CHINA gives Microsoft the "heave-ho" in favor of Linux

[CMonster]

An interesting article:

Quote:

China dumps Microsoft for local software firms

* Reasons:High prices quoted by the US giant
* Potential 'backdoor' security flaw

BEIJING - China dumped software giant Microsoft in favour of Chinese firms for a multi-billion-dollar supply contract awarded by the Beijing government recently.

This was because of the high prices quoted by Microsoft and potential security problems.


Microsoft's setback is also a sign of the Chinese government's support for local technology companies and an ominous development for foreign multinationals, said a report by US business consultancy firm Gartner.

The deal, announced on Dec 28, gave six indigenous software companies - including Red Flag and Kingsoft - the exclusive right to supply the Linux operating system, office automation and anti-virus software for government computers.

This made the US firm the only one of the seven competitors to be snubbed by Beijing.

Had the software giant won the bid, it would have earned at least US$20 billion (S$37 billion) over the next five years, Hongkong's Ming Pao Daily News reported yesterday.

The figure would have included prices quoted for personal computers, the WindowsXP operating system, and the OfficeXP software, it added.

Microsoft, which had earlier won a similar contract from the Shanghai municipal government, proposed steeper prices to Beijing because it is the seat of the government, the report claimed.

A report by the Chinese Academy of Sciences pointed out that if all government organisations adopted Microsoft's products, the government would have to shell out US$21.7 billion over the next five years.

But if homegrown Linux systems and software were used, the total cost would wither down to just US$1.96 billion.

More importantly, the report warned that Microsoft's operating system features a 'back-door' security flaw which rendered the system vulnerable to hackers.

This reportedly aroused the concern of the State Council, or China's Cabinet, and contributed to Microsoft's failed bid.

Gartner said in an analysis that the software giant's experience showed the challenges that foreign firms had to contend with when doing business in China.

They include unique deal-negotiation processes and the forging of long-term good relations with 'key parties', including the Chinese government.

China is clearly determined to nurture local companies at the same time that it keeps its promise to the World Trade Organisation to safeguard intellectual property rights, said the Gartner report.

The Red Flag Linux system endorsed by the Beijing government, for example, was developed with the support of the state-run Chinese Academy of Sciences.

Last week, Minister of Personnel Zhang Xuezhong urged local governments to provide better services so that professionals returning from overseas could establish and run high-tech parks inside China.

As the number of job opportunities decreases in some developed countries due to the sluggish world economy, 'China ought to seize the opportunity to encourage more overseas Chinese with genuine ability and learning to come back and run high-tech enterprises', the minister said.

http://straitstimes.asia1.com.sg/asi...,95289,00.html

[vass0922]

While I think its great that the gov't chose to use Linux, it would of been nice having that foreign money coming into the US.

Ya gotta wonder if they develop something good for Linux if they will allow it to come out to the "outside world" so to speak. It is a communist gov't after all.

I think it would of been a good sign if China had chosen to use MS solely for the fact that they're showing they're willing to start importing products (even if it is MS )

[Atomic Rooster]

Hey vass0922 -
You seem to forget that China has been importing products and information from the US for quite a while now. Such as highley classified nuclear weapons technology from the Slick Willy (Clinton) administration and ballistic missile technology (enabling them to accurately deliver said nuclear weapons) from Loral. Also thanks to Clinton.

[storm2k]

*sigh* it's any excuse to bash microsoft these days isn't it?

[SpookyEddy]

the linux community potentially just got a whole lot bigger

Quote:

*sigh* it's any excuse to bash microsoft these days isn't it?

I think its because it is an oppertunity for linux to get a boost not because I think MS sucks

Regards

Eddy

[FreakyOCR]

Don't forget, 70% (approx) of China's companies were using pirated Microsoft Software.... including the government... Now that they are being forced to activate it they can't use the pirated stuff anymore... and have to go loooking for alternatives...

[prttybean]

I also see it as a boost not bashing. We should not take peoples opinions of operating systems so personally.

[newbie~wan]

I think this is a display of "free market" at its best. Companies compete. The one with the best total value wins. Plain and simple. If MS decides to be the top value, then great. But right now, they aren't the best value.

Hmmmm. Value. That really is a difficult word to talk about in the discussion of any monopolist. Value is usually defined as the price someone is willing to pay for something. But since a monopolist basically forces someone to buy a product, it takes on all new meaning. Any economics people here who can elaborate?

[FreakyOCR]

That's kinda sicks what M$ did though, raising the prices because they have more money... sick sick sick...

[storm2k]

it's not sick. it's buisness. buisnesses have done it for years and they will continue to do it. all that matters in the end is the almight dollar.