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Microsoft's Masterpiece of FUD?

walterbyrd writes "Linux Journal has published an article by Glyn Moody, about the Microsoft sponsored study: The Economic Impact of Microsoft Windows Vista (pdf). Apparently Moody feels that the economic effects of MS-Vista being delayed in Europe would not be as dire as Microsoft would have the world believe." From the article: "The implication is that the European Commission would be crazy to jeopardize these wonderful benefits by clipping the wings of this digital golden goose, or even grounding it completely. The white paper looks tremendously professional, and is filled with tables, bar and pie charts; it has suitably serious discussions of methodology, and even introduces a few measured caveats: who could doubt its conclusions? What makes this FUD so impressive is that this attention to detail obscures the sleight of hand that is going on here. The white paper may predict sales by the "Microsoft ecosystem" of over $40 billion in six of Europe's biggest economies, but what this figure hides is the fact that income for Microsoft and its chums is a cost for the rest of Europe."

25 of 283 comments (clear)

  1. Microsoft's Masterpiece of FUD? by Snarfangel · · Score: 3, Insightful

    Isn't that a bit like saying "Rembrandt's Masterpiece of Art"? There are so many to choose from, each one brilliant and unique in its own way.

    Unless the title is referring to the piece of work a journeyman turns in to become a master craftsmen, in which case he's scaring me.

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  2. Yeah, someone should ban the term wealth creation by Colin+Smith · · Score: 4, Insightful

    It's wealth movement.

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    Deleted
  3. Threat summarised... by MosesJones · · Score: 5, Insightful


    Microsoft will delay shipping Vista to the EU until after SP1 this means European organisations will
    1) Not have the "benefits" of learning about the early security holes
    2) Not have the "advantage" of paying the launch list price, they'll have to wait until Microsoft slash prices as Vista doesn't fly
    3) Have a mature support market to fall back on
    4) More time to work out if its actually worth it

    Brilliant, its like testing something dangerous on lab rats but we get to use Americans instead.

    --
    An Eye for an Eye will make the whole world blind - Gandhi
  4. Re:Wow! by Anonymous Coward · · Score: 2, Insightful

    I know you are trolling, but no company inherently deserves to make money. Monopolists who engage in illegal anti-competitive behavior especially do not deserve to make money. Europe should puts its $40 Billion behind an open source operating system and see the real benefit of spending money on something that gives you back real returns, not just returns to Microsoft's coffers. In summary, the American company Microsoft has no inherent right to do business in Europe and if Microsoft continues to break the rules here and abroad they can expect to be tossed aside. I, for one, welcome the time when real competition returns to the computer software OS marketplace. As it is, Microsoft sits on its laurels and just expects people to buy Vista no matter how shitty and bug-laden it is.

  5. Reflection by TrappedByMyself · · Score: 5, Insightful

    Wow, hit Slashdot for the first time today and surprise surprise, its the daily MS bitching thread.

    I challenge everyone to take 80% of the time they spend complaining about Microsoft and devote it to something else such as contributing to an OSS project.

    --

    Help me take back Slashdot. When did 'News for Nerds' become 'FUD and Conspiracy Theories for Extremist Nutjobs'?
  6. Re:Wow! by Znork · · Score: 2, Insightful

    "For a company to make money, it costs consumers money."

    While this may seem obvious to you, it's a fact that most proponents of intellectual 'property' in general prefer to utterly ignore.

    They get a much more compelling argument if they say 'we can create X amount of wealth in your economy if you give us monopoly rights', instead of 'take X amount of money from everyone else and give it to us so we make more money'.

    It may amount to the same thing, but the presentation is important.

    See, as long as they can hide the actual cost they dont have to justify it, nor will the public and politicians question why these specific costs give so little value for the money.

    I mean, how would it look if they had to justify a cost of $40 billion of what is essentially public funding and produce something that can barely compete with free opensource software? That'd buy a lot of healthcare, education or infrastructure, were those resources spent elsewhere instead.

    "Thank goodness we have guys like this to point out these secrets of the Economy."

    With the amount of willful ignorance and intentional misdirection going on among the IP related lobbyist crowds, unfortunately it does seem necessary.

  7. Re:Yeah, someone should ban the term wealth creati by rts008 · · Score: 3, Insightful

    A poster on the linked page (http://www.linuxjournal.com/node/1000097) gave the best possible reply, IMHO:
    "How does it help?
    Submitted by Bozikins (not verified) on Wed, 2006-09-20 17:58.

    Why is it beneficial to anyone that a new operating system will require 100,000 new jobs to support it - couldn't they be better employed improving the human condition? Should we consider the parable of the broken Windows mentioned elsewhere ("http://en.wikipedia.org/wiki/Parable_of_the_brok en_window") to be significant?
    "

    If your not familiar with the broken window parable, follow the wiki link-perfect reply!
    I was not aware of the broken window parable until just a few minutes ago, thus fell enlightened;It is a good day for me!

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    Down With Slashdot BETA!!! I've been around the corner and seen the oliphant; you can only abuse me from your perspecti
  8. It's not a monopoly... by zogger · · Score: 5, Insightful

    ...if everyone gets to own it in the FOSS way. Two different beasts in this discussion, even though it's all about software. There are just so many ways to build a system now with FOSS, and with various degrees of cost from free as in beer to expensive, that it is doubtful any one system or way or pricing level will ever become dominant like MS has become, and being open, you can't get locked in, in the same manner. Here's an opportunity for europe-say-to only drop 5 billion on mass adoption of FOSS, and save the other 35 billion to use in other areas.

          Open source leads to open standards as well, and that is a critical issue now, especially with governments and business. A document you make today with open standards will still be readable for free any number of years from now.

        Look at that reference in the latest vista candidate article, MS will still hose any other system you have on the disk, on purpose, if you go to install it(guru tweaking not applicable, I mean for joe regular). What would they do if it was the opposite on purpose? That's the different mindset we are facing, MS is their way or the highway,their monopoly status will remain and it will be serious folding money no matter what you are talking about, or FOSS which is primarily free and Free for the most part. A monopoly (note: a monopoly does not mean 100% when speaking legally) signifies abuse in the market place, as in "costs you money" with little recourse, then it becomes an abusive monopoly and starts to get into the illegal areas, which they have been provbven to have done. and it wasn't an accident either.

        That's one of the main issues if you use the word monopoly as it relates to current business practices, abusive behavior leading to your wallet getting lighter. MS is saying if you don't stick to their monopoly expensive products it will cost you serious money, that's the FUD part, because STICKING with them costs you serious folding money, and for most purposes today, there is no longer a need. For some, yes, for most, no.

    1. Re:It's not a monopoly... by gomiam · · Score: 1, Insightful

      Well, it isn't serious folding money until you have to install it into several thousand computers. Then, even with the volume licences, it gets to be quite serious, methinks. Or, perhaps, you think those $40 billion are going to come from the wallets of people that own, at most 1 or 2 computers.

    2. Re:It's not a monopoly... by zogger · · Score: 4, Insightful

      I made a point that I understand the difference with monopolies, but the past track record is more abusive than not once they become ingrained. Standard oil, AT&T, and now MS. There's some. Too big, too fat, too greedy, too abusive. Can't be content with "enough", got to go to the vomitorium, reguritate the last heaping helping of cash to make room for the next ladle full. Sorry, I just don't get greed like that and chronic bungholeness.

          I am more than familiar with the concepts and economics and laws involved, thanks for asking. I also am familiar with history, to see what happens, so yes, I'll stick with my over generalized opinion that monopolies usually evolve into an abusive situation, in the large and important industries anyway.

      As to apple, I don't use them any longer, nor would I buy an iPod, I think it's way over priced for what it does (I am not their target demographic anyway, I get by quite fine with a cheap FM portable radio). I used to be an apple fanboy from the late 80s to the late 90s, but not now. Too expensive for what they do.

      As to MS, I used to be a fanboy there as well, before I went to apple, I just stopped using them (3.11-95 era) when I saw their stuff was overpriced, insecure, buggy, and then I found out what a rat fink company they are. Their call to be nice and honest or be shady strong arm crooks,and I certainly didn't tell them to go down that path. They are convicted abusive monopolists, by various courts of laws in various jurisdictions, I think that's enough evidence to dis them and also to point out how incredibly greedy they are and that the abusive behavior never seems to end. I think some nice fat CEOs need to go to jail, but unfortunately our society concentrates on much lesser crimes when it comes to jail time. Personally, I think they should have had their corporate charter pulled long ago, along with any other company that accumulates a track record of serious large cash crimes. They'll chuck some common thief in jail after three felony convictions for *life*, yet corporations and their "leaders" seem to be able to just keep paying fines with corporate money,to the point now it's just a cost of doing business. Another example, I think whichever fatcat signed off on the sony rootkit should have faced however many thousands of counts of whatever computer hacking laws were violated in this or that area.

      I just think big corporate stuff like that is wrong. I have nothing, absolutely nothing, against any honest businessmen or corporations, not a blessed thing, I just don't care for the crooks and weasels and am not even close to being shy about saying it out loud.

    3. Re:It's not a monopoly... by Anonymous Coward · · Score: 1, Insightful

      Wow, you don't have to install OSS stuff - it just magically inhabits the machine?

      Correct: you can run it from a live CD, or you can network boot your machines. If you do decide to install it locally, it's much less work to install than Windows. Furthermore, however you run it, SuSE, RedHat, Ubuntu, etc. come will all applications and tools you would ever want as part of the OS. You should try it: it's good stuff.

    4. Re:It's not a monopoly... by drsmithy · · Score: 2, Insightful
      As to apple, I don't use them any longer, nor would I buy an iPod, I think it's way over priced for what it does (I am not their target demographic anyway, I get by quite fine with a cheap FM portable radio). I used to be an apple fanboy from the late 80s to the late 90s, but not now. Too expensive for what they do.

      Now that's a really weird thing to say, considering Macs have been as cheap as they are now...

    5. Re:It's not a monopoly... by zogger · · Score: 2, Insightful

      Not for me they aren't, not any more. I get a new computer for a hundred bucks now and slap linux on it. A new mobo and a better chip, that's it, reuse the ram and drives and case, etc. Apple has made x-thousands off of me, that's cool. MS has made some from me, apple has more, now it is time to move on. I don't need the latest and greatest,I'm not a gamer or run intensive 3-d time space warp modelling or whatever, and staying a generation or so back-a hundred dollars every other year does it.

        Besides the societal cost of closed source-it took me some years to bingo to FOSS, really, had no clue whatsoever, then I started reading about it, then got a copy and tried, then read some more and the light went on. I am a country geek, FOSS is the community barn raising deal from our past. The concept worked then, it works now.

        You have personal cost, then societal cost. I don't like every buck of my taxes goes out, some amount of that goes to fund closed source locked in software just so bureaucrats can type reports about my taxes and..endless loop there. They can at least drop the cost of computing normal stuff way way down. And businesses, when I go shopping around town? How much of an MS premium am I paying for everything I buy? And I don't like it when I stop into the public library (more taxes, in this case local plus state) and their "professionally run" networked windows computers all have spyware ad/"tool"bars on them-the only thing that changes is which set of spyware trojans they get infected with at various times. And no, they won't let you run a knoppix disk for-get this- "security" purposes! HAHAHAHA! For real, got told that. And apple-well, hopefully my government isn't buying too many ipods so my taxes aren't going to that, and their hardware and software computer model-although effective and I used to use it-is still primarily expensive vendor lockin, you are stuck at a minimum with their brand only mobo (can you get one of their x86 boards seperately even?),and they just charge too much, it just isn't worth it. What is it, $ 600for the mini and up and it isn't upgradeable? I have a mini itx box as my backup to my reglar tower, cost me a total of 105 dollars, works swell, thanks. And a grand or so for any tower and up from apple? Nope, don't need that anymore, those days are over. I've dropped enough on expensive hardware the last 20 years, enough's enough.

          Nope, I am in the FOSS camp now because it just makes too much sense long term. Open hardware and open software as much as possible. I got other things to do than make literal billionaires even richer. They got enough loot.

          Software is the tool to go do real stuff with, the cheaper/better/faster we ALL get good tools, open tools, tools that can be modded, swapped, tweaked and used howerver anyone sees fit the better off society will be. It's that simple to me. Keeping the tools expensive and their functions half secret and forcing you to jump through hoops to even use the damn things doesn't build stuff. And society is a group of hoo-mannz who build stuff mostly.

      In ye olden days the king and church made it illegal for the peasants to even *read*, they were denied even that "intellectual property" tool, kept it expensive and closed source and you had to jump through hoops to get access, pay a lot, and kiss some pompous rich fool's ass to get down with a tool that beneficial.

      Well, screw that noise, middle ages or the 21st century.

  9. Lies, damned lies, and statistics by tb3 · · Score: 4, Insightful

    I've actually downloaded the PDF, and I've been reading through it. It's only 16 pages, and there's a hell of a lot of white space. There's also a lot of space taken up with a bunch of rather unimpressive bar charts.

    The problem is, they have absolutely no justification for any of their numbers. For instance, on page 5 they claim, "In 2008, IDC predicts that 80% of Microsoft client operating systems shipped into enterprises will be Windows Vista." But they can't back it up!

    They also admit they've only been looking at these numbers since 2002, so they've got no basis for comparison. In order for their 'study' to have any meaning, they'd have to compare it to the relative effects of the introduction of XP, compared to previous Microsoft operating systems. But they admit their data doesn't go back that far!

    Their 'predictions' have as much weight as those you'd get from your local psychic.

    --

    www.lucernesys.comHorizon: Calendar-based personal finance

  10. Re:Hardware and open source quotes by pe1chl · · Score: 2, Insightful

    If you need to buy new hardware, it's a cost to the consumer and a cost to the environment.

    America does not care about the environment. Their government doesn't, so their corporations do not care either.
    Upping the hardware requirements will of course be harmful to the environment. Not only there is a need to discard perfectly working hardware to be able to run Vista, but the new higher-spec hardware also consumes much more energy. Watch the consumption of a suitable 3D card when compared to a plain 2D or a low-end 3D card.
    Consumption of energy in all offices will only go up when offices need fast 3D cards like gamers do.

    That is a pity, especially when it is only for some eye-candy that many users probably will turn off as soon as they find out how to do that.

  11. It's all about costs by Animats · · Score: 2, Insightful

    Just point out that the entire article is entirely about additional costs imposed by Vista. There's no mention of benefits in that article. None. It's all about additional costs and planned obsolescence.

    Mention that when talking to your local EU politicians.

  12. Re:Yeah, someone should ban the term wealth creati by ElMiguel · · Score: 2, Insightful

    The wealth being moved must have been created somehow, isn't it? Where do you think it comes from?

  13. Re:Wow! by Too+Much+Noise · · Score: 3, Insightful
    Wow, is there any substance behind your name-calling? TFA was not about "waaaah! now I gotta shell out lotsa moies fer a new Vista-loaded peecee.' Of course money has to come from somewhere. The question remains, what does it buy and how is it so catastrophic if one does not spend them that way.

    So let's see:
    • Hardware costs - without Vista, old machines will get upgraded at the regular pace of the business using them. Purchases still happen. Most businesses will buy new Vista computers as needed, as nobody wants to throw away money for no reason. The difference between current hardware buying rate and post-Vista buying rate does not look likely to be $20B (MS states that ~50% of costs are hardware) - assuming ~2k/desktop of costs in hardware (for the sake of simplicity) that would mean ~ 10 million desktops bought up and above the current buying rates in just 6 countries. How likely is that?
    • Software costs - unless there is a compelling need to upgrade, software-wise, the money is thrown away. Besides, on the business side one pays the MS 'rent' (aka enterprise volume license) yearly regardless so there is no 'new' cash flow there.
    • Support - these will be the same support organisations that currently work with Win 2k and XP. No 'new' jobs here, simply new use for old ones.
    • Retraining - this is money thrown away if there is no net productivity improvement. And security will not have a big plus for business users, as a sane IT policy to handle security should be in place anyway.

    Looking at how 'fast' XP spread after launch, a massive buying spree just for the sake of upgrading is unlikely. Add to that hardware requirements (meaning simply upgrading your computer is not an option in far too many cases) and I would say people will buy Vista preloaded on PCs that would have been otherwise bought with XP anyway. Then this looks like MS issuing Win XP SP3 and calling it a major reason for 'new' cash flow. Now, given that MS is spinning "this is the cash flow we expect Vista to generate" into "this is the excess cash flow we expect Vista to generate and you'll never get it it you don't allow us to do whatever we like" I would indeed call it a major piece of FUD.

    On the other hand, I don't see why MS should have mentioned F/OSS in this paper. Certainly one is not supposed to make a case for the opposition in such cases. My problem is with them grossly misrepresenting their own case.
  14. You need to study how fiat currency works. by Anonymous Coward · · Score: 3, Insightful

    It shouldn't take an economist to look at the world today and compare it to the world a hundred years ago to recognize that wealth has indeed been created through trade, innovation, and exploitation of resources.

    Your comparison to a sunday school theory doesn't hold much weight given that wealth creation is an observable phenomenon. If all that ever happened was wealth movement, then everyone else in the world ought to live in stone age conditions given the lifestyles of industrialized nations. Regardless of the hyperbole used by anti-capitalists and others with anti-west agendas, that is not the case.

  15. Re:Wow! by Anonymous Coward · · Score: 1, Insightful

    Perhaps you haven't noticed, but the European Union is a sovereign entity, not a 51st state. Boohoo, EU is giving money to MS' competitor, cry me a bloody river. You know what? It's OUR money, not yours. We even have the right to stop buying MS altogether, even ban it within EU borders, just like cocaine, and demand that our CS industry switches to Linux. We certainly have the right to impose import tariffs and/or quotas on MS software. And we damn sure have the right to spend our (OUR!) money on developing an alternative and superior OS that won't contain any NSA backdoors.

  16. Re:Wow! by zaphod_es · · Score: 2, Insightful
    Europe should puts its $40 Billion behind an open source operating system

    Thereby creating another monopoly.


    Err .... no!

    Mono = one duo = two. It would be a duopoly which is half as bad. And if Apple and Linux could get a better market share it would become much more like a competitive market place.
  17. Re:ban the term wealth creation by IICV · · Score: 5, Insightful

    This won't get modded up since the article is too old, so I'm just posting it for your elucidation.

    Anyway, unlike energy, wealth can be created and destroyed. Consider cookies, for instance:
    I take some flour, sugar, butter, chocolate chips and other miscellaneous goods. The total value of these goods is only a bit more than a dollar.
    Using them in various arcane ways, I craft, say, a dozen chocolate chip cookies, the likes of which anyone would pay $.25 and think it was a good deal.
    So, we started out with about a dollar's worth of goods, and ended up with something like three dollars worth of cookies. There's now two more dollars worth of value in the economy, and it's all mine. This is what people mean when they say "wealth creation".

    If I were to, instead, just set all those ingredients aflame, the world's economy would be poorer by about a dollar. That would be the destruction of wealth.

    Of course, it's true that in a closed system, it would be impossible to create more than a certain amount of wealth. It's a good thing, then, that there's this big giant flaming ball of gas up in the sky spewing an unimaginable amount of energy in every direction, some of which fortunately falls on us.
    In a more universal sense, you could make the case that there's only a certain maximum amount of wealth possible; however, reaching that would involve things like dyson spheres and asteroid farms.

  18. Re:Wow! by canuck57 · · Score: 2, Insightful

    Someone aught to mod you up...

    the American company Microsoft has no inherent right to do business in Europe and if Microsoft continues to break the rules here and abroad they can expect to be tossed aside. I, for one, welcome the time when real competition returns to the computer software OS marketplace.

    Worth repeating. How come it is so hard to get a PC WITHOUT a Micro$oft OS in North America!!! That is like if I buy car I must use defective Firestone tires. The problem is that of all tech companies Micro$oft donates the most so enforcing US anti-trust laws goes by the wastebasket. So I too welcome the return to a free market.

    I recently wrote HP and got this:

    Dear xxxxx xxxxxxxx: Thank you for contacting Hewlett-Packard. To the best of my knowledge, HP has no plans to begin offering desktop or notebook PCs with anything other than a Microsoft operating system. I apologize for any inconvenience this may cause. Accessories and consumables for your HP products can always be purchased directly from Hewlett-Packard in Canada, please visit our web site at: [snip, the rest was sales jargon...]

    Yet HP sells them with Linux in China.

  19. Re:Wow! by kfg · · Score: 2, Insightful

    Wow, imagine that. For a company to make money, it costs consumers money.

    If I have two hundred and fifty dollars and I exchange it for an older violin worth two hundred and fifty dollars, I have a violin that can be resold for two hundred and fifty dollars, or maybe a hundred if I'm in a hurt, five hundred is am not.

    I have exchanged my money for real wealth. Maybe even made an investment.

    If I have two hundred and fifty dollars and exchange it for Vista, I: Go hungry.

    Well, ok, that's a trade, not really consumption (the violin will be handed down to my grandkids, not consumed. Well cared for they can last hundreds of years).

    So, If I have two hundred and fifty dollars I can buy two months worth of food: life itself. Although a consumable, real wealth.

    If I have two hundred and fifty dollars I can buy Vista and: Go hungry.

    Are you beginning to get the idea? I'm not concerned with Microsoft's ability to make a profit, I'm concerned with my ability to accumulate wealth.

    The idea behind a business transaction is that both parties should come away feeling satisfied that what they gave up was no more valuable than what they recieved in exchange for it. Maybe even both parties can legitimately feel they came out ahead, due to oversupply/scarcity ratios.

    Windows will have an oversupply of Vista (indeed) and shortage of money (they will not). I will have a shortage of Vista (I will not) and an oversupply of money (I will not).

    So where do I benefit from the deal? Where does Microsoft suffer if I do not give them my money?

    They can bite me. I'm buyin' a fiddle.

    KFG

  20. Re:Trollery via illogic (was Wow!) by Burning+Plastic · · Score: 2, Insightful

    A bribe? If your former boss owned a newspaper and company X offered him money to place their advertisement in his paper, even though the ad was for a product neither he nor his customers wanted, would that offer be considered a bribe? The agreements we are talking about here do not involve any sort of violence or fraud. The negative connotation of the word "bribe" does not apply here.

    Completely missing the point here. If someone placed an ad and then tried to pay the newspaper owner to not accept ads from their competitors then that would be the situation the GP poster was referring to.

    It would be a bribe.

    There is nothing wrong with the idea that you presented as the owner would be making money off of something that made no difference to the customers - ie. it would not negatively impact the customer's ability to see/buy from other ads that they were interested in.

    --
    [All Your Fish Are Belong To Us]