Microsoft Hands Down The 12 Tenets

Moses, meet Brad Smith. In the most spectacular and far-reaching declaration of numerated principles since the 10 commandments, Microsoft's top lawyer yesterday passed down to the gathered masses a set of decrees the company literally calls "Windows Principles: 12 Tenets to Promote Competition."
Our exclusive RCP camera caught this image of Smith delivering his message to the lucky peasants at the National Press Club.

The big news here seems to be that Microsoft will allow computer manufacturers to set Google (or Yahoo!, even) as a default search engine within Vista. That's big news given how much money Microsoft is pumping into MSN and Windows Live and the huge role Windows has obviously played over the years in killing off competitors' wares.
(Click for article from Reuters.)

But, just when you think Redmond might really be changing its often arrogant ways, check this out: Microsoft has bravely said that it will "not block access to any lawful Web site or impose any fee for reaching any non-Microsoft Web site or using any non-Microsoft Web service."

Well, thank you, Redmond! You mean we're going to have the freedom to download our own non-IE browsers and use them to look at whichever Web sites we want? Oh, Redmond really is being too gracious with this one. How will we Windows-using simpletons ever handle the responsibility?
(Click here for article from ars Technica.)

In fairness, there are some encouraging tenets, such as Microsoft declaring itself willing to support industry standards, provide APIs to other software developers and not engage in retaliatory practices against computer manufacturers that support non-Microsoft software. But most of what the 12 Tenets represent is Microsoft finally admitting that it will comply with its U.S. antitrust settlement (see this and this). On that front, Europe -- where the real antitrust battle is raging -- has been eerily quiet so far.
http://www.rcpmag.com/reports/article.aspx?editorialsid=167

Still, any commitment to openness, a reduction of predatory practices and support for industry standards from Microsoft is a good sign. So we shouldn't be too quick to bury the 12 Tenets, which do represent a rare admission from Microsoft that the company hasn't always been perfect in the past and might need to make some adjustments to better serve its customers and partners in the future. Microsoft, however, would do well to step down from Mount Sinai and stop pretending (with its trademark arrogance) that it has just, out of the goodness of its heart, ushered in some new era for Windows and the company as a whole. Also, let's wait and see how well Microsoft sticks to its own 12 Tenets. Actions, as always, speak louder than words.

What would you add to Microsoft's 12 Tenets? Do you have a list of your own for making Windows more open to competition? Is Microsoft really turning over a new leaf, or is this all just spin? Contact me at [email protected] with your thoughts.

It's Earnings Day In Redmond
And there will be a stock buyback...after a disappointing results announcement.
http://www.marketwatch.com/news/
(Microsoft's whole press release is here.)

Meanwhile, down in Northern California, the news is better at Google.

All of their Principles have Dollar Signs attached to Them
Amnesty International says that Microsoft, along with Yahoo! and Google, has colluded with the Chinese government on Internet censorship. And maybe they all have.
http://management.silicon.com/government/0,39024677,39160557,00.htm
But there's a knee-slapper of a quote from Amnesty in this one: "The willingness of Yahoo!, Microsoft and Google to override their principles amounts to a betrayal of trust in the face of the lucrative opportunities that the Chinese market offers them."

Override their principles? Sure, Google touts its "Don't be evil" tagline, but isn't the principle in business still to make money? Granted, it would be great if big corporations would buck the hard-line government in the world's most populous country (and one of the world's fastest-growing markets) and stand up for freedom on the Web, but don't hold your breath. With Western markets looking ever more saturated, executives constantly looking for greener sales pastures and investors demanding a return on their money, the only principles most companies follow have dollar signs attached to them. That might be morally uncomfortable, but that's the nature of business -- and dealing with (often also known as "giving in to") the government at absolutely every turn is, to my understanding, the essential to business in China. It is bitterly ironic, though, that the pursuit of capitalism might have led some of our corporate leaders to make decidedly undemocratic decisions. Complicated world, huh?

Do you do business in China? Do you think Microsoft and friends are in the wrong on this issue? Tell me at [email protected]

More on the Importance of Being Microsoft
We told you in our July issue that Microsoft is the world's biggest brand.
http://rcpmag.com/features/article.aspx?editorialsid=601

As our story said, it might be the biggest, but not necessarily the best loved. A recent Harris Interactive survey, for example, doesn't even include Microsoft in the top 10 of its best brands poll.
http://www.foxnews.com/story/0,2933,204195,00.html

Nevertheless, it's encouraging to see that our friends across the Atlantic still love Microsoft, despite some of the setbacks it's had lately.
http://tech.monstersandcritics.com/news/article_1182684.php/Microsoft_is_top_brand
And we're still betting that there aren't many companies more recognizable than the Redmond empire.

Coming next week: Real stories of software piracy. You can still get yours in: [email protected]

Posted by Lee Pender on July 20, 2006