Microsoft Exec Admits That Company Benefits From Piracy
from the a-secret-no-more dept
For some time, big software companies have tried to make the argument that a copy of pirated software is equivalent to a lost sale This is pretty ridiculous for a couple reasons. For one thing, there's no reason to think that a given user of pirated software would have actually purchased a legitimate copy. Furthermore, the argument ignores the fact that companies actually benefit in some ways from piracy, because a user of pirated software is likely to purchase software from the same maker at some point down the road. This latter point is something that even Bill Gates has admitted, even while Microsoft continues to talk tough about cracking down on piracy. Now the company is stating more clearly that it knows there are some benefits to piracy. Jeff Raikes, head of the company's business group, said at a recent investor conference that while the company is against piracy, if you are going to pirate software, it hopes you pirate Microsoft software. He cited the above reasoning, noting that users of pirated Microsoft software are likely to purchase from the company later on. He said the company wants to push for legal licensing, but doesn't want to push so hard so as to destroy a valuable part of its user base. The company recently got a stark reminder of this lesson when a school in Russia said it would switch to Linux to avoid future hassles with the pirate police. Of course, this moderate stance seems at odds with the company's recent hyper-aggressive anti-piracy push, which resulted in many mistaken piracy accusations. Either way, Raikes' comments completely destroy the line about pirated software being equivalent to lost sales; if it actually were, Raikes would be telling people to pirate the software of Microsoft's competitors.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Reader Comments
Subscribe: RSS
View by: Time | Thread
A lost sale is better than competitor gaining a us
[ link to this | view in chronology ]
MS software piracy
It's only because Windows is bundled with new computers that I use it, otherwise I'd be off like a shot to the competition.
Having said that, the non MS software really works and IS worth paying for (when not free!).
Bill, when you're in a hole, stop digging. Either ask us to pay for REAL apps, or just give them to us!
[ link to this | view in chronology ]
Re: MS software piracy
you contadict yourself,
Most everyday computer users don't even know how to install windows, and the fact is that most computer would be considerably less if they had no OS or software installed initially.
Those that do know may buy the required software or go down the piracy route, I know lots of undergraduate students take the later route if they build computer as they cant afford the software yet!!! These are the potential buyers when they do have the funds.
[ link to this | view in chronology ]
Re: MS software piracy
I also use Firefox instead of IE - because I choose to.
Just because your car comes with OnStar, doesn't mean you have to use it either.
The only thing you "have" to use is iTunes for your iPood - unless someone's cracked the DRM for that... ???
[ link to this | view in chronology ]
Re: Re: MS software piracy
[ link to this | view in chronology ]
Re: Re: MS software piracy
Anapod Explorer is what I use to transfer songs to my iPod. It works well with all versions of the iPod. One thing to note, if you're already using your iPod with iTunes and wanna switch to Anapod, say bye-bye to all the songs you have on there. You will need to format your iPod and then power it on without being attached to a computer. It will reset it's directory structure and you can now attach it to your computer and set it up with Anapod explorer. Send mp3, wav, mp4(ALAC), etc. files to the iPod without any problems.
[ link to this | view in chronology ]
Re: Re: Re: MS software piracy
http://www.allofmp3.com > iTunes
Do any of you actually buy your songs from iTunes? I don't.
This ties in perfectly with this whole piracy issue. I'm downloading them for free to sample them and will actually buy them at a later date...... a much much later date :)
[ link to this | view in chronology ]
Re: Re: MS software piracy
[ link to this | view in chronology ]
Re: MS software piracy
I also use Firefox instead of IE - because I choose to.
Just because your car comes with OnStar, doesn't mean you have to use it either.
The only thing you "have" to use is iTunes for your iPood - unless someone's cracked the DRM for that... ???
[ link to this | view in chronology ]
Re: MS software piracy
If you find that you need to use a commercial software, then you should pay for it. If you dont like it, then dont use it.
Also,
If Microsoft bashes piracy, people complain. If Microsoft embraces piracy, people complain.
[ link to this | view in chronology ]
Re: Re: MS software piracy
[ link to this | view in chronology ]
Re: MS software piracy
Utter bullshit. You don't seem to know much about MS's products. Their Flight Simulator is the best desktop flight sim available. Worth every dime.
[ link to this | view in chronology ]
Re: MS software piracy
[ link to this | view in chronology ]
MS ain't all bad
"the non MS software really works and IS worth paying for"
Not sure I agree entirely with that generalisation.
I'm no fan of MS and generally try to use alternatives where possible but MS Office for example is a very decent app. Is there a better alternative worth paying for? I haven't found one yet. OOo? Decent but not worth paying for.
As for piracy ... it stands to reason that any software developer would prefer people use their software rather than a competitor's ... be it pirated software or not.
Isn't that really why companies give away free versions of their software ... to get you using their products with the hope of making money off you in future?
[ link to this | view in chronology ]
Re: MS ain't all bad
[ link to this | view in chronology ]
Re: MS ain't all bad
As for piracy, I really think it's blown out of proportion. If someone could have afforded the crazy price tag, they probably would have bought it in the first place. I know that my copy's of XP have all either come with a computer or I have gotten free from MS conferences. If it were up to me to go buy a copy of Windows, I wouldn't do it. Just like I won't buy a copy of Office. They are not worth the money. People turn around and bash operating systems like Ubuntu, but they forget that they are comparing it, a free system, to a $400 system that has been on the market for over a decade. Does Ubuntu do what I think it should for free? Yes, it actually does far more then I would expect from a free piece of software developed by a cooperative group. Does Windows do what I think it should for $400? No, I think a $400 price tag should get me something considerably better then a more polished OS. It should come WITH an office application (free), a sweet of REAL tools to make it useful to people other then secretaries and grade school teachers, and have a GOOD support program. When I spend $400 on a piece of hardware, I expect the manufacturer to support it and replace it if it has problems. What am I paying the $400 for with Windows? Ease of use?
In the next year or so we will be looking to move our entire agency away from MS Office. We reviewed the options, and if you compare MS Office side by side with it's competitors, there really isn't any justification for the price tag. If it wasn't such a headache, we would probably even move away from Windows all together, but the Linux distributions are not quite mature enough (good enough for home use, not quite good enough for use by non-tech people)... and MAC isn't really realistic in an office setting for numerous reasons.
[ link to this | view in chronology ]
Re: MS ain't all bad
[ link to this | view in chronology ]
Re: MS ain't all bad
Are you joking? OOo is free, not only in money but also open source. So why are you talking about paying?
[ link to this | view in chronology ]
Whose?
Since the software most commonly pirated is Windows itself, just which other companies' desktop OS would they pirate? Solaris???
The second most commonly pirated is Office. Since there's pretty much no competition in the professional office productivity space, which competitor there would you suggest that people pirate?
How about Windows Server? Exchange? No?
So it's rather obvious that your conclusion that his "comments completely destroy the line about pirated software being equivalent to lost sales ... Raikes would be telling people to pirate the software of Microsoft's competitors" is pretty much false to fact.
Because, by and large, there are no competitors...
[ link to this | view in chronology ]
Re: Whose?
[ link to this | view in chronology ]
not even Solaris
[ link to this | view in chronology ]
Re: not even Solaris
[ link to this | view in chronology ]
Monkey with a keyboard.
One thing is certain, you can't beat the price. :)
[ link to this | view in chronology ]
Re: Monkey with a keyboard.
JAM
[ link to this | view in chronology ]
Re: Re: Monkey with a keyboard.
[ link to this | view in chronology ]
Re: Monkey with a keyboard.
Mute point with Office 2007 as I think they are taking a play right out of OOo's playbook... The new file formats (.docx, .xlsx, etc...) are zip files with XML files for the content... (Sound familiar?) & the file size is 25% of original doc/xls files.
On the other hand, am I going to suggest my company of 40 users spend the $$$ to update to MS Office 2007? No, I'm going to suggest we convert to using OOo. It's not worth the money for a company this size to invest the thousands for an interactive toolbar (the ribbon).
[ link to this | view in chronology ]
Re: Re: Monkey with a keyboard.
Thank God for that. It would be horrible to use a spreadsheet program that was tied to only one scripting language. *shudders*
[ link to this | view in chronology ]
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
Re: windows for server ???
[ link to this | view in chronology ]
Re: Re: windows for server ???
Who in his right mind would use a Windows based computer as a server ? Windows is for technologically impaired users aka gamers and grandmas."
Ummm, do you have any idea what your talking about. The servers thing I agree.. but putting gamers on the same level as grandmas... wtf 0_o. Explain to me why most games don't run on Linux? Explain to me why Linux runs better on "Older Technology" instead of the bleeding edge/latest in tech. Hell, i'm an avid gamer and I would never consider Linux as my main OS because frankly.. i'm extremely Technologically minded - I love the latest tech, if I buy a new GPU I can be almost 100% certain its going to work extremely well. If I went and Pirated/bought a new OS and pratically had to downgrade my components.. I would be pretty pissed off.
I don't think you really thought your comment through before posting it my dear friend.. as you obviously seem to be pretty ignorant if this is what you believe.
[ link to this | view in chronology ]
OOo
Not "no alternatives" but "no alternatives worth paying for" was my point.
I have been using Open Office (OOo) for a few years at home ... and MS Office at work ... and use both daily and think that OS Office is better (it's personal preference really). Is OOo worth paying for (if you had to)?
[ link to this | view in chronology ]
Re: OOo
[ link to this | view in chronology ]
Re: OOo
[ link to this | view in chronology ]
Re: OOo
[ link to this | view in chronology ]
Re: OOo
[ link to this | view in chronology ]
Re: OOo
[ link to this | view in chronology ]
Re: OOo
[ link to this | view in chronology ]
[ link to this | view in chronology ]
Re:
Nevertheless, I see more and more stories about large organizations moving away from MS OS and apps. The US D.O.T. and subsequently the F.A.A. are both looking at *NIX and Google's Online Apps ... entire gov'ts have moved to Linux (Ubuntu seemingly the most popular choice). Now, THAT'S a lot of lost revenue ...
[ link to this | view in chronology ]
Re: Microsoft Exec Admits That Company Benefits Fr
[ link to this | view in chronology ]
Re: Re: Microsoft Exec Admits That Company Benefit
buy the OS and save about 90 dollars
[ link to this | view in chronology ]
Re: Re: Re: Microsoft Exec Admits That Company Ben
[ link to this | view in chronology ]
Re: Re: Microsoft Exec Admits That Company Benefit
[ link to this | view in chronology ]
Obscurity
[ link to this | view in chronology ]
Give me a break!
seriously, go back and check out your posts. a incredibly high % sings the same old song.
boring
[ link to this | view in chronology ]
Re: Give me a break!
Software developers are spoiled. We really are. We think if we make something, people have to buy it. That is not how it works. If you make a product that is worth buying, people will not have a problem paying for it. In my case, the projects I work on now are based only on their usefulness. If the client does not like it, they don't use it, and we don't get paid. If someone wants to try it out, we work with them to try it out. Not some stupid 90 day demo.
What it comes down to is opinions. Some people think anything they create is worth money, and that everyone who uses it should pay. Other people think you should only pay for it if you are using it to make money. I sit somewhere in the middle, I think people should pay if they can, but companies should not limit their audience. If a teenage kid wants a copy of Dreamweaver to start playing with web development, I think he should get it. There is no harm to the company, he couldn't have afforded it anyway, and in the future, when he is working in the field, guess what products he is going to use....
[ link to this | view in chronology ]
Re: Re: Give me a break!
[ link to this | view in chronology ]
pirate
[ link to this | view in chronology ]
bought my first computer 7 years ago now
an u know the guy that comes over an strips it out and starts u off in the right (or rong direction)...
bit of a toutor so to speak..
well i've never paid for a thing since...
2 personal pc' later an 3 build's for coworkers...
im still going strong
but i think u have to enjoy lackluster preformance and zippo support... hours, of how does it affect my work and, can i find a way arround that, just so i can do this...
now if that's not your thing... buy it!!!
OO all the way unless u know the guy to install office for u :)
[ link to this | view in chronology ]
Piracy
[ link to this | view in chronology ]
The worst pirate ever.
[ link to this | view in chronology ]
My thoughts
I can understand Microsoft not wanting whole companies (especially large ones) to pirate, but their attacking people pirating for personal use is a lose/lose situation. When they go after the general consumer they get the rep as an evil corporation. Thus people don't feel bad pirating from them.
[ link to this | view in chronology ]
[ link to this | view in chronology ]
Pirate software
Most people use pirate MS products at home. So thats what they know how to use, what they became experts at. NO company will ever advertise looking to hire Solaris experts but windows experts. Now companies are more easy to control than individual users. And they are more likely to have the funds to pay for a license. It would take months for a company to find enough users of Solaris to work for them or even to train them.
Regards,
[ link to this | view in chronology ]
Prices
$279 for word+excel+outlook is too expensive.
More than $100 for a home OS is too expensive.
[ link to this | view in chronology ]
Re: Prices
In my opinion, MS priced itself into piracy. It is hard to pay more than $100 for any of it's home products.
$279 for word+excel+outlook is too expensive.
More than $100 for a home OS is too expensive.
I agree totally here. Is software even worth this much? Considering it will be outdated and replaced within 3 years is it really an investment?
If you bought a MS product and you were guaranteed for life like Craftsmen Tools then yes I think it would be worth it.
On the other hand if you shelled out almost half a thousand dollars for Office 2003 only to find out it can't read Office 2007 files I would be pretty pissed.
MS strategies of forcing everyone to start over again and purchase new software is dead ending the whole computer industry. They throw around their weight to keep all independent developers out thereby choking out innovation.
Sure some of MS products are good and XP is pretty damned snappy when it comes to speed, but it ends there. The majority of their products are poor hacks of the ideas they borrowed and are unable to execute properly.
Open Source will sweep in to clean up the mess MS has created and give everyone the chance to build on ideas rather than just steal them and make poor copies. Its like bringing in the discourse of sciences where everyone can build on each others idea to make an even greater product.
It is not just an idea, it is a revolution (Yet another great idea MS will embrace in several years and try to claim they started it LOL)
[ link to this | view in chronology ]
[ link to this | view in chronology ]
Microsoft Software Piracy
[ link to this | view in chronology ]
[ link to this | view in chronology ]
Make sure if you are pirating that it is Microsoft
[ link to this | view in chronology ]
[ link to this | view in chronology ]
normally, people don't, CAN'T think of products like this. you think in terms of "what is the best i can get for what i can afford."
and lots of businesses profit from this! a lesser car company can get customers because though it does not make the best car, it makes a cheaper one.
piracy kinda short circuits the market for lower cost solutions. i firmly believe that an app like paint shop pro hasn't taken off because it is irrelevant that you can get 90% of photoshop ($600) capability for $100 when you can get photoshop for free.
and it's also probable that this is the reason why linux is not more widespread.
this basically enables the "victims" of piracy to eradicate competition and maintain a monopoly position.
haha, i guess piracy control is somewhat like the decisions faced by the oil cartels - you want to limit supply to maximize profits but you don't want to limit it so much that you inspire potential consumers to start looking elsewhere for solutions (alternative fuels, etc.)
[ link to this | view in chronology ]
Joe, you are an idiot
[ link to this | view in chronology ]
Of course they do
[ link to this | view in chronology ]
Time to change OS!
As for MS Office, I will swear at it, I use Open Office instead!
My home unit is running Linux OS and Open Office. No problems yet....
[ link to this | view in chronology ]
I use LaTex for documents, and produce output as PDFs, (PDF screen for presentations, but I have only done that once), thunderbird instead of Outlook, FileMaker instead of Access, and Publisher is a waste of space most of the time (I haven't used it for years).
I quite like the ribbon toolbar in office 2k7, but it is not something I will pay for.
FireFox2 beats IE7 by a mile, and has a greatly superior UI anyway.
If someone made an Open Source rip-off of Dirextx, then that would help convert gamers away from window$.
I use vPod with my iPod, which does not require reformating to use along with iTunes, but you have to extract your CDs yourself. For playback, there is Pod Player, which is not as good as iTunes for finding songs or editing info, but is good for playback (it is on my iPod, it is quite small), and Winamp has no problems with AAC files.
Cheese, you kept hiting submit until the page changed, didn't you.
[ link to this | view in chronology ]
This article has very useful information
This article has very useful information, it will be helpful for many certification exam aspirants. Actually one of my friends first read this article and asked me to visit this page.
It’s really amazing to read this description of this article. Thank you so much for your help and for your efforts.
Thanks,
Steve
http://www.eplanetlabs.com
[ link to this | view in chronology ]
re: Re: MS ain't all bad
[ link to this | view in chronology ]
piracy and microsoft
give em up Bill, your days are numbered!
[ link to this | view in chronology ]
Felgi chromowane szczecin
[ link to this | view in chronology ]
Re: Felgi chromowane szczecin
[ link to this | view in chronology ]
Cialis
[ link to this | view in chronology ]
[ link to this | view in chronology ]
[ link to this | view in chronology ]
[ link to this | view in chronology ]
[ link to this | view in chronology ]
[ link to this | view in chronology ]
[ link to this | view in chronology ]
Kredyt mieszkaniowy
[ link to this | view in chronology ]
[ link to this | view in chronology ]
Dear Microsoft
My name is Gopesh Kapoor, and I own a small computer repair and sales business in Manhattan.
My concern is that each month, business in my sector continuallly diminishes. The amount of piracy in NYC has grown to
astonishing levels. For example, the following ads were placed on craigslist in a PERIOD OF 20 MINUTES:
http://newyork.craigslist.org/mnh/sys/2231759358.html
http://newyork.craigslist.org/que /sys/2231754078.html
http://newyork.craigslist.org/que/sys/2231756448.html
http://newyork.craigsli st.org/que/sys/2231752132.html
http://newyork.craigslist.org/que/sys/2231747774.html
http://newyor k.craigslist.org/mnh/sys/2231702152.html
http://newyork.craigslist.org/mnh/sys/2231642511.html
htt p://newyork.craigslist.org/brk/sys/2231606691.html
http://newyork.craigslist.org/que/sys/2231532652 .html
http://newyork.craigslist.org/mnh/sys/2231531684.html
Every single day, more and more "software" vendors turn up, and more disturbingly, an even larger number of people turn up to
buy from them. For those of us who run legitimate businesses, this is becoming an increasing concern.
According to a recent NY Times article, Microsoft has spent a ton of money setting up an anti-piracy operation with staff
members that include former government intelligence officers, former district attorneys, etc.
This anti-piracy operation IS NOT DOING THEIR JOB. If they were, the levels of piracy would be DECREASING, not INCREASING on
a daily basis.
The costs of this anti-piracy operation is probably built into the price of legitimate MICROSOFT products. RECOMMENDATION:
FIRE this group of incompetents (they are taking your money and not doing the work you're paying them to do), and LOWER the
price of your products.
Or, please feel free and continue to ignore my suggestions. In order to stay afloat, I'll start to consider turning to
piracy MYSELF.
If you continue to employ the idiots in your anti-piracy division, chances are that I'd be able to make tons of money through
piracy of your products and never get caught.
Sincerely,
Gopesh Kapoor, CCNA, CISSP
[ link to this | view in chronology ]