IP: interesting query -- Re: Microsoft proposed settlement

[David Farber <dave () farber net>]

> From: "Steve Wolfe" <sdw () codon com>
> To: <farber () cis upenn edu>
>
>
> > >It's hard to argue against helping low-income kids in underfunded
> > >schools, but this seems a bit self-serving.  Sure, the schools will get
> > >equipment and software, Microsoft Software.  And they will train kids
> > >to use Microsoft Software, and later, when it comes time to be in the
> > >job market, there will be a new workforce trained to use Microsoft
> > >Software with a mindeset that equates computer to Microsoft.
>
>   What strikes me as even more self-serving is the fact that Microsoft
> does not appear to have any obligation to upgrade the computers in a few
> years when they declare current operating systems as "unsupported".  So,
> in three, five, maybe seven years, those schools will be forced to pay a
> LOT of money to upgrade.  So, let's see how this works:
>
>   Microsoft gives away software that they deem to be worth what, a billion
> dollars?  Actual cost to them would be a few hundred thousand dollars to
> stamp out the CD's - assuming they don't just give one CD to each school,
> and a stack of licenses.  Over the next decade the schools, through
> upgrades, will likely pay around a half of a billion dollars back to
> Microsoft.
>
>    So, for a few hundred grand now, they make $500 million over a decade.
> So, I'm a little unclear, how exactly does this hurt Microsoft?
>
> steve


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