The Microsoft Giveaway: Less Than Meets the Eye

"Microsoft Gets On the Next Billion Bandwagon" is the headline

– but is this announcement

something to get excited about, or is it a half-assed attempt by Microsoft to

prevent itself from sliding into irrelevance in the developing world?

First, it must be said that Bill Gates individually has a

genuine commitment to global poverty reduction, which is entirely selfless and

admirable. It is also quite right and proper that his commmitment to the developing

world is expressed through his personal foundation, rather than through the

company he founded. Microsoft’s purpose is to make money for its shareholders;

development activities belong to the Gates Foundation.

Here’s what Orlando Ayala, Microsoft’s point man on this project, told Reuters:

"This is not a philanthropic effort, this is a business." He’s quite

right about that. Because if it was a philanthropic effort, it would look very,

very different:

  • The software would be free, rather than costing $3. What’s the point of

    the nominal price? It does nothing for Microsoft’s bottom line, and at the

    margin discourages people from using Windows rather than open-source software,

    which is free.

  • In fact, the software would be open-source, rather than buggy old

    Windows software which is not well supported, which has whopping great security

    holes, and which won’t improve over time.

  • And actually the attempt to use "information communications technology"

    to help the world’s poorest, in the words

    of Asian Development Bank vice president Larry Greenwood, would concentrate

    not on computers but rather on phones.

With any luck, all of these things will happen. Which would be good for the

base of the pyramid, less good for Microsoft.

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