Microsoft prices itself out of legitimacy

The Inquirer ^ | July 29, 2002 | Paul Hales

[JameRetief]

Microsoft prices itself out of legitimacy

Third world won't pay for Windows

By Paul Hales: Monday 29 July 2002, 09:18

IN SOME DEVELOPING COUNTRIES the price of software can be prohibitive. But rather than lower its prices locally to promote legal use, Microsoft, for example, prefers to send in snatch squads to catch and prosecute users of pirate software.

The squads have been out in force in Peru, we hear, particularly since the government there said it was considering going the open source route.

Microsoft pressure on Peru has been considerable and Wired has a story here that the company enlisted the help of US Ambassador to the country, John Hamilton, to help dissuade the upstart Peruvians from adopting an open source option.

According to Wired, Hamilton wrote in June that while the United States doesn't oppose the development of open-source software, it prefers to support a free market where the quality of the product can determine the issue.

He warns that, by excluding proprietary software companies like Microsoft, Peru would be hurting an industry that "has the potential to create 15,000" jobs.

The letter is the latest in a an-ongoing spat between Microsoft and the Peruvian government, which you can find documented here.

Elsewhere, it seems the Malaysian government is likely to figure large on Microsoft's hitlist, following suggestions by the minister for domestic trade and consumer affairs, that the authorities would turn a bind eye to software piracy in schools and social organisations.

According to the Malysian Star online, here, Minister Tan Sri Muhyiddin Yassin said the use of pirated software in Malaysia had dropped from 70 to 60 per cent in the past two years. He said, "We are concerned over the rampant sale and use of pirated computer software in the country and will continue to conduct raids to curb it."

But in a fit of realism, he allowed that some non-profit making organisations do more good through using pirate software than harm. "For educational purposes," he said. "And to encourage computer usage, we may consider allowing schools and social organisations to use pirated software."

Microsoft's reaction was not forthcoming at press time, but we expect it will be fierce.

But, according to the newspaper, the minister said it was not easy to curb such piracy and "the computer software industry had noted that the problem was worse in the United States". µ

[Clive]

If the quality of the product were determinative, Microsoft would be dead in the water and sinking fast.

Microsoft cornered the market when it got the contract to supply IBM with the operating system for the first PCs, this put it sufficiently far ahead that it could resort to monopolistic andpredatory tactics to stay on top regardless of the worth of its software.

[2banana]

But rather than lower its prices locally to promote legal use, Microsoft, for example, prefers to send in snatch squads to catch and prosecute users of pirate software.

Either lower your prices or we will steal your product! I wonder how they would feel if Americans were stealing their country's products?

[Clive]

The term "open source" does not mean stealing Midrosoft's product.

None of Microsoft's wares are open source. Everything that they sell is proprietary.

In fact, Microsoft is notorious for taking public domain protocols and modifying them so that they only run on Microsoft operating systems. That is why they are being sued by Sun Microsystems, for attempting to proprietorize Java.

Open source is a concept whereby the author of the software publishes the source code and allows the public to use it.

the whole linux community is based on the open source concept.

[ShadowAce]

The squads have been out in force in Peru, we hear, particularly since the government there said it was considering going the open source route.

This doesn't make much sense to me. If your potential customer was considering going with another product, why would you want to get on his bad side by strong-arming your position? I would think that they should allow the pirating for awhile until they are dependant on MS software--then go in and clamp down.

[JameRetief]

Or you could think of it this way. Say a third world country were making Reeboks and selling them to us for $500 to $1000 per pair and they were the only option you had for buying shoes. Would you: A) pay the price, B) accept them for free (or for a few dollars) from someone that steals the shoes truckloads at a time, or C) not wear shoes?

[Clive]

I could never figure that one out either.

It would seem to me that Microsoft would be happy for people to "pirate" the operating system, on the Gillette principle "give away the razor and sell the blades".

Now, I understan that the latest plan is that you will have to pay a yearly fee to continue to use future versions of Windows.

I have noticed a significant increase in new users asking for help on the linux NNTP newsgroups.

[2banana]

You forgot:

D) Make your own damn shoes
E) Since until the 1990s you never even knew what shoes were, maybe you really don't need them that much
F) Buy legal used shoes from someone else
G) Negotiate to try to buy the shoes at a lower price
H) Look for alternatives to shoes (sandals, etc.)

Is this stealing can be rationalized then any stealing can be rationalized...

[Rebelbase]

"Either lower your prices or we will steal your product! I wonder how they would feel if Americans were stealing their country's products? "

The way I read the article leads me to believe that Microsoft is the one sending out "snatch squads", not the Peruvian Government.

[JameRetief]

If Microsoft does move to a software leasing program then I will stop upgrading Microsoft software then and there. My Microsoft OS, Windows XP Pro will last me just fine since they finally accomplished that which I thought they could never do: sell a stable OS.

[neutrino]

Good for Microsoft! If folks don't like Windows products, then by all means use Linux...it's free, stable, and efficient. I am so tired of the unending whining of the third world.

[Clive]

All that open source means is that Peru is choosing options F and H

Open source really means linux. Linux is a Unix based operating system having nothing to do with Microsoft's DOS based operating systems.

The operating system is free, or you can buy it with a manual and tech support for 1/5 the price of Microsoft's operating system. In Canada Mandrake linux is $50.00 retail with manual and support, whereas Windows2000 is $250.00.

Or you can legally download the disks free, without manual or support, or legally buy the disks without manual or support for $10.00.

That is not stealing. That is competition. Microsoft HATES competition.

[rdb3]

E) Since until the 1990s you never even knew what shoes were, maybe you really don't need them that much

That was severely over the top.

[2banana]

that the authorities would turn a bind eye to software piracy

But rather than lower its prices locally to promote legal use, Microsoft, for example, prefers to send in snatch squads to catch and prosecute users of pirate software.

Read the article again. It has little to do with using free, open source software and everything to do with stealing...

[JameRetief]

D) Make your own damn shoes

In this case, it would be similar to making shoes that you can't wear on the sidewalks that you HAVE to walk on in order to be productive.

E) Since until the 1990s you never even knew what shoes were, maybe you really don't need them that much

If it is necessary to have shoes for competing against other countries' citizens for economic viability, they are needed.

F) Buy legal used shoes from someone else

What happens when the End User License Agreements you agree to when you put on your shoes the first time prevents you from selling them again (Microsofts EULA's are beginning this trend too).

G) Negotiate to try to buy the shoes at a lower price

Unfortunately the shoe manufacturers have more sway with the country you live in than you do. They have our FBI rounding up shoe pirates rather than negotiate for a price we would be more WILLING to pay for shoes.

H) Look for alternatives to shoes (sandals, etc.)

Sandals ARE shoes, but the only shoes you can get are the Reeboks, remember? And unfortunately, the sidewalks are designed for Reeboks only. Alternatives do not allow you to use the sidewalks, preventing an equal footing with competing countries' citizens who can afford the shoes to walk on the sidewalks.

[JameRetief]

Please keep in mind that I am playing devil's advocate here. :-)

[2banana]

OK, you convinced me, it is OK to steal all you want as long as you can rationalize it. Just don't complain when they start stealing from YOU.

[ShadowAce]

Personally, I like your options (F) and (H) with a little (D) thrown in for good measure.

Of course, then MS is then losing an entire country's market, and Linux gets much more widespread.

[JameRetief]

Actually, I'm not for piracy, but I think that it is unfortunate that Microsoft can use it's monopoly powers to prevent competition that would effectively lower the prices for all products to a value that is supported by a free market society.

America is the basis for economic successes, not only in America, but other countries as well. When America allows companies like Microsoft to get away with price gouging through illegal practices, we are damning all other countries with much higher prices in a much less economically viable economy as well.

[Enemy Of The State]

Anyway you want to look at it, Microsoft shot themself in the foot!