Why Microsoft is winning

I’m confident that Microsoft is looking at these developments and is trying to come up with a solution. But it is not an easy to solve problem. I think there are two options:

• To do nothing about software piracy in those countries. At least users there will then be able to buy Windows XP Pro for $5 and Microsoft’s installed base and marketshare will keep growing, even though they’re not making a lot of money from it. But Pedro will learn to use Windows and he will recommend it to friends and family, and when he starts developing software it will be on Windows. This will have other long term advantages for Microsoft. When the economies in those countries will finally enable people there to afford a copy of Windows and Office, they will also have grown used to it, Pedro and his friends will have created a lot of software for the local (and even international!) market requiring Windows, and it will be more likely that they are going to finally pay for their copy of Windows.

 

• Just like how a programmer in those countries gets paid around $400 a month compared to $3000 a month in more developed countries for the same amount and quality of work, similarly a copy of Windows XP Professional should cost a lot less in those countries. Microsoft should just sell Windows XP Professional for $30 in those countries. However, they will have to make a version of Windows XP Professional that will only be useful in those countries. One simple way of doing this is releasing it in a specific language for that country. People in the USA for example would not be able to use that version of Windows XP Professional because of the different language. But if they would want to make absolutely sure it would not be possible to use the cheap version in another country where people should be paying full price, then they could introduce a system similar to DVD region codes. A copy of Windows XP Professional, compiled for a specific region, would only be able to be installed in that specific region. Mainboard manufacturers would probably have to build a feature onto their mainboards, similar to DVD Drives, where you can set the region, or, hardcode their products for a specific region. Computers sold in for example Brazil would contain a mainboard designed specifically for Brazil, and as a result only the version of Windows XP Professional for Brazil would be able to install on it. In the USA, computer manufacturers would build systems with mainboards containing the region code for the USA, and only the version of Windows XP Professional compiled for that region would be able to get installed on those systems, which means that people in the USA would not be able to install the cheaper version specifically for Brazil in the USA. And of course mainboard manufacturers like Asus could also release mainboards where you could change the regional settings for a maximum of 5 times similar to DVD Drives, giving their products and the user some flexibility. And apart from the languages, Microsoft could make versions of Windows XP more specific to a region by just limiting the regions you can select in the regional settings in Control Panel.

 

As I have so far illustrated, there are a lot of things Microsoft does an excellent job at, even if sometimes they make a few mistakes. The great thing about Microsoft is that they listen, and they are constantly looking at how they can improve. If they make a mistake, instead of being arrogant about it, they will gladly admit it and work harder to solve the problem and prevent it from happening again. Like Albert Einstein once said: “Anyone who has never made a mistake has never tried anything new.” Making mistakes is ok, as long as you learn from them. In addition they have a clear vision of where they want to go, and their holistic approach in getting there is unmatched in the industry. This is my experience with Microsoft. And this is why, in my opinion, they are winning.

Thank you for reading.