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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.

39 of 214 comments (clear)

  1. Of course they welcome competition... by mr_resident · · Score: 5, Funny


    it's where they get all their best ideas!

    (calm down modders - it's just a joke)

  2. Subsidy not aid by MosesJones · · Score: 4, Insightful

    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

    --
    An Eye for an Eye will make the whole world blind - Gandhi
    1. Re:Subsidy not aid by jorghis · · Score: 4, Insightful

      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.

    2. Re:Subsidy not aid by natenovs · · Score: 5, Insightful

      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.

    3. Re:Subsidy not aid by ronadams · · Score: 2, Interesting

      The problem here is that I don't pay taxes to fund public schools so Microsoft can go advertise their products. Enhancing vendor lock through targeting public institutions is not cool with me. OTOH, maybe open-source advocates should just offer free training and resources of their own.

      Withholding judgment...

      --
      Appended to the end of comments you post. 120 chars.
    4. Re:Subsidy not aid by cHiphead · · Score: 3, Insightful

      Thats the problem, the training isnt free, its SUBSIDIZED. You HAVE to use MS products in exchange for their 'free' training. There is an ethical line you can cross by using a monopoly position coupled with free training to grow market share. Not mention possible tax fraud if MS is writing off all of this money spent and in turn getting a kickback in the form of new sales and other market growth factors.

      Cheers.

      --

      This is my sig. There are many like it, but this one is mine.
    5. Re:Subsidy not aid by hansonc · · Score: 3, Interesting

      If your school district were properly funded through your tax dollars they wouldn't need to take Microsoft's money to fill out their budget needs. Until people figure out that they should be voting for every single school bonding issue, schools need to come up with funds somewhere. They might as well take Microsoft's money and provide education in the software the students will need to know when they get out of school.

    6. Re:Subsidy not aid by FireFury03 · · Score: 2, Insightful

      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.

      This isn't "free training" - Microsoft are trying to shape the existing educational system to push their agenda. IMHO *no* company should be able to influence the direction of general education by handing over wonga. If they want to donate money then that's fine, but they shouldn't get to influence what the school does.

      If Microsoft (or anyone else) wants to offer free training they can damned well run courses outside of school hours rather than hijacking the existing schooling system. Companies are not the right people to be deciding what the kids get taught in mandatory lessons since they will usually choose what is best for themselves rather than what is best for the students.

  3. Saw This on a Billboard This Weekend by eldavojohn · · Score: 4, Insightful

    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.

    --
    My work here is dung.
  4. Free software is not money by houstonbofh · · Score: 4, Insightful

    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)

    1. Re:Free software is not money by Technician · · Score: 2, Interesting

      It looks like they are giving free software and support

      What's very funny is Microsoft had a 10 question quiz in an ad here on slashdot. The quiz was to "test your knowledge of software licensing". For grins, I took the test. It will not let you go got the next question (training maze) until you got the current question correct. If they just scored it, I would have done poorly as I chose what a consumer friendly answer should be. Taking the quiz fully convinced me that with GNU style licenses out there, the MS license will lose.

      For example, you have a computer with an OEM Windows install. It dies. Can you reinstall the software on another computer? The answer is no. The license is only for the dead computer and is not transferable. Just how does that stack up against my other software which includes the permission to install it on any and all computers I own. Getting me to buy their software is going to be tough. With Open Office, everyone has the same version. With MS Office, I have a machine with Office 97. The daughter has the Office 2003, and the wife's new Vista laptop has the new copy provided for the cost of the media through my employer. It expires when I lose my job or retire. Compare licenses again. One copy on one machine or a site license for all the machines in my house.. Easy choice.. We all have a copy of the up to date Open Office. It supports ODF out of the box, not as a plug-in.

      http://www.tech-recipes.com/rx/2075/word_2007_open_save_odf_documents

      Schools who have to deal with donated machines and per seat licenses have the BSA to fear. Schools who use OSS software do not have this legal liability. MS will either have to blanket change their license or continue to find their market erode.

      http://www.linux.com/feed/37845 (Oregon school faces BSA Audit)

      Business also has to deal with the sticky terms of the MS license

      http://www.news.com/2008-1082_3-5065859.html (Ernie Ball's BSA audit, cost $65,000, plus $35,000 in legal fees)

      Those badly hurt and afraid will need a lot more than just a sweet deal to switch back.

      --
      The truth shall set you free!
  5. Maybe it's not cash? by iONiUM · · Score: 2, Insightful

    Maybe they're giving out, oh I dunno, licenses for Windows and free copies that amount to that much money? What the fuck do you expect them to do, buy the equivalent value of Macs and give that instead?

    1. Re:Maybe it's not cash? by Man+Eating+Duck · · Score: 4, Insightful

      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."

      --
      Are you a grammar Nazi? I'm trying to improve my English; please correct my errors! :)
  6. Of course they only pay for windows training by jorghis · · Score: 4, Interesting

    Why is it a surprise they would only fund free training for their own software? I mean isnt that kind of a duh thing? Are linux companies sinister too now because they dont pay for free windows training for people who dont buy linux?

  7. Actually... by Mongoose+Disciple · · Score: 3, Insightful

    Isn't this pretty similar to what Apple was doing with schools back in the 80's?

    1. Re:Actually... by Anonymous Coward · · Score: 5, Informative

      It's similar but different. Apple sold hardwares at a steep discount to schools, but they don't offer money to school to be used only to buy Apple hardwares. Sometimes they donated hardwares too. The distinction is important since the school aren't under any obligation to force Apple's platform on students. OTOH, schools are obligated to force MS solutions on students. Of course, you may argue that the schools are not under obligation to receive the cash, but do you know what school refuses cash? Once a monetary donation is given, schools are free to appropriately use the fund in any way they see fit as long as it doesn't violate the general guideline of the donation. Dictating a specific solution as a condition of a donation is inappropriate. It violates the principle of academic freedom.

      IMHO, these platform wars has no place at schools. Students who work for a computer degree should understand computer basics and a little bit of each major platform. Then they can specialize in a platform they are interested in. It's still called computer science and computer engineering, isn't it? Not Windows science and Windows engineering. If students aren't interested in the basics and the other platforms, they can just go to a vocational school specializing in Windows softwares. There is no need to waste time with other stuff.

    2. Re:Actually... by Rob+Y. · · Score: 2, Insightful

      ...unless they're taking huge tax deductions on what is essentially money spent to buy marketshare.

      --
      Posted from my Android phone. Oh, I can change this? There, that's better...
    3. Re:Actually... by Mongoose+Disciple · · Score: 2, Insightful

      One thing that isn't clear in the article and seems important is whether schools need to agree to exclusively use Windows to receive the cash.

      If it's the case that a school can take this money to provide some Windows machines and still provide other OS machines normally at their expense, I can't see how this would be anything but good for the students. If it's an exclusive deal, I'd agree with you that that really isn't good for the students, unless the school is so poor that this is the only way they're going to get a decent number of computers.

    4. Re:Actually... by plopez · · Score: 4, Informative

      AFAIK, Apple gave discounts to educational institutions, but never mandated that they be exclusively an Apple network.

      --
      putting the 'B' in LGBTQ+
    5. Re:Actually... by Intron · · Score: 3, Funny

      I'm pretty sure that Europeans did these kinds of comparisons first.

      --
      Intron: the portion of DNA which expresses nothing useful.
  8. And this is a shock why? by LWATCDR · · Score: 2, Insightful

    Why wouldn't Microsoft offer support to Schools that teach Windows and not offer support to schools that do not?
    This isn't some foundation it is a company. Sorry but this isn't shocking or news. Do you think Novell or Redhat would donate money to schools that teach Windows?

    --
    See my blog http://ilovecookes.blogspot.com/ for light hearted technical information.
  9. Re:$235m? by Reality+Master+201 · · Score: 2

    Yes, however, the "m" after the dollar figure isn't an SI measurement.

    You're being pedantic, but you also don't know what the fuck you're talking about. Which is nothing new for this website.

  10. You were expecting them to buy Macs? by hawks5999 · · Score: 5, Funny

    Can I mod an article -1 Troll?

  11. Open Source forces... by Anonymous Coward · · Score: 4, Interesting

    ...Microsoft to pay for future customers.

    Which means they would have to increase prices for their software, which makes more people decide to use the free open source alternatives instead.

    I just love it when a plan comes together. ;)

    muhahahahaha!!!

  12. I am willing to donate 6 trillion! by saterdaies · · Score: 4, Interesting

    In 10 grants contingent on recipients of said aid only use it to purchase special Educational Grant Editions of my Ubuntu clone at a cost of $600,000,000,000 a piece. That way, I'm donating a huge amount, but I don't actually have to donate a penny (unless I'm off by a decimal place there).

    On a more serious level, I could donate $1,000,000 to schools that could only be used to buy licenses of my slightly modified Ubuntu clone and never have to spend money - if they don't buy my licenses, they don't get the money; if they do buy my Ubuntu clone, I get the money back and maybe have to eat the cost of some CD-Rs.

    "Donating" money that can only be used to purchase an intangible good (and software, other than the physical media, is intangible) from yourself is like donating nothing - especially when you're donating to people who wouldn't buy your product if it weren't being given to them.

    1. Re:I am willing to donate 6 trillion! by arivanov · · Score: 2, Interesting

      You missed one point. You also write it off as a tax deductible. If you try to write off $600,000,000,000 as a tax deductible expect black helicopters and men with assault rifles as a responce to your tax return. If a company with a turnover bigger than some nation's GDP does this, it gets an applause in the press for its enormous charitable contribution. Which is a pity - it should get the same treatment (scaled for size - cannons instead of assault rifles).

      --
      Baker's Law: Misery no longer loves company. Nowadays it insists on it
      http://www.sigsegv.cx/
  13. Wrong! by goldspider · · Score: 3, Interesting

    Microsoft faces heated competition from companies supporting the open-source OS Linux and associated software in developing countries.

    Microsoft isn't confronting competition in these targeted regions, they're confronting rampant piracy of their OS. They figure it's better to get $3.00 per copy than nothing.

    --
    "Ask not what your country can do for you." --John F. Kennedy
  14. Isn't this illegal? by mormop · · Score: 4, Insightful

    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?

    --
    Hmmmmmm..... Deep fried and look like Squirrel.
  15. Yes, it is. by smitth1276 · · Score: 2, Insightful

    It doesn't cost Ubuntu anything (in practical terms) to do that. It does cost Microsoft to do that. Microsoft pays people to work for them. Time absolutely is money.

    1. Re:Yes, it is. by nick.ian.k · · Score: 2, Informative

      It doesn't cost Ubuntu anything (in practical terms) to do that. It does cost Microsoft to do that. Microsoft pays people to work for them. Time absolutely is money.

      It absolutely does cost Ubuntu/Canonical, and in very practical terms. The entity controlling the distribution *does* spend money to pay some staff to make it all go, from development to marketing to professionally producing install/live cds to hosting and administration of their central repositories, forums, etc. The "time is money" argument negates the point you're trying to make - they may not pay for *all* of what's getting done, but they do take the time to deal with the folks they're not paying who are contributing to the distro. The fact that they get contributions without directly backing the folks responsible, be they volunteers or people financially compensated for their time by other entities, does not subtract value. The work still gets done.

  16. Microsoft is Evil (surprise!) by mlwmohawk · · Score: 2, Insightful

    This is an example of how evil Microsoft is. They'll donate some "thing" only as long as it contributes to their business. Why this is wrong is pretty subtle. They have no intention of saving anyone any money. Typically with contributions, the outcome is a net gain for the organization receiving the contribution. Not with this deal, this will be a net loss for the schools receiving the "grants." Only the costs will be differed.

    The "training" microsoft is talking about is their typical "training" where general concepts and understanding is not part of the instructional course except where necessary to use their product. If you have ever taken any Microsoft training courses you'll know what I'm talking about. A networking class is not about networking, but about "their" networking tools.

    I have taken a couple Microsoft courses for various reasons, and have always come away saying (1) that was a huge waste of time. (2) It was like a big commercial for Microsoft products. (3) It was useless in any practical sense.

    Now, all these nicely trained people aren't going to be looking at the cost-saving alternatives like OpenOffice and/or Linux, nope, they'll be revved up to buy MS Office and Windows (because that's what they were trained on!)

    My Advice, when Microsoft offers you anything for free, turn it down, because it will always end up costing you.

    1. Re:Microsoft is Evil (surprise!) by mlwmohawk · · Score: 2, Insightful

      So was it Evil when Jobs did it?

      Of course it was, but when a small marginal player does something "evil," it's impact is mitigated by its ability to capitalize on it. When a convicted monopolist does something evil, everyone suffers.

  17. doubletake by Speare · · Score: 3, Funny
    I hate it when I glance at something and read it slightly wrong. Ever happen to you?

    If you don't use Windows you don't get the crash.
    --
    [ .sig file not found ]
  18. Re:fancy that by Technician · · Score: 2, Interesting

    Good point. I just looked to see if Apple is a BSA member.

    Unfortunately according to Wikipedia, they are..

    http://en.wikipedia.org/wiki/Business_Software_Alliance Scroll down to the members list.. Yuck!

    " * Adobe Systems
            * Apple Inc.
            * Autodesk
            * Avid Technology
            * Bentley Systems
            * Borland
            * CA, Inc.
            * Cadence Design Systems
            * Cisco Systems
            * CNC Software/Mastercam
            * Dell
            * EMC Corporation
            * Entrust
            * Hewlett-Packard
            * IBM
            * Intel Corporation
            * McAfee
            * Microsoft
            * Monotype Imaging
            * Network Associates
            * Oracle Corporation
            * PTC
            * RSA Security
            * SAP
            * SolidWorks
            * Sybase
            * Symantec
            * Synopsys
            * The Mathworks
            * UGS PLM Solutions Inc.

    --
    The truth shall set you free!
  19. It has to be said by guisar · · Score: 2, Informative

    Last year, Microsoft introduced the Student Indoctrination Suite, which includes the XP Stuckwithit Edition plus educational applications, for $3 for groveling countries. Microsoft has avoided competition from companies supporting the open-source OS Linux and associated software except in countries which can be bought off. "I think as a company we welcome choice," [Orlando Ayala] said. "Frankly, we welcome the competition, we just don't like other people trying to take our business." The company's educational funding comes with a hitch: "Of course, that includes the fact they [the schools] use Windows," Ayala said.' You don't think we're doing this for good of the students do you?.

  20. The end of the article is far more interesting by Comboman · · Score: 2, Insightful
    While slightly off-topic, the end of the referenced article is far more interesting:

    While Microsoft is nudging consumers and businesses in developed markets to use its latest Windows Vista operating system, XP will remain the OS the company supports for low-cost laptops such as the Asus Eee and Intel's Classmate PC, Ayala said.

    The reason is XP has a smaller footprint than Vista, Ayala said, referring to factors such as how much memory the OS uses and the size of the OS on a PC's hard drive.

    Microsoft is still working through some of the "technical limitations" that remain in putting XP on the XO, the green PC from the One Laptop Per Child project, Ayala said.

    Considering MS is already talking about Vista's replacement next year with Windows 7, is anyone else shocked that they are continuing to put development resources into XP?

    --
    Support Right To Repair Legislation.
  21. Should schools turn down this gift? by walterbyrd · · Score: 3, Insightful

    I am reminded of that Simpson's episode with the Oscar Myer periodic chart with "bolognium" and "delicium."

    I think schools should turn this msft "gift" down. There is nothing that msft is offering, that does not have a free alternative.

    I am sure a lot of people will label me a linux zealot. But the truth is, I completely understand that linux is not for everybody. But schools are a different matter. Schools should teach vendor-neutral concepts. Students should not be taught that vendor specific jargon and standards are somehow universal. For example, what msft calls a "domain" is different than what is commonly understood. I already notice a lot of students thinking that anything non-msft is non-standard.

    Unlike commercial institutions, students do not have the same concerns about the acceptance of vendor specific document formats. For example, some accountants will only accept Intuit formated income statements - so some small businesses have to use Intuit, but students should be able to learn the concepts of accounting, and accounting concepts, without being tied to a specific vendor.

    Again, I want to emphasize: students should be taught *concepts* then those concepts can be applied to software from any vendor. Schools should not be in the business of promoting a particular vendor - especially if that vendor does not offer anything that is that freely available anyway.

    Sometimes it is very difficult to avoid vendor-lock, but for students, it's easy. So why be vendor locked if you don't have to be?

  22. That is some expensive training. by t-maxx+cowboy · · Score: 2, Insightful

    Let me see now. 270 million newly trained people for Microsoft applications. $235 million dollars being spent to train up said people. Cost of training 1 person $870 thousand US dollars.

    I prefer alternatives to Microsoft applications, but if Microsoft would just pay me the $870 thousand US dollars to me directly I would gladly learn all the Microsoft applications. No one said I had to continue using them after I learned to use them.

    --
    Regards,

    Ryan Pritchard
    Fun Extends All Basic Life Expectancies
  23. Re:If they don't use MS, they don't NEED the money by FireFury03 · · Score: 2, Insightful

    Wouldn't want kids to have any training on the software they're going to be using in the real world now would we?

    When I was at school we were trained on Acorns (as was pretty much everyone in the UK at the time). Certainly not what is used in industry. I'm not convinced this caused harm - if anything I think it helped develop the skills needed to use *any* system rather than just learning MS software by rote.

    In any case, whether you teach kids MS Office or OpenOffice when they are at school, by the time they get out into the real world no office software will look much like what they learnt - teaching the principles involved in using the software is far more important than teaching the software itself since the principles are transferable to whatever software they end up using in the real world - whether that be the latest greatest Microsoft software or something completely different.