Microsoft and Spain: Open Source Challenge
May 6, 2009
I saw an interesting write up in Open … called “The Shame in Spain” here. I don’t know much about Spain, so you may have a different view of how software sales work in that country. According to the Open … article, Microsoft has made significant progress in halting the use of open source software in that country. The Web log reported:
Jose Luis Rodriguez Zapatero’s government is finalizing a plan that would supply all children who attend state schools with personal computers with touch-screens so to “promote awareness within families of the usefulness of information and communication technologies and encourage their use.” Specifically, we’re talking about Microsoft technologies.
The Web log asserted:
This is really scandalous on so many levels. It’s clearly born of ignorance about what is really being offered – lock-in to Microsoft’s systems – in the naive belief that touch-screens are somehow the future, probably just because the iPhone has one. It is born of arrogance that the government knows better, and therefore needn’t consult with others that might have a view or – heaven forfend [sic] – knowledge on the subject. And it’s born of sheer stupidity, throwing away the huge lead that Spain had in this area, forcing local governments that had saved money by opting for GNU/Linux to waste money on an unnecessary and doubtless insecure solution from Microsoft, and as a result making the country dependent on a foreign supplier when it could have nurtured its own domestic software industry.
Assume this has some truth in these statements. When one thinks about enterprise search, Microsoft has a number of options to exercise as it works to build the uptake for the Fast Search ESP system:
First, Microsoft can offer a Windows 7 type of one year free to use trial. This could have the effect of putting other vendors on ice until users decide to license Fast ESP or seek a third party solution.
Second, Microsoft can bundle Fast ESP with SharePoint. I have heard there are 199 million licenses at this time with more coming on line each week. This tactic would have a significant impact on the big vendors like Google as well as the smaller Certified Partners who thrive because Microsoft allows SharePoint customers to use approved solutions.
Third, Microsoft can cut the cost of an enterprise system like Fast ESP. This tactic could spark an old fashioned price war. Only competitors with deep pockets and appetite for this type of marketing battle would be likely to survive. Today’s economic climate may make it difficult for smaller firms to get much-needed financing to stay alive.
I think the Spain case is an interesting one. As it unfolds, there may be some hints about Microsoft’s broader enterprise search strategy.
Stephen Arnold, May 6, 2009
Comments
2 Responses to “Microsoft and Spain: Open Source Challenge”
-
- Subscribe to Beyond Search
Feature archive
News archive
-
Thanks for pointing me to this interesting article Stephen. I personnally work with a few of the regional gov agencies (i.e. Comunidades Autonomicas) on entreprise search proyects and the two most broadly used technologies are Open Source (Lucene) and IDOL Server by Automomy. Microsoft has still a lot of terrain to gain in order to penetrate the ES local market. However, I see little impact in the deal that Microsoft has cut with Zapatero in order to give every student in public schools in Spain a laptop. Microsoft has probably given away all these laptops at very low cost (if not freely), what´s wrong with that? My opinion is that this deal will not affect the technological strategy of gov agencies, who work in a very disgregated manner. These agencies continue their investments in enterprise search technology, regardless of the new deal in education.
Stephen, we often read MS and other vendors marketing announcements of this type that make it to the wire but in practice have very light or zero impact.
Education, as all other government areas (but defense and exterior) are transferred to or distributed into the 17 Spanish regions named Autonomous Communities.
Finally, there is no basis for connecting this PR with Enterprise applications. Again, for any vendor attempting to reach Spain, the highly distributed nature of the market must be taken into consideration, state level agreements are week and consolidation may only occur dealing with each Autonomous Community as if it was one separated country.
@angelmaldonado