HA a big fat HA! Microsoft has done it again.
In a move to settle their host of private suits connected with their anti-trust case, Microsoft has proposed to give away a whole bunch of their goods and services to schools.
Under the deal, Microsoft would provide software valued at approximately $900 million to schools where at least 70 percent of the students qualify for the federal free or reduced lunch programs, the representative for the law firm confirmed. Microsoft would also have to supply some 200,000 reconditioned PCs and laptops, the representative added. In addition, the software maker would be responsible for providing $90 million in teacher training and $38 million in technical support. An independent foundation would also be set up to ensure that objectives of the deal were met, with Microsoft shelling out another $250 million to set up the foundation, as well as seeking $200 million in matching funds.
Additionally, Microsoft would contribute another $160 million to help support a program that teaches students how to repair and service computers and networks.
This makes them sound so -- uh -- well -- generous and charitable, but in truth it's a very clever way to avoid being penalized and in fact turning the penalty into a reward and a PR compaign and make more inroads into the educational markets where there has been an ongoing battle for dominance. Several years ago I was involved in this very battle trying to convince a school to use Apple Macs because they require less maintenance, upkeep, tech support, IT, and are in general an more user and arts friendly machine.
While Microsoft's plan doesn't appear to compel schools to buy Windows-compatible computers, that's exactly what will happen. . If most of the software it plans to donate runs on Windows only, thie increases the likelihood that administrators will choose Windows-equipped PCs for their schools over Macintoshes or other computers. Also just how much control over how funds, systems and software would be distributed to schools will Microsoft have?
Of course, Apple has been one of the proposal's most outspoken critics. In recent briefs filed with the court, Apple has questioned Microsoft's stated value of its settlement and suggested that Microsoft put up a cash settlement that could then be disbursed through an independent foundation not under Microsoft's control.
Apple's Steve Jobs offered a new statement blasting Microsoft's valuation of its proposed billion dollar settlement, saying that the cost of software involved was worth more like $1 million than the $840 million that Microsoft claimed. Jobs' comment ties into one of several points touched on in a supplemental brief, which is now with Federal Judge J. Frederick Motz, who is presiding over the case. Jobs called the proposal "a massive subsidy for the adoption of Microsoft technology," saying that only five to six percent of the "value" contributed by Microsoft would be eligible to be used to acquire non-Microsoft technology.
Apple's solution is to require Microsoft to donate cash, not goods and services.
"The most efficient and effective way to accomplish this goal is by a cash-only donation from Microsoft to a completely independent foundation in an amount equal to the claimed value of the settlement," said Apple. If Microsoft isn't willing to give up the cash, said Apple, then the Court should figure out a way that "all competitors can compete on an equal basis."
"Fundamental reform of the proposed settlement is necessary to win public confidence and bring the benefits of advanced technology and innovation to America's poorest schools. Only a settlement structure that protects freedom of choice will serve this purpose."
"For the reasons set forth above and in Apple's initial objections, the Court should not grant preliminary approval to the proposed settlement. With the record of objections before this Court, Microsoft and the plaintiffs should submit a reformed settlement that protects the competition necessary to meet the needs and preferences of the schools," concluded Apple.
I think Steve Jobs is absolutely right. This would be an award rather than a penalty if Microsoft prevails with their version of judgment. Microsoft should put the cash up and allow the schools to choose. This is more in the free market competitive spirit.
December 19, 2001