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Details of Linux-in-Munich Deal Revealed
An anonymous reader writes "USA Today is running a piece about the lengths which Microsoft went to in order not to lose the government of Munich's account to a Linux-based proposal from SuSE. Interesting to see how these types of contracts are structured, and just what Microsoft is willing to give up to prevent losing to Linux."
It is really impressive to see that Munich went with Linux even though the price tag was higher than Microsoft's. The affordability of Linux is a definite plus, but too often Linux is played up in the media as being the "less expensive alternative to windows". I think that this downplays the other great advantages of Linux. Glad to see that Munich appreciates a great product when they see one.
lysergically yours
From the article: "...Mozilla, a Web browser that can perform basic workplace tasks"
How about: "Mozilla, a web browser with more features than Internet Explorer"
...Microsoft last March dispatched CEO Steve Ballmer to the rescue....Documents obtained by USA TODAY show Microsoft subsequently lowered its pricing to $31.9 million and then to $23.7 million -- an overall 35% price cut. The discounts were for naught.
for the non believers: The CEO of MS himself went to a sales call and lost the sale, you better start beliving Linux is a threat to MS.
3 Cheers for all Linux, OSS, and Choice! Hip Hip Horay!
... was leaning toward a switch to Linux, the upstart computer operating system whose open-source code is continually improved by volunteer programmers worldwide.
How many big contracts have to be won by Linux companies before the papers realize that it's been around for a dozen years? Or that not everybody working on OSS is a volunteer?
Quote of the year IMHO: "Microsoft's philosophy is to change our software every five years," Strobl (Munich council member Christine Strobl ) says. "With open-source, it is possible for us to make our own decision as to when to change our software."
- The negociations where in step with what Microsoft is accostumed to doing with big accounts, regardless of who or what the competing "thing" happens to be. And it's no different from what other big software houses (Oracle in particular) do as a matter of fact when engaged in stuff like this. The idea that Microsoft was somehow "more desperate" because it was bidding against Linux is stupid.
- Yay free software. They ended up spending millions of dollars more over the Microsoft package. I'm sure training and attrition will offset whatever benefits they could have realized by avoiding the "forced upgrades", which SuSe will most certainly start doing eventually when they come to their senses, just like RH did. In any case, Microsoft was willing to defer the upgrade cycle for them. So it was more expensive and it will probably be about the same in the long run
- The vote was 50-30. Doesn't seem to me like an "overhelming" victory. Well, I guess it depends who you're rooting for.
Furthermore, I'd like to continue seeing articles about this topic here. I.e., how is the switch going, how much Munich ends up spending over the next 12 months, what their rate of attrition is, etc. All of previous articles smacked of "hahaa, we stick it to the man!!!1", which is nice but worthless unless all we're interested in is FUD and fluff.If anything, this will be watched by other cities and companies to see how well it works. I hope it does work, because Microsoft will be forced to change the way it does business. But it better damn work.
In the case of Munich, as the USA article points out, it's the fact that the city is replacing desktops.
To Microsoft, this is the Kiss of Death. They really only make a huge profit off of two items:
Desktop OS - the so called "Microsoft Tax" that is the reason why when I go to dell.com (well, not that I would, I'd go here instead for my Unix needs), I can't get a $100 price discount on a new computer by having it be "naked".
Microsoft Office
Other than these two, they don't make a lot of money on other stuff. Oh, some on server licenses, but a pittance compared to Desktop OS sales and Microsoft Office. The Xbox is losing money, I haven't heard anything profitable about their cable investments, and their games division (with the exception of the Xbox) is doing decently.
But the two things that keeps them with that $35 billion in cash is Desktop OS and Office. And Munich basically said "no" to both of them, so they would have the ability to upgrade when Munich wanted, not when Microsoft wanted.
And that's been Microsoft's winning business edge for years. We'll sell you Windows 98 - and in 3 years, you'll have to get Windows 2000 if you want to be able to do stuff with your vendors, your co-workers - you'll have to put it onto your machine at home if you plan on taking work home and doing stuff there.
Munich just got off the Wheel of Upgrades. Now you wonder how many employees will feel they have to upgrade their home computers? How many employees (espeically managers) will go to the IT department and say "Hey, I got a laptop - make it so I can do the same stuff I do here in the office on the road", and they walk out with a SUSE installed machine.
There's still some things they'll have to do on the Desktop end to make things as easy to use as the Windows world, and I trust that will be part of what Suse and IBM were just paid for.
But this is a major step for Linux in business, and Linux on the desktop. And what can Microsoft do about it, other than really compete for the first time on something other than forced installation upgrades?
For the record, I don't think Microsoft is "evil", but I do think they haven't had a real challenge in business because of their predatory business practices. I think it's great they're having a real competitor. Costs will go down, products on both sides will get better, and it someday I might be able to migrate back from OS X over to Linux - once it provides the same ease of use with Unix power I get from OS X.
And competition with Microsoft is just the thing it needs to get itself there. I'm patient - I'll say another 5 to 10 years before I have what I want.
But Munich is a good start.
Oh, and this is all just my opinion - I could be wrong.
52 Weeks, 52 Religions with John Hummel
That they lost?
When you lose something irreplaceable, you don't mourn for the thing you lost, you mourn for yourself. - Harpo Marx