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March 24, 2008 5:38 PM PDT

Microsoft's real open-source nightmare

Posted by Charles Cooper
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SAN FRANCISCO--On the eve of this country's presidential election, here's a question I'd like to pose to the remaining three candidates: what would you do if other governments begin snubbing U.S. companies because of nationalistic reasons? In particular, one big software vendor comes to mind.

If Microsoft has the equivalent of a foreign policy czar, I'll be shocked if that question isn't front and center. Perhaps more closely associated with U.S. technological prowess than any company in techdom, Microsoft is vulnerable to being viewed as a surrogate for American hegemony abroad. So far, the worst case scenario hasn't materialized, even in the aftermath of the Iraq war. But that's not to say Microsoft inspires warm and fuzzy feelings overseas.

Microsoft logo

Microsoft has had a famously cantankerous relationship with the European Union. Even though Europe's top regulator, Neelie Kroes, doesn't decide what software local governments buy, her run-ins with Steve Ballmer reflect distrust on both sides. (Here's the audio recording of Kroes' press conference last month when she announced a $1.3 billion penalty for noncompliance with previous regulatory decisions.)

If Microsoft really got singed because of strong anti-U.S. blowback, it would prove an incredible boon for open source. Until now, Microsoft has held its own against open source, but the same trends driving adoption on this side of the Atlantic apply overseas. (Microsoft has been aggressive about making the comparative case against open source, tossing everything but the kitchen sink into the argument; obviously, it hasn't worked.)

So far, local open-source companies don't need to compete by playing the nationalism card. Instead, it's a question of cost and technology--an increasingly persuasive argument in open source's favor during a time of economic turbulence. Daniel Chalef, chief operating officer of a U.S. open-source company with roots in South Africa called KnowledgeTree, told me at an SDForum's Global Open Source Forum symposium here that "for the most part, it's a question of local control over capital" and not a national issues.

At least for the time being, maybe that's so.

***

Coop note: In the original text of my post, I misidentified KnowledgeTree. The company, which has roots in South Africa, recently moved its headquarters to the U.S.

Charles is an executive editor with CNET News. He has covered technology and business for more than 25 years. A graduate of Queens College and Columbia University, Cooper began his career in journalism at the Associated Press before moving to technology coverage. Before joining CNET News, he worked at Computer & Software News, Computer Shopper, PC Week, and ZDNet. He received the Excellence in Journalism award from the Northern California branch of the Society for Professional Journalists for column writing. In addition to his blogging and podcast appearances, he is a co-host of the CNET News Daily Debrief. E-mail Charlie.
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Add a Comment (Log in or register) 11 comments
by tundraboy March 24, 2008 6:15 PM PDT
Then I'd say just deserts for Microsoft. I still remember how they went whole hog in support of Bush in '00 just because the Rebups promised to rein in the antitrust dogs. Even though I suspect most microsofties shuddered at the policies they knew Bush would bring in.
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by rcrusoe March 24, 2008 8:01 PM PDT
IMO, the EU isn't hammering Microsoft because of "strong anti-U.S. blowback". MS is getting hammered because of their business practices, plain and simple. The EU is just doing what the DOJ failed to do.

If MS changes their ways, and the EU still singles them out that's another story - for another generation. I don't expect to live long enough to see that happen.
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by suyts March 24, 2008 10:09 PM PDT
If MS is forced to give their code to their competitors, then so should Europe's industry leaders. Let's force the auto makers to give up their designs and plans. We can us an eventual discovery argument and then we can all drive Beamers. Just like they can't do without our food, they can't do without our tech. We've seen the French try to adopt Linux for their govt. lol. I say let the rest of them try too. When they try to merge their word processor with a SAP prog, then they will be wishing for MS product.
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by The_Decider March 25, 2008 8:39 AM PDT
Why do you always write such ignorant things? Being a MS shill is no excuse for this level of stupidity.

Publishing an API is not the same thing as "giving code". Not even close.
by MrMBDR March 25, 2008 2:03 PM PDT
You are comparing two completely different things. Cars don't need to interoperate with other cars in they way computers do. The world can go on without US Tech and food, and I don't think many people end up wishing they had purchased overpriced MS products once they've switched to other products.
by gerrrg March 25, 2008 2:07 AM PDT
The threat is overstated for one reason alone: flexibility. MSFT wouldn't have a problem with adjusting their wares and wars to some other higher-margin segment of technology, should the EU overstep their boundaries.

Perhaps it is time MSFT follow IBM's path and learn to become a services company.
Reply to this comment
by sal-magnone March 25, 2008 5:36 AM PDT
It's all about protectionism. The EU does not have a MS competitor, and if you think Windows is everywhere here; everything runs on Windows in the EU.
Reply to this comment
by Drpixelphd2 March 25, 2008 7:19 AM PDT
Okay let's all get into perspective here. There are many things that make the world work and unfortunately one of them is MSFT. I have been running Linux for years and I write all of my own apps in Perl. Anything running as a flat file or DB can have that data imported into pretty much any Windows based app there is. Keeping this frame of mind, please, please tell me why OPenSource and Linux cannot gain more than 5% of the market!

The (REAL) problem is, Linux is trying to compete with MSFT! I gave up pretty backgrounds for functional items. Remember the time before Windoze(if U R old enough), when computers had black screens and white, yellow or blue text? Nobody cared because that ugly 10" screen held the info and kept it for you, allowed you to compile inventory lists and so much more. It made our lives so much more organized. We have lost that PERSPECTIVE of what a computer is for.

The PC now must be a portal to our lives. Our Daily life is vacated for a virtual world. Our entertainment, social life and shopping comes via CRT or LCD. We are destroying infrastructures of the retail market and causing 100,000 sq/ft buildings to dot our venue with graffiti and broken abandoned idolicies.

Let's all "Get Smart" and return to our basic computer needs. I did. I do my work and surf the net, email, do pictures, documents, spread sheets, and video all without the need for MSFT.

I still mostly shop locally but justify my ebay and amazon when I can't get it locally!
Reply to this comment
by ArtInvent March 25, 2008 9:26 AM PDT
Linux and open source have plenty of opportunities at the moment. First of all Linux is maturing and all open source development is accelerating. Functionally, Linux equals or exceeds any other operating system. Ubuntu 8.04 coming out this month is a truly elegant and impressive OS and it's got plenty of company in OpenSuse and Fedora and the others. By the time Windows 7 comes out, trying to fix the debacle that is Vista, Ubuntu will have at least three further versions completed.

Open source and Linux apps are also maturing fast. Increasingly such projects are adopting the Ubuntu 6-month release philosophy which proprietary apps are probably not going to be able to match, and which would only annoy their paying customers only.

How about Cloud computing and Web 2.0? All you need is an OS with a browser and communication apps, and Linux and Firefox are shaping up to be not just the cheapest but the most robust and capable set up for minimal internet devices like Intels NetTop concept etc etc.

Next, hardware is becoming a commodity and prices are falling through the floor. You can get an Eee PC for less than $400 and the competition in that segment is lining up, using Intel's Atom as well as new AMD and existing Via and ARM chips. XP runs okay on these machines, but MS is killing XP to force Vista adoption, a bloated OS that doesn't run well on the low end. Plus the cost of Windows becomes a significant addition for these cheap machines. This is exactly the wrong move and a huge opportunity for Linux.

As far as Vista goes, it's a huge blunder in so many ways. And think about this bizarre situation: with the maturing of the Wine project, it may soon come to pass that Linux using Wine may be more compatible with Windows XP apps than Vista is. Wow.

Further down the computing ladder, it's pretty evident that cell phones and mobile internet devices could well overtake full-blown PC's and laptops in numbers and their power will start to rival PCs. MS already has little advantage in this arena and will probably stay 2nd or 3rd fiddle to the iPhone and probably to lots of other more widespread devices running linux based things like Android or Ubuntu Mobile which are being developed by heavy hitters like Google, Intel, and Nokia.

Next we have the subject of this article: the fact that MS is an American monopoly in a world that has less and less patience for that kind of aggressive business practice. The world has a wonderfully attractive choice in Linux, something that can be freely localized and modified to suit the local country. Linux is already with better local language and dialect translations that Windows. Why would a country like China not adopt Linux rather than Windows?

Really the only thing going for MS is that they currently have the market lead, and people are used to it and hate change. Can that really go on forever with no technological advantage and a significant cost penalty? Hmm.
Reply to this comment
by RamboTribble March 25, 2008 9:55 AM PDT
It is, perhaps, perplexing that a company over which American citizens, other American companies, and even the U. S. government have little control over is often seen as representative of some monolithic American viewpoint. Such illusions are easy fodder for demagogues, and whole swathes of humanity easily fall victim to the demagogues' slander. The reality here, however, is that Microsoft is less a victim of anti-American sentiment than a generator of it.

More germane to our consideration is the question, "If American business lags in adopting Open Source, will it be left behind in world commerce?" The answer is an obvious, "Yes."
Reply to this comment
by GeoBear2 April 18, 2008 10:39 PM PDT
Ever have one of those days when someone says something that's remarkably similar to an idea that's been floating in the back of your mind for some time, and you suddenly exclaim, "Aha!"? Well, this article is a bombshell.

I've run for public office five times before, and I've made Microsoft a campaign issue the last four times. By the way, I live in Bill Gates' home town, Seattle - and I HATE the b*stard for what he's done to me and my students. (I used to teach with the Seattle School District.)

Of course, I've had little impact on Micrsoft, since I have an awfully small soapbox (including the corporate media that so carefully avoid discussing my campaigns). But I'm now running for office yet again, and I'm going to turn up the volume on my anti-Microsoft campaign.

Please note that anti-Microsoft blowback doesn't have to be "misplaced" retaliation for other people's crimes. Microsoft itself is a global evildoer. The close relationship between George W. Bush and BIll Gates alone speaks volumes.

Of course, I'm still a relative unknown with little chance of really making a big splash. However, I've come up with an ingenious scheme for publicizing my campaign - and this article was the inspiration.

Please visit my campaign website at http://2008.seattle-mafia.org/ on June 1 (2008). I think you'll be shocked. I know Bill Gates will.

Thank you, Charles Cooper, for writing an extremely provocative article, an article that I'll be linking to from several websites.

E pluribus unum

David Blomstrom
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About Coop's Corner

Charles Cooper has covered technology and business for more than 25 years. A graduate of Queens College and Columbia University, Cooper began his career in journalism at the Associated Press before moving to technology coverage. Before joining CNET News, he worked at Computer & Software News, Computer Shopper, PC Week, and ZDNet. He received the Excellence in Journalism award from the Northern California branch of the Society for Professional Journalists for column writing.

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