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Open Sources | Rodrigues & Urlocker » The road to the Microsoft tax is paved with Novell's best intentions

November 03, 2006 | Comments: (0)

The road to the Microsoft tax is paved with Novell's best intentions

Novell got duped. It didn't mean to - after all, it's been struggling financially for a decade now, and getting some help from a partner, even a dubious one like Microsoft, probably felt like a risk worth taking.

I just hope the rest of the industry will stand firm.

Red Hat has publicly stated that this Microsoft/Novell deal imposes an "innovation tax" on the industry. I doubt few understand what they're getting at. As I work through the public statements on the deal, I'm coming to understand it more and more, and I'm worried. It's not enough to put Goldman Sachs on stage to "prove" the pact is a good deal - anyone know of a bigger investment banking customer than Microsoft for Goldman? Nope. Me, neither. Microsoft would have to get a real customer that isn't shackled to its nipple to give its "customer testimonials" more credibility.

Let's be clear about what this pact requires, as Pam at Groklaw notes: Novell to pay royalties to Microsoft in exchange for a covenant on Microsoft's part not to sue Novell. Translation? "Give me your lunch money or I'll beat the crap out of you."

Novell should be ashamed of itself for playing along with this. No doubt its own salespeople will go out into the market, competing with Red Hat with the words, "We're the only ones who can provide "safe Linux." Could Microsoft hope for anything better? One of Linux's top two vendors scaring the 80% of the market that has long chosen not to buy from it.

Microsoft learned some time ago that suing "the community" was a bad idea. So it proxied the community through Novell. Ballmer says as much:

...I think of Novell as a proxy for the customers. Novell works with the open source community, and so we needed to have a way to work with Novell that was respectful of the community, but nobody represents the community. On the other hand, our customers were clearly saying, we want somebody to represent us in the use that we will make of Linux. And the customers weren't picky, they said, find somebody who is in this game who really wants to get after it. And so, as I said, we got after that with [Novell].
Novell, a proxy for the open source community? Novell, the company that has been shuttering every open source project it has started, Linux excepted? Surely Mr. Ballmer could have found a better proxy, one that most of his customers (80%) already buy from: Red Hat. The smart money says that Microsoft offered this Faustian pact to Red Hat, and Red Hat told them, "Don't let the door hit you on the way out."

Why? Again, it comes down to what is truly best for customers: choice without the innovation tax. Ballmer says:

if you want to use Linux, let's make sure that you get a version of Linux that respects our intellectual property.
Think about that. Now let me spin it a little:
If you want to use anything besides Microsoft, let me at least make sure that you pay Microsoft, all the same, through hush money royalty agreements.
Farfetched? Reread Ballmer's statement.

I'm willing to bet that Microsoft will be hitting the road with this Novell pact, urging other open source companies to sign up to pay for the right to not be sued. They had to have someone desperate enough to cave in the first time to make sure the next few go down more easily. Don't be fooled.

Pam isn't. She writes:

I gather Microsoft no longer thinks Linux is a cancer or communism. Now it just wants a patent royalty from it. Wasn't that kinda SCO's dream at first? A kind of royalty on every box sold, every server shipped? Blech. And this "patent promise" is only for SUSE, so that tells the discerning observer that Microsoft will likely be suing others. As for Novell, if history means anything, it will end up Microsoft roadkill. It's so funny to me that nobody ever remembers what comes *after* the Embrace.
Poor Novell. You're like Fontine in Les Miserables, forced to sell yourself by indigent circumstances. You should have tried open source, instead. Some rather like it. Like, for instance, those of us who live in

The Independent Republic of Open Source

Posted by Matt Asay on November 3, 2006 02:21 PM


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Microsoft like Intel and Cisco need competitors. They don't want to destroy the competition or necessarily have them fail. The market needs some competition, Microsoft spent a billion dollars on lawyers and lawsuits this year. But M$ wants them to putter along and not be very significant. Companies like Google with the combination of the Chinese government backing 5000 programmers, scare the crap out of Microsoft, because they could bring something completely new to the marketplace and they can't sue them into the ground. ie. Netscape and the browser was quite a shift in computing. Software can be distributed cheaply and you can have a paradigm shift in the way people work. All of a sudden M$ becomes insignificant. Its one of the reasons M$ went into the console bussiness, you don't want to see an Nintendo box accessing the internet. That game box could become a web interface, telephone, television, and desktop plateform. You want a Microsoft computer, Microsoft phone, Microsoft console, M$ PDA, phone you get the idea.

Posted by: g zak at November 3, 2006 04:18 PM

You should be nervous if...
you are an end user who like innovation and competition, or if you are a software company that does not have 1000+ patents (open source, proprietary, or mixed source; it does not matter). Microsoft thinks they have created all the software and innovation forever, and plans to try and tax every one who is not already in the 100+ patent club. The world is just now catching onto this fact, that this announcement is a "grin screw", and a first step on this planned march by the boys of redmond. The fun part is that the world will backlash against them as they get wise to this scheme. One entity holding the IP cards for all of software is not an option.

Posted by: Guitar Joe at November 3, 2006 09:43 PM

What I cannot understand though, what exactly M$ wants money for. Someone said Samba is infringing on another site. This isn;t true. Atleast unless we ahve been lied to all these years. the last time I checked however, there is one person that can speak for Linux. Linus is the man with the original paperwork on Linux, so as far as I am concerned He speaks for me.

M$ can take a flying leap. I will continue to use any distro I please. If it is GPL'd M$ and Novell had better rethink what they are doing. Or else they will have far more lawsuits than they could possibly attend to...

Posted by: jay at November 5, 2006 12:13 AM

I hate M$. Not very eloquent nor well reasoned, but straight to the point.

Posted by: Ted at November 5, 2006 11:09 AM

Fight the tax... buy a Mac!

Posted by: Scott at November 6, 2006 11:36 AM

I agree with the previous statement. Buy any of the new Macs with OS X. They're brilliant! Don't let Microsoft dominate the market for another 10 years.

Posted by: Dave at November 6, 2006 01:23 PM

Microsoft has gained too much monopoly in OS. And worst part is you don't learn anything out of it. If you are student or you want to self teach yourself programming (any kind), you gotta loathe microsoft. And on top of that they are the most arrogant people. Highly insecure OS, support removed every 5 years and huge upgradation charges. It is time Open Source and Google like companies to take over and bring competetion to market. Microsoft has already robbed world of too much money and learning opportunities. Now they should retire peacefully.

BOTTOM LINE: MICROSOFT IS JUST PLAIN USELESS FOR ME.

Posted by: Umesh at November 6, 2006 10:39 PM

I watched with fear as Microsoft moved the Windows programming paradigm away from c & c++. Visual Basic is the face of the programming anti-christ. It's really simple. Visual Basic is a least common denominator single-sourced programming language that does nothing for program transportability. Microsoft .NET is an even more evil plot than VB. It works like this. You write programs using .NET compliant code generators that generate "safe code" This code is documented in so-called open standard published at www.ecma-international.org, a standards organzation that Microsoft is a Major member of. The standard contains intellectual property that belongs to Microsoft, so while the code is somewhat portable, the run-time that might allow it to work in another environment must contain elements of Microsoft's IP from the standards document or it won't work. Once you do that, Microsoft gets to charge you a royalty for the runtime on the alternative platform even if it isn't windows. They get a piece of every .NET pie, no matter who cooks it. The Dot GNU and Mono project people haven't caught on yet to the danger of the ECMA documents. I have emailed the FSF and told them about this and they won't listen to me.

I dispise Microsoft for what they have done and are doing to the software and computer marketplace all over the world. I am not sure what makes me sicker, this attack on Linux by Microsoft and Novell, or Oracle's outright theft of Red Hats Enterprise Linux. How is Red Hat going to sell their $1500/copy Enterprise Linux when Oracle is giving it away on their web site and selling support for $50/year. Larry came right out and said they took Red Hats product and removed the trademarks and recognizable graphics. I guess that is why Larry Ellison is successful and a survivor, but I think the whole thing stinks to high heaven.

Posted by: Douglas W. Goodall at November 7, 2006 12:54 AM

if you want to buy a new computer please support one the the linux vendors trying to do it.

www.system76.com

and there are tons others - it just takes a little googling - buying a mac doesn't help things -

there are plenty other distos out there like mandriva, ubuntu, fedora, xandros, linspire that could well use your support and don't come with a microsoft tax like novell's suse.

novell made a huge blunder - I just hope they are around to realize it.

Posted by: jsusanka at November 9, 2006 06:46 AM

Time for the anti-trust boys to be having another long look at M$. If these tactics aren't outright anti-competitive, I don't know what is.

Posted by: wvhillbilly at November 17, 2006 03:58 PM

I am an IP (read "patent") attorney specializing in small entity patenting
(read "individual inventors"). The USPTO is working hard to stop the tactics
of companies/entities such as Microsoft; please make your congresspeople
know how important it is to support that effort!

Posted by: Marion E. "Gene" Cavanaugh at April 14, 2007 07:56 PM

There is an eery connection between the unrational Microsoft monopoly, the general dumbing down of the engineers who accept it, and the Occupation of Iraq and Executive Order 13303 where in 2003 President George W. Bush signed into law that all Iraqi petroleum, oil, and any related interests are now US Property, according to Executive Order 13303. Makes me to think of how American doctors, who are very busy, accept the cost layers of HMO management, health "insurance" companies, and exploitation of tort law and resulting required "malpractice insurance." In a phrase, what you have is corporate anarchy.

Posted by: Willquam Jacobs at May 13, 2007 04:55 PM

Microsoft is running scared. The monopoly that protected their software and granted them their power for so long is cracking. Without the powers of life and death over their distributors and the software companies they allow to work with their OS, they have nothing.

Linux is more versatile, but more difficult to use, OSX is reputedly easier, but needs different hardware.
These barriers are melting with the new Apples running Windows. People have a choice of Windows or OSX on one computer, which one will they choose for everyday stuff? Linux may be difficult for the average non computer literate user, but with Live CDs and Linux getting easier to use with each release of every distro, the usability gap is shrinking too. If you have any MS stock, sell!

Posted by: John Bailey at May 15, 2007 05:27 AM

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