Lest we forget…

… what Steve Ballmer is really like.

And here is The Word of Ballmer:

“Optimism is a force multiplier. It reminds us all as leaders that while you want to be very realistic – you could never put on rose-coloured glasses and not see the situation where you are precisely – on the other hand, if leaders can’t see a path to success, and cannot be fundamentally optimistic, no matter what the odds, it is hard for an organisation as a whole.

“Whether our stock price has been flat for five years, despite the fact I think we perform well – optimism, optimism,” he chants, clicking his fingers.

“Am I realistic about what is going on and yet optimistic about our future, whether it is share price, innovation, competitive situations? When you are behind you have to say, ‘We can catch those guys’. When you are ahead you have to be able to say, ‘We can keep ahead of those guys’. And yet they both require a certain form of optimism, tempered with the right kind of reality.”

Schools warned off Microsoft deal

Wow! I never thought I would live to read this:

The UK computer agency Becta is advising schools not to sign licensing agreements with Microsoft because of alleged anti-competitive practices.

The government agency has complained to the Office of Fair Trading.

It says talks with Microsoft have not resolved “fundamental concerns” about academic licensing and about Office 2007 and the Vista operating system…

The Telco Soviets

Lovely WSJ column by Walt Mossberg…

Suppose you own a Dell computer, and you decide to replace it with a Sony. You don’t have to get the permission of your Internet service provider to do so, or even tell the provider about it. You can just pack up the old machine and set up the new one.

Now, suppose your new computer came with a particular Web browser or online music service, but you’d prefer a different one. You can just download and install the new software, and uninstall the old one. You can sign up for a new music service and cancel the old one. And, once again, you don’t need to even notify your Internet provider, let alone seek its permission.

Oh, and the developers of such computers, software and services can offer you their products directly, without going through the Internet provider, without getting the provider’s approval, and without giving the provider a penny. The Internet provider gets paid simply for its contribution to the mix: providing your Internet connection. But, for all practical purposes, it doesn’t control what is connected to the network, or carried over the network.

This is, he says “the way digital capitalism should work”, and he’s right. But there’s one area in digital technology where it doesn’t apply — the mobile phone industry.

A shortsighted and often just plain stupid federal government has allowed itself to be bullied and fooled by a handful of big wireless phone operators for decades now. And the result has been a mobile phone system that is the direct opposite of the PC model. It severely limits consumer choice, stifles innovation, crushes entrepreneurship, and has made the U.S. the laughingstock of the mobile-technology world, just as the cellphone is morphing into a powerful hand-held computer.

Whether you are a consumer, a hardware maker, a software developer or a provider of cool new services, it’s hard to make a move in the American cellphone world without the permission of the companies that own the pipes. While power in other technology sectors flows to consumers and nimble entrepreneurs, in the cellphone arena it remains squarely in the hands of the giant carriers.

The Soviet Ministry Model

That’s why I refer to the big cellphone carriers as the “Soviet ministries.”

It goes on, and gets even better. This is a great op-ed piece.

Microsoft bends the knee to the EU regulators

Well, well. Telegraph report:

Since the ruling [by the European Court of First Instance], Microsoft’s chief executive Steve Ballmer has been in almost daily contact with Neelie Kroes, the European commissioner for competition policy.

Following these intensive discussions, Microsoft has agreed to change the way it provides rivals with information that allows them to write programmes that mesh with Windows.

Microsoft will now make information available to open source developers, with licensing terms that allow every recipient of the resulting software to copy, modify and redistribute it in accordance with the open source business model.

In a statement today Ms Kroes said: “The Commission’s 2004 decision set a clear precedent against which Microsoft’s anti-competitive behaviour could be judged.

“Now that Microsoft has agreed to comply with the 2004 decision, the company can no longer use the market power derived from its 95pc share of the PC operating system market and 80pc profit margin to harm consumers by killing competition on any market it wishes.”

Microsoft has agreed to slash its requested royalties for a worldwide licence, including patents from 5.95pc to 0.4pc – less than 7pc of the royalty originally claimed.

The software group has also abandoned its demand for a royalty of 2.98pc of revenues from software developed using licensed information…

Later: This from GMSV:

Apparently, the key to reaching a resolution was to clear away all the lawyers and turn to personal diplomacy. Microsoft CEO Steve Ballmer and EU Competition Commissioner Neelie Kroes became fast phone friends with daily calls over the past three weeks, and the deal was sealed in person over dinner at a little restaurant in the Netherlands (Ballmer had the crow en croute). “I sincerely hope that we can just close this dark chapter,” Kroes said later. “I feel a bit sad because it took so long, it took so many years, and during those many years consumers suffered from the fact that Microsoft didn’t go along with what the Commission asked it to do.” Microsoft mumbled something about continuing “to work closely with the Commission and the industry to ensure a flourishing and competitive environment for information technology in Europe and around the world.” There remain some outstanding issues, including how much of that accumulated fine the EU will impose, and in case Redmond starts backsliding, Kroes said, “Microsoft should bear this in mind. The shop is still open, I can assure you … there are a couple of other cases still on our desk.”

The message is meant for more than Microsoft. The EU continues to show a willingness to jump in where U.S. regulators won’t, and that has to be a sobering thought for companies like Intel, which looks like it’s getting a pass from the FTC, but has until January to answer EU charges that it violated antitrust rules by selling its chips below cost to strategic customers, among other things.

That “crow en croute” crack is nice.

So, … XP stands for ‘extended presence’, right?

Well, well. Microsoft bows to pressure on XP

Customer demand has forced Microsoft to extend the shelf life of Windows XP by five months.

Microsoft was scheduled to stop selling the six-year-old operating system on 30 January 2008 to leave the field clear for Vista.

Now the date on which many sellers of XP will no longer be able to offer it has been lengthened to 30 June 2008.

Microsoft said the change was to help those customers that needed more time to make the switch to Vista.

Ho, ho!

Regulatory teeth

This may seem a strange image with which to illustrate a post on the Microsoft judgment, but bear with me. As my mother used to say when confiscating pocket-money for some misdemeanour, “it isn’t the money, it’s the principle”. I can’t imagine that even a $613 million fine will make much of a dent in a company that has a market cap of $300 billion and is sitting on nearly $50 billion in cash and marketable securities.

I can’t even get worked up about seeing Microsoft finally coming unstuck (though it couldn’t have happened to a nicer company), because in a way the caravan has moved on. The company’s monopoly hold on the PC desktop is still a reality, of course, but it’s a wasting asset in a networked world. The most interesting implication of the European court’s decision is what it might mean for other companies — Apple and Google, to name but two. Just as sharks are encouraged by the sight of blood, the sweeping legal success regulators have enjoyed in the Microsoft case may have whetted their appetite for more. Apple’s grip on the music-download market provides one obvious target (especially in view of the widespread European concern for ‘interoperability’). And Google’s stranglehold on “all the world’s information” will eventually put it squarely in the crosshairs of the European regulatory system. Stay tuned.

The text of the Court of First Instance judgment is here, btw.

More: I forgot to mention Intel as another possible target for Euro-regulators. And this week the European Commission is opening hearings on a complaint that the iTunes store violates competition rules by charging Britons more than other Europeans for downloads.

iPhone SIM unlock software put on ice

Hmmm… Engadget reports that:

UniquePhones (the team behind iPhoneUnlocking.com, who’ve claimed to have the second proper iPhone SIM unlock software hack) got a threatening call from AT&T’s legal team urging them to not release their software — or else. Now, we can understand why any smallish business wouldn’t exactly want lawyers repping AT&T (and Apple) breathing down their necks for a potentially market-shifting discovery — which is why the company is now officially holding the release of their SIM unlock solution indefinitely while they assess their legal position. Fair enough, but we still haven’t even had a chance to verify their solution does unlock iPhones.

However, the interesting (and possibly telling) bit comes up at the end of their release, where apparently UniquePhones is “evaluating what to eventually do with the software should they be legally denied the right to sell it.”

I mean, it’d be such a shame if it found its way onto the Net, now wouldn’t it…

Science and Nature cannot handle Word 2007 files

Before you submit that Nobel-winning article, it might be worth having a look at this from Rob Weir…

It appears that Science, the journal of the America Association for the Advancement of Science, itself the largest scientific society in the world, has updated its authoring guidelines to include advice for Office 2007 users. The news is not good.

“Because of changes Microsoft has made in its recent Word release that are incompatible with our internal workflow, which was built around previous versions of the software, Science cannot at present accept any files in the new .docx format produced through Microsoft Word 2007, either for initial submission or for revision. Users of this release of Word should convert these files to a format compatible with Word 2003 or Word for Macintosh 2004 (or, for initial submission, to a PDF file) before submitting to Science.”

Well, so much for 100% compatibility, eh? . . . More bad news:

“Users of Word 2007 should also be aware that equations created with the default equation editor included in Microsoft Word 2007 will be unacceptable in revision, even if the file is converted to a format compatible with earlier versions of Word; this is because conversion will render equations as graphics and prevent electronic printing of equations, and because the default equation editor packaged with Word 2007 — for reasons that, quite frankly, utterly baffle us — was not designed to be compatible with MathML. Regrettably, we will be forced to return any revised manuscript created with the Word 2007 default equation editor to authors for re-editing. To get around this, please use the Math Type equation editor or the equation editor included in previous versions of Microsoft Word.”

Nature appears to have the same problem…

Aw shucks. Microsoft is standing up for the little guys

This morning’s Observer column

Wearing his best public-spirited citizen look, Bradford Smith, Microsoft’s general counsel, told the New York Times that Google’s proposed acquisition would ‘combine the two largest distributors of online advertising’ and thus ‘substantially reduce competition in the advertising market on the web’. Between them, Citizen Smith continued, Google and Doubleclick deliver ‘over 80 per cent of the adverts delivered to website publishers, so their combination in a single company has big ramifications’.

Call me Panglossian, but this is encouraging news. One looks forward to General Counsel Smith advising his employer that its 92 per cent control of the market for operating systems also has ‘big ramifications’…

Dell and the value of crapware

This morning’s Observer column

Of late, however, Dell has hit a bad patch. Senior executives have been fired, opted to spend more time with their families or departed to take up promising new careers in the fast-food industry. Michael Dell, the company’s flamboyant founder, has returned to take command of the listing ship. And as part of his attempts to revitalise the company, Mr Dell and his team had a Big Idea: why not ask customers for their ideas about what should be done?

Thus was born IdeaStorm, Dell’s effort to harness the collective intelligence of its actual and potential customers. It was launched on 16 February and has turned out to be very popular. Hordes of people signed up to volunteer their ideas. And that, of course, is where the trouble started…