Microsoft heavily discounts as open source pressure builds
Microsoft heavily discounts as open source pressure builds
Microsoft has revealed signs that it is prepared to offer a cheaper stripped down version of its Windows in the Asia-Pacific region, due to the pressures of open source and piracy.
Microsoft chairman Bill Gates revealed his willing ness to do this during a visit to Malaysia this week. He would not talk about China and India, but governments in the region have put pressure on Microsoft to do this because they are trying to sign deals to provide their people with affordable technology.
Neil Macehiter, Ovum's Research Director for software infrastructure topics said. "Piracy and access to technology may not be the concern in Europe that it is in countries such as Malaysia and Thailand.
"There is, however, increasing scrutiny within the European public sector of the financial and political implications of continued investment in Microsoft desktop and server platforms, in the face of open source (and in many cases locally-produced) alternatives.
"This is exemplified by the high-profile Munich case where the city council decided to replace Windows with Linux on 14,000 PCs. Not forgetting, of course, the ongoing EU investigation."
He also believes that Microsoft will be forced to do the same in Europe because the company will be hard pressed to justify why it should not.
Philip Carnelley spoke in more detail about the Munich case. "The key point about the Munich decision is that is about desktops as well as servers. If it works for Munich, many others, particularly in the public sector, will be prepared to follow. The Munich saga has been long and drawn out and the decision was, ultimately as much political as economic.
"Microsoft has moved heaven and earth to stop this happening - for good reasons. The analogy of the small breach in a dam or dyke, which builds into, a flood is on everyone's minds. But the good burghers of Munich have stood by their decision, reportedly "to ensure licensing flexibility and vendor independence".
"The decision was originally prompted by a reported cost of $37m to upgrade the PCs to the latest versions of Windows and Office. Microsoft will rue the deal but ironically it may help as much as harm it in the long run - the emergence of a (potentially) strong competitor could help it in its antitrust battles at least.
"For users, something to keep Microsoft honest and put pressure on its pricing and upgrade policies is welcome indeed."
In addition, Microsoft has also slashed its priced for the Paris City Hall by half as it contemplates switching to open source software too.
Paris plans to spend $279 million on computers and software over the next three years in a push to upgrade its systems.
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