoroughly tested to insure that it doesn't bring the entire office down in flames. (See story about Win 2k/XP patch from last month that made even the fastest machines crawl.)

    While OSS doesn't eliminate the need to hire an FTE to support your network, it does drastically reduce your licensing expenses. In our office we just build the cost of licenses for MS software in the price of any PC we buy because otherwise the departments would bitch a blue streak about how much "extra" all that "Included" software costs them. (I know this because we used to break it down for them, and three times annually some manager would pitch a bitch about how "IT Should Be Paying For My Licensing Costs".)
    --
    Who did what now?
  44. So how many Microsoft people are Astroturfing /.? by NZheretic · · Score: 3, Interesting
    From Thomas Fuller
    In the face of this competition, the Microsoft documents show the significant resources the company devotes to combat Linux, and the unconventional tactics it sometimes uses.

    Chris O'Rourke, a Microsoft employee, has described attending Linux World, a trade fair in California, where he "purported to be an independent computer consultant working with several K12 school districts," according to his e-mail, which was sent on Aug. 20 last year. K-12 schools include students from ages to 5 to 18.

    "Ha!" O'Rourke wrote in the e-mail to his colleagues, referring to his assumed identity. "In general, people bought this without question ... hook, line and sinker."

    O'Rourke said his goal was to glean intelligence about the competition. His guise, he said, "got folks to open up and talk." O'Rourke did not respond to a fax and voice-mail message seeking comment.

    Another employee, Todd Brix, said he attended a Linux conference in June 2001 in San Jose, California, pretending to be an "ambivalent OEM." Original equipment manufacturers, or OEMs, are companies such as Hewlett-Packard Co. and Dell Computer Corp. that buy Windows software licenses.

    Reached at his office Tuesday, Brix said that when attending such a show, "you don't broadcast that you're a Microsoft person."

    "You don't disguise that fact," he said. "You just don't lead with your chin."

    What O'Rourke and Brix describe is not just "disguising" their association with Microsoft, but is in reality an outright unethical fraud.
  45. Let me count the ways.. by gillbates · · Score: 4, Informative
    I hate Microsoft.

    Disclaimer: I'm an IT consultant for a small business using Access as its only DB.

    I've currently got a project that is easily 2 months overdue because of stupid bugs in Access. The worst is this one: if one of the databases becomes corrupted, all of the databases which synchronize with that DB will become corrupted as well. I've actually witnessed databases losing records during a synchronize because some stupid jerk of a programmer at MS thought that the good thing to do would be to delete records to make the tables match. So instead of the good copy filling in missing records in the bad copy, just the opposite happens - good records get deleted from the good copy, and now both copies are bad.

    At this point, it simply doesn't matter if Microsoft gives its software away - consultants like myself are going to charge you so much for working with their bit-trash that you won't be reaping any savings. Honestly, there's a reason why I charge more for MS support, and it's not because I'm greedy, but rather, because I recognize the headaches that it presents to the average developer.

    Quite frankly, I'm getting sick and tired of explaining to my customers that the reason why they're losing thousands of dollars a day in downtime and lost data is precisely because they chose to use Microsoft software. Get clue! - Microsoft does not care what happens to your data; they've already got your money, stupid! .

    --
    The society for a thought-free internet welcomes you.
  46. nice try. by twitter · · Score: 2, Interesting
    Wow, you said pirce, support, stability and Windows in the same sentenc as if Microsoft offered an advantage in any of these things. That's funny.

    On the licensing front, it's more like the mask is off. M$'s recent licensing was every bit as bad as the "zealots" and other free software advocates have said it would be all along. The Next Generation looks even worse than all but the most paranoid visions could predict. There, bare faced, is the power hungry monster we all worried about. It's not easy to force that on forgien governments and others who have considered things.

    --

    Friends don't help friends install M$ junk.

  47. Instead of whinging... by FyRE666 · · Score: 2, Informative

    ... if you're in a position to help increase Linux' piece of the market, use it! I recently started a new job at a company running virtually all MS kit, but soon realised they were far from happy about the cost of renewing licenses and keeping tag of all their paperwork to prove they'd bought everything.

    There was a glimmer of hope though, a couple of rack-mount linux boxes sitting idle. It was obvious that someone had attempted to set up some services at some point, but given up I presume so they were mostly badly configured or just plain broken. So I set to work in my (brief periods of) spare time. Samba, named, squid, apache, dhcpd, PHP, MySQL, iptables and some other bits and bobs later and just about everyone was impressed at how well they intgrated with the rest of the network. They actually make it much easier to manage the hundreds of Win98/2K PCs in use around the place! In fact, all server replacements/upgrades and additions will now be Linux boxes (currently changing all printing servers over too). I'm no hairy-chinned guru; so if I can manage this, I'm sure plenty of others (especially here) could take some time out to do some good ;-)

    The only hurdle is Exchange, although I'm sure the management would be thrilled to find a "Free" replacement without the quota limits (the version in use has a limit on the amount of disk space that can be used for mail storage, apparently you can pay more for a version with the FILESIZE_LIMIT=xxx constant set to -1 ;-) I've never tried the Linux exchange alternatives, but I'd be interested to hear of anyone who's done this...

    Can't see the desktops changing over to KDE or Gnome, since the software just isn't available for our needs, but in the server room, MS is simply an innefficient and unnecessary expense.

  48. Re:Microsoft? Doing something we don't like? Hwah? by MyHair · · Score: 4, Funny

    Cool! Now throw in some comedy, action, music, sex, plot and special effects in accordance with the formula and we have a box office hit!

    Let's call it Firebird.

  49. This may not be a simple anti-trust problem by hazman · · Score: 4, Informative

    At first glance, this looks like an egregious violation of most anti-trust laws. But digging a little deeper, one must consider that 'Linux', although a competitor of sorts', is not monetarily infringed by Microsoft's actions. 'Linux' doesn't lose revenue by Microsoft taking 'Linux' marketshare. IANAL, but I think anti-trust infringement requires either competitors or customers harmed, generally monetarily for an valid infraction to noted.

    Now if RedHat, a competitor who could be monetarily harmed, were to complain, Microsoft could be held in violation of anti-trust laws

  50. You have to give them credit by nate+nice · · Score: 2, Insightful

    They at least know Linux IS a threat to them. This has been said 1,000,000 here so I won't go further but another point I will make is that you would think the same Government in the USA that may be getting free software from Microsoft due to the competition of Linux would also say Microsoft is not a threat. It proves, once again, that competition is good and I cannot believe the government would not try and give technoligies every advantage such as Linux more help by seeing MS is a monopoly, considering THEY may get free software out of it.

    Not to mention, if MS can afford to give away their software for free, there has to be some anti-trust involved here. I though there were laws stopping a huge company from selling their products at a loss, or even free, to stop the competiton?

    --
    "If you are a dreamer, a wisher, a liar, A hope-er, a pray-er, a magic bean buyer ..."
  51. I don't know how to feel about this... by chrysrobyn · · Score: 4, Insightful

    Some say this is dumping -- selling their product below cost just to push out a smaller competitor. Sure, it fits that definition, but Microsoft is lowering its price to that of a competitor who is also selling below cost. Alan Cox's labor alone probably ads up to more than a penny on the two debian machines I have right now which would be two more pennies than I spent on their software. (Aside, if each of us sent Alan a penny for each of our servers, how much money would he have?)

    Some are calling this just another unfair tactic, losing money to maintain marketshare. Well, maybe it is, but isn't that what M$ is doing with the XBox? Rumor has it that Sony did it with the PS2 at least when it came out. Numerous other business models do this as well. Maybe Microsoft is turning to a business model where the software is free (under certain circumstances) and they earn their money on the support calls and Must Consult Someone Else certifications? Isn't that the business model all the free software people advocate?

    I don't like Microsoft's history or how they do business, but I'm racking my brains here to find a way that they're evil and my favorite business OS, Linux, is good. All I'm coming up with is either ways to kill Linux accidently or ways that this is a legit thing to do.

    Perhaps there's something to do with how the prices are different? Can it be proven discriminatory, or is it along the same lines as airline seat price differences?

    The best I have is that foreign governments can prohibit or tariff Microsoft OS imports that are under priced because they're being dumped-- when and only when they have local developers working on Linux and consider that flavor to be domestic. Much like the US is doing (illegally due to WTO agreements) with steel.

    Microsoft was evil, in my opinion, when they released IE for free against Netscape's paid-for product. Why is free as in beer Linux good when it's apparently forcing Microsoft to give their OS away for free? Aside from brand hatred of Microsoft, why do I want Linux to succeed? Simply because I can and have modified the source code (but that gets back to it being Free as in libre which I think should stay out of this argument).

    If it's reasonable to cast licensing paranoia aside for a moment, Microsoft appears to be offering those who cannot afford their software the ability to get upgrades for free without having to pay for migrating proprietary code to the Linux platform. If I replaced "Microsoft" with another business name, that would be A Good Thing.

    Can we write a law that refers to the Microsoft business entity specifically and prohibits them from "selling" their product at a loss as punishment for prior practices?

    1. Re:I don't know how to feel about this... by RealAlaskan · · Score: 3, Insightful
      If it's reasonable to cast licensing paranoia aside for a moment, ...

      I don't know that it is reasonable to cast aside worries about MS's licensing schemes.

      ... Microsoft appears to be offering those who cannot afford their software the ability to get upgrades for free without having to pay for migrating proprietary code to the Linux platform.

      I'm sure that they would like nothing better than to have it appear thataway.

      If I replaced "Microsoft" with another business name, that would be A Good Thing.

      That would be a deeply insightful comment, EXCEPT: if we were talking about another company, we wouldn't be talking about a company which had been convicted of abusing its monopoly power. Then, we might believe that the object of the exercise was charity, and it would be A Good Thing.

      Unfortunately, we are talking about MS, the convicted monopolist. The MS with a history of rude, rapacious behavior towards customers and competitors alike. The MS which has used all means possible to extend and maintain their monopoly, including `` ... offering those who cannot afford their software the ability to get upgrades for free ... ''. Thus, many of us don't see this as A Good Thing. In fact, we see it as more rude, rapacious behavior.

      The situation is different when it's MS instead of, say, RedHat, because MS is different than RedHat. At some point, automatic suspicion becomes reasonable rather than paranoid. I think that MS and Charles Manson have past that point at least once. So did IBM, before most slashdotters were born, but IBM has come back to the ``safe'' side of that point since MS lead them down an alley and molested them.

      By the way, the postage meter industry is just messy as the desk-top OS industry, except rougher. And except for the fact that anti-trust law worked there, sort of.

    2. Re:I don't know how to feel about this... by GlassHeart · · Score: 3, Insightful
      Sure, it fits that definition, but Microsoft is lowering its price to that of a competitor who is also selling below cost.

      There's a very big difference. Microsoft is a monopoly in the OS market as determined by a US court, and possibly would be in office suite market as well. This means there are actions that are legal for other companies that are illegal for them.

      In particular, lowering prices below cost is easily used to destroy smaller competitors, because it's essentially a cash burning exercise. The problem is, after the competitor is destroyed, prices will rise back far beyond previous levels to recoup the "investment". The consumers will only get cheaper products for a limited time, and no competition among vendors in the long run. This is a Bad Thing for the consumers, which is why there are laws against competing this way.

      Try to understand that the law is not primarily intended to protect the smaller competitor, but to protect the consumer.

  52. Re:Doesn't this violate securities laws by SuiteSisterMary · · Score: 2, Interesting

    In theory? No. If it leads to greater profits, or prevents the loss of a market or large customer (give the product, sell the service/support/maintenance, etc etc) then, arguably, it's fiduciary misconduct NOT to do it.

    On the other hand, speaking from experience, watching my company's stock go from 40 bucks to 10, in an afternoon, now less than 1, STRICTLY because the shareholders didn't like the 'we're investing our profits in R&D so we can show EVEN GREATER profits a year down the road,' you're right.

    The stock market suffers from what I like to call Human Game Player syndrome; at some point, somebody stoppped playing the game, and started playing the rules, and now the system itself is useless.

    --
    Vintage computer games and RPG books available. Email me if you're interested.
  53. This is a very smart move on M$' part.... by Newer+Guy · · Score: 2, Insightful

    They're protecting their market position in the face of a potential competitor. I wonder how many Vacuum Tube manufacturers scoffed at the transistor when it first came out. Where are they now? Micro$oft is correctly seeing Linux as a threat to their long term OS dominance. Their product may not be too great, but neither was VHS compared to Beta and where is Beta these days? M$ knows how to market...and maybe the OS/Linux community needs to learn how to also!

    1. Re:This is a very smart move on M$' part.... by Beetjebrak · · Score: 2, Funny

      Vacuum tubes and Beta systems are still being made and used. The funny thing is: they're in high end devices these days. Joe Shmoe uses transistors, audiophiles use amps with tubes. Joe Shmoe uses VHS, broadcasting agencies use BetaCam (if they haven't transitioned to full digital yet). Joe Shmoe uses Windows XP, 1337 H4x0rz and middle aged men with foot-long beards use Linux.. ;o)

      --
      Learn from the mistakes of others. There isn't enough time to make them all yourself.
  54. Services by truthsearch · · Score: 2, Interesting

    I believe in the long run (the very long run) Microsoft will be forced to become purely a services company. Software will eventually only have "use value" and no longer fake "sale value" as Eric S. Raymond puts it. As a services company they may survive, but not without strong competition from even the little guys. They know that if they can no longer convince people to buy their software they will have to sell themselves out for services, which they know will bring a far lower revenue stream and inability to become a monopoly.

  55. Guess the BSA Hasn't Heard This... by puppetman · · Score: 2, Interesting

    We're in the middle of a nasty registered-mail war with them about licencing of software.

    As a result, more and more of us are moving to Linux (developers can run whatever they want on their machines, so long as they get the job done). No licencing hassles, and no software-asset-management hassles.

  56. You need to get out more... by winkydink · · Score: 3, Funny

    I see a restraining order in your future

    --

    "I'd rather be a lightning rod than a seismometer." -Ken Kesey

  57. Source code security... by Anonymous Coward · · Score: 2, Funny

    Ok granted they've been able to keep their source code contained, but executive memos like this should be at approximitly the same sensitivity level.

    Every time someone successfully breaks into the source code repository at Microsoft, their brains melt. It's a very effective strategy - the source code equivalent of the Medusa. Only specially trained MS developers can bear to look at the code for any length of time and even then, the constant barage of marketing material renders them useless fairly quickly. Those developers who can't stay the course end up as Soylent Green for the canteen.

  58. Special Internal Fund? by Black_Logic · · Score: 2, Insightful

    Why do they need to draw from a special
    internal fund to give their products
    away for free?

    --
    Ansi's and stupid tricks!
  59. Nice Tap-Dancing There.... by ink · · Score: 4, Interesting
    No, you never do need to "transmit any hardware information to Microsoft" with open licenses. Instead, you have to have a valid Passport account which includes such metrics as:
    • Your Name
    • Your Email Address
    • Your Phone Number
    • Your Gender
    • Your Birthdate
    You need this, so that you can login to the open licenses website and aquire your serial numbers. You need to repeat this activity for every new open license that you buy. It's WORSE than the damn license activation in Windows. In addition, I've noticed that you now need to license individual services in Windows Server 2003 (specifically, the Terminal Services service), and then you get to use your Passport account to add "client access licenses" to it. It's no wonder that people are beginning to choose Linux, where you only need to install XFree86-Server and go to work, and never have to worry about having too many clients accessing it at the same time...
    --
    The wheel is turning, but the hamster is dead.
    1. Re:Nice Tap-Dancing There.... by Mister+Transistor · · Score: 4, Informative

      What's old is new again!

      Charging for individual services is somethings that IBM has done in the Mainframe camp for years. DEC also did it with VAX/VMS and VAX Unix. To effectively do this, you need a (near) monopoly so no one has anywhere else to turn for less onerous alternatives. It's very hard to pull that kind of nickle-and-dime-them-to-death crap-ola in the open source world.

      More recently, most of the commercially-available Unices (AIX, SCO, among others) were also sold piecemeal by services and per-user licenses.

      You had to purchase an N-User license to run N-1 serial (or virtual, later) terminals on a given system.

      Oh, you want TCP/IP networking? That'll cost you. X-Windows? That piece (Open Desktop) used to cost more than the base Unix (Open Server) package it ran under (Kinda like Windoze on DOS).

      Print Services? Costs extra. PC Interoperability (PC-NFS File Services)? Ka-Ching.

      This is the big reason I have been able to convince most of my consulting clients to switch away from SCO x86 Unix (once the IBCS2 emulation got all the bugs out) and run *free* Linux instead, which has all the bells and whistles the others charge an arm and a leg for *for free*, and would run their custom SCO binaries compatibly.

      Fortunately, in recent days, because of the fierce market competition Linux has provided, most of the commercial Unix vendors have "gotten real" in their pricing structure - most now offer the base package for free or low (media) cost, but still charge big $$ for "optional" packages such as network, X-Windows, or multi-users.

      if Microsoft doesn't learn from history - it'll be their fault if that policy causes big end-user backlash.

      --
      -- You are in a maze of little, twisty passages, all different... --
  60. Only works when...Oce (acording to Gandhi) by deacon · · Score: 2, Interesting
    The opponent has a strong sense of morals.

    The British were not willing to kill unarmed Indians forever.

    Americans were not willing to see blacks attacked with police dogs and fire hoses forever.

    Germans had no problem with killing and enslaving the "lesser races", and did so till they ran out of bullets.

    Soviets had no problem with putting "dissidents" into concentration camps in Siberia, and did so till it was no longer economically viable.

  61. Re:But you're missing the point by Dr.+Photo · · Score: 2, Funny

    In the specific scenarios covered by this story, Microsoft isn't dumping the price below the competition. It is merely lowering the price to the same level as the competition, which makes sense.

    Hmm.. compete with Linux on the basis of... price?

    Pretty soon, I'm sure we'll see Linux offered for free, too, in a retaliatory move certain to enrage Redmond. ;-)

  62. Re:Stupidity by MS bashers again... by wizkid · · Score: 2, Insightful

    Oracle and SUN didn't crush Dr Dos, and other competitors by writing there apps to not run on competitive OS's. They didn't crush the competition in the courts to suppress the new technologies, so they could remain dominant. They didn't buy competitive companies so they could bury the technology, to eliminate the compitition. They didn't give away they're software, so that competitors couldn't stay in business (netscape for example) They didn't buy judges and polititions to win cases in court. Any evidence of this is buried, so we'll never see it of course. They didn't use embrace and extend policies to corrupt and distroy open standards, which would have kept the technologies open for all platforms. Have you ever seen directx run on a Linux HP or sun computer?

    I'm not going to tell anyone that Oracle or Sun are Perfect. But they didn't break every law in the book, and hire the best lawyers in the business to get them off the hook.

    Yes, microsoft gets slammed on Slashdot, etc. But they've earned it!

    --
    I take no responsibility for what I say. Even though I'm never wrong :)
  63. Not dumping competing by zeoslap · · Score: 2, Interesting

    All they are doing is matching the price of the software they are competing against, how is that dumping exactly ?

    1. Re:Not dumping competing by Jason1729 · · Score: 2, Interesting

      If they sell below their cost to produce to hurt their competition, that is dumping. If they bring down their production costs, then they are competing.

      Jason
      ProfQuotes

    2. Re:Not dumping competing by jpetts · · Score: 3, Insightful

      All they are doing is matching the price of the software they are competing against, how is that dumping exactly ?

      Correct me if I'm wrong, but isn't dumping in this case related to how much it costs Microsoft?

      The cost of the competing software is immaterial. If M$ are giving it away for free, that is dumping, no matter what, unless the cost to them of each unit is literally zero dollars, shekels, Flanian Pobble Beads, Triganic Pughs, or whatever...

      --
      Call me old fashioned, but I like a dump to be as memorable as it is devastating - Bender
  64. Just remember... by zipwow · · Score: 4, Funny

    Just remember to take off your suspenders and at least trim your beard...

    -Zipwow

    (seemed fitting while we're throwing around sterotypes)

    --
    I don't know which is more depressing, that 2/3 didn't care enough to vote, or that 1/2 of those that did are crazy.
  65. Publish this by DarkOx · · Score: 2, Insightful

    We should publish this in as many places as possible so that noone make a fair deal with M$ after all now as an IT manager you know if you want 90% off all your windows licenses just tell the M$ sales rep that you are seriously considering swiching to linux or *BSD for all your desktops and servers. This is great M$ either looses money hand over fist handing out free copies of their software or they have to give up this anti-competitive strategy. Either way they just lost this little battle.

    --
    Repeal the 17th Amendment TODAY! Also Please Read http://www.gnu.org/philosophy/right-to-read.html
  66. NT by SHEENmaster · · Score: 2, Interesting

    is more than just NT 4. There's also NT3.51, that only I seem to remember. 2000 is really NT5, and XP is really NT5.1.

    Software installation kicks ass in Linux. My debian boxes can get all the software it needs online. A single command (or three clicks in gnome-apt) can install/remove nearly any program I know of. If you mean installation of commercial programs, Microsoft seems to have the advantage because of autorun(a security hazard) and not having broken binary compatbility (in theory, try running a V4W app in NT5).

    Put the source onto disc with a Makefile and an optional tcl/tk installer. It'll work a decade from now.

    --
    You can't judge a book by the way it wears its hair.
    1. Re:NT by IamTheRealMike · · Score: 2, Interesting

      Blargh. It sucks for everybody who doesn't use Debian (ie most). And of course with Debian you're reliant upon a developer packaging it for you, keeping it up to date, and you have to use unstable if you want to stay up to date. I'm talking about a real solution that scales to all the software in the world. See sig ;)

  67. Re:And the dripping irony is by Keith+Russell · · Score: 3, Insightful

    (sigh) Once again, somebody fails to recognize the segregation of editorial and advertising content. No biggie. It's just one of the fundamental principles of publishing. Hypothetical analogy follows:

    Every issue, Car & Driver takes a moment to remind everybody that the Pontiac Aztek is the Ugliest Car On The Planet. Yet Pontiac doesn't seem to have a problem with buying a 4-page spread promoting the new Grand Prix.

    Now, let's say General Motors has a hissy fit and withdraws their advertising from the magazine. The obvious message is "You won't get our advertising dollars..." with a thinly veiled "...unless you start writing good reviews of Pontiacs" in the fine print. Car & Driver is left with two choices. Either capitulate, praise the Aztek as the pinnacle of American design, and ruin their credibility for some filthy lucre; or tell GM "Bugger off. Chrysler wants that spread for a Pacifica ad." Either way, GM is screwed, because they're either denying themselves marketing opportunities in a key demographic, or they'll have to start paying for good reviews.

    OK, now let's turn the scenario around. Say C&D refuses GM advertising because their cars suck. Who in the industry is going to try to buy space in C&D now? What's the point, if the ads can be refused on a whim? Now, C&D is screwed. Their ad space will become so devalued, the magazine will probably have to shut down, unless they can get by on ads for "magic" oil additives and gadgets that create turbulent air flow in manifolds designed for laminar flow.

    Either way, somebody gets screwed. The only way to keep both parties happy is to keep editorial and advertising away from each other. Pontiac can still promote the Grand Prix, and C&D can still ridicule the Aztek, and neither interferes with the others' privilege to do so.

    This is one of the few things Slashdot gets right. Microsoft gets the eyeballs of a large, diverse congregation of geeks, the Anyone But Microsoft crowd gets one more reason to add their two cents, and Michael gets to keep his job. See? Everybody's happy!

    --
    This sig intentionally left blank.
  68. Slashdot and Microsoft: Connecting the Dots by Anonymous Coward · · Score: 5, Interesting
    Look: as a Linux user and open source developer, I like to bash Microsoft just as much as anyone. Their business practices are at best unethical, and at worst, flagrantly illegal. Over the past few years I have come to rely (in part) on Slashdot for its irreverant and challenging views on the Microsoft Monopoly. Say what you will about Slashdot's editors (poor spelling and grammar, blatant editorializing on a so-called news site, etc), but I really have come to believe that Slashdot represents an important and much-needed voice among today's corporate hype-driven media.

    Until now, that is. While helping my 16-year-old son (also an avid Slashdot reader) do research for a term paper on technology and journalism, I stumbled across some information that made me change my views about Slashdot completely. In a nutshell: Slashdot, and more accurately, its parent company VA Software, has deep and mutually influential ties to the Microsoft Corporation. In fact, Slashdot's own editors are paid (albeit indirectly) out of the coffers of Microsoft.

    Yes. It's hard to believe. At first I couldn't believe it. But a few simple Google searches and 45 minutes' research on Lexis-Nexis (as well as a couple of phone calls to a friend of mine at the SEC) revealed the following:

    • Three of the eight directors at VA Software also sit on the board of a privately-held company called Murberry-Slocomb, which as far as I can tell is some kind of stealth incubator/VC firm. Murberry Slocomb was founded in 1996 by none other than Paul Allen, and is a subsidiary of Allen's company Vulcan Ventures.
    • Most (>80%) of Murberry's funding, including compensation for its directors, comes directly from Microsoft Corporation.
    • In 1998, VA Software (parent company of OSDN, which is the parent company of Slashdot) receieved an investement of $3.8M from Murberry-Slocomb.
    • The 1998 annual report for VA Software actually mentions this, and goes on in detail about how this infusion of capital has helpled them maintain and operate OSDN.


    At first I was more amused than shocked; I mean, the technology industry is notoriously incestuous and its leaders, even those who are in competition, often sit on the same boards and are members of the same organizations. So what if a few board members of Slashdot's parent company are also directors of a company funded by Microsoft? Well, it gets more interesting.

    As it turns out, in May of 1999, VA Software submitted to the SEC Form 5506-D, Application for Direct Non-Ownership Subsidization. This is the form that a corporation will submit to the SEC when it wants to directly fund a subsidiary from its own parent corporation. (It's basically a tax shelter for companies with a lot of subsidiaries) The application was approved in July 1999. The applicant name? OSDN. In other words, Form 5506-D basically eliminated the middleman between OSDN and Murberry-Slocomb. Following the money, I now saw that OSDN was being funded directly from an infusion of captal that Murberry-Slocomb has receved from Microsoft!

    Weird. I know. But what does this all mean? Honestly I have no idea. I'm not the custodian of any privileged information. A look at VA Software's web site and a Google search is all anyone needs to find the same information that I found. Are Slashdot's staff being paid through Microsoft? I sincerely hope not. But the facts are there and it sure looks like it. More importantly, what does this mean for the future of Slashdot? Can any grain of objectivity or journalistic ethics be preserved? What happens when the company you are bashing, nay, the very company that you preach the loudest against, Microsoft, is the same company that signs your paycheck? Could there be a deeper link still? Who knows. As far as I'm concerned, I'll never look at Slashdot the same way, ever again.
    1. Re:Slashdot and Microsoft: Connecting the Dots by IamTheRealMike · · Score: 2, Interesting
      This is interesting, but hardly news. Take a look around - adverts for .NET and Visual Studio flood this place every single day. It's one of the biggest ironies of the open source movement IMHO. Even without odd corporate ties, Malda and the crew have been paid by Microsoft for a long time now.

      So, that leaves us to speculate as to why. Well, I think that's pretty obvious too, nothing strange going on here. Slashdot is a concentrate of a huge number of IT/tech oriented readers. Not all of them hate Microsoft in fact - remember only 50% of slashdots readers even look at the comments, only perhaps 1-2% actually post. So, they get more "bang for their buck" by targetting Slashdot than most websites. They don't have to work hard to find people interested in programming - we're all right here.

      And as for those who hate Microsoft? Well, MS are a monopoly, never forget that. There is only so much preaching to the choir that you can do. They want to sell to people who don't already use their products, as well as those who do. What better place to advertise than here? Why, it's almost as if everybody who is no longer their customer passes through these doors at some point. A marketing mans wet dream.

      And so why wouldn't they want to keep Slashdot afloat? Letting it die would satisfy some Microsoft employees I'm sure - but they're geeks too you know, and some (many?) read it as well. Might as well keep all your potential customers in one place, rather than let them float away on the winds and currents of the net. Makes sense, to me at any rate. I'd do it if I were them.

  69. Comment removed by account_deleted · · Score: 2, Funny

    Comment removed based on user account deletion

  70. Re:MS Bashing by demo9orgon · · Score: 2, Interesting

    I agree, the USGOV basically thwarted the judgement of brighter minds and capitulated...now M$ publishes its own money. Short of M$ being shoved out, like Germany did to Scientology, M$ is going to show up to play no matter what.

    However, unless there's some kind of "ABSOLUTELY NO ALTERNATIVES" clause, we can still encourage the deployment of adjacent alternatives on both the desktop and the server space. You can bet that it's something that's happening in areas where a corp. or gov. has been given software from M$ because you're not going to put WinXP/2k3 server on a p2-350, which is still a good desktop for business under Linux...the newer M$ software still requires newer hardware; which is why a gift from M$ is rarely the gift it sounds like. When they say they are "purely a software company", they seem to leave out other key departments like "Driving computer industry", "Licensing enforcement (BSA)", and "Buying up the Competition".

    What would be interesting is if anyone has information about what kind of restrictions are placed upon the recipients of Free M$ products. That would be the kind of juicy stuff that M$ would absolutely go apeshit over if it ever saw the light of day. I'm sure some governments would be interested in terms and conditions too.

    It's one thing to seem benificent and an entirely different thing to bait and entrap. The real thing we should fear is the complacency of people who no longer need to strive for a good solution when the one handed to them is good-enough. And then, when they decide to roll their own solution they run into the true boundaries of the questionable gift (I wonder what M$ calls their server-cabinet inspectors..."Local Sales Reps?").

    Even in the face of crushing famine and drought and starvation people in Africa saw through the efforts of the USGOV and Monsanto to proliferate low-to-no-cost GM seeds which would lock up the surviors in a no-win situation where they wouldn't be able to grow their own food from the harvest--and due to cross-pollination with unmodified crops everyone would suddenly come under Monsanto licensing and inspections. In many ways, (Free) M$ products are much the same thing...only you can't eat them...they eat you when M$ comes to harvest anything you've done to help yourself using their FREE kit. I can almost feel a "In Soviet Russia..." comment in there somewhere.

    --
    Every new form of media has it's own Requirimento
  71. These leaks will vanish when MS DRM hits by MarkRH · · Score: 3, Interesting

    Lost amongst all of the discussion about Microsoft's tactics is a realization that this kind of story may vanish in six to nine months, when Microsoft's Rights Management Server begins selling (and is used by Microsoft itself, no doubt).

    Microsoft's RMS, in conjunction with Outlook, would prevent emails from being forwarded or printed by individuals who had not been preapproved by the sender. (And methods like "Print Screen" don't work, either.) Obviously, this becaomes even harder to crack once Palladium/NGSCB takes effect in 2005.

    It was interesting listening to the NGSCB presentations at WinHEC. All I heard were MS employees describing how NGSCB would prevent company secrets from being leaked. Given the context of this story, is that a good or bad thing?

  72. Just what does 'they' refer too.... by nortcele · · Score: 3, Funny
    unless she signed a release, aren't they technically hers? Or am I wrong about this (seriously)?
    Your sentence leaves minds to wander/wonder exactly what you refer to as 'they'! After looking at the picture very closely. I'm pretty sure they are hers. And as for signing a release...(in the case that they aren't hers)... that's between her and Dow-Corning and none of our business.
  73. Unsurprisingly, as in Peru, Spain... by d-Orb · · Score: 3, Interesting

    For many administrations, the political point of Free Software is clear: no vendor lock-in, spurn local economy and so on. While this works quite well in places like Germany at all levels within the administration, in other areas, where the "Free Software Fever" has only caught partial areas of interest, M$ is doing just what it says in the memo. For example, in Peru.

    Last week, Steve Ballmer was in Spain. which some of you might know spurned the Linex Linux distribution (in Spanish), proposed a small autonomous community (a bit like a state, for the benefit of American Slashdot readers :D), which is now being deployed in other autonomouse communities, as seen here.

    Steve Ballmer was giving Free Software a bollocing, saying that it was a waste of time and so on. I didn't see the story in /., but it was covered in both Barrapunto (the Spanish-speaking /.), and in some other blogs. Ballmer offered the Spanish government 25 M EUR worth of software (by that, read Windows/Office licenses) for education.

    Clearly, M$ is seeing that local efforts can be thwarted by giving 500000US$ (in the case of Peru), or 25M ? (in the case of Spain) worth of licenses. The aim is to stop the local movements spreading, as it is seen in Spain (where other regions are taking interest in Linex) to a national level. In Germany, as the push comes from the top (or so it seems), these techniques don't work.

    We'll see where all this leds us to in a few years, tho'...

  74. FFS by hayden · · Score: 2, Interesting
    Windows NT is fading away. Win2003 is a good piece of work from what I've seen/heard - I wouldn't be so fast to declare Linux superior, not any more.
    This has been said by MS apologists about every major release of a server operating system since NT. I've just read the Unix haters handbook and it raves about how Unix is going to be killed off by the messiah from MS. And just like every version since it doesn't get close to the stability or usefulness of unix

    Don't get me started on the people who use "accountability" in the same sentence as "MS software" ...

    --
    Nerd: Derogatory term typically directed at anybody with a lower Slashdot ID than you.
  75. Lowering the cost is not the answer... by Anonymous Coward · · Score: 2, Interesting

    improving the quality is. Or would have been, if they had listened to me over the years ago every time I was asked what new feature I wanted to see in Windows. Without exception, my answer was always "None, just make what's there work right!"

    I am done with Windows now. I was a dyed-in-the- wool Windows advocate for years. It took many, many mistakes on Microsoft's part to drive me away, but they did it.

    Case in point: until the beginning of this year my home network was exclusively Microsoft. My server ran NT 4.0 with Small Business Server on top for printer/file sharing, sharing FAX services over 1 phone line and Internet access over another. I had as many as 7 workstations, all running Win95/98SE and, at the end, one running win2k (don't ask, I consult, develop hardware and software, write technical documentation, have a son that MUST run the latest games AND they're my toys).

    Starting in January, my network hides behind a Linux firewall/router. The SBS server is down until I can replace the OS with some flavor of Linux. This is the result of of two things: signing onto my server one day and finding an advertisement on the desktop and endless, endless hassles with MS's proprietary proxy server protocols while trying to develop embedded web stuff.

    There is now one Linux workstation, any new workstations will be Linux and there will be no XP workstations! This is a result of one weekend playing with the new "improved" XP desktop and looking at the traffic thru my server to the Internet while that XP station was running (tell me why in hell XP has to phone home when I open a help file?).

    My primary concerns are now security and usability. All of the software I mentioned above was purchased; cost or the threat of an MS audit was not the problem. In the last 4 months I patched the Linux on my firewall/router once. Any guesses how times I patched NT or the many services that make up SBS in the four months preceding that? I don't remember myself but I do remember checking once per week and never, not once, NOT having to download a patch for some MS piece of software.

    Free is not enough! Pay more than lip service to security and quality issues, quit invading my system for personal information just because I purchased your software, start thinking about MY rights instead of Hollywood's and get rid of the ever-fancier eye candy on each new release of your desktop (I got work to do, damnit!). Then maybe I will consider Microsoft software again.