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Microsoft's Annual Report Reveals OSS Mistakes

mjasay writes "Microsoft's most recent annual report suggests that the company is increasingly coming to grips with open source, yet also seems determined to perpetuate myths about open source that poorly serve it and its shareholders. Microsoft CEO Steve Ballmer has suggested before that 'free software means no free soda' for Microsoft employees; but this is perhaps the first time that Microsoft has managed to enshrine its ignorance in a public document. In the annual report, Microsoft makes two primary false claims about open source: 1) Open source companies don't invest in research and development and instead largely free-ride on Microsoft's patents and copyrights; and 2) Open source projects don't innovate and instead mimic Microsoft's products. Perhaps Microsoft has forgotten its own 'innovative' past copying of markets and technologies created by Apple and others. But at least Microsoft gets one thing right: 'To the extent open source software gains increasing market acceptance, our sales, revenue and operating margins may decline.'"

25 of 348 comments (clear)

  1. News? by dreamchaser · · Score: 5, Insightful

    Did anyone expect anything other than spin from MS with regards to Open Source Software? Hmmm.

    1. Re:News? by ozphx · · Score: 5, Insightful

      Compared to say Cnet's spin, which suggested that MS didn't spend very much on R&D compared to OSS companies.

      Apparantly half its income - around $7B spent on R&D is "not much".

      --
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    2. Re:News? by QuantumG · · Score: 4, Insightful

      The R&D they do never makes it into products.

      --
      How we know is more important than what we know.
    3. Re:News? by rtb61 · · Score: 5, Insightful

      This report has very little to do with open source, it is all about marketing. The M$ board and executive team is basically treating it's shareholders the same way it treats it's customers. It is feeding them a line of non-committal B$ in order to keep their jobs and maintain a threatened share price.

      So M$'s annual report is starting to bear no resemblance to what most respectable companies would produce or what an executive team with integrity would present to shareholders. It is a empty glossy pump up produced by a marketing team rather than an management and engineering team. No new directions, no new products, no new ideas, just more of ballmer's self involved blather and bull shit.

      Psychologically it is interesting, hmm, we know everything, we make no mistakes, we are the computer industry, when it goes wrong, it is everybody else's fault, they stole it from us, they don't know anything and the customer is stupid when they don't realise this.

      Technically it is quite true that M$ help to create the OSS movement, they were such an unreliable and deceitful supplier of software that they really did do more than anybody else to drive customers to OSS.

      --
      Chaos - everything, everywhere, everywhen
    4. Re:News? by symbolset · · Score: 5, Insightful

      Did anyone expect anything other than spin from MS with regards to Open Source Software? Hmmm.

      No.

      Ok, one word posts can get good moderation but I'm willing to expand on this.

      Microsoft's innovation is to sell the ideas of others as organic product. This is not really a new idea. See "Kufu: Expansions on the Art of Building Pyramids." (not cited)

      I'm currently working my way through Cashman & Shelly's "Introduction to Computer Programming IBM/360 Assembler Language" (c)1969, Anaheim Publishing Company.

      Familiar terms there include "DOS", "Work Areas" and "Control Macros"

      I'm willing to bet there are a couple dozen ideas in this book that invalidate Microsoft patents.

      For prior art on the rest of them you need only read Communications of the ACM, origin through 1981.

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    5. Re:News? by Darkness404 · · Score: 4, Insightful

      I'm willing to bet there are a couple dozen ideas in this book that invalidate Microsoft patents.

      Just about every software patent has an idea that invalidates it. The thing though is, with MS stocking up on patents, we never know which ones they really don't care about and which ones they will sue for. It is expensive and time consuming to strike down every patent, and when someone sues Linux or another F/OSS project in a major suit (like SCO) even though anyone with half a brain knows that it should have been thrown out ages ago, it still leaves CEOs (usually missing half a brain) not using Linux because they are scared they will be sued or the support will end.

      Until politicians start to realize that things that apply with the physical world make no sense in the digital world, MS has a legal advantage, and with some judges having the mental capacity of a 4 year old MS might win a few minor suits.

      --
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    6. Re:News? by symbolset · · Score: 5, Insightful

      We need a ruling that software patents are void. We're well on the way. Recent Supreme Court rulings are indicative of a climate change in the Court.

      People need to get behind the idea that software patents and copyrights serve to prevent "the progress of science and useful arts."

      Progress is the goal. If the tool no longer serves it, it needs to be abandoned.

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      Help stamp out iliturcy.
    7. Re:News? by DaveAtFraud · · Score: 5, Insightful

      Technically it is quite true that M$ help to create the OSS movement, they were such an unreliable and deceitful supplier of software that they really did do more than anybody else to drive customers to OSS.

      Somewhat of an overstatement or at least an over simplification. You need only look at the programs that started out in /usr/contrib from long before M$ was even Billy G's wet dream. Programs like grep and awk easily come to mind.

      That being said, M$ is what made OSS into a viable, enterprise level force in the computer software business. From their buggy programs and operating systems to their use of vaporware to string the market along, M$'s unwillingness to allow any competitor to survive (DR-DOS or OS/2 anyone? How about WordPerfect, Ami Pro, Lotus 1-2-3, etc?) made open source software necessary. Linux and *BSD would still be hobby toys if there was really a competitive commercial software marketplace with real choice.

      Microsoft didn't actually create OSS. Open source software existed long before Microsoft. Microsoft is what made OSS necessary as the only way to offer a competitive, alternative product. One that couldn't be squeezed out of existence through contractual agreements that forbade offering the alternative.

      Cheers,

      Dave

      P.S. I've been using Linux since 1998 and I was an OS/2 user prior to that.

      --
      They that can give up essential liberty to obtain a little temporary safety deserve neither safety nor liberty.
      Ben
    8. Re:News? by lanswitch · · Score: 3, Insightful

      but do they invest enough money in preventing problems like http://www.microsoft.com/technet/security/advisory/954960.mspx ?

    9. Re:News? by stmok · · Score: 5, Insightful

      This blog at c/net is just an indication that MS is in a more subtle tone, crapping themselves. They have NO effective response to open source. This has been true since their first public strike at Open Source. (Cancer, anyone?)

      The reason? The simple existence of open source is a contradiction to their very own fundamental business model.

      They rely on software licenses as their main source of income. They will do ANYTHING to protect that. We know this from their history. They're about control...Because to them, control is profit. (Examples: Protocols, document formats, de-facto standards, anti-piracy schemes like Activation and "Genuine Advantage", etc are all different aspects of control.)

      But Open Source turns that model upside down. Software licenses become $0. You don't control and "encourage" people to use your products. You let them do things on their own accord. You let your fellow man/woman choose. It puts more pressure on you to improve the technology.

      Companies who are based on this model now focus their resources on tools to give to the community. They let the community innovate while they polish up and improve for their commercially supported variants. (The cycle continues endlessly as they improve and give back).

      The result? Microsoft will find it harder and harder as Open Source improves. Granted, the closed source model gets you the money quicker, and its more polished for mainstream PC users, but you don't have genuine user loyalty.

      The fundamental weakness here is, if you can create an Open Source equivalent (features that are equal or better), closed source companies will be in serious trouble. Why would people pay if they can get it elsewhere for free? (legally).

      This is why they're so scared. They know the day will come. (On that day, be sure to note the share prices and the company's general behaviour).

      They can resort to petty distractions and occasional seasons of being nice to open source, but they know they cannot stop this stone wheel. It may grind slowly, but its coming. Consistent improvement, that's what its all about.

    10. Re:News? by init100 · · Score: 4, Insightful

      Office and accompanying products (MS Project, visio,...) Why is everyone copying them?

      They aren't, they are copying WordPerfect and Lotus 1-2-3.

    11. Re:News? by blane.bramble · · Score: 4, Insightful

      OK, just to point out a few fallacies:

      3 months uptime - that is not significant uptime at all. When you have a machine that has been humming along for a whole year without a reboot, then you can begin to talk about uptime. It helps if it's a machine running a real task as well (public facing web-server, that sort of thing).

      As for your mention of MS Project and Visio, you are aware that Microsoft didn't write them, they bought out the companies that did aren't you? So much for innovation there.

  2. Damn parasites by stox · · Score: 5, Insightful

    Hmm, where did that IP stack come from? Where did they get the idea of tabbed browsing? Where did they get a web browser from? The list goes on and on. I wonder how many "patents" came from ideas inspired by open source?

    The reason Microsoft is failing is that the parasite has become larger than the host.

    --
    "To those who are overly cautious, everything is impossible. "
  3. RTFR by JoeCommodore · · Score: 4, Insightful

    Not really worded as the author states, and is quite interesting - mainly the meat is the Risk Factors section where they must report the possible situations on investment/profit risk. Nothing really much there about stealing ideas, but what was omitted by the author was the probable losses incurred by MS "opening up" on some interoperability technology as well as being forced to open up other standards due to high court rulings.

    They still call their Licensing "Ownership" as in Cost of Ownership... sigh.

    Very interesting read.

    --
    "Enjoy what you're doing! If it becomes drudgery, you're doing it wrong!" - Jim Butterfield
  4. Re:BSD Networking Stack by msuarezalvarez · · Score: 5, Insightful

    What's wrong (or, at least, morally dubious) is that they fail to recognize what they did with the OSS-originated network stack...

  5. Re:Microsoft Ain't Dead Yet by AndGodSed · · Score: 3, Insightful

    Like they did with IE? Shut out competitors by mimicking another product and making it a default install of their own?

    Didn't they JUST begin to do that with Apache?

  6. Re:Ad Hominem by ConceptJunkie · · Score: 3, Insightful

    I guess I don't see the need to respond to Microsoft's FUD with FUD of our own. After all, if it's wrong for them to do it, is it not also wrong for us?

    It would be. But the term "FUD" implies deceit. FUD against Microsoft is much more likely to simply be true. They _are_ a monopoly. They _do_ use unfair practices to "compete". They _will_ stoop to almost any low to avoid a level playing field. This isn't FUD in the normal sense of the word. It's fact.

    --
    You are in a maze of twisty little passages, all alike.
  7. Re:OpenSource innovations? by Anonymous Coward · · Score: 3, Insightful

    An entire complete operating system including thousands of programs that can be freely shared far and wide at no cost by everyone, suitable for use in the tiniest embedded processors all the way to the top ranked supercomputers on Earth..and now beyond into space?

    Outside of that, nothing I guess.

  8. Re:It's all about the patents. by Darkness404 · · Score: 3, Insightful

    MS will justify crushing OSS in any way possible. Honestly, if you call the people of the FSF free software zealots, then call MS proprietary software zealots. MS basically exists totally proprietary, not to make money, not to be inventive but to prove a key point in the Open Letter To Hobbyists by Gates, that quality software will not be written without a lot of money. Unfortunately for MS, it seems that the tables have turned, just about every quality application is OSS in some part if not fully OSS (OS X, Firefox, Apache, etc) and about the only major software vendor that isn't transitioning to OSS is MS, look at it, Apple mostly has with OS X, IBM has embraced Linux, Sun seems to be trying to open source everything they have, Novell has openSUSE, and everyone in between is getting things open sourced.

    --
    Taxation is legalized theft, no more, no less.
  9. Re:pure narcissism by Kalriath · · Score: 3, Insightful

    Or Apple HQ?

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    For a site about things like basic rights, Slashdot users sure do like to censor "dissent".
  10. HA!!! by josmar52789 · · Score: 5, Insightful

    "open source software doesn't innovate"

    Ha! The article directly below this one states that someone has developed an app to graph or diagram SQL statements... Now, that's innovation - and it didn't require any Microsoft products to be harmed during testing or development!

    Oh by the way, the Internet itself is an open source effort and I can't imagine anything more innovative or groundbreaking than the most advanced communications medium ever created!

  11. I call their bluff. by v(*_*)vvvv · · Score: 3, Insightful

    1) Open source companies don't invest in research and development and instead largely free-ride on Microsoft's patents and copyrights;

    I say Microsoft cannot sue. If they could, they would've already done it. I think if Microsoft sues, they are either afraid that they'll get sued for the free-ride they've been enjoying or they simply do not know who or how to sue. OSS isn't really making any money. OSS is not a company. Yes, MS could sue, say, Redhat, but Redhat is not equal to or represent in anyway OSS itself, and I doubt Redhat really does that much IP damage since most of their business is distributing what others have made and providing support - they are not burning CDs of Windows, if you will. Then sue GNOME or KDE? Can't. Sue kernel developers? How? For what? They would have to go project to project performing drive-by lawsuits which will all be tedious and expensive and very unrewarding.

    Like all annual reports, these are self-published documents designed to serve the appetites of shareholders. So anything written in it should be viewed with that in mind. It is not a tech document or a fact sheet. It is a spin sheet.

  12. I'm curious what you call R&D, then by Moraelin · · Score: 4, Insightful

    Well, if you don't see any of it in products, I'm curious what you call R&D? 'Cause unless I'm mistaken, it means exactly that: Research and Development. It's the first step in the chain that then goes through Manufacturing and later Marketing.

    So normally even stuff like developing a new product (say, the XBox 360) does count as R&D. When Ford comes up with a new car, even if it's not revolutionary in any way or aspect? That's R&D. When NEC or Samsung come up with a new TFT, only this time with LED backlight? That's R&D. When Seagate announces a new line of HDDs, only this time with higher density (i.e., pretty much a smaller head and more precise mechanics)? That's R&D too.

    Technically even writing a program, any program, is R&D. (That's a mistake many PHB's do: thinking that programming is manufacturing and can be treated and measured like assembly line work.) Manufacturing is when you press the CDs and print the manuals and box it, later. So if none of MS's R&D made it into a product, they pretty much wouldn't have a product.

    So, yes, MS does invest in R&D. Now if you're trying to say that they never made some major scientific breakthrough, we can agree on that. But then most other companies don't, either. And I don't remember many fundamental breakthroughs from the F/OSS camp either. They too just tweak a little here and there and occasionally put lipstick on a pig... err... skins and transparencies on the same old program. Not condemning it in any way, but let's not pretend that the latest release of KDE or Firefox are comparable to discovering Penicilin or Quantum Mechanics. It's R&D anyway. And it's still R&D when MS does it.

    And yes, occasionally R&D does produce a dud like Vista. Well, that's the inherent risk of it. It happens to other companies too.

    --
    A polar bear is a cartesian bear after a coordinate transform.
  13. No, not really by Moraelin · · Score: 3, Insightful

    1. Because it _is_ R&D. Manufacturing is where you already have a detailed blueprint of what cog/transistor/thingamabob goes where, and you just have to take it from bin A and stick it into hole B. And move on to do the same thing verbatim again. And again.

    In programming, the equivalent would be, I don't know, copying someone else's program by hand. It makes no sense. If you have to make the same program again, you just make a copy it, you don't go through the assembly line to make an identical one from scratch. Even bits and pieces, whatever you need again, you don't program verbatim again. You move it to some library class and call it from there. Or it's already included in the compiler or standard library.

    Programming isn't manufacturing and it makes no sense for it to work like manufacturing does. There is no mechanical taking a cog from here and placing it there, and knowing in advance exactly which cog, where, and how much time it takes. The whole exercise is, every single time, designing the whole mechanism in the first place.

    Just because the manufacturing step is missing, or trivial (e.g., just pressing the CDs), it doesn't mean you can move back one step and proclaim the development stage to be manufacturing. It's just about as silly as, if a river has no delta, moving back a step and proclaiming the whole actual river to be a delta.

    But that's what some incompetents do. They learned how to manage an assembly line, and then they re-christen a whole different thing an assembly line if they don't have one. Sorta, when your only tool is a hammer, everything starts to look like a nail.

    2. It's not even the only one. There have been plenty of other cases where only one piece of something was built, and it was basically the prototype at the end of R&D. It may have been an actual manufactured product, but nevertheless the manufacturing step has been missing or never done, and the "product" was the prototype built by R&D.

    As an infamous case, and a botched project at that, take the Vasa. The design had been experimented with and tweaked right until it was put to sea. (And it sank.) If it were a software project, it would have been pulled out of the sea and "debugged" until it works. And it still would have been an R&D stage, rather than mechanical repetitive manufacturing.

    Or take the atom bomb dropped on Hiroshima. There was no assembly line, and (unlike the Nagasaki one) not even testing. It was a prototype right out of R&D. The fact that it was actually used, doesn't make the whole process any less R&D.

    So basically again, it seems to me like just a case of some people not wrapping their heads around a different beast. They learned in school that if you have a product at the end it's manufacturing, and if that step is missing, they'll re-christen something else as manufacturing. Just so it fits their mental model.

    3. Well, that's still no excuse for incompetence. If an industry works differently enough from others, managing it must fit the reality of the industry, not try to warp the industry to fit the pre-existing mind-set.

    Basically, imagine if I came from agriculture, and started managing a car production plant. And went, "no, no, no, see you have to plough the land outside the factory and bury some cars as seeds." Wouldn't you think I'm retardedly incompetent and have no business managing a factory like it's a farm? Well, I'm thinking the same about those who manage R&D as if it were an assembly line.

    --
    A polar bear is a cartesian bear after a coordinate transform.
  14. Re:Ad Hominem by ConceptJunkie · · Score: 3, Insightful

    I always thought bundling the browser wasn't even an issue. It was all really Netscape crying like a little baby because they couldn't compete. Back in those days, IE was truly superior, especially when Netscape 4 came out. I remember installing it for the first time and watching it literally take 5 minutes "updating the registry". The thing was a huge bloated mess. Of course, MS hadn't done anything in the way of usability on the thing until Firefox reminded them what innovation was all about. Today IE is losing market share because the alternative is truly superior.

    On the other hand, my wife got e-mailed a couple of attachments the other day. On was a .DOC file, and the other was .DOCX. What the hell is .DOCX? Why, it's a new XML format that only Office 2007 can open, of course. Microsoft is still up to their old ham-fisted tactics. I had to find some on-line conversion service to turn .DOCX into something readable because I don't have Office 2007 and you couldn't pay me to use Word (my wife has a student edition of Office 2003). It turns out it was just a simple letter. Thanks, Microsoft. Thanks for yet another in a long series of kicks to the groin, and more of my time wasted simply to serve the ego of that simian running your company.

    --
    You are in a maze of twisty little passages, all alike.