[kwlug-disc] free MS software for 3 years

john at netdirect.ca john at netdirect.ca
Thu Sep 24 17:11:33 EDT 2009


kwlug-disc-bounces at kwlug.org wrote on 09/24/2009 04:08:15 PM:
> From: "L.D. Paniak" <ldpaniak at fourpisolutions.com>
> 
> Isn't temporarily selling something below cost to reduce competition
> against the law?

It's called dumping and it's illegal if you intend to drive your 
competitors out of business.

This is a law that seems to be used more on imports (I'm thinking as a US 
citizen.)

I wonder if the fact that this is limited to specific companies renders it 
moot.

Aside from that their argument would be that it matches the price of open 
source.
 
> Or maybe it's admission that the per unit cost to produce the software
> is essentially zero?

In other words the margin is high.
 
> Either way, it would fascinating to hear MS explain their pricing policy
> to the FTC in the US.

It would be nice if the US took a harder stance with Microsoft, like the 
EU.
 
> Clearly, some portion of Microsoft's business makes unreasonable
> profits.  They must have some way to subsidize the huge losses they
> incur in gaming, MS Live and other endeavours.

My understanding is that MS makes all of their money on Office 
suites/applications and PC operating systems. The other departments 
(hardware, server apps, MSN) make slim margins or lose money.

The last few financial reports show heavy reductions in profit from Office 
applications and Windows. Open source may be eating their lunch. I think 
some blame (reward) can be given to the fact that the PC market has 
stabilized. There isn't much need to upgrade systems or software.

John Van Ostrand
Net Direct Inc.
 
CTO, co-CEO
564 Weber St. N. Unit 12
map
 
Waterloo, ON N2L 5C6
 
john at netdirect.ca
Ph: 866-883-1172
ext.5102
Linux Solutions / IBM Hardware
Fx: 519-883-8533
 




More information about the kwlug-disc_kwlug.org mailing list