Microsoft Ties $235m IT Aid To Use of Windows

E5Rebel writes "Microsoft will spend $235m in schools worldwide over the next five years, part of a plan to triple the number of students and teachers trained in its software programs to up to 270 million by 2013. 'Microsoft's investment shows how important it views developing markets to its future business. Last year, Microsoft introduced the Student Innovation Suite, which includes the XP Starter Edition plus educational applications, for $3 for qualifying countries. Microsoft faces heated competition from companies supporting the open-source OS Linux and associated software in developing countries. "I think as a company we welcome choice," [Orlando Ayala] said. "Frankly, we welcome the competition." The company's educational funding comes with a hitch: "Of course, that includes the fact they [the schools] use Windows," Ayala said.' If you don't use Windows you don't get the cash." Microsoft has long been interested in the education of children.

Comments

Subsidy not aid

[MosesJones]

This isn't aid, its a subsidy to grow the Windows market. Aid would be focused on the end-goal of the people, not on the end-goal of the company.

This is a blatant case of a monopoly subsidising to establish itself in emerging markets.

The NYT has a page that is still up

Re:Subsidy not aid

[jorghis]

Free training is not monopoly subsidising. Its just a different business model, they charge for the software and give free training. Other companies give away the software and make their money on support and training. There is nothing wrong with giving away free stuff (like training) in order to grow your market share.

I would like to see more competition in the consumer OS market as well and MS may have crossed the line in the past, but screaming "monopoly abuse!" every time MS makes any kind of business deal is just silly.

Re:Subsidy not aid

[natenovs]

When I was in elementary school none of our class rooms had computers. My fifth grade teacher when to the Microsoft Technology training course and was able to get our class room 5 computers. This was my first exposure to computers. I don't care if you hate Microsoft, the fact that they put a keyboard in my hands got me interested in computing. I would not be where I am today if that did not happen. To this I am grateful to Microsoft, and more accurate probably, my fifth grade teacher.

Saw This on a Billboard This Weekend

[eldavojohn]

I saw something similar to this this weekend as I was riding a bus to NYC. A billboard in Delaware or some other state said "FREE $50 When You Join!" referring to a casino membership. But in very fine print (hilariously fine for the size of the billboard) it said, "Money must be spent inside the casino within a half hour of joining." I remember thinking to myself, that sure is free.

How free is something when you're told what to spend it on? How free is money when it goes into a fund that invests in the United States companies and stock markets and you can't control that fund?

My answer would be 'not very' but, you know, when you see these 'donations' from the rich like Bill Gates, that seems to be the case every single time. I'm glad they're getting something, I'm upset about the strings attached. Better than nothing, yes. But sounding more and more like a fishy tax loophole or legacy purchase (he'll go down in history as a philanthropist no doubt) every day.

Free software is not money

[houstonbofh]

It looks like they are giving free software and support valued at the overinflated prices Microsoft gets for there product. Using this metric, Ubuntu is also donating $235 million to schools, students, businesses and people. (Support via Ubuntu Forums)

Isn't this illegal?

[mormop]

I seem to remember that along with using an existing monopoly to leverage one of the illegal sides of monopoly is the concept of predatory pricing, i.e. deliberately pricing a product well below it's market value in order to strike down a competitor.

With the cost of Windows as it is, "giving" software to schools along with a condition that they must be using Windows is about as predatory as you can get. What's the EU's phone number again?

Re:Maybe it's not cash?

[Man Eating Duck]

More like giving the homeless guy drugs when he needs food, knowing that he'll come back to you for the next hit. They're "developing markets to their future business."