How Microsoft Makes its Money

Good old fashioned extortion. In Capitalism, marketing is the heart of the source of making money. And when you have crap products, you have to force them on people.

But with Windows, M$ learned that forcing stuff on people is the only way they can count on making money. Nothing at M$ is significantly profitable other than the monopolies....

LinuxWorld: Now the reason that you left Novell has to do with Microsoft and Novell setting up a deal to in effect pay Microsoft a patent royalty on copies of Linux sold.

Allison: That’s right. I mean essentially, it’s a patent cross license. They don’t call it that. They call it a covenant not to sue with customers. But when you boil it down, and you look at it really closely, it is a patent cross license. And section seven of the GPL specifically states that you can’t cut yourself a special patent cross license deal. Essentially it’s one of those situations where everyone has to hang together not separately, as it were. So, in other words, you can’t cut yourself special deals. And as I said, I wanted to like the deal. I had no objections. People were claiming, "oh, we just hate Microsoft." And this is not true. I actually had no objections whatsoever to any of the parts of the deal other than this one. But this one just killed it for me -- totally and completely I’m afraid.

LinuxWorld: Other parts of the deal -- was there anything in there that was actually relevant to improving interoperability between --?

Allison: No, I’m sorry. I know what you’re going to ask. I mean that part I found amusing rather than anything else because the whole point of it was saying that, oh, we’re going to improve interoperability. But if you look at it closely, I think it covers some very specific federated directory things, which essentially very few people in the world actually care about.

What people really want is a second source Active Directory replacement. Let’s just say Novell was doing interesting work. That’s what Samba 4 is about, and they’re always doing a lot of interesting work there. But people who think that Microsoft will now give the information that is needed in order to do that to Novell just because of this deal are delusional. What you have to think about is that essentially Microsoft has been fighting tooth and nail not to give away any of this information to free software projects. So, they may think that just because they signed some patent cross licensing deal with Novell -- even though Microsoft really, really wanted the patent cross licensing deal, just because they signed that, do you think they’re going to give away stuff that they essentially have fought absolutely and completely against the EU and paid billions of dollars in fines to avoid. So, no, that’s not going to happen.

LinuxWorld: One of the persistent rumors that’s going around is that certain large IT customers have already been paying Microsoft for patent licensing to cover their use of Linux, Samba and other free software projects. And the Novell deal -- isn’t it just taking that and doing the same kind of thing wholesale?

Allison: Yes, that’s true, actually. I mean I have had people come up to me and essentially off the record admit that they had been threatened by Microsoft and had got patent cross license and had essentially taken out a license for Microsoft patents on the free software that they were using, which they then cannot redistribute. I think that would be the restriction. I would have to look quite carefully. So, essentially that’s not allowed. But they’re not telling anyone about it. They’re completely doing it off the record.

The problem with the Novell deal is -- Novell gave Microsoft what Microsoft dearly wanted, which is a public admission that they think that Linux violates the Microsoft patent. So, that’s the difference between this and the sort of off-the-record quiet deals. This one is public. This one is Novell admitting, "yes, we think that Linux violates Microsoft patents." Now, of course, Novell has come out and said, "no, that’s not what we said at all. We don’t think that." To which, of course, Microsoft publicly humiliated them and said, "oh, yes, that’s really what you were saying." It’s kind of funny. They couldn’t even wait until the press conference was over to start threatening users with a Linux system.

LinuxWorld: Watching Novell management being subjected to this was like watching a child eating a bug for money. It’s embarrassing. Allison: It is humiliating. I was horrified to say. It was humiliating. Yes. It really is like, "Go on. Eat a bug. Go on. Go on. Here’s some money. Eat a bug." Yes, sad but true.

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