Will Microsoft's Katrina Goodwill Go Bad?
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Sometimes generosity is more and less than what it appears to be. Strings are attached. |
Yesterday, I resisted blogging about Microsoft's licensee freebee for small businesses affected by Hurricanes Katrina or Rita because there isn't enough good to say about the program. "How can anyone speak badly about goodwill?" I asked myself. But out of respect for those affected by the natural disasters—even two years later—something needs to be said.
Quick recap: Microsoft will give one year of free software licensing to hurricane ravaged businesses with fewer than 200 employees. The businesses had to be in operation that date of either hurricane's landfall in August and September 2005. Microsoft will deliver the benefit in conjunction with the LSBDC (Louisiana Small Business Development Center).
My fundamental problem with the program: It's more public relations than Katrina or Rita donations.
Too Little Too Late
This program comes two years after the natural disasters. Microsoft did contribute, in 2005 and earlier this year in ways that seemed more beneficial to locals. This new program stinks of PR propaganda and hidden business objectives, the latter to be explained in the next couple of paragraphs.
Strings Attached
To get the one year of free licensing, small businesses must make a three-year commitment to subscribe to Microsoft's Open Value volume-licensing program. Small businesses generally don't purchase software through volume licensing, and Open Value has a rocky record wooing small business subscribers. One way to look at this: Microsoft is using the one-year license giveaway to increase Open Value adoption among small businesses ravaged by the hurricanes. That's goodwill?
Questioning Who Benefits
Still, there is a real benefit to the local economy but just not the one identified by Microsoft. The press release focuses on small businesses seeking hurricane relief. But the real local benefit, assuming I correctly understand the program from the PR, would go to businesses selling the software licenses.
In 1986, I took a sociology class taught by a professor who had just moved the Disaster Research Center from Ohio State University to University of Delaware. He warned that following major disasters, sending food and supplies often causes more harm than good. He recommended sending money, which could be used to procure needed supplies through local channels. Influx of outside goods, even well intended, typically disrupts the local economy, potentially slowing down local business recovery.
From that perspective, Microsoft's—in company parlance—"license relief" program would appear to have negative economic impact. However, small businesses would purchase Open Value and, according to the PR, "submit first year invoice from software reseller to LSBDC (Microsoft pays for the first year upon verification of proof of qualifying purchase)." So, the money would flow through the local economy, and that would be beneficial.
What's unclear—and this goes back to strings attached—is whether qualifying businesses must pay upfront and be reimbursed or whether they would be obligated to take Software Assurance with the Open Value license. SA would add significant cost to the Open Value license and, therefore, diminish economic benefits to the businesses seeking aid.
The first benefit really goes to Microsoft and its reseller partners rather than to the larger group of small businesses seeking aid. What kind of hurricane relief is that?
Comments (21)
Joe, you're getting warmer! Here's a clue- VCSY
Posted by I-Man | August 28, 2007 9:45 AM
"How can anyone speak badly about goodwill?" I asked myself.
You're revealing your MO for coming up with new posts, Joe: How can I turn an otherwise positive MS story into a negative?
Posted by Paul | August 28, 2007 10:46 AM
Paul, Joe already knows there's a motive. Just keep an eye on Microsofts shareprice. This all goes back years, well before Gates made his exit, very soon the market will catch on. imo
Posted by I-Man | August 28, 2007 11:33 AM
Criticizing a goodwill step???? What kind of article is this? After reading this post ... I sincerely wish you were in New Orleans at the time of Katrina and so won't be able to write this post !!!
Readers, if you are looking for what happening at MS, some good research article and excited about it....UNSUBSCRIBE !!!
This is more of - A single person who hates MS keep CRYing everytime with illogical posts!!!
Posted by DD | August 28, 2007 11:51 AM
Just hit bottom... and then kept right on digging.
Posted by Max | August 28, 2007 12:07 PM
The clue: disinterested :unaffected by self-interest
disinterested: can only mean "having no stake in an outcome,"
The fundamental part of any act that is either charitable or helpful is disinterest. When it is contaminated with any desire for profit, at both long or short term, it stops being pure to become business. That's why that Ms until today has not done a good, pure deed. Simply business, with more or less profit. Problem is that they, in their hypocrisy, want to make us believe otherwise. And obviously, when people or countries find out about Ms' second intentions, they feel insulted, reacting no longer with indifference, but with irritation.
Example:
Microsoft Launches Educational PC In India
While far from cheap by Indian — or even U.S. — standards, the computer will include Microsoft’s Windows Vista Basic version, the MS Office suite and educational programs.
The software giant could also reduce prices for its computer. “We don't see any gain in the short term. Our perspective is long term,” Venkatesan said.
The clue: any gain in the short term
www.forbes.com/markets/2007/06/28/India-microsoft-pc-markets-equity-cx_jc_0628markets5.html
Microsoft to Boost Charity in India
“Microsoft Corp. will distribute free software to nonprofit groups to boost charity in India, a company official said Monday.”
“Microsoft sees BiG Tech as another opportunity to push its India strategy that has often tied business moves with philanthropy.”
The clue:business
http://www.forbes.com/feeds/ap/2007/08/27/ap4056951.html
Posted by Marco | August 28, 2007 12:13 PM
So Joe you made a huge donation? You might have even run down there to help out. With all that college knowledge I bet you had the perfect plan to solve the problem too. Before pointing the finger that way let us know where you stand on what you did to help out before criticizing someone who is making an attempt. You talk about them not making the sacrifice, what has changed in your life because of the sacrifices you made to help those out in need. I just want to know it sounds one sided.
BTW have you seen the requirement to get a disaster recovery loan from the government, you want to talk about strings attached. I think you should go into politics with all this FUD knowledge you have, you can scare more people in politics than technology. Throwing your weight around in that arena might have more of an impact.
Posted by Anonymous | August 28, 2007 12:15 PM
Then: Doing business is bad? No, it is our way of life (until we find the matter duplicator)
Then: What is wrong with MS? when it wants us to believe something that is not-when it is a hypocrite.
Posted by Marco | August 28, 2007 12:40 PM
To Marco:
Have you noticed the current strategy of someone, or some group, has changed? It seems that the one, or group, is now targeting Joe Willcox as a Apple fanboy, and always on the attack against Joe personally.
They, or the one, would like nothing better, than to not discuss the issues, but to change the subject to something that does not discuss the shortcomings of Micro$oft.
Posted by Chips | August 28, 2007 12:57 PM
Yes.
Ah, btw, was a honor to be confused with you.
Posted by Marco | August 28, 2007 1:00 PM
How about a good word for this Joe....
From Microsoft's site:
Microsoft and its employees committed more than $11 million in cash contributions and technology solutions to Hurricane Katrina relief efforts. Microsoft made a corporate donation of more than $1 million to Hurricane Katrina relief efforts—including $500,000 to the American Red Cross, $350,000 to the Governor’s Funds in Louisiana, Mississippi, Texas, and Alabama, and $200,000 to America’s Second Harvest—and another $1 million for recovery and rebuilding. Our employees raised more than $1.7 million, and Microsoft matched those contributions. Microsoft has committed another $5 million in software donations, technology solutions, and services to the relief efforts.
Posted by evan | August 28, 2007 2:16 PM
"Our employees raised more than $1.7 million, and Microsoft matched those contributions"
But those disinterested acts deserve recognition.
Posted by Marco | August 28, 2007 2:25 PM
Quote; "Microsoft made a corporate donation of more than $1 million to Hurricane Katrina relief efforts"
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I guess that is great from a company that is on tract to gross about 100 billion dollars this year and keep about 80% of it as profits. Or is it just very cheap PR?
Posted by chips | August 28, 2007 2:36 PM
Chips,let's see if you can actually read the numbers more carefully...
Ok, maybe the paragraph was not obvious enough for a determined Microsoft foe, but how about this from digg.com
With its latest donation, the company will have donated over $55 million as part of its Unlimited Potential charity program....
With its latest donation, the company will have donated over $55 million as part of its Unlimited Potential charity program.
Posted by evan | August 28, 2007 3:34 PM
Quote from Evan post;
"Microsoft made a corporate donation of more than $1 million to Hurricane Katrina relief efforts—including $500,000 to the American Red Cross, $350,000 to the Governor’s Funds in Louisiana, Mississippi, Texas, and Alabama, and $200,000 to America’s Second Harvest—and another $1 million for recovery and rebuilding."
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He is right, thats 2 million, not 1 million. the rest of the denotions from M$ are in the form of "software." Which costs MS nothing nothing really, just print a few more cd's.
Posted by chips | August 28, 2007 7:22 PM
"Which costs MS nothing nothing really, just print a few more cd's."
Since when was charity measured by how much it COST the giver to give? The real measure is the BENEFIT to the RECEIVER.
God *#&^@# you guys are some jaded hate-filled people. Get a life fools!
Posted by uhura | August 29, 2007 2:06 AM
Looks like the Micro$oft shills are out in full force to defend their favorite company's not-so-disinterested PR efforts. get a life, guys. We all know that M$ has only two motives: profit and control.
The two most dangereous words in the English language: "My friend..." You know you're in for future trouble when Micro$oft approaches you wih a deal. They have a long history of stabbing partners and customers in the back.
Posted by Maddog | August 29, 2007 4:17 AM
First, I live in New Orleans - born and raised.
Second, for those of you who don't, we do appreciate what M$ has done. The honest truth though is the M$ response to help was slow in coming.
We had pleny of clients who had Office installed on their OEM PCs ordered from Dell - that got flooded. You know what we got when we called...the license is only for that CPU, so you need to buy another...do you want Standard or Professional?
We were told and I quote a bigwig "we have issues with giving replacement CDs due to antitrust..."
As someone said above, a 50 cent CD is all we needed at the time to get some people taken care of.
The other thing is - the City is still a mess, because of smoke a mirrors as noted above - promises of money that never materialize. Only the big guys get the dollars, Halliburton, etc.
The true story is starting to emerge. If we can't execute a plan to take care of our own states, how can we win a war? All of the things Iraq is supposedly getting, hospitals, power grids, etc - we need those things too.
To all those who have helped - Thanks!
Posted by New Orleanian | August 29, 2007 8:07 AM
I agree with you, Joe. True charity is for the benefit of the recipient. "Charity" that has strings attached to benefit the giver, or that is exploited to the benefit of the giver, is "business," whether or not the recipient also benefits. There is nothing wrong with business, but it should never be confused with charity.
Posted by Special1st | August 29, 2007 4:20 PM
How much charity is it, to simply sit back and criticize those who give?
Posted by uhura | August 29, 2007 7:35 PM
First dozes is always free until you get addicted.
Posted by paul w | September 1, 2007 10:16 PM