EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS


Microsoft Blast from the Past: Blackmail

Posted in America, Microsoft at 6:58 am by Dr. Roy Schestowitz


OME time in the past we mentioned Microsoft's and Bill Gates' blackmail in Kenya and in Denmark, respectively. Microsoft denies both allegations, but then again, Microsoft also denied financial wrongdoings, only later to see a conviction, with a former manager ending up in prison for financial fraud.

After some joyful searching, we pinned down the following old story.

The people who run this city recently heard a familiar pitch from Microsoft: Sign up for a multiyear, $12 million software licensing plan or face an audit exposing the city’s use of software it hadn’t paid for.


Bullied by Microsoft?

Piper had other things on his mind. Awaiting him in Houston was a new contract Microsoft wanted him to sign. The software giant had recently announced a plan, referred to as “Software Assurance,” to get more companies and agencies to upgrade to Office and other software every two to three years instead of a more typical four years or more. Almost 50% of companies upgrade software every four years or more vs. 23% every two years, said a 2002 survey of 1,500 companies by The Yankee Group research firm.

Microsoft set fall 2001 as a deadline for customers to sign up. Those who did would pay $239 to $380 per copy for Office XP, the latest version.

Those who passed would pay $479 a copy when they did upgrade.

Microsoft says the plan cuts software costs and improves service. That’s especially true for companies that upgrade every three years — typically bigger companies. But research firms Gartner and Yankee say the plan will raise costs for companies that upgrade less often, usually medium and smaller ones.

With no viable Office alternatives, some companies, like the 25-member Clendon Feeney law firm in Wellington, New Zealand, felt bullied.

“Microsoft gets nice, steady cash flow from their big users, and then they get the real cherry on the cake when all the businesses who choose not to upgrade now have to go out and buy at full price later,” says managing partner Craig Horrocks.

Microsoft also sent letters to 500 school districts in 30 states giving them 60 days to produce receipts accounting for every copy of Microsoft software being used. Failure to do so could result in an audit and penalties, the letters warned. In the same envelope came a sales brochure about the new licenses.

Mind the role of the Yankee Group and the Gartner Group. We complained about this pair only yesterday.

In addition, worth pointing out is the uncompetitive tool called “Software Assurance.” It’s similar to Memoranda of Understanding, which we wrote about many times before. Posts about this include:

Business strategy, often characterised by ruthlessness, is one of Microsoft’s reasons for so-called ‘success’. It was rarely about technical merits, so the famous essay “How to Become As Rich As Bill Gates” truly fits well here.

“Life is not fair, get used to it.”

Bill Gates

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

What Else is New

  1. Responses to Software Patents in India Though Guidelines for Examination of Computer Related Inventions

    India's famous skills, which revolve around software services and software development, are under attack by new laws which strive to grant foreign corporations de facto monopolies on software, even inside India

  2. Mobile Linux (e.g. Android) Still a Victim of Software Patents, No Peace in Sight

    A look at recent developments in the fight against mobile Linux (notably Android these days) and whoever is behind the patent attacks (not always as obvious as people are led to believe)

  3. Bad News for the EPO's Judicial Independence and Due Process in Next Week's Administrative Council (AC) Meeting

    A quick update about what's expected to happen next week when the Administrative Council holds a two-day meeting

  4. More Back Doors Found in Microsoft's Entrapments (Proprietary Software)

    Security flaws and even blatantly obvious loopholes for surveillance are identified in several of Microsoft's so-called 'products', which turn users (and their data) into the real product (to be sold to private companies or shared with spies)

  5. NASA Gives Back What It Took Away in the Form of Patent Monopolies for Private Gain

    Criticism of NASA's habit of clinging onto patents when it is actually the public which pays for everything

  6. The Coup D'état of Benoît Battistelli Follows an Imperialist Model, Threatens Opposition and Dissent

    SUEPO, the staff union, and boards that are independent from the EPO are both under attack and are constantly threatened by Benoît Battistelli and his goons

  7. Links 8/10/2015: Manjaro Linux Releases, Linksys WRT1900ACS, FOSS at NHS

    Links for the day

  8. Links 8/10/2015: KDE Plasma 5.4.2 Released, Linux Drama Queens

    Links for the day

  9. EPO Staff to Disrupt Administrative Council Meeting With Public Demonstration That Raises Awareness of Abuses

    The perception of collusion between the Administrative Council (AC) and the European Patent Office (EPO) leads to staff actions demanding investigation of illegal Board of Appeal (BoA) suspension/s (among many other things)

  10. OIN Turns 10, IDG Floods the Web With Puff Pieces That 'Normalise' Software Patents

    The Open Invention Network (OIN) commissions or helps produce puff pieces in the corporate media because it has an anniversary and corporate interests to push forth (including the idea that software patents can coexist with Linux)

  11. Hypocrite Forks the Linux Kernel Because of Cultural Characteristics That He Himself is Guilty of

    Forking of Linux is misleadingly reported in the media because of a couple of very loud people, who are not even quitting their jobs

  12. Željko Topić Attacks EPO Staff for 'Daring' to Legally Challenge the EPO's Management Over Its Gross Abuses in Europe

    Benoît Battistelli's right-hand man, Željko Topić, is under the false impression that yet more threats against staff of the EPO will help contain the crisis rather than further inflame it

  13. Media Reports Based on New Patents Suggest That Microsoft Continues to Attack Google and Android/Linux, Trying to Tax and Delete Android

    Reports and patent applications serve to show that Microsoft not only tries to infiltrate ("embrace") Android to put its apps there ("extend") but ultimately to delete ("extinguish") Android

  14. Commenters Provide Possible Explanations for Mr Van der Eijk Being on Unlimited Sick Leave

    Rumours are swirling around Wim Van der Eijk's absence, suggesting that he too may be a victim of Benoît Battistelli's iron fist

  15. Links 6/10/2015: Linux 4.3 RC4, HP OpenSwitch, Wind River Linux 8

    Links for the day

  16. With Software Patents in Europe (and Pushes for the Same Thing in Australia and India) Patent Trolls Now Come to Europe, Attack Android/Linux

    Worst-case scenarios are becoming a reality as Android backers officially attacked by patent trolls using standard-essential patents in London, England

  17. New Information on Limbo in the Enlarged Board, Courtesy of Illegal Actions by the EPO's Benoît Battistelli

    Battistelli's bullying of people whom he is not even allowed to bully turns out to have gone on for a lot longer than promised, and there is no sign of light at the end of this tunnel

  18. Microsoft Customers Complain About 'Inevitable' Vista 10 Because Microsoft Nearly Forces Botched 'Upgrades'

    In a desperate effort to spread Vista 10, sometimes even against people's will, Microsoft really upsets loyal customers, who are eventually eager to explore alternatives

  19. Dr. Ingve Björn Stjerna Explains Why the UPC (“Unitary Patent“ System) is an Undemocratic Sham Whilst UPC Silently Advanced by Patent Lawyers and Politicians

    European patent laws are being covertly overridden so as to allow broader scope of litigation, higher financial damages, speedy injunctions, and even software patents; the European public is intentionally kept in the dark about it, hence kept unable to express scepticism or issue truly effective objections

  20. IRC Proceedings: September 13th, 2015 – October 3rd, 2015

    Many IRC logs

  21. Article Explains Why SUEPO Went Silent Well Over a Week Ago: Nobody is Allowed to Talk to Journalists Without Permission From Battistelli

    More threats from Benoît Battistelli (threats of termination and legal actions on top of it) help hide the abuses of Battistelli and his fellow thugs at the EPO

  22. A Linux World: After Billions of Dollars in Losses Microsoft Changes How It Reports Financial Results

    The abusive monopolist is trying very hard to hide its growing difficulties, especially in an effort to bamboozle non-technical shareholders who cannot understand how Linux has essentially taken over

  23. Microsoft Continues to Extort Linux and Android OEMs Using Software Patents, This Time ASUS (Forced to Pre-Install Microsoft Spyware With OOXML)

    A roundup of news illustrating that Microsoft is still very much in a total war against Android, (mis)using federal regulators and even software patents to get its way

  24. Links 4/10/2015: Linux 4.2.3 , 4.1.10; MPlayer 1.2 released

    Links for the day

  25. Links 2/10/2015: Qubes 3.0, Linux.Wifatch

    Links for the day

  26. Microsoft-Connected Firm Net Applications Used to Mislead About Vista 10 Share and Mock GNU/Linux

    People who are connected to Microsoft (some being former staff) link to a firm that is connected to Microsoft in order to create the illusion that Vista 10 market share grew to 6.63%

  27. Chairman of the Enlarged Board of Appeal (EBoA) and EPO Vice-President of DG3 Suspiciously on Unlimited Sick Leave After Benoît Battistelli's Unprecedented Attacks on Other EBoA Staff

    Rumours suggest that Benoît Battistelli's affairs at the EPO may have something to do with Wim Van der Eijk's longterm absence

  28. Microsoft's Secret Special Relationship With EPO Illustrates Serious Corruption at Microsoft and the EPO

    A big story about the EPO and Microsoft working in a sort of collusion-type setup so as to serve Microsoft's patent agenda, which involves aggression, even against European software that is Free (as in freedom)

  29. Links 1/10/2015: LFS 7.8, Calculate Linux 15 Released

    Links for the day

  30. The 'Microsoft Loves Linux' Baloney is Still Being Floated in the Media While Microsoft Attacks Linux With Patents, New Lawsuits Reported

    Despite Microsoft's continued assault on Linux and on Android (using software patents, which it still discreetly lobbies for), some figures in the media are perpetually peddling the Microsoft-serving lie that 'Microsoft loves Linux'


RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time


Recent Posts