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Microsoft Shoots Own Foot In Iceland

Posted by kdawson on from the blood-from-a-stone-middleman dept.

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.)"

39 of 476 comments (clear)

  1. WWBD? by Anonymous Coward · · Score: 5, Funny

    What would Bjork do?

    1. Re:WWBD? by Jurily · · Score: 5, Funny

      What would Bjork do?

      "Look, mom, this frog says my name when I squeeze it!"

      Sorry, couldn't resist.

    2. Re:WWBD? by dangitman · · Score: 5, Funny

      Probably write an ode to the mighty Blue Whale, accompanied by interpretive dancers and a musical stage play.

      --
      ... and then they built the supercollider.
  2. Ze goggles! Zey do nothing! by TheRon6 · · Score: 5, Funny

    (Warning: link contains strong language and vivid imagery.)

    Oh god, a 500 error! MY EYES! THEY BURN!

    --
    Does this rag smell like chloroform to you?
  3. Screw this by Anonymous Coward · · Score: 5, Insightful

    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.

    1. Re:Screw this by Anonymous Coward · · Score: 5, Funny

      I agree. "Skull-fucking"? What kind of journalism is that? There has to be a report on the subject that includes some amount of class and professionalism -- especially if it's going to make it to the front page of Slashdot..

    2. Re:Screw this by mihalis · · Score: 5, Funny

      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.

      You're new around here, aren't you?

    3. Re:Screw this by Ninnle+Labs,+LLC · · Score: 5, Funny

      There has to be a report on the subject that includes some amount of class and professionalism -- especially if it's going to make it to the front page of Slashdot.

      This is a joke, right?

    4. Re:Screw this by Timothy+Brownawell · · Score: 5, Insightful

      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.

      You're new around here, aren't you?

      Or more likely, been around long enough to get tired of all the childish crap and instead want sane discussions about what happened and sane arguments over what to do about it.

    5. Re:Screw this by Jurily · · Score: 5, Insightful

      this article should have in giant letters at the top "WRITTEN BY A TOTAL ZEALOT!!!" in giant red letters, so those of us who would actually care about the facts wouldn't bother.

      We already have that.

      Posted by kdawson

    6. Re:Screw this by linzeal · · Score: 5, Funny

      I like the salty language. Every programmer I know speaks fluent fuck you to at least 3 different compilers.

      --
      An Education is the Font of All Liberty
    7. Re:Screw this by Tenebrousedge · · Score: 5, Insightful

      Software was originally given away freely. It's important to remember that.

      Closed-source and/or for-profit software also has its place, but Microsoft might do well to (again) imitate Apple.

      Also, in today's existence, it's difficult to not carry some measure of anger against the 'megacorp'. What have they touched that is not tarnished? What have they given us that is not tainted? Men have always harmed other men in pursuit of their own self-interest, but never is this more soul-less or harsh than when the ultimate goal of the organization is Profit.

      --
      Those who advocate genocide deserve every protection afforded by law, and none afforded by common human decency.
  4. This seems strangely familiar by cstec · · Score: 5, Insightful

    "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.

    1. Re:This seems strangely familiar by Cassini2 · · Score: 5, Interesting

      I think the complaint of the MCPs is Microsoft is demanding payment for product the customer isn't paying for. Specifically, my impression is that Microsoft wants to be payed for the full 3 year contract (over 3 years), even though the customer that purchased the software went bankrupt after the first year. It's a good deal from Microsoft's point of view ...

    2. Re:This seems strangely familiar by jschen · · Score: 5, Insightful

      Microsoft's customer in this case is the MCP. Unless the MCP goes bankrupt and the contract gets voided (assuming things work similarly in Iceland as in the US), why shouldn't Microsoft be demanding payment? Whether or not the MCP has a good use for the contract isn't Microsoft's problem.

    3. Re:This seems strangely familiar by Cassini2 · · Score: 5, Informative

      The legal doctine in common law countries is Force Majeure. If something sufficiently big happens, all bets are off.

      The other business doctrine is that a big company shall not bankrupt the organizations selling their products:
      No sales companies = No salesmen = No sales.

    4. Re:This seems strangely familiar by Renraku · · Score: 5, Insightful

      I'm sure they'd all like to be paying their bills, but when you set up a fiscal triage line, how important do you think payments to a multi-billion dollar corporation that sells software is going to be compared to say, keeping the lights on and paying the employees?

      This is actually quite common in business. Just like how you or I would pay for electricity and food over our credit card bills if we wanted to survive.

      --
      Job? I don't have time to get a job! Who will sit around and bitch about being broke and unemployed then?
    5. Re:This seems strangely familiar by jschen · · Score: 5, Insightful

      Where's the line between Force Majeure and simply a regrettable business decision? Globally, lots of people in all walks of life are suffering from their decisions (whether sound at the time or not) made during better times that are haunting them in these rough economic times. What about this situation is unique to the MCP? How would the situation look if we allowed people across the board to declare Force Majeure?

      As for no salesmen = no sales, it's commonly accepted that Microsoft is a de facto monopoly. If we take that to be true, then there may not be much cost to MS in hanging the MCPs out to dry. The MCP's customer still needs the MS product, and a new MCP undoubtedly will fill in the void when times get better.

    6. Re:This seems strangely familiar by Beryllium+Sphere(tm) · · Score: 5, Interesting

      If the flaming article is right, and if I've understood it correctly, that "cut" was negative: "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." In other words, the MS licenses were a loss leader.

      There's still a good argument that they're just like any business that gets stuck with unsold inventory when its customers get shot out from under it, but it doesn't sound like the MCPs were on a gravy train.

      Of course, any other business whose retail customers disappeared could eliminate the bills from their wholesaler by simply stopping their wholesale purchases.

    7. Re:This seems strangely familiar by Nefarious+Wheel · · Score: 5, Insightful

      As for no salesmen = no sales, it's commonly accepted that Microsoft is a de facto monopoly. If we take that to be true, then there may not be much cost to MS in hanging the MCPs out to dry. The MCP's customer still needs the MS product, and a new MCP undoubtedly will fill in the void when times get better.

      Exactly correct. Whereas there is an effective water monopoly in place as a supplier, resellers are infinitely replaceable. One man goes to the wall, another will take their place. No martyrs, only failures.

      --
      Do not mock my vision of impractical footwear
    8. Re:This seems strangely familiar by Arker · · Score: 5, Insightful

      You have a point. Clearly MS is within their rights in terms of the contracts.

      However a wise businessman in their position would be willing to "work with" their "partners" under such circumstances. Sticking to their rights here will blow up in their face, and cost them in the long run.

      Which is really a good thing, anyway, both for Iceland and the world, if it results in increased Free Software awareness, usage, and development.

      --
      =-=-=-=-=-=-=-=-=-=-=-=-=-=-
      Friends don't let friends enable ecmascript.
    9. Re:This seems strangely familiar by ColaMan · · Score: 5, Informative

      If something sufficiently big happens, all bets are off.

      This is incorrect - the principle of "Force Majeure" is that it has to be completely unexpected - that is, a reasonable person would be unable to forsee the event, and would not have taken measures to mitigate it.

      Say I run a fishing company and all my boats are at sea and are sunk in a big storm. I can't really claim Force Majeure on your supply contracts, as it could be expected that, when fishing, one could encounter storms that might sink your fleet. However, if my boats were docked in a harbour with a narrow inlet with high cliffs and some construction work collapsed the cliffs and blocked the harbour preventing my boats from getting out, well that would fit under "Force Majeure".

      In the MCP's case, one can get insurance for loss of business income, and if one is beholden to continuous payments to a third party, it's a good idea to get it. This is basic financial disaster management - plenty of businesses will sit down and think, "what would happen if the building caught fire?", but few will think, "what happens if my customers suddenly can't pay?"

      --

      You are in a twisty maze of processor lines, all alike.
      There is a lot of hype here.
    10. Re:This seems strangely familiar by Mistlefoot · · Score: 5, Insightful

      So Ford leases company A cars. Company A leases them out to end users. The end users go bankrupt and have no need for the cars. Ford forbids company A from for releasing the cars to anyone else as the agreements indicate that the leases are not transferable. Company A says - Ford is telling me that I cannot transfer these cars to anyone else - that Ford is enforcing the agreement that Ford made with the end user - Then Ford can deal with the bankrupt end user. If the agreement is between company A and the end user then they can transfer the licenses and sell them in say, England, or Canada or the US. But per Ford the agreement for money is between Ford and company A and the agreement with what can be done with the car is between is between Ford and the End user. That it's software and not a car doesn't make this correct.

    11. Re:This seems strangely familiar by RodgerDodger · · Score: 5, Interesting

      Having your bank's own bank accounts frozen by a foreign power (the main reason Iceland's collapsing so fast) probably does count as "completely unexpected"...

      --
      "Software is too expensive to build cheaply"
  5. Re:Link contains strong language and vivid imagery by QuantumG · · Score: 5, Funny

    "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.
  6. Optimism by Mr.+Conrad · · Score: 5, Funny

    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.

  7. Just so you know what you missed by QuantumG · · Score: 5, Funny

    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.
    1. Re:Just so you know what you missed by nametaken · · Score: 5, Interesting

      I particularly liked the part about how, unless Microsoft permanently reduces the cost of all their software to zero it's an attack on Icelands sovereignty.

      That made me giggle a little. And then depressed that the guy who wrote it believes it.

      "Unless, and this is important: Microsoft can redeem themselves towards the Icelandic economy if and only if they immediately reduce the price of all of their products to zero, permanently. Anything less will be an act of non-compliance towards the needs of the Icelandic economy, and can be considered an attack on the nationâ(TM)s sovereignty. Such an attack will inevitably be responded to by the market by way of an across-the-board adoption of free software."

      Puuuuke.

  8. Re:Ze goggles! Zey do nothing! by wileycoyoteacme · · Score: 5, Funny

    (Warning: link contains strong language and vivid imagery.)

    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
  9. Re:Article text here. by tpgp · · Score: 5, Funny

    Looks like a nice impartial artice.

    You had to read 13 paragraphs of an article titled "Microsoft Skull-fucks Iceland's Economy, Contracts Syphilis" to decide it's not impartial?

    --
    My pics.
  10. Re:slashdotted... but available on Coral Cache by quist · · Score: 5, Informative

    Still viewable via ye olde Coral Cache: http://smari.yaxic.org.nyud.net/blag/2009/03/06/microsoft-skull-fucks-icelands-economy-contracts-syphilis/

  11. Re:Link contains strong language and vivid imagery by Anonymous Coward · · Score: 5, Funny

    Funny you should say that. According to the blogger, the only thing these MCPs are seeing in their heads is Microsoft's cock.

  12. Re:Wait, what? by Hooya · · Score: 5, Insightful

    From what I gathered from the article, most MCPs were selling licenses at a loss anyhow since that is how they could compete with the other MCPs - all with the hope that they could make that up in support contracts.

    If that's true, then they were starting with a loss - and sold support.

    Why not start at $0 and sell support?

  13. I feel so sad for these poor MCPs... NOT! by Anonymous Coward · · Score: 5, Insightful

    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.

  14. Re:Or I will gouge out your eyeballs... by FearForWings · · Score: 5, Insightful

    BSOD and skull fucking I can deal with but why didn't anyone tell me I could get an STD from Microsoft.
    But seriously what the fuck is with the link: ../microsoft-skull-fucks-icelands-economy-contracts-syphilis/ How is any page with this kind of name even remotely legitimate news.

    --
    I don't know about angles, but it's fear that gives men wings. -Max Payne
  15. Re:Ze goggles! Zey do nothing! by Jurily · · Score: 5, Funny

    402; 416; 410

  16. Uhmmm. by Evil+Shabazz · · Score: 5, Insightful

    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
  17. Re:slashdotted... but available on Coral Cache by grantek · · Score: 5, Funny

    (Warning: link contains strong language and vivid imagery.)

    Excellent way to get people to RTFA :)

  18. Re:Ze goggles! Zey do nothing! by troll8901 · · Score: 5, Informative

    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"?