Linked by Thom Holwerda on Mon 13th Sep 2010 20:57 UTC
Microsoft Who said a public outcry - even if it's just on the internet - never helped anyone? Yesterday, we reported on The New York Times' findings that Microsoft lawyers were taking part in raids on opposition groups in Russia. Today, Microsoft has announced a number of steps to fix the situation - the most significant of which is a unilateral software license extended to all NGOs in Russia and several other countries.
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RE: and for paying customers....
by sukru on Tue 14th Sep 2010 00:24 UTC in reply to "and for paying customers...."
sukru
Member since:
2006-11-19

It's not cost per copy, it's the total cost and profit that matters for MS.

Say they program Windows for $1B in total (salaries, utilities, etc). They'll aim to gather say something like $2B all around the world to make a profit. Thus if they can get $300/copy in US and $30/copy in Russia, and the total adds up, it's OK for them.

The actual cost of plastic is of course a small $1 drop in the pond.

Reply Parent Score: 2

lemur2 Member since:
2007-02-17

It's not cost per copy, it's the total cost and profit that matters for MS. Say they program Windows for $1B in total (salaries, utilities, etc). They'll aim to gather say something like $2B all around the world to make a profit. Thus if they can get $300/copy in US and $30/copy in Russia, and the total adds up, it's OK for them. The actual cost of plastic is of course a small $1 drop in the pond.


For "donations" like this, the marginal cost to Microsoft is not $300/copy in US or even $30/copy in Russia, it is more like the $1/copy everywhere.

Not a bad investment by Microsoft in order to buy $390 million worth of PR cred.

Edited 2010-09-14 01:37 UTC

Reply Parent Score: 3

Carewolf Member since:
2005-09-08

I think you are overestimating the marginal cost at $1. If the affected parties are not aware of the license, then you have to assume they have either bought or pirated the software. So there is no additional cost to Microsoft. They are just renouncing the right the later sue the parties. Being NGOs that probably wouldn't bring in any money to Microsoft, and would probably affect Microsoft negatively if PR-value is considered. All in all, this is a free move. Only the office to advocate the new deal has any real cost associated to it.

Reply Parent Score: 2