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

06.05.10

Microsoft Finds Out That Bribing Doesn’t Work in the Long Term, Neither Against Google Nor GNU/Linux

Posted in Finance, GNU/Linux, Google, Microsoft, Search, Steve Ballmer, Windows at 2:19 pm by Dr. Roy Schestowitz

Prisoner population rate - 2007-2008

Summary: By bribing people to use its services and to use Windows, Microsoft only empties its coffers and devalues Windows

ON several occasions last year we wrote about what the mainstream press called “bribery” [1, 2, 3]. It was talking about Microsoft’s idea of paying Google customers to defect — an anti-competitive idea which turns out to have roots in the ever-so-predatory Bill Gates (who knows that in the United States prisons are built for impoverished hungry shoplifters, not crooked megalomaniacs).

TechDirt calls it bribery and offers some background information:

Microsoft Discovers That Bribing People To Use Its Search Engine Didn’t Work

We recently had a discussion about the role of money as an incentive and how it often doesn’t work the way people think it should (i.e., money often provides negative incentive — the opposite of what you would think). I’m actually working on another post about that topic that I’ll hopefully finish later today, but here’s a quick one demonstrating that point in action.

Way back in 2005, Bill Gates suggested that in the end, Microsoft would be able to beat Google because it had a secret weapon: it could bribe users to use Microsoft instead of Google, by offering them a cut of the advertising revenue.

The Microsoft reporters/PR have spun it a little [1, 2, 3], but the obvious takeaway is that Microsoft failed badly. This is an implicit admission that Bong [sic] is a road to nowhere.

Our reader Oiaohm called it “Cost cutting” and this probably makes sense because Microsoft has been suffering a loss of almost $3 billion per year in this area of operations (assuming the current pace continues).

In conclusion, Microsoft attempted to merely buy some market share and it cost it dearly.

Pogson brings up the fact that Microsoft used similar tactics against GNU/Linux (it apparently also bribed OEMs but didn’t call that a “bribe”).

After years of scrutiny by anti-competition police, Ballmer still doesn’t get it:

“When Mossberg asked why Microsoft had drastically lowered its price of Windows XP in reaction to netbook vendors having initially shipped units with Linux, Ballmer retreated by asking, “Why should I give someone else an opportunity?”.”

It’s the law, Steve. Monopolies are required to give competitors opportunities.

This exchange also answers the question why GNU/Linux has not taken a larger share of the desktop OS market.

This significantly hurt Microsoft financially, but the outcome was negative for GNU/Linux in sub-notebooks, as we explained in:

Sadly for Microsoft, Linux is very dominant in tablets right now. A Microsoft ally as big as HP even dumped Vista 7, replacing it with Linux. So what did Microsoft really achieve there? It only led to the cost of Windows going down, which still affects its bottom line.

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Reddit
  • email
  • Google Bookmarks

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. IRC Proceedings: Thursday, July 09, 2020

    IRC logs for Thursday, July 09, 2020



  2. Racism in Technology (and Who Typically Lectures Us About the Subject)

    Racism is a real problem; some approaches to tackling racism, however, can also be problematic and those who take the lead 'on behalf' of victims tend to be opportunistic and privileged few (piggybacking others' grievances to further advance their financial agenda)



  3. Links 10/7/2020: Debian 8 Long Term Support EOL, Mobian Project, Mesa 20.1.3

    Links for the day



  4. [Humour] COVID-19 is Very, Very Afraid of Human Beings Making More Monopolies Instead of Fighting Together

    The European Patent Office (EPO) to the rescue! Fighting a dangerous pandemic one profitable monopoly at a time!



  5. The News is Never 'Slow', It's Just Journalism That's Slowing Down (and Investigative Journalism Coming Under Attack)

    A mix of censorship and subtle mind control contribute to misinformed societies that shape their perception or misunderstanding of the world based on false measures of authority (where money can determine what is true and what is untrue); many topics remain completely untouched, leading to apathy in a vacuum; it's very much applicable to international organisations, which are presumed benign by virtue of being multi-national or supranational



  6. Social Control Media is About Social Control and If It Doesn't Ban You It'll Shut Down Everyone's Account (One Day)

    It’s time to leave the ‘Internet rot’ which is social control media well behind us; blogging and RSS/XML may seem like a thing of the past, but they may as well become the future (again; if we make the correct and informed choices)



  7. Microsoft's Fingers in Every Pie: The Cult Mentality That Society Needs to Become Wary of

    Microsoft and its co-founder (pretending to do his for-profit 'charity' via the Gates Foundation) are trying to control the world; in the process they've moved to control even their most potent competitor, according to Gates himself, which is GNU/Linux



  8. Links 9/7/2020: Google’s Open Usage Commons, GNOME 3.36.4, Neptune 6.5

    Links for the day



  9. IRC Proceedings: Wednesday, July 08, 2020

    IRC logs for Wednesday, July 08, 2020



  10. Links 8/7/2020: SUSE to Acquire Rancher Labs, Btrfs as Default in Fedora, Qt Creator 4.12.4

    Links for the day



  11. Yes, Master

    When the Linux Foundation tells us to tone down our language we ought to remember what kind of hypocritical stance these people have (note: the above have nothing to do with slavery, either)



  12. Fraunhofer is Again Evergreening Software Patents to Maintain Its Codecs Cartel, Forcing Everyone to Pay to View/Stream Multimedia Files

    The roller-coaster of software patents on multimedia isn't stopping; we know the culprits who can be named for perpetuating this injustice



  13. [Humour/Meme] Focusing on the Bombings and Who's Included in the Bombings

    Supremacist agenda disguised as "tolerant and inclusive" is still objectionable supremacist agenda



  14. Manners Are a Good Thing. The Yardstick or the Standard of Manners Changes Over Time.

    Entirely legitimate grievances of African-Americans are being exploited by people who aren’t even African-American (and usually don’t speak for African-Americans) to warp the debate from one about software ethics and technical issues, not to mention war crimes of companies that employ many programmers, to something which is unlikely to really help African-Americans (also, they don't employ any African-Americans)



  15. IRC Proceedings: Tuesday, July 07, 2020

    IRC logs for Tuesday, July 07, 2020



  16. Links 8/7/2020: Huawei’s GNU/Linux PC, Sparky 5.12, and Endless OS 3.8.4 Released

    Links for the day



  17. [Humour] Television Channels That Don't Speak of Real Looting But Participate in Looting

    People may need to look beyond (or outside) the television screen to grasp what's going on



  18. (Software) Freedom is Elusive Without the Ability to Concentrate

    Software is consuming people's minds; to make matters worse, people have become so attached to such software that they're unable to see it and get away from it (they associate that software with "social life")



  19. Monopolies Erode Freedom, Freedom Erodes Monopolies

    "There are so many reasons that GitHub makes projects less free."



  20. Links 7/7/2020: NomadBSD 1.3.2, Clonezilla Live 2.6.7 and DRM Comes to Cars

    Links for the day



  21. [Humour] IAM Ranked Top for Quality of EPO Propaganda

    Contrary to what the European Patent Office (EPO) keeps saying, patent quality is slipping very fast in Europe (based on the EPO's own analysis!) but patent trolls-funded publishers deny that



  22. When They're Done With Patents on Foods and Recipes They'll Have Patents on Fashion, Taste and Smell

    The mental dysfunction — an infectious condition — that says everything in the world must be patented should be resisted; it overlooks the fact that patents were introduced to protect/promote actual invention, not thoughts, feelings, nature and art



  23. [Humour/Meme] IBM's Money is Unhealthy to the Free Software Foundation (FSF)

    IBM will never be happy as long as RMS (Richard Stallman) has a say in the FSF — directly or indirectly — or even in the GNU Project, both of which he himself created back when IBM was the biggest monopolist



  24. IRC Proceedings: Monday, July 06, 2020

    IRC logs for Monday, July 06, 2020



  25. Never Let IBM/Red Hat Lecture Us on Morality

    Ethics and morality should not be taught by those who themselves need a lesson; in the meantime we're losing the courage to speak freely and those who commit atrocious acts like it a lot better that way



  26. [Humour/Meme] Wear the Red Hat as the Open Org Becomes Openwash

    IBM is changing Red Hat and not for the better; sooner or later IBM will become another Microsoft and changing from one to the other will be like swapping 'masters'



  27. IBM is Imposing Non-Free, Privacy-Infringing Tools and Patent Tolls on Red Hat Staff

    There are signs that Red Hat under IBM will be more like assimilation to IBM, not IBM assimilating to the 'Red Hat way' or the so-called 'open org'



  28. They Tell the Free Software Community That It is Racist While Saying Nothing at All About Trump's Racism (Because He Gives Them Government and Military Contracts)

    While their president compares 'foreign' people to a virus (using innuendo, dog whistles and racist rhetoric reminiscent of the Nazi era) the big US corporations (American surveillance giants) turn their attention to rather innocuous words inside people's code (which almost nobody sees anyway)



  29. LibreOffice 'Personal Edition' Seems Like a Marketing and Communication Fluke

    Had LibreOffice developers (and the Document Foundation) communicated these changes more openly, they would have averted/avoided some of the FUD



  30. It Almost Feels Like Microsoft Has Already 'Bought' Canonical

    Canonical's disturbing trajectory and betrayal of the community continue unabated; one can easily get the impression that Ubuntu exists to help Microsoft at some level


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