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Microsoft Shoots Own Foot In Iceland
David Gerard writes "The Microsoft Certified Partner model is: an MCP buys contracts from Microsoft and sells them to businesses as a three-year timed contract, payable in annual installments. Iceland's economy has collapsed, so 1500 businesses have gone bankrupt and aren't paying the fees any more. But Microsoft has told the MCPs: 'Our deal was with you, not them. Pay up.' The MCPs that don't go bankrupt in turn are moving headlong to Free Software, taking most of the country with them. (Warning: link contains strong language and vivid imagery.)"
and BSOD you!
I bet they're proud of that Microsoft partner banner at reception...
Task Mangler
What would Bjork do?
Oh god, a 500 error! MY EYES! THEY BURN!
Does this rag smell like chloroform to you?
You know what, I'm not even going to bother clicking on a link composed of obscenities, even if it is about Microsoft making another PR blunder.
I'd like some anti-Microsoft news that at least appears reputable, and not overly sensationalized "ZOMG Balmer blew up M$ eats babies" crap like the stuff I've seen here for the past few weeks.
Give me something to read, please, not something designed to assimilate me into another angry mob.
"Hey, I only joined the military for the free college tuition. I never said anything about shooting people!"
These MCP's were all happy to sign up, resell MS's products and take their cut for doing almost nothing. Now they're not selling and they don't want to pay their bill? Puh-lese. The cheese section is apparently in Iceland, along with the whine.
Business People tend to remember the company that pushed them into bankruptcy. They don't forgive and forget easily.
I can't see everyone "just switching" to Linux, but this could create much motivation to try. Survival in business is a strategic imperative. If someone threatens that survival, then business people tend to connect the dots, and adapt accordingly.
Internal Server Error The server encountered an internal error or misconfiguration and was unable to complete your request....
Ewww... i tought that i was prepared for any rudeness and strong language, but this? Slashdot should start putting stronger warnings in the articles, things like this could have adverse effects for the rest of your life.
"imagery" is the stuff you see inside your head when you read that strong language.
How we know is more important than what we know.
Google cache
xkcd is everywhere...
"The server encountered an internal error or misconfiguration and was unable to complete your request."
Maybe Microsoft revoked their license on the webserver? Possible?
LOL.
Ah well, it seems somebody over there saw this article and decided to pull it to save grace.
Balmer is a /. subscriber, he got to see it early...
And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
Link to Google Cache of article Full text available in replies
I have left slashdot and am now on Soylent News. FUCK YOU DICE.
I think it's rather impressive that Microsoft hasn't run out of feet to shoot. Nor bullets, apparently. Then again, they may have amassed an ample supply of peg-legs in their fight against piracy.
From TFA: "So with the Navision thing going on the situation normally pans out like this: Company/institute X switches to Free Software nominally, installing Ubuntu and OpenOffice.org on all computers, except those of the top management who need to have access to Microsoft Navision Financials. The middle management then complains that theyâ(TM)re important enough to have Microsoft Office and that they feel devalued as employees for being forced to use the free, open alternative that doesnâ(TM)t suck. Eventually the middle management gets their way, and then the lowest employees start heaving the same sighs. Before you know it Company/institute Xâ(TM)s Free Software policy is a piece of paper rotting in a drawer somewhere."
Adapt. Improvise. Overcome. Fire the entrenched middle managers. If they don't want to liberate their departments from this morass, save their countrymen a pile of kronas, and just generally improve their situation, well...who needs 'em?
Time for them to head to the conference room where Bob Slydell and Dom Porterwood are waiting.
Here's my translation for ya:
[rumor] Microsoft [rumor] Economic Crisis [rumor] I can't confirm this but [rumor]. Open Office is better than Microsoft Office. [rumor] [bad logic] [rumor] [rumor] Pitiful prediction.
How we know is more important than what we know.
Just because I hope to get modded up for a post containing the phrase 'skull fucking':
Microsoft Skull-fucks Iceland's Economy, Contracts Syphilis
Microsoft has made a business out of selling licenses to run software that can be copied at no marginal cost, this everybody knows. Essentially, they manufacture software, but their product isn't computer code, it's legal code. Contracts.
They make deals with companies, the most common type being three year non-exclusive non-transferable usage rights contracts for the Microsoft Windows operating system and the Microsoft Office software package. A severe amount of licenses for Microsoft Dynamics NAV (formerly Navision Financials, and I shall refer to it as Navision) are sold as well.
The companies and institutions that buy these generally don't buy these directly through Microsoft. Instead, they sell contracts in bulk to Microsoft Certified Partners (MCP's), which are local companies that lobby the software, generally at a loss to themselves, as they know that Microsoft's lock-in is powerful enough that they can only get service contracts from the company if they offer a substantial discount on the Microsoft products.
Now, the licensing term is three years, but the licensing fee is made in the form of annual payments. Here is where the fun begins.
Now, say an economy collapses. Say some fifteen hundred companies in your local economy go bankrupt. Now, say that Microsoft comes to collect its annual fee from the MCP's. The MCP's say, of course, âoewait, the company that we sold this license to has gone bankrupt, we shouldn't have to pay.â
âoeAha!â says the suit from Redmond. âoeYou made a contract with us, and another with them. Their inability to uphold their end of the contract does not invalidate your commitment to us.â
This is what I've heard from pals in the industry. Pals who're being screwed over right now. In short, the MCP's have to pay the licensing fees for the bankrupted companies.
The sheer shock of having to do so is starting to hit the Icelandic economy, hard. Already battered by the collapse of almost all privately held financial institutions and the subsequent bust of nearly fifteen hundred companies, Iceland's MCP's are next.
The devil here is in the details. Microsoft was just collecting what was due, forcing an issue that, for most places would be perfectly reasonable to do. Well, no. But it could be argued. Hey, this is about revenue.
But the backlash effect has been astounding. Several of Iceland's largest MCP's are now fighting for survival in a sea already at significant turmoil due to the economic depression. Shit had already hit the fan, but now they're being skull-fucked by Microsoft to boot.
And what would you do? Well. My sources tell me a lot is afoot. Several MCP's are bailing out, switching over to Free Software and restructuring their business model. Keep the revenue inside Iceland, sell better technical services for less money and yet double their revenue. âoeWhy didn't we do this earlier?â
Why indeed. With Microsoft's stranglehold on the economy, a long series of lock-ins has made life difficult for the dozens of people involved in trying to push free software in Iceland. With the government alone spending in the vicinity of 1 billion Icelandic kronas annually on Microsoft's wares â" a number not even taken together separately in the accounting books, as it is all written up as âoemiscellaneous running costsâ â" it'd be a really smart move to switch, if only they could.
The easiest switch would be to go to OpenOffice.org from Microsoft Office. This switch is easy because not only is OpenOffice.org superior software in every respect, it's also feature-compatible with Microsoft Office, supports reading and writing of Microsoft's file formats â" even the ones that Microsoft Office itself no longer supports â" and is free to boot, both free as in freedom and free as in price. The only imp
My pics.
Oh god, a 500 error! MY EYES! THEY BURN!
Here you go, ya' big baby!
Disclaimer: The opinions and actions of the US Gov't are in no way representative of those held by this author or its ci
We'll shoot this foot
What?
What happened in Iceland seems to be a general liability for Microsoft. It strikes me that almost all of Microsoft's products, whether you believe they're a net good thing or net bad thing for the IT industry and other sectors, have two things in common: 1) they cost money; and 2) they're optional in the sense that there are free alternatives that are at least usable, if not superior.
Faced with an economic downturn that's more or less worldwide in scope, and likely several years in duration, does anyone see any possible way MSFT's revenues can be maintained at current levels? Organizations looking to lower their costs will eventually notice the money hose going to Redmond, and wonder if it can be turned down or disconnected altogether. In almost all cases the answer to that question is "Yes."
It seems that one way to take advantage of a bear market like this one is to identify large-scale players with vulnerable bottom lines and short-sell them. Thoughts?
Oh god, a 500 error! MY EYES! THEY BURN!
Are you kidding? This is Slashdot, a 500 error practically constitutes foreplay. Strong language indeed! :-)
Insert witty comment here
...looking for free alternatives to overpriced stuff. News at 11.
Nothing new really. We know Microsoft is going to die sooner or later. They've had their run in the industry but just like the RIAA their current models don't work well anymore in the current economies so they'll either adapt or die kicking and screaming in the courtroom. They chose the latter (just like the RIAA) because it seems to be the easiest way out (short term goals). The other way requires retooling and reshaping a lot of company structure, eliminating unnecessary management.
Custom electronics and digital signage for your business: www.evcircuits.com
You have got to be new here. 5 minutes probably wouldn't make the top 100 fastest slashdotings of all time...
The MCPs that don't go bankrupt in turn are moving headlong to Free Software
Software resellers are moving headlong to Free Software? What is their business model supposed to be?
I'm going to assume this line is trying to say "The MCPs that don't go bankrupt in turn are going to bankrupt themselves for the Free Software cause, for no particular reason".
Anyone can "stand up for what they believe", but it takes a very brave individual to change what they believe. - Loundry
OpenOffice.org from Microsoft Office. This switch is easy because not only is OpenOffice.org superior software in every respect, itâ(TM)s also feature-compatible with Microsoft Office
Hm. no Can't agree with Open Office being superior. At the least a significant amount of re-learning is require. I know every time I use it I find it a frustrating experience.
And no if Word is the baseline then OO Writer is not feature complete. Once I learnt to use it the outline view in Word was the killer feature, which made editing large documents doable. Without outline view I could not imagine working on documents of a comparable size.
As for spreadsheets their are two keybindings I need. Insert current data and insert current time. Apparently their are third party macros for this. But tts something that's never available without additional effort when I try to use calc.
So no OpenOffice is not a simple drop-in replacement for Microsoft Office. Then Again if it where a drop-in replacement then Microsoft would undoubtedly be suing.
read my mind at http://the-willows.blogspot.com/
Still viewable via ye olde Coral Cache: http://smari.yaxic.org.nyud.net/blag/2009/03/06/microsoft-skull-fucks-icelands-economy-contracts-syphilis/
Funny you should say that. According to the blogger, the only thing these MCPs are seeing in their heads is Microsoft's cock.
This switch is easy because not only is OpenOffice.org superior software in every respect, it's also feature-compatible with Microsoft Office, supports reading and writing of Microsoft's file formats Ã" even the ones that Microsoft Office itself no longer supports Ã" and is free to boot, both free as in freedom and free as in price.
To be fair, I used to think sort of the same thing - why use MS Office when OpenOffice is there and does most of that stuff?
Then I got MS Office at work - mostly to combat problems we had with compatibility with our clients sending us 'real' .doc files. OpenOffice would spit out something that didn't maintain the exact formatting, which pissed everyone off.
But the main thing for me is just the sheer awesomeness of the whole thing. I never used 2003 so didn't struggle at all with the new 'ribbon' thing, which I think is great. I find the whole Office package shits all over OpenOffice in terms of usability and performance.
I thought I'd get MS Office and only use it for stuff that had to be interoperable with our clients and use OOo for everything else - but I've switched to using MS Office for everything. Sorry, but it's better.
If you have to interoperate with anyone doing high-end Word stuff you might struggle to switch to OOo. But if you can make EVERYONE you deal with use it ALL at once and the formatting stuff isn't that big a deal - then sure, it'll work for you.
So let me get this straight; several MCPs in Iceland decided to dance with the devil, buying three-year software contracts from Microsoft for Office and some other applications. After purchasing said contracts directly from Microsoft, these MCP then turned around and sold the same contracts to other companies in Iceland, charging an annual fee to those companies while, I imagine, paying Microsoft on some type of installment plan. Now, when the economy tanks and the folks who paid last year aren't around this year when the bill comes due, these MCPs are surprised, shocked if you will, that Microsoft wants them to pay for the contracts they purchased directly from Microsoft? Truly, am I missing something here?
It doesn't take even a back-of-the-envelope calculation to see that, if you buy a three year contract from vender 'A' and sell it with an annual maintenance fee to customer 'B', you have in fact become a creditor for customer 'B'. It should therefore come as no surprise to these MCPs that, yes, Microsoft really does want them to pay for the contracts they purchased from Microsoft. I can't imagine anyone at Microsoft stuck a gun to their heads and said, "Sell Microsoft software contracts or die." If you dance with the devil, and willingly did business with Microsoft, than you'd better be prepared to pay for the software contracts you purchased from the company.
Perhaps I'm just not enough of a Microsoft-hater, but I fail to see the 'skull fucking' here. What I do see is an angry rant from, I assume, someone who's likely receiving calls from bill collectors in Redmond. I'm sorry that MCP thing didn't work out for you, and if you want to switch from plugging Microsoft products to promoting Open Source Software, than more power to you. But please don't ask me to overlook the poor business decision you made in becoming a de-facto creditor to your customers. If you don't like the way Microsoft does business in Iceland, you don't have to join their game. Take your marbles and go play in some other park with rules more suitable to your taste.
I feel quite badly for iceland, they are suffering under a significant economic downturn affected by just a few banker types. However, even if/when the entire country goes to Open Source, Microsoft won't even notice the 20k annual licences or so that go with them. Only 300k people live in Iceland. More people live within 10 miles of me, and just about everyone else reading this. They just don't matter in the global scheme of things.
--why?
Alas, looking is not enough. I've been a great fan of FreeBSD for many years (like you, I see), and a dozen or so years ago I could have sworn that by now we would all be running *BSD and Linux. However, for normal people (those who have no idea what 'make' or 'kernel' mean) being ticked off is not enough. They have to have a viable alternative - one that does not require extensive tinkering. That also means a wide availability of common business and entertainment software. Even folks like me give up when faced with reality. We need to share our computers between work and fun. Good luck telling your company they should switch all software to open source (please don't give me anegdotal evidence of such things happening - in the scale of the business landscape, they are unnoticeable).
Even for personal use, I am not so sure I want to switch to all *BSD/Linux. I can get zsh and all common utilities (including vi) running on my Windows machine along with all business software. I cannot get the reverse if I change the OS. Sorry, Gimp is not Photoshop, and nothing in the open source comes close to Adobe suites (an advice to use LaTex instead of Framemaker gets the rest of your arguments automatically disqualified).
I think the penetration of the natural space for open source - server space - was a great success. Desktop is a different game, and I am not sure that the current open source development model is well suited to that space. Strangely enough, the "If you don't like it, why don't you write it yourself" advice does not resonate too well with most normal users.
End anonymous moderation and posting on
values('reason', 'fairness', 'forethought');
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Help stamp out iliturcy.
They'll lie in it.
If some employees of their company go on to found a company that's not so foolish, they will have learned.
But the company that danced with the devil and doesn't want to pay? Why would you trust them now? Maybe tomorrow they'll decide the service contract you paid them for requires too much effort or cost to fulfill.
As we used to say back when I was in this game, a deal is a deal is a [expletive deleted] deal.
Help stamp out iliturcy.
402; 416; 410
Certainly I'm no expert in Icelandic contract law, but frankly, why is this any different than any other form of reseller?
If I am a local grocer (the MCP) in a town, and I have just bought 10 tons of corn from the local farm (Microsoft) on agreement to pay for the corn over the next 3 years, but then suddenly all the area folks (other local businesses) cannot afford to buy corn from me anymore - what kind of nonsense suddenly absolves me of having to pay for the corn?
Sure, maybe Microsoft could be doing more negotiating on the contracts to help keep people in business - but guess what? They're a business too. Just because you don't like them doesn't make their contracts any less valid. Just because it's software and not a commodity doesn't make the contracts any less valid. If you take on the risk (the agreement to pay over 3 years, assuming you have revenue to pay for those 3 years), and your risk goes sour - you damned well better have to eat your sour grapes.
Incidentally, that's what is wrong with the bailouts in the US - the US goverment - ie, G W "Idiotboy" Bush and his Republican cronies told all the Wall Street CEOs - take on all the risk you want with other peoples' money, we got your back if it goes bad.
Down with the career politician! SUPPORT TERM LIMITS
(Warning: link contains strong language and vivid imagery.)
Excellent way to get people to RTFA :)
http://en.wikipedia.org/wiki/List_of_HTTP_status_codes
402 Payment Required
416 Requested Range Not Satisfiable
410 Gone
Huh, what does it mean??
Or have I just earned a huge whoosh?
And what does it mean by "practically constitutes foreplay"?
"Business bad? Fuck you, pay me.
Oh, you had a fire? Fuck you, pay me.
Place got hit by lightning, huh? Fuck you, pay me.
Your country's economy imploded, all your clients went out of business, and your currency is worthless? Fuck you, pay me."
Airplane Photos, Airline News, Planespotting Guides
OO.o's "Base" is not even close to being an Access replacement, and a lot of small businesses run at least some mission-critical parts of the business on Access apps. They are important enough that they need to be kept in operation, but the business can't afford to rewrite them.
The population of Iceland is less than 350,000, barely as big as a medium-sized town. It's less than a single pixel on Microsoft's profit graph. I bet that not only do they not care about Icelandic MCPs going bust, but they don't care if the whole country - all 350,000 of them - does or does not use Microsoft software.
Andrew Oakley - www.aoakley.com
Just say "414" and waggle your eyebrows suggestively ...
I am no lover of Microsoft, but I fail to see how they are at fault here. If I went to the Chrysler dealership and leased a fleet of cars for my company, and then the company went belly up, I'd still owe for those cars. They wouldn't care that the company was gone; they'd want their money from whoever leased the cars. Or at the very least they'd want their cars back plus the contract breaking fees. It's hard to give software back...
788652 = 2 x 2 x 3 x 3 x 19 x 1153
It doesn't take even a back-of-the-envelope calculation to see that, if you buy a three year contract from vender 'A' and sell it with an annual maintenance fee to customer 'B', you have in fact become a creditor for customer 'B'. It should therefore come as no surprise to these MCPs that, yes, Microsoft really does want them to pay for the contracts they purchased from Microsoft. I can't imagine anyone at Microsoft stuck a gun to their heads and said, "Sell Microsoft software contracts or die." If you dance with the devil, and willingly did business with Microsoft, than you'd better be prepared to pay for the software contracts you purchased from the company.
You must have noticed the financial party we have been having for the last few years. Why should MCPs be any more sensible than the rest of us? Being sensible wasn't fashionable. The MPCs, like almost everybody else, have been busy buying into the mass delusion that boom lasts forever and recession is a thing of the past. When people are partying anybody being sensible isn't listened to and that usually doesn't change until the partygoers get a major reality check such as being arrested for drunk driving. In Iceland that reality check came in October 2008 in the rest of the world it will probably sink in more slowly.
Perhaps I'm just not enough of a Microsoft-hater, but I fail to see the 'skull fucking' here. What I do see is an angry rant from, I assume, someone who's likely receiving calls from bill collectors in Redmond. I'm sorry that MCP thing didn't work out for you, and if you want to switch from plugging Microsoft products to promoting Open Source Software, than more power to you. But please don't ask me to overlook the poor business decision you made in becoming a de-facto creditor to your customers. If you don't like the way Microsoft does business in Iceland, you don't have to join their game. Take your marbles and go play in some other park with rules more suitable to your taste.
What usually happens in a situation like this is that the distributor and the supplier reach an agreement where some of the debt is perhaps written off and the rest is paid back according to some sort of payment plan. The idea being that you as a manufacturer of a product are better off taking a hit which isn't good but results in the survivial of the network of distributors that you have built up over decades. If you don't do this the competition will swoop down and soak up your market share faster than you can say "negative EBITA". With a whole slew of IT people being unemployed you can rest assured that if Microsoft starts killing off MCPs, dozens of FOSS start-ups will pop up like mushrooms on a forest floor over the next few years to take their place and compete with Microsoft. These MCPs are companies with massive experience in selling MS products, servicing them and lobbying government into buying MS products instead of deploying FOSS. For Microsoft the party is over for the time being just like it is for their customers. Over the last few years Microsoft's corporate customers have become accustomed to burning through borrowed money as if it was firewood but over the foreseeable future that will change. Businesses will be lucky if they can get any credit at all and that, more than anything else, will make FOSS a more attractive option. I am not saying that FOSS will take over the European software market but Microsoft could lose some ground if they don't play their cards right.
Only to idiots, are orders laws.
-- Henning von Tresckow
that MS is reading that posting, now that it is on /..
Most likely, they are contracting MCP's and backing off the money issue. I would also guess that they are trying to make certain that plenty of low costs software is running around there about now, that will remain low costs while OSS looks to gain a toehold. All this will be funded by American companies and American's.
I prefer the "u" in honour as it seems to be missing these days.
MCPs: That was never a condition of our agreement... ...No.
Darth Bill: Perhaps you think you're being treated unfairly?
MCPs:
Darth Bill: Good, because it would be unfortunate if I had to leave a Ballmer here
The standard response to that is 417.
Excepting that this is Microsoft, there's really nothing new to see here. A contract is a contract, no matter whether if it's with a 500 pound gorilla or with Guido from downtown (though the similarity is striking).
I had a relative that owned a wholesale food delivery service. Business was good, though the profit margin was small. During a small downturn in the economy back in the early 70s he had a couple restaurants declare bankruptcy on him. Unfortunately they were a couple of his biggest customers, and left him with pretty big bills. Well, guess what? He still had to pay his supplier, and that small fact finally drove him under (which would have happened anyway with the advent of Sysco, but that's a story for another day).
I guess the reasons we're complaining are that:
Granted, I like to get in on a little Microsoft-bashing myself, but I think that here they have them by rights. A little compassion would be nice, but perhaps they can appeal to the Gates Foundation for some of that.
Dt
Is this thing on? Hello?
Huge "woosh" indeed...
Let me lay it out for ya (pun intended): Foreplay is something you would typically do before sex to get your partner in the mood. Except of course when you pay for sex (402). Regardless of what women say, they do care if you have a small penis (416) and if the chick was purely in it for the sex, then obviously she'd GTFO as soon as you are done (410), notice that I said YOU are done (refer back to 416).
There.
~Syberz