Microsoft Ties $235m IT Aid To Use of Windows

E5Rebel writes "Microsoft will spend $235m in schools worldwide over the next five years, part of a plan to triple the number of students and teachers trained in its software programs to up to 270 million by 2013. 'Microsoft's investment shows how important it views developing markets to its future business. Last year, Microsoft introduced the Student Innovation Suite, which includes the XP Starter Edition plus educational applications, for $3 for qualifying countries. Microsoft faces heated competition from companies supporting the open-source OS Linux and associated software in developing countries. "I think as a company we welcome choice," [Orlando Ayala] said. "Frankly, we welcome the competition." The company's educational funding comes with a hitch: "Of course, that includes the fact they [the schools] use Windows," Ayala said.' If you don't use Windows you don't get the cash." Microsoft has long been interested in the education of children.

Of course they only pay for windows training

[jorghis]

Why is it a surprise they would only fund free training for their own software? I mean isnt that kind of a duh thing? Are linux companies sinister too now because they dont pay for free windows training for people who dont buy linux?

Open Source forces...

[Anonymous Coward]

...Microsoft to pay for future customers.

Which means they would have to increase prices for their software, which makes more people decide to use the free open source alternatives instead.

I just love it when a plan comes together. ;)

muhahahahaha!!!

I am willing to donate 6 trillion!

[saterdaies]

In 10 grants contingent on recipients of said aid only use it to purchase special Educational Grant Editions of my Ubuntu clone at a cost of $600,000,000,000 a piece. That way, I'm donating a huge amount, but I don't actually have to donate a penny (unless I'm off by a decimal place there).

On a more serious level, I could donate $1,000,000 to schools that could only be used to buy licenses of my slightly modified Ubuntu clone and never have to spend money - if they don't buy my licenses, they don't get the money; if they do buy my Ubuntu clone, I get the money back and maybe have to eat the cost of some CD-Rs.

"Donating" money that can only be used to purchase an intangible good (and software, other than the physical media, is intangible) from yourself is like donating nothing - especially when you're donating to people who wouldn't buy your product if it weren't being given to them.

Wrong!

[goldspider]

Microsoft faces heated competition from companies supporting the open-source OS Linux and associated software in developing countries.

Microsoft isn't confronting competition in these targeted regions, they're confronting rampant piracy of their OS. They figure it's better to get $3.00 per copy than nothing.

Re:Actually...

[blueZhift]

Actually, this is similar to what Apple did to get the strong foothold they once had in the education market. I don't know what the balance is these days, but it is a good move by Microsoft to get better established in an important market. I'm not a huge Microsoft fan, but there isn't anything evil about this, other than the usual profit motive which may or may not be evil depending on who you talk to. In my book, if it helps increase computer literacy then it's a good thing, especially if it increases that of the teachers!

Re:I am willing to donate 6 trillion!

[arivanov]

You missed one point. You also write it off as a tax deductible. If you try to write off $600,000,000,000 as a tax deductible expect black helicopters and men with assault rifles as a responce to your tax return. If a company with a turnover bigger than some nation's GDP does this, it gets an applause in the press for its enormous charitable contribution. Which is a pity - it should get the same treatment (scaled for size - cannons instead of assault rifles).

Re:Subsidy not aid

[ronadams]

The problem here is that I don't pay taxes to fund public schools so Microsoft can go advertise their products. Enhancing vendor lock through targeting public institutions is not cool with me. OTOH, maybe open-source advocates should just offer free training and resources of their own.

Withholding judgment...

Re:Free software is not money

[Technician]

It looks like they are giving free software and support

What's very funny is Microsoft had a 10 question quiz in an ad here on slashdot. The quiz was to "test your knowledge of software licensing". For grins, I took the test. It will not let you go got the next question (training maze) until you got the current question correct. If they just scored it, I would have done poorly as I chose what a consumer friendly answer should be. Taking the quiz fully convinced me that with GNU style licenses out there, the MS license will lose.

For example, you have a computer with an OEM Windows install. It dies. Can you reinstall the software on another computer? The answer is no. The license is only for the dead computer and is not transferable. Just how does that stack up against my other software which includes the permission to install it on any and all computers I own. Getting me to buy their software is going to be tough. With Open Office, everyone has the same version. With MS Office, I have a machine with Office 97. The daughter has the Office 2003, and the wife's new Vista laptop has the new copy provided for the cost of the media through my employer. It expires when I lose my job or retire. Compare licenses again. One copy on one machine or a site license for all the machines in my house.. Easy choice.. We all have a copy of the up to date Open Office. It supports ODF out of the box, not as a plug-in.

http://www.tech-recipes.com/rx/2075/word_2007_open_save_odf_documents [tech-recipes.com]

Schools who have to deal with donated machines and per seat licenses have the BSA to fear. Schools who use OSS software do not have this legal liability. MS will either have to blanket change their license or continue to find their market erode.

http://www.linux.com/feed/37845 [linux.com] (Oregon school faces BSA Audit)

Business also has to deal with the sticky terms of the MS license

http://www.news.com/2008-1082_3-5065859.html [news.com] (Ernie Ball's BSA audit, cost $65,000, plus $35,000 in legal fees)

Those badly hurt and afraid will need a lot more than just a sweet deal to switch back.

Re:fancy that

[Technician]

Good point. I just looked to see if Apple is a BSA member.

Unfortunately according to Wikipedia, they are..

http://en.wikipedia.org/wiki/Business_Software_Alliance [wikipedia.org] Scroll down to the members list.. Yuck!

" * Adobe Systems
        * Apple Inc.
        * Autodesk
        * Avid Technology
        * Bentley Systems
        * Borland
        * CA, Inc.
        * Cadence Design Systems
        * Cisco Systems
        * CNC Software/Mastercam
        * Dell
        * EMC Corporation
        * Entrust
        * Hewlett-Packard
        * IBM
        * Intel Corporation
        * McAfee
        * Microsoft
        * Monotype Imaging
        * Network Associates
        * Oracle Corporation
        * PTC
        * RSA Security
        * SAP
        * SolidWorks
        * Sybase
        * Symantec
        * Synopsys
        * The Mathworks
        * UGS PLM Solutions Inc.

Re:Subsidy not aid

[hansonc]

If your school district were properly funded through your tax dollars they wouldn't need to take Microsoft's money to fill out their budget needs. Until people figure out that they should be voting for every single school bonding issue, schools need to come up with funds somewhere. They might as well take Microsoft's money and provide education in the software the students will need to know when they get out of school.