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Munich Spurns Steve Ballmer's Software Rebates
Kurt Pfeifle writes "Steve Ballmer's recent trip to Munich to offer up to
90% rebates for the Microsoft Software Assurance and
Licenses was in vain. The ruling party of Germans biggest city and self-proclaimed 'technology capital' now decided
to migrate 14.000 workstations to Linux and an OSS
office suite. A study comparing the alternatives had
assigned 6218 (out of 10.000) points to Linux/OSS,
while the MS Windows platform only scored 5293. Babelfish translation of the latest newsticker story."
Anyone want to do the math on this one?
If we assume Linux never existed, and therefore the 90% cut price offer never made, making Munich pay full whack for 14,000 copies of Windows, how much would this cost (on this scale - obviously i doubt they would pay the full ~$300 permachine?)
Or put more directly... how much has this shaved off the MS bottom line for this financial quarter? If anyone knows what the purchase rate for both WINDOWS and OFFICE on this scale... please... let us know the math!
-Nex
This sig has been deprecated.
Is there anyone out there who mantains a list of countries, cities, companies, &c who have made the move to Linux? If not...well, it would be useful for making Open Source pitches to prospective switch-ers in government, business, and the like. To be sure, Munich isn't alone, but how much company does the city have? I imagine something like one of those push-pin maps, sorted by distro, perhaps, and by the size of the switch (citywide, countrywide, corporate). Would be neat. Does it exist?
Actually, the other possibility is that they are looking at the over-all PR picture and figure that the loss in profits is worth not getting the bad PR of having a whole nation convert over to OSS. In which case it could be looked at as a great deal from the Munich government's prospective because they could always make the switch to Linux later if MS starts trying to tie them down.
I think it shows even more strongly the wisdom of the Munich government in their decision to take government software out of the hands of a proprietary company.
Rules of Conduct:
#1 - The DM is always right.
#2 - If the DM is wrong, see rule #1
First LinuxTag issues SCO with a cease or desist order, and now this. Godspeed you! Germans.
Well, anything that stops Balmer dancing about like a happy, sweaty monkey sounds good to me. I'm only surprised Windows scored so highly!
;-)
As an aside, we use Star Office at work on about half the Windows machines, but the people using it do seem to be envious of the staff with MS Office installed. Problems with printing multi-page spreadsheets/images, problems opening files etc, and lack of speed seem the biggest problems.
Although, since the sales/service people are still mostly using PIIs with 64-128MB of RAM, it's little wonder. I recently built OpenOffice on my Gentoo box to see how it compared, and it does seem a lot faster, even though my Gentoo machine has a slower CPU (Athlon 1.4ghz) than my office machine (2.4ghz P4 - although the office machine has a shit SiS onboard graphic chipset).
I doubt the management would like all the PCs building OO from source for 3 days though
Code, Hardware, stuff like that.
Microsoft has actually learned a lot over the past decade; particularly in the area or recurring revenue streams.
At this point a significant portion of the company revenues are derived from subscription services. Even if they waive all future upgrade license fees, they still have support contracts, MSDN and other subscriptions to services many large organizations will rerquire. It'll be vary interestingto see what Balmer is willing to offer to get this contract/deployment. There has got to be a point below which they will refuse to go. 'Under no circumstances, loose to linux' must have a limit. I just wonder where it actually is.
--CTH
--Got Lists? | Top 95 Star Wars Line
Once you are used to multiple desktops (no, that measly 4 add-on powertoys desktops don't count.), Unix-style copy-paste and much greater flexibility and configurability, you will never go back to Windows.
It's pitty, because it finally improved (not perfected though) its operating system that can be considered stable now. But, its too late for most of the people I know. I can tell that ALL science related machines (PCs) we have today use Linux instead of Windows both here in our department and in the part of the Los Alamos National lab. I know, and I'm proud that I was one of the few who started using it, and probably had some effect on this move.
On the other hand Linux is not suitable for everything. I need a decent/mature interface and a machine which requires little maintanence at home, at which point I picked MacOS X instead of Microsoft because of the past experience. Which works pretty well for what it's supposed to do and more... So, again Microsoft lost one more individual as a customer. That's the primary term for Microsoft, instead of the user.
Compatition is good. Now, they improved their products significantly (we must be fair!), and they're trying to reduce their cost, at least, the initial cost. That's also an improvement. Let's be naive and wish that it's not a trick to tie the costomers to rip them later. Actually, that's exactly the pshycological behaviour of most people when the Microsoft is involved. We do NOT trust them anymore...
I do not wish that Microsoft disappears forever, but just wish that it can understand what they did wrong in the past, and try to repair the damage they did. However, it does not seem what is happening here.
They "could" actually release "microsoft office" for linux. That would be an idea!
Seriously... while it is a comercial product, it is one that is actually *used* by a great many people. What better way from profiting from the free software movement then actually releasing comercial products for it. Rather then offering a discount of 90%... offer them a product they will buy.
Assuming the price is the same... city saves money on operating system, but doesn't have to spend money on migrating documents.
There is no sanctuary. There is no sanctuary. SHUT UP! There is no shut up. There is no shut up.
I agree with you about having to mean it but I am confident that M$ would immediately jump and offer discounts if they ever heard company X say we'll do feasibility and cost study on Linux. M$ would offer discounts just not to have the study done. Now companies/governments have some leverage where as before they'd always tell you "Screw you, You'll take what we give and like it." Take the changes they made to their license policy a year or so ago. They made a killing at the expense of their customers/users. I don't think they can low ball people like that anymore. No wonder why they are supporting SCO.
-----
One is born into aristocracy, but mediocrity can only be achieved through hard work.
They "could" actually release "microsoft office" for linux. That would be an idea!
/. headline (and the next one a day later :): Linus prophecy fulfilled as Gates loses face over Linux Office.
No it won't and for a simple reason: more than anything else, Bill Gates likes to win. The money is incidental. Yes I am being entirely serious. Go and read Accidental Empires by Robert X Cringlely or Big Blues by Paul Carroll or any other detailed treatise of the early (and subsequent) days of the PC. The overriding impression of Gates is that he wants to win. It's a philosophy that permates the organisation from the top down. Why do you think Microsoft Account directors are being given millions in discounts and orders to "under NO circumstances lose to Linux"? Surely that money would be better spent in the medium term in other ways? But seen in the context of "winning the business at all costs" it makes perfect sense.
Here's the telling quote and you can be really really sure that Gates has read it and knows it:
"If Microsoft ever does applications for Linux it means I've won" - Linus Torvalds. Source here
This is a lovely quote from Linus and I'm sure he knew exactly what he was saying by putting it in terms of the "win-lose" mentality of Microsoft.
Office for Linux would be a huge loss of face. Can you imagine the
The IT press would be all over it.
--- Hot Shot City is particularly good.
The difference is that OpenOffice.org is Free Software. You can download the program from the Internet. The city of Munich could even make money selling install CDs.
You don't have to go those lengths. Here is what you do. I mean this, this actually works.
Install a PC in the office of the CIO that's running linux or freebsd. Set a screen that shows a penguin or something like that. Install openoffice, set up a handful of programs like mozilla, a jabber client, and make their icons prominent on the destop.
Also install two or three linux servers in the server room. They don't have to be doing anything but it would be great idea to lable them "postgres server" and "Mail Server".
When the time comes to negotiate the new contract the sales rep will notice the servers (they are trained to look for them) and ask about it. At this point the CIO (and not anybody else) says "We are doing some preliminary analysis about the suitablity of a linux desktop and some servers". when the sales drone asks how it's going just say "it's too early to tell but so far it looks pretty good, Hey let's go to the server room and let me show you that new exchange server we installed".
Bingo!. After touring the server room your company will be offered a substantial discount on your software licenses. The bigger you are the bigger the discount.
Paying retail for MS licenses is like paying the sticker price for a car. Only the most stupid idiot CIO will do such a moronic thing.
War is necrophilia.