Bonum Certa Men Certa

Cablegate: When Steve Ballmer Met President Bouteflika in Algeria

Cablegate



Abdelaziz Buteflika



Summary: A cable explaining Microsoft's affairs with the Algerian government

THE FOLLOWING Cablegate cable is from almost 4 years ago and it helps complete this other insulting cable from in Algeria.








VZCZCXRO2537 RR RUEHTRO DE RUEHAS #1581/01 3030607 ZNR UUUUU ZZH R 300607Z OCT 07 FM AMEMBASSY ALGIERS TO RUEHC/SECSTATE WASHDC 4760 INFO RUEHFR/AMEMBASSY PARIS 2384 RUEHLO/AMEMBASSY LONDON 1738 RUEHMD/AMEMBASSY MADRID 8660 RUEHRB/AMEMBASSY RABAT 1990 RUEHTU/AMEMBASSY TUNIS 6841 RUEHTRO/AMEMBASSY TRIPOLI RUEHNK/AMEMBASSY NOUAKCHOTT 6077 RUEHNM/AMEMBASSY NIAMEY 1332 RUEHBP/AMEMBASSY BAMAKO 0280 RUEHCL/AMCONSUL CASABLANCA 3105 RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 02 ALGIERS 001581

SIPDIS

SENSITIVE SIPDIS

E.O. 12958: N/A TAGS: ECON [Economic Conditions], EINV [Foreign Investments], ETRD [Foreign Trade], KIPR [Intellectual Property Rights], AG [Algeria]

SUBJECT: (MICRO)SOFT DIPLOMACY, VERSION 1.0

ۦ1. (U) SUMMARY: Microsoft CEO Steve Ballmer paid a brief visit to Algeria in a trip touted as an opportunity for Microsoft to help the GOA expand Algeria's information and communications technology (ICT) sector and enhance its education system. Ballmer said he was inspired by the GOA's commitment to technology development and by the potential for market growth in Algeria. ICT insiders suggested that the CEO visited Algeria in an effort to enhance Microsoft's government relations, and to signal that its recently reorganized business unit is serious about this market. Meanwhile, firms are optimistic about the ICT sector in Algeria, but are skeptical about whether Microsoft can effectively expand its software marketing here, or expect to make any progress combating piracy. END SUMMARY.

ۦ2. (U) In a whirlwind visit on October 3, Ballmer met with President Bouteflika and several ministers to discuss the development of the technology sector in Algeria, the use of IT start-up companies as a means to energize the Algerian economy, and access to computers in Algeria's schools. Ballmer later told a group of Microsoft partner firms that the greatest growth potential for the ICT industry lies in emerging markets like Algeria, where ICT structures can be expanded to tap into significant populations hungry for access to Web-based entertainment and educational services. (Note: 7.3 percent of the Algerian population has access to the Internet, compared to a 0.2 percent penetration rate in 2000, according to recent data compiled by the International Telecommunication Union. End note.) Ballmer said that he came to Algeria to evaluate his local team's recommendations for expansion, which he will consider in early 2008. He told the industry group that he was "inspired by the president's thoughtfulness toward the future," and that he saw potential growth across all economic sectors.

BUT STILL, WHY COME TO ALGERIA? -------------------------------

ۦ3. (SBU) Microsoft recently split its regional marketing division and created the Microsoft Algeria business unit. Because of the terrorist activity in Algeria in the 1990s, Microsoft established its North African headquarters in Morocco, which local IT representatives and former Microsoft employees say the GOA never forgave. Ballmer's visit to Algeria appeared timed to show corporate support for the new Algerian unit's government relations efforts, and an attempt to relieve past tensions between the GOA and Microsoft.

HOPE SPRINGS ETERNAL, BUT SO DO CLONES AND PIRATES --------------------------------------------- -----

ۦ4. (SBU) Industry representatives told Econoff that they were optimistic about the near-term future of the ICT sector in Algeria. Abdelaziz Ben Aissa, the general manager of a certified Microsoft business solutions firm, said that the GOA seems focused on ICT issues and opportunities are expanding. Ben Aissa's firm provides support services for Northrop Grumman information systems. He works extensively with the Algerian federal police, with whom he expects more contracts to support expanding communications and information systems. Djamal Hadjout, the information services director of an Algerian wholesaler representing a number of leading American computer periphery brands, said business is generally growing and that retailers are finding new customers among both Algerian corporate and individual consumers. He noted that American products continue to be associated with quality and prestige but are considered expensive.

ۦ5. (U) IT representatives were at the same time skeptical that Microsoft will be able to raise significantly its stake in the Algerian consumer software market or to combat piracy effectively because of the relatively high price of its products and the continued weakening of Algerians' buying power. They said that most personal computers sold to households are clones assembled in Algeria, and that most people buy pirated copies of operating systems like Windows and other software applications for as little as two dollars. Further, according to recent news reports, electronics represents the second-largest category of goods smuggled into Algeria (after cigarettes), and overall customs seizures of contraband rose significantly throughout 2007. Given Algeria's rising cost of living and high unemployment rate, the ICT representatives saw little hope that Microsoft will be able to counter these IPR challenges anytime soon. Ballmer was asked about this dilemma, but gave only a general response about his company's

ALGIERS 00001581 002 OF 002

commitment to finding innovative solutions to specific markets and his confidence that the GOA will move in a positive direction regarding ICT use and development in Algeria.

ۦ6. (SBU) COMMENT: Ballmer's visit, along with the recent creation of Microsoft Algeria, likely went a long way to meeting Microsoft's government relations goals. Some in the business world interpreted President Bouteflika's overt hospitality to a corporate leader as a sign that the GOA is serious about its stated intent to build out Algeria's ICT sector, improve the country's education system through access to technology, and see that every Algerian family has a computer at home. Nonetheless, the challenges of contraband hardware and pirated software remain significant as the high cost of living continues to influence not only consumer decisions regarding brand preference and when to buy, but also the choice between licensed, cloned or pirated goods.

FORD







This is the perspective of US diplomats. They ignore all the critics of these affairs, as one might expect (sometimes, as we have shown before using other cables, critics are comped to "conspiracy theorists").

Recent Techrights' Posts

Azure is Turning 17 This Year, Still Losing Money and Staff
Hallmark of pyramid schemes, deriving "value" out of things that do not really exist?
Richard Stallman on RISC-V and Free Hardware
Invidious is under attack by Google
 
Alex Oliva, the Potential 'Successor' of RMS, Has a New Web Site
More freedom for Alex Oliva
Links 16/02/2025: "Microsoft Is Laying Off Employees" and Internal Dissent Brewing at Facebook Over Regime Complicity
Links for the day
Promoting Microsoft Windows With LLM Slop
What is the policy at BetaNews regarding LLM slop?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, February 15, 2025
IRC logs for Saturday, February 15, 2025
Links 15/02/2025: Harms to Health, Public Domain, and More
Links for the day
Gemini Links 15/02/2025: On Autistic People, AuraGem Over HTTPS
Links for the day
The Cyber Show (C|S) Speaks of the "Rise of the Nerd Reich."
This 'Valentine Episode' is quite good
Strong Momentum for the Free Software Foundation (FSF) as Winter Approaches Its End in Boston or in the Northern Hemisphere
FSF's founder, Richard Stallman, gives another talk in Italy in 9 days from now
The 'Drunken Plagiarists' Are Harming Journalism About GNU/Linux
They lessen the incentive to do real journalism abut GNU/Linux
Female Nazis and racist Swiss women
Reprinted with permission from Daniel Pocock
Links 15/02/2025: Erasing of American Science and Tesla SLAPPing Critics
Links for the day
IDG 'Reviews' of GNU/Linux Now Contain LLM Slop
It's typically ads or commercials... or sometimes spin disguised as news
Gemini Links 15/02/2025: Spectacles and "Before Sunset", Moving Domains Out of the US
Links for the day
Microsoft Has Only $17,482 Million Left, "Cash on Hand" Sank 40 Billion Dollars in 2 Years
Microsoft runs low on money in the bank
YouTube Layoffs Mean That YouTube is Still Losing a Lot of Money (Net Income or Profit Almost Definitely Negative)
In more recent years Google defunded many vloggers
In Gopher and Gemini Protocol People Abandon Services Based in the United States
There's no resistance whatsoever
Python and Microsoft: Pandas Should Have Known OpenDocument Format (ODF) and Microsoft Excel Are Different and Competing Things
now we're meant to think that in order to open ODF files we need some functions with "Excel" in their name
Not Only Windows, Surface, and "Hey Hi" PCs; Microsoft's Hardware Ventures Are a Dumpster Fire; HoloLens Mixed Reality Hardware Now Axed Altogether and Staff is Miserable
Microsoft is in a terrible state
Certificate Authority (CA) Let's Encrypt Now Down to TEN (0.3% of the Whole) in Geminispace
The number of capsules that use Let's Encrypt is, according to Lupa, about to fall to single-digit figures
Links 15/02/2025: University Price Hikes and Copyright Action Against Slop Companies
Links for the day
Slopwatch: All Those New 'Articles' Are Fake and Crafted by Chatbots (LLM Slop)
Google News is promoting these as "Linux" news; they're not even made by humans
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, February 14, 2025
IRC logs for Friday, February 14, 2025
Gemini Links 14/02/2025: Mysterious Friend and "Eight by Eight"
Links for the day
They Will Never Leave Linus Torvalds Alone, Rust is Just Another Way to Cause Instability and Infighting in Linux
We already identified the Rust "community" as troublemakers more than 5 years ago and we wrote about the evidence
Apple: Social Justice or Social Nationalism?
Remember to buy Apple, folks
Links 14/02/2025: Mass Layoffs at Sophos, Chatbots Failing Very Badly, "DOGE as a National Cyberattack"
Links for the day
Moving Away From Certificate Authorities (CAs) Like Let's Encrypt Means Taking Away From the US Government the Power to 'Censor' Sites by Revoking Certificates
Gemini capsule is cheap to run and easy (easier than a Web site) to maintain. More people disillusioned and frustrated with social control media flock to it.
BetaNews' Managing Editor Wayne William Took Charge of GNU/Linux Articles and His Articles Are Real (He Actually Wrote Them)
We are frankly relieved to see that Wayne William recognised the problem and did something about it
Links 14/02/2025: Publicity Rights Violated (ByteDance), Bribes to Trump Passed via Social Control Media 'Settlements' Again
Links for the day
Gemini Links 14/02/2025: Constitution, Cosmic DE, and More
Links for the day
Slopwatch: Anti-Linux Articles Published by Bots, Dominating Google News
So a lot of the Web is Microsoft chatbot-generated anti-Linux FUD
Links 14/02/2025: Measles Outbreak in Texas, Zelensky Warns Russia Will Attack a NATO Country
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, February 13, 2025
IRC logs for Thursday, February 13, 2025