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Microsoft at the power point [why Linux is slandered at FR]
The Economist ^ | 13 September 2003 | Economist staff

Posted on 09/13/2003 7:32:43 PM PDT by chilepepper

Governments like open-source software, but Microsoft does not

IN MAY, the city of Munich decided to oust Microsoft Windows from the 14,000 computers used by local-government employees in favour of Linux, an open-source operating system. Although the contract was worth a modest $35m, Microsoft's chief executive, Steve Ballmer, interrupted his holiday in Switzerland to visit Munich and lobby the mayor. Microsoft even dropped its prices to match Linux—a remarkable feat since Linux is essentially free and users merely purchase support services alongside it. But the software giant still lost. City officials said the decision was a matter of principle: the municipality wanted to control its technological destiny. It did not wish to place the functioning of government in the hands of a commercial vendor with proprietary standards which is accountable to shareholders rather than to citizens.

Worryingly for Microsoft, Munich is not alone in holding that view. Across the globe, governments are turning to open-source software which, unlike proprietary software, allows users to inspect, modify and freely redistribute its underlying programming instructions. Scores of national and state governments have drafted legislation calling for open-source software to be given preferential treatment in procurement. Brazil, for instance, is preparing to recommend that all its government agencies and state enterprises buy open source.

Other countries are funding open-source software initiatives outright. China has been working on a local version of Linux for years, on the grounds of national self-sufficiency, security and to avoid being too dependent on a single foreign supplier. Politicians in India have called on its vast army of programmers to develop open-source products for the same reasons. This month, Japan said it would collaborate with China and South Korea to develop open-source alternatives to Microsoft's software. Japan has already allocated ¥1 billion ($9m) to the project.

Why all the fuss? Modern governments generate a vast number of digital files. From birth certificates and tax returns to criminal DNA records, the documents must be retrievable in perpetuity. So governments are reluctant to store official records in the proprietary formats of commercial-software vendors. This concern will only increase as e-government services, such as filing a tax return or applying for a driving licence online, gain momentum. In Microsoft's case, security flaws in its software, such as those exploited by the recent Blaster and SoBig viruses, are also a cause of increasing concern.

Government purchases of software totalled almost $17 billion globally in 2002, and the figure is expected to grow by about 9% a year for the next five years, according to IDC, a market-research firm (see chart). Microsoft controls a relatively small part of this market, with sales to governments estimated at around $2.8 billion. But it is a crucial market, because when a government opts for a particular technology, the citizens and businesses that deal with it often have to fall into line. (In one notable example, America's defence department adopted the internet protocol as its networking standard, forcing contractors to use it, which in turn created a large market for internet-compliant products.) No wonder Microsoft feels threatened—the marriage of open-source software and government could be its Achilles heel.

Policymakers like open source for many reasons. In theory, the software's transparency increases security because “backdoors” used by hackers can be exposed and programmers can root out bugs from the code. The software can also be tailored to the user's specific needs, and upgrades happen at a pace chosen by the user, not the vendor. The open-source model of openness and collaboration has produced some excellent software that is every bit the equal of commercial, closed-source products. And, of course, there is no risk of being locked in to a single vendor.

That said, open-source is no panacea, and there are many areas where proprietary products are still far superior. Oracle, the world's second-largest software company, need not worry (yet) about governments switching to open-source alternatives to its database software. But Microsoft is vulnerable, because an open-source rival to its Windows operating system exists already, in the form of Linux.

If Microsoft is indeed squeezed out of the government sector by open-source software, three groups stand to benefit: large consultancy firms and systems integrators, such as IBM, which will be called in to devise and install alternative products; firms such as Red Hat or SuSE, which sell Linux-based products and services; and numerous small, local technology firms that can tailor open-source products for governmental users.

As a result, the company has been fighting back. Microsoft and its allies have sought to discredit open-source software, likening its challenge of proprietary ownership to communism and suggesting that its openness makes it insecure and therefore vulnerable to terrorism. The firm also created a controversial slush fund to allow it to offer deep discounts to ensure that it did not lose government sales to Linux on the basis of price. And Microsoft has paid for a series of studies, the latest of which appeared this week, which invariably find that, in specific applications, Windows costs less than Linux.

More strikingly, Microsoft has been imitating the ways of the open-source “community”. Last year, the firm launched a “shared source” initiative that allows certain approved governments and large corporate clients to gain access to most of the Windows software code, though not to modify it. This is intended, in part, to assuage the fears of foreign governments that Windows might contain secret security backdoors. Microsoft has also made available some portions of the source code of Windows CE, which runs on handheld PCs and mobile phones, to enable programmers to tinker with the code. Tellingly, this is a market where the company is a straggler rather than a leader.

Jason Matusow, Microsoft's shared-source manager, says that developing software requires leadership and an understanding of customer needs—both areas where proprietary-software companies excel. As for proposed legislation that would stipulate one type of software over another, it is anti-competitive and could leave users hamstrung with products that are not the best for their specific needs, says Robert Kramer, executive director of the Initiative for Software Choice, a Microsoft-supported lobby group. Microsoft will advance these views next week in Rome, where it is hosting the latest in a series of conferences for government leaders. But the signs are that many of them have already made up their minds.


TOPICS: Business/Economy; Crime/Corruption; Technical
KEYWORDS: communism; computers; fraud; linux; microsoft; monopoly; sco; security; terrorism; viruses
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To: TopQuark
This is because private ownership stimulates innovation

Yes. But as we have also understood since Adam Smith, monopoly stifles innovation. OS's are a natural monopoly, more or less, and Open Source, for whatever reasons, is the only force that has been able to offer badly needed competition.
41 posted on 09/13/2003 9:20:36 PM PDT by Russian Sage
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To: Lessismore
Bravo!!
42 posted on 09/13/2003 9:20:52 PM PDT by TomServo ("Upon further review, the refs find that Cody is dead. The play stands -- Cody is dead.")
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To: Lessismore
I agree with the facts of all three points you make. The basic invention of these basic discoveries were not exclusively American. However, in the case of Daimler Benz, they did not have the commercial success that Ford did when he developed the assembly line. The model "T" became the wheeled "operating system" of the world. And it was "open", as well as privately owned.

As for aircraft, much of the worlds aircraft companies built airplanes by hand until WWII and automobile assembly line methods could be integrated into aircraft manufacture. The US again took the lead. In 5 years, the US made more aircraft in one month in 1945, than it did all year in 1940. Private companies (using taxpayers money) on an "open" production line.

43 posted on 09/13/2003 9:29:06 PM PDT by elbucko
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To: MarkL
We tend to install W2K Pro on a FAT32 formatted partition.

That partition is the larger of two partitions, one big (around 32GB), one small (around 8GB) on the Master IDE hard drive. Then we also have two same-sized partitions on a second hard drive. All are formated FAT32.

We visit the hardware maker's website and download ALL the updates --- we do not use the hardware updates from Microsoft.

To Install W2K Pro, we do roughly the following:

(1) After the OS appears to have successfully installed from the CD, we restart four times.

(2) After the fourth restart, we set the energy savings; we do not use standby or hibernate --- the machine will either be ON or OFF and nothing else. Here, we also check the virtual memory page settings --- often we find that the installation of additional RAM has not properly been taken into account by the OS, so we adjust the setting(s) --- we'll usually put the "swap file" on one of the second hard drive's partitions.

(3) We then get the latest ROM upgrade and install it, followed by any related hardware updates from the maker.

(4) We install Norton SystemWorks, chiefly for Norton Utilities and Norton Anti-Virus.

(5) The Microsoft Windows Updates follow.

(6) Then we complete the installation of the maker's updates.

(7) For steps 5, 6, and later, after each software application's installation, followed by two restarts, we run Norton Utilities WinDoctor and then another restart.

(8) Every step of the way, we try to keep it as clean an installation as possible.

I have seen hardware tests completely miss bad hard drive or keyboard or mouse connections, but usually, these kinds of marginal connections are indicated during startup --- failure to repeat "the same old startup."

In your place, I would install another CD player and read the install discs from it.

44 posted on 09/13/2003 9:30:28 PM PDT by First_Salute
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To: chilepepper
I never used Mac's because of the way Apple went after companies that made machine that ran like a Mac in the courts. I have this problem with the software industry in general. I don't like being called a thief. I've wondered how many pirated versions of software sold someone on a licenced product or got tossed in the can? I like Linux cause I'm not called a thief for useing it. I want to sue Microsft on ADA (Americans with Disabilities Act) grounds for being dyslexic and haveing to type in so many characters to activate thier software. I bought a Windows XP Pro upgrade for my laptop that had WXPHE on it (glorified Win98). The laptop was stolen so used the upgrade on my desktop. I hate the internet activation and figured I would have to fight MS on the phone. Went through no problem. May be MS is wising up. Naw!
45 posted on 09/13/2003 9:35:54 PM PDT by the_daug
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To: the_daug
Speaking of pirated {I know I'm off subject} I found decent music I wanted and bought when I had Napster. Now I only buy what I'm sure of and I'm sure of nothing now.
46 posted on 09/13/2003 9:43:25 PM PDT by the_daug
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To: TopQuark

It's not clear what you are trying to say here. You start with a false premise, the old canard about the Japanese not being able to invent anything (the second-largest holder of U.S. patents is a Japanese company, Canon).

From there you proceed to tell us that the advantage we have over these other guys is the idea of private property. What on Earth makes you believe that the concept of private property is unique to the U.S.? The Japanese had a whole generation of entrepreneurs (Honda, Matsuda at Mazda, Akio Morita at Sony, etc.) who followed trajectories very similar to those of Henry Ford or David Sarnoff. All built very large private corporations and became fabulously wealthy men, just as any successful entrepreneur here would.

There's nothing wrong with a little rah-rah, but lying to ourselves about our competitors having weaknesses that they don't have is the first step toward getting complacent and losing to them. The compact disk was invented by Sony and Philips; the DVD by a British company. We certainly have our share of ideas, but let's not kid ourselves: ideas can happen anywhere.

47 posted on 09/13/2003 10:08:28 PM PDT by Nick Danger (Time is what keeps everything from happening at once)
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To: TopQuark
doood - you've never seen a netcraft descriptionof "Free Republic" have you?

OS, Web Server and Hosting History for www.freerepublic.com
OS Server Last changed IP address Netblock Owner
Linux Apache 25-Jun-2003 209.157.64.200  Verio
Linux unknown 24-Jun-2003 209.157.64.200  Verio
Linux Apache 28-Mar-2003 209.157.64.200  Verio
Linux Apache/1.3.27 (Unix) (Red-Hat/Linux) mod_gzip/1.3.26.1a 12-Mar-2003 209.157.64.200  Verio
Linux Apache/1.3.27 (Unix) (Red-Hat/Linux) mod_gzip/1.3.26.1a mod_perl/1.26 10-Mar-2003 209.157.64.200  Verio
Linux Apache/1.3.27 (Unix) (Red-Hat/Linux) mod_perl/1.26 5-Mar-2003 209.157.64.200  Verio
Linux Apache/1.3.27 (Unix) (Red-Hat/Linux) mod_perl/1.26 5-Mar-2003 209.157.64.200  Verio
Linux Apache/1.3.22 (Unix) (Red-Hat/Linux) mod_perl/1.26 26-Feb-2003 209.157.64.200  Verio
Linux unknown 25-Feb-2003 209.157.64.200  Verio
Linux Apache/1.3.22 (Unix) (Red-Hat/Linux) mod_perl/1.26 12-Mar-2002 209.157.64.200  Verio

48 posted on 09/13/2003 10:22:22 PM PDT by PokeyJoe (Don't talk about my armchair unless you know how to pull the recliner lever.)
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To: chilepepper
From the looks of nearly all the posts on this thread, LINUX is WORSHIPPED on FR, NOT slandered. For my part, any OS that GOVERNMENTS pant after can't be all good.
49 posted on 09/13/2003 11:13:15 PM PDT by E=MC<sup>2</sup>
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To: elbucko; MeeknMing; DoughtyOne; nopardons
Good comparison to Indy cars.

Years ago John Schultz's AC Bristol spun it's 3rd set of bearings after three major welding/linebore/rebuilds by a former Indy master mechanic.

Driving back from Miami to Pompano Beach one night he gripped about the massive expense, inconvenience, and probable next wipeout after a 4th fix.

As I had a Duntov cammed dual quad 270hp(+++) 'Vette in my sleeper Impala 4ht with a PowerGlide (???) I mentioned nothing is really impossible.

When we got to his house he opened his garage door to show me his expensive oversized paperweight.

I asked if he had a yardstick to measure the AC Bristol's underhood engine compartment; esp. the width.

One week later John's AC 'Vette rolled out of a local shop that mostly repaired trucks and farm tractors.

Six months later while John and I were at an Opa Locka AFB SCCA race where Carroll Shelby was racing a Birdcage Maserati.

Shelby hit up Ed Cole at GM for a deal on Chevy engines but Cole nixed the deal as Chevy was trying to push their street 'Vettes using their stock SCCA 'Vettes and the Duntov SS racers.

Shelby talked to Ford and Ferrari fortunes went south quickly.

Going back well over those 25 years as you say; the right workable and reliable fix can do wonders.

Let's remember that the old Ford 289 was zipped into a Lotus with a stock rocker arm design that wiped out by the end of that Indy 500 mile race. That it won.

Today's big block V-8 racing 'Vettes are again stomping on V-10 Vipers and V-12 Ferraris.

Bells and whistles ain't always gettin' it.

Like the California recall and erection, 2nd and 3rd place only works if you are betting on the horses.

Incidentally, I'm watching HBO pip on the lower right corner of my virus and worm proof MSN-TV from Bill Gates and Microsoft on an RCA Plus internet receiver that cost under $200.

My expensive computer is not being used on FR at all.

I have added an RCA VCR/DVD player, a big plasma wall screen, and a vintage Marantz stereo receiver/tuner/amp pumping thru monster speakers.

Kinda like a warmed over Corsa I had once with a zipped up boost stock TRW toy under that rear engine compartment lid.

Well before Indy made smokers work right.

TV and plasma monitor are both on at once right now as I type this from 8' away on a wireless keyboard that also controls my TV channels, volume, and PIP location, TV full screen button, and PIP off.

Like that AC Bristol, the best results are not always the most expensive; a 'Vette transplant will often smoke the others.

No software problems (no software!), free periodic updates by MSN, 6 email accounts, no email viruses or worms, no slavery to a mini computer screen and wired keyboard, no sitting close to the monitor screen at my dumb computer desk, no "patches", no repairs, no trips to get upgrades (no hardware!), no foolin!

I may use my computer tomorrow.

I may not.

It has lots of negatives, no matter what computer, what software, what trick stuff is purchased, installed, or messed with.

It's like a stable of cars; I drive what I want to according to the race I drive in.

Incidentally, my '65 Corsa Turbo got "installed" in a VW Karman Ghia by the Darien CT mailman that bought it from me for 8 times what I paid for it.

"Source" indeed!

Interesting thread.

Back to my satellite TV movie and the next thread; time for another Corona too.

My time machine always works!
50 posted on 09/14/2003 12:25:13 AM PDT by autoresponder (PETA TERRORISTS .wav file: BRUCE FRIEDRICH: http://tinyurl.com/hjhd)
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To: PokeyJoe
Free Republic is hosted on Verio? *shudder*.

Not good knowing that mail from Free Republic is already blocked at the router by quite a few admins, and may be blocked by many more in the future.
51 posted on 09/14/2003 1:17:28 AM PDT by Dimensio (Sometimes I doubt your committment to Sparkle Motion!)
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To: Timesink
"*sits in the corner with his Mac and watches the show; got no dog in this hunt*"

Actually, there is. WHY doesn't Apple release a version of their new "Unix-based" OS that runs on Intel hardware?? There is a lot of information that says they have developed one.

52 posted on 09/14/2003 3:17:54 AM PDT by Wonder Warthog (The Hog of Steel)
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To: autoresponder
Now tell me about Andy Granatelli and the turbines that wooped all the big companies once only to be forced of the track.
53 posted on 09/14/2003 6:33:42 AM PDT by flamefront (To the victor go the oils. No oil or oil-money for islamofascist weapons of mass annihilation.)
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To: Poser
IMHO, we are entering a new era in software. The big 3 applications are becoming mature and have more features than users need. Microsoft has grown large and unwieldy.

More features than users WANT. I have been running Windows since W3.1, and have really not had any trouble with it, and have not seen a crash in years and years- Just by excercising common sense about what I allow to install and run.

But XP's embedding of the unwanted Messenger, among other things, like Media Player's defaults, etc. have made me no longer trust MS, and I am no longer comfortable running their programs, simply because many of the bloated new "features" were NOT written for ME, or MY use...They were written for other reasons, some of which I consider sinister.

Two machines here converted to RH9 Linux, five to go.

54 posted on 09/14/2003 6:36:47 AM PDT by Gorzaloon (Contents may have settled during shipping, but this tagline contains the stated product weight.)
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To: Joe_October
Somebodies brother just got a nice hunk of change to sell something that cost him nothing to distribute.

Could you kindly explain how a company that distributes software essentially for nothing can out-corrupt a company like Microsoft with some 40 billion dollars in its bank account?????????????

55 posted on 09/14/2003 7:15:07 AM PDT by gore3000 (Knowledge is the antidote to evolution.)
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To: irv
You're confused.

That is quite possible.

It sounds like you've bought the weird MS propaganda that Open Source is some kind of Communist thing.

No my friend, it is apparently for you that these are the only sources of information. I simply know some industrical organization and economics of R&D. This is where, I said, the issue belongs. Perhaps you should postpone further arguments until you avail yourself of that knowledge.

56 posted on 09/14/2003 7:36:06 AM PDT by TopQuark
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To: Russian Sage
understood since Adam Smith, monopoly stifles innovation

1. No, Adama Smith did not address the problem of innivation in a monpolistic market.

2. Your view of monopoly as something negative is a common misunderstanding based on what you (mis)heard in Economics 101.

3. A dynamic monopoly may produce results completely different from what you expect.

4. Our society celebrates monopoly and PROTECTS thousands of monopolies each year in the form of patents.

Read something beyond Adam Smith. You'll be a real sage then.

57 posted on 09/14/2003 7:39:43 AM PDT by TopQuark
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To: chilepepper
THANKS. I appreciated your good, clear post.
58 posted on 09/14/2003 7:47:52 AM PDT by Quix (DEFEAT her unroyal lowness, her hideous heinous Bwitch Shrillery Antoinette de Fosterizer de MarxNOW)
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To: Nick Danger
You start with a false premise, the old canard about the Japanese not being able to invent anything (the second-largest holder of U.S. patents is a Japanese company, Canon).

"Cannot invent aything" is a strong statement. You made it; I did not. Yes it is an old fact that the Japanese have perfected the already existing ideas, and that in itself requires innovation. That innovation was marginal (and a lot of marginal increments can produce a large, even infinite integral, as you know), and you cannot possibly compare any of their corporations to our automobile or aviation in their respective infancies.

As to the private property, again, I did not say that it is unique to the U.S. -- you assumed that. The ease of business formation is still unparalleled in the U.S.

What also had in mind is that, placed in the public domain, the servicing of a product acquires feature of a public good. I do not think that, say, N years out, the provision of support for it will not fizzle. I have more confidence that a private good will be provided by the market.

59 posted on 09/14/2003 7:48:22 AM PDT by TopQuark
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To: PokeyJoe
ANd the relevance of this to the topic at hand is...?
60 posted on 09/14/2003 7:48:54 AM PDT by TopQuark
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