Microsoft Still Showing Their Bullying Tendencies
How Microsoft Warded Off Rival
By THOMAS FULLER
International Herald Tribune
BRUSSELS, May 14 ? At least 90 percent of the world's personal computers run on Windows software. But Microsoft wanted still more.
Last summer, Orlando Ayala, then in charge of worldwide sales at Microsoft, sent an e-mail message titled Microsoft Confidential to senior managers laying out a company strategy to dissuade governments across the globe from choosing cheaper alternatives to the ubiquitous Windows computer software systems.
Mr. Ayala's message told executives that if a deal involving governments or large institutions looked doomed, they were authorized to draw from a special fund to offer the software at a steep discount or even free if necessary. Steven A. Ballmer, Microsoft's chief executive, was sent a copy of the e-mail message.
The memo on protecting sales of Windows and other desktop software mentioned Linux, a still small but emerging software competitor that is not owned by any specific company. "Under NO circumstances lose against Linux," Mr. Ayala wrote.
This memo, as well as other e-mail messages and internal Microsoft documents obtained from a recipient of the Microsoft e-mail, offers a rare glimpse these days into the inner workings of Microsoft, the world's largest software company. They spell out a program of tactics that were carried out in recent years, ranging from steep price discounts to Microsoft employees lying about their identities at trade shows.
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By THOMAS FULLER
International Herald Tribune
BRUSSELS, May 14 ? At least 90 percent of the world's personal computers run on Windows software. But Microsoft wanted still more.
Last summer, Orlando Ayala, then in charge of worldwide sales at Microsoft, sent an e-mail message titled Microsoft Confidential to senior managers laying out a company strategy to dissuade governments across the globe from choosing cheaper alternatives to the ubiquitous Windows computer software systems.
Mr. Ayala's message told executives that if a deal involving governments or large institutions looked doomed, they were authorized to draw from a special fund to offer the software at a steep discount or even free if necessary. Steven A. Ballmer, Microsoft's chief executive, was sent a copy of the e-mail message.
The memo on protecting sales of Windows and other desktop software mentioned Linux, a still small but emerging software competitor that is not owned by any specific company. "Under NO circumstances lose against Linux," Mr. Ayala wrote.
This memo, as well as other e-mail messages and internal Microsoft documents obtained from a recipient of the Microsoft e-mail, offers a rare glimpse these days into the inner workings of Microsoft, the world's largest software company. They spell out a program of tactics that were carried out in recent years, ranging from steep price discounts to Microsoft employees lying about their identities at trade shows.
The complete article is here. Free registration required.
Comments
And so what...they are just protecting their business. I have been told in several situation that under no circumstances was I to lose a certain account even if it cost the business money. In the long run it pays off.
There is nothing wrong with this, they aren't forcing anything on these governments, and if they DO get a break in pricing good for them. This is just smart business, no big deal. (lets not go back to elementary school and call them bullies for using their hard earned money for (gasp) their OWN purposes (making mor money)?)
hard earned money
Originally posted by MajorMatt
You don't think it's hard work ripping off and duping 90% of the planet into accepting feces in a box as on Operating System of choice? Hum.... maybe you just don't give people enough credit. People weren't born stupid and ignorant in the computer world. They had to be cultivated to be that way. That has been non stop work for M$. Just ask their poor programers who patch security flaws in ancient crap code 24-7 or the team of rabid lawyers who fight off the justice department and rival companies....
Originally posted by Not Unlike Myself
And so what...they are just protecting their business.
A company can't legally do whatever it wants to protect their business.
Originally posted by Not Unlike Myself
Can we get a copy of this memo published here?
And so what...they are just protecting their business. I have been told in several situation that under no circumstances was I to lose a certain account even if it cost the business money. In the long run it pays off.
There is nothing wrong with this, they aren't forcing anything on these governments, and if they DO get a break in pricing good for them. This is just smart business, no big deal. (lets not go back to elementary school and call them bullies for using their hard earned money for (gasp) their OWN purposes (making mor money)?)
Reducing the price of your product in certain markets, down to a net loss if need be, is an anti-competitive maneuver referred to as 'dumping.'
No, nobody is being forced to buy anything... but in a way they are
(Preemptive rebuttal) Yes, Linux is "free" and, no, Microsoft isn't handing out CDs of Windows (although the pre-XP copy protection is laughable). However, SQL 2000 isn't free, nor Exchange, nor Office.
There's the hook: really cheap Windows keeps customers locked into buying Windows applications and Microsoft tends to dominate the "big applications" and the crack addiction is sealed.
Screed
(I only took up the discussion since *somebody* has to play devils advocate and say 'so what')
Perhaps we can agree to disagree but I think they are punished enough (though NONSTOP litigation) for this type of stuff. If I were in their shoes I'd do the exact same thing. Looking out for your own business and trying to stay #1 shouldn't be a crime. I maintain that though 'unethical' it is still smart business. Smart business is the way business *should* be done, unfortuatly the government won't let capitalism really exist.
Darwinism in the business world is essential. Without raising the stakes the way they do would we even HAVE a sofware OS market to be lusting after like Apple and Linux do?
Just thoughts, but like I said, you don't have to agree.
Playing the DA is good for debates (but you have to state it outright before the flames start flying).
Microsoft overregulated? The "old" definition of monopoly was more than 60% of any single market.
60%.
How many markets does Microsoft hold in the 80 to 90 percentile?? (Here's a good DA question: How do we define the markets? If all the browsers are free, is that a market that one can have a monopoly in?)
The definition is showing its age. We saw that in the anti-trust trial that centered on Microsoft's anti-competitive dealings in the "browser market."
The more relevant issue is whether Microsoft should be allowed to control industry standards top-to-bottom. That's why .NET seemed so scary.
Screed
Microsoft Still Showing Their Bullying Tendencies
What, you thought they'd stop?
Followup article states:
European law bans dominant companies from offering discounts if they are intended to block competitors from the market.
A separate e-mail message described another fund to be used by Microsoft managers to offer discounts for deals involving consulting services.
Amelia Torres, a spokeswoman for the European Commission, which oversees European antitrust issues, declined to comment on the commission's position.
"I can't prejudge what the commission will or will not do," she said.
The commission is conducting an antitrust investigation into Microsoft related to its server software and Windows Media Player.
At least three companies have been fined in recent years for offering illegal discounts, according to the commission.
Rest of report here.