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Wednesday, March 30, 2005

Will Brazil start the downfall of Microsoft??

The story that almost everyone knows is the story of David and Goliath, everyone knows how little David defeated the mighty Goliath. We might be seeing the start of another story similar to it starting in Brazil. According to the New York Times, Brazil is starting a program that will try to offer computers with only free software, including the operating system, handpicked by the government instead of giving consumers the option of paying more for, say, a basic edition of Microsoft Windows. The projects objective is to allow almost all Brazilians to afford to own a computer. The Government has also instructed government ministries and state-run companies to gradually switch from costly operating systems made by Microsoft and others to free operating systems, like Linux. The President says that this will save the government a lot of money. What will happen if this program works in Brazil? Will it be the start of a downfall for Microsoft?
Many countries are putting up a fight with the Microsoft monopoly, but no country has taken such drastic measure as Brazil. I believe that if this works we will see a drastic change in how governments will spend their taxpayer’s money when looking for operating systems and other software. I find it rather amusing that a so called developing country is the one that makes the first move to cut legs from under the Microsoft Monopoly.
Microsoft has been able to fight of every attack that a government and government unions have made on them. But finally we might witness an attack that Microsoft won’t be able to fight of. What might and hopefully will happen is that other countries will follow in Brazils footsteps, and what we might see is a fall in the price of Microsoft products.

8 Comments:

  • At 4:13 PM, Mighty2000 said…

    I agree that if they are able to implement this new plan to provide computers with free software and operating systems to consumers that Microsoft would experience a tremendous decrease in their prices. I understand that Linux wants to be able to make it to where most Brazilians can afford a computer and software. There has to be some other way that they can allow this to happen without causing potential harm or even total loss to Microsoft. This plan would also save the government money because they would not have to pay for the operating systems. But if they are not having to pay for the systems then what will they do with the money being paid by the taxpayers? Everything that is free is not always necessarily good for you. The service and the quality of the software and operating systems offered by Linux may not live up to the Microsoft name. Maybe Linux and Microsoft could join forces and work together to combat the problem.

     
  • At 11:16 AM, JCD said…

    I have to disagree with the idea of a government deciding for its citizens what brand of a good they are to buy. According to your article, computer software is "handpicked by the government instead of giving consumers the option to pay more for, say, a basic edition of Microsoft Windows."

    If the Brazilian government wants to switch their operating systems to Linux, then that is certainly their choice to do so. But it is absurd for them to think that by making that choice for every consumer will "allow almost all Brazilians to afford to own a computer."

    People buy Microsoft products because they like and want to buy Microsoft products. If you do not like Microsoft products then try switching to Mac, or Linux, or any of the several other computer and software companies available on the market. There is no such thing as the compatibility dilemma anymore—so there isn’t any excuse for paying those high prices if you don't want to. If Microsoft was a monopoly then you would not have any choices within the computer software market.

    I buy Microsoft products because I like their software. A person who uses Mac might disagree with my choice, but they are free to make that decision. A company is not a monopoly just because you like their goods but think their prices are too high.

    As Adam Smith so brilliantly proclaimed in The Wealth of Nations, "Whatever interferes with the market does so at the expense of the true wealth of the nation."

     
  • At 12:02 AM, Stalin said…

    I never said that the goverment was forcing anyone to buy cheap computers instead of expensive one´s with microsoft software. the only thing they are doing is giving the poorer part of the nation a chance of buying computers at a reasnable price. What you are realy saying is that people should not have oppurtunity to by cheaper computers. Just to let you know many computer (nerds) experts choose Linux over Microsoft operating systems.
    Another issue is that do you really disagree with the decision that the President wants to cut down on goverment spending by going the cheaper way, whats economically wrong with that decision? I will never tell you to stop buying microsoft products, because I agree with you that I like the Micrsoft Windows operating. Youn qouted Adam Smith, I think beside your qoute he would also agree to that a Monopoly is not good for the common citizen!!! And Microsoft is nothing but a Monopoly. Charging company´s and ordinary people outrages amounts of money for software that is not even fully completed, like they did with Windows XP. It took them just over a year to make the XP system safe for companies. Computer analysts called the XP an open window for computer hackers over the first year after it´s release. I leave you with this, would you be as hard worded and disagree with the idea if you could buy the same Microsoft software for lets say 25% less because of the Brazilian decision. Competition is nothing but good for the market!!!!

     
  • At 2:32 PM, JCD said…

    I agree that competition is always good for the market. That is why after reading your article I believe that the manner in which the Brazilian government is approaching this issue is ultimately anti-competitive. Here is a quote from your original post that leads me to this conclusion.

    “According to the New York Times, Brazil is starting a program that will try to offer computers with only free software, including the operating system, handpicked by the government instead of giving consumers the option of paying more for, say, a basic edition of Microsoft Windows.”

    What if a Brazilian consumer wanted to buy Microsoft products? Would they only be allowed to buy what the Brazilian government “handpicked” for them? This is the perspective from which I am approaching this issue.

    I also do not consider Microsoft a monopoly. The reason for this is because Microsoft operating systems is not the only means available to operate a computer. There might not be a product available that is identical to Microsoft’s, but there are several other similar products which a consumer may choose to purchase. A monopoly is a situation where a firm exclusively controls/owns 100 percent of the market-share and there are barriers to entry within that particular market.

    This is just my opinion. It’s just merely a different perspective regarding government intervention with the market.

     
  • At 8:28 PM, Stalin said…

    I´d like to start of by saying, yes I did say that “According to the New York Times, Brazil is starting a program that will try to offer computers with only free software" But I did not say that they were only going to offer computers with free software. So in other words,People who want to buy computers with Microsoft products will still be able to buy them if they want. They are not setting any restrictions on that, so you probably misunderstood me. If not please explain what you think is wrong by offering poorer people computers at lower price then the ones with expensive Microsoft Software. And at the same time give them the oppurtunity to be ass well equiped with computer knowledge as the people higher on the social ladder. Don´t you think it´s equaly unfair to the producers of free software that every computer sold has Microsoft software???

     
  • At 8:34 PM, Stalin said…

    Sorry I have to add this. Do you really think that there are no barriers for the producers of other operating software. Think about it. When you buy a computer does the salesman ask you: Dear JCD, what kind of operating software do you want, Linux or Microsoft?
    In the many years I have been using and buying computers I have never been asked that question. Equal oppurtunity??? I dont think so!!!!

     
  • At 6:03 PM, daisy said…

    I think we will just have to wait and see what happens and how many problems Brazil runs into interfacing with other systems. Some time you get what you pay for.

     
  • At 8:31 PM, Monty said…

    I read in a different article not to long ago, after I read this article, that Microsoft were going to introduce a more simple and less expensive version of windows. If this is Microsofts responce to the Brazil Governments plans of changing there whole systems to a free software than this has obviously shaken Microsoft a little bit. And that is a good thing for consumers.

     

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