03.14.10
Negative Pricing at Microsoft
Summary: Microsoft goes as far as paying companies just to avoid buying from the competition and choose Microsoft lock-in instead
Microsoft’s negative pricing is a subject we’ve covered a lot when exposing EDGI (HP still helps Microsoft in that regard). When the competition becomes too intense for the Microsoft monoculture to endure, then Microsoft starts dumping ‘free’ proprietary software or even bribes for people to accept it. When a company with a monopoly (especially an illegally-obtained monopoly) pays rather than charges customers to become trapped, then it becomes a violation of competition rules. In the case of GNU/Linux, EDGI E-mails reveal that the abusive company tracks what it calls “Linux infestations” and then escalates this to a department that secretly negotiates with the “dissenters” (those leaving Windows) to stop this. They use money games and they isolate decision makers from those whom they supposedly represent.
According to the following news report, Microsoft is paying businesses to dump NetSuite just as it’s paying/compensating nations to dump GNU/Linux. Microsoft tried this with Munich, using extremely considerable discounts. Microsoft reportedly pays Verizon half a billion dollars not to let customers use Google [1, 2], so it’s a general strategy everywhere.
Here is another report that gives away some numbers:
US-based companies could be paid up to $850 for every NetSuite user that makes a switcheroo to either Microsoft Dynamics GP, Dynamics NAV or Dynamics SL, said Redmond.
In order to compete, NetSuite needs to bribe as much as Microsoft, but can it afford to do this? To Microsoft, it’s about driving competition out of the market, then allowing price hikes that Canadians sue over at this moment. Robert X. Cringely wrote that Microsoft “have the deepest of pockets, unlimited ambition, and they are willing to lose money for years and years just to make sure that you don’t make any money, either. And they are mean, REALLY mean.”
When the world’s industry needs to fight a bribe using another bribe, where does it leave Free software or startups? Also in the news today we found: “Nvidia denies bribing developers”
GRAPHICS CHIP DESIGNER Nvidia has denied accusations that it has been paying game developers for implementing GPU-accelerated processing of physics effects using its PhysX code.
The accusations were made by Nvidia’s rival graphics vendor ATI, but it seems they are based on the fact that the Green Goblin has been helping out games developers.
A bribe is a bribe and a spade is a spade. It’s time for this type of practices to be regulated in the sense that there should be heavy fines. █
Needs Sunlight said,
March 15, 2010 at 3:23 am
I see that the caged words “more than 90% discount” encompass negative pricing contracts too.
What about BECTA? What are the price details of their contract with the Beast?
Dr. Roy Schestowitz Reply:
March 15th, 2010 at 3:27 am
They promise that it’s a bargain, but they can’t share numbers with the taxpayers whose money is spent on it.
Microsoft uses the same tactics with OEMs to ensure it can maximise costs.