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New York Times: Microsoft buys Yahoo to suffer tide of freeware or public domain software to drive

February 12, 2008

” new York Times ” network edition carried on Feburary 10 civil point out, it is almost before 1/4 century, “Information wants free ” the beginning that abracadabra forecasted a period, news, recreation and individual are communicated executed on Internet free. Now, appeared again new slogan: “Software wants free ” .

Or according to view of public figure of trade of science and technology, hope ” 0 dollars ” .

More and more consumer are enjoying free service, this is the new level that Internet develops: People can use all sorts of free application programs, wait to financial management tool from program of email, word processing, spreadsheet, game. These applied processes move in long-range, dimensions shares data center tremendously. User terms of payment does not need to pay cash, need to see ad only.

Although such service is already popular old, they gain ground quickly is Microsoft however it is important to put forward a when offer to buy Yahoo with 44.6 billion dollar but an impetus that did not let a person notice however. This is bought, will let Microsoft own the news with giant Yahoo, information, search and ad network, thereby more effectively develops competition with competitor Google. In addition, the software market that still can allow Microsoft to be a center in the Internet of low cost enhances competitive actual strength. The user cardinal number with huge Yahoo, can offer a change to the product is issued and collect fees for Microsoft the user of mode and foundation.

” haing Buddha commerce comments on ” former editor and ” tremendous change ” (the author Buddhist nun of The Big Switch) carat Si Carl (Nicholas Carr) expresses: “Microsoft is passed to number with 100 million plan the accredit software that the user sells installation go up in computer hard disk, get rich and generous profit. ” ” tremendous change ” elaborated high-tech industry Xiang Yun to calculate (the change of Cloud Computing) . He says: “The major thing that people place needs is on Internet, and these are can use freely. Early has a warning to say, traditional Microsoft software program is losing the market to command force. Traditional Microsoft software program is losing the market to command force..

But the analyst says, the battalion of Microsoft closes to was not allowed why to be affected up to now. Battalion received Microsoft last year for 51 billion dollar, arise for the most part among them from software. In addition, microsoft also expresses, this company business is prosperous, outstanding achievement of Microsoft Office of its flagship product achieves new record. Vice president of department of Microsoft Office product overcomes Reese Kabosaila (Chris Capossela) expresses: “Last year is us a outstanding achievement is best year, the meeting is better this year. ” at the same time, microsoft still is lowering the price. Last year, it begins to sell the software of student teacher edition of 120 dollars value to mainstream consumer, the price of similar before that product all the time prep above 300 dollars.

The profit generation with major Microsoft sells the software of the enterprise oneself, what differ with individual consumer is, the likelihood pays attention to industry consumer to belong to place data storage to own the data center of droit in him company more. Microsoft says, industry consumer the software that announce is willing to use them to be familiar with, ask these software have more function and better security. But, company business also is being come from the challenge that the Internet competitor of lower cost enhances increasingly, these competitors include the adversary Google of Microsoft. Zhou Si, the offensive of Google increases further. It rolled out Google Apps Team Edition, this is one includes to the software of tabulation of word processing, electron and calendar program is covered. Be not regular sale pattern as a kind, the lover of Google Docs can take Google Docs the office, what keep away from or perhaps can affect company management layer is decision-making. So far, layer of great majority business management buys the software of Microsoft.

The analyst says, while Gu Ge is providing these software freely to individual consumer, offer to the enterprise collect fees version software, what do not cross the price to compare Microsoft is low much. By this kind of change that Google causes, come from business market not only, and increasing also expression is on personal computer user. Personal computer user more and more expectation is worn the software that they use can free, and hope can undertake handle and be operatinged on Internet.

Los angeles of American California university is divided school (graph of · of Kevin of student of U.C.L.A) maths department is depended on (Kevin Twohy) , one is used to free service stores and share a photograph on gregarious website Facebook, this service is a program that can edit a picture, call Picnik. About the English class of last term, the software of free word processing that he uses Google planned to write overcome about Lai of cloth of · of British poet Williams (William Blake, the term paper of 1757-1827) content, and the office software Office that there is small software with respect to installation in his personal computer. He says, the advantage of Google software depends on it can letting him leave message in the server of Google, can visit it on any computer so, so no matter he is in party, still be in the library in bank of computer of cafes, campus, the information that can use a server to go up has the job. He expresses, this kind of experience has brought about him to won’t spend money to buy software again absolutely. He says: “Won’t see I go buying Office absolutely later. “Won’t see I go buying Office absolutely later..

These individual users may realize lawyer orgnaization and United States and European government to superintend the goal that the orgnaization cannot achieve quite, this weakens the monopoly power of Microsoft namely. Evidence makes clear, the price authority of Microsoft has begun to be eroded. Last year the autumn, microsoft lowered the office software price that is a target with the student, microsoft inspects the student the customer with most main tomorrow. Microsoft expresses, inside definitive time, the student can buy the Office download edition with most rich function, the price is 60 dollars, and common edition price is 460 dollars about. Microsoft still developed the network competition product that uses advertisement income support, be like Encarta encyclopedia and Microsoft Money of software of individual conduct financial transactions.

Jin Yun of analyst of industry of company of Pacific Growth Equities (Yun Kim) expresses: “If Microsoft everything begins from today, it will not consider to collect fees through software. The person with right train of thought, be willing to develop a kind of business that collects fees with software in consumptive market without which. ” he predicts, microsoft may consume the market to roll out the free Office version that supports with advertisement income in the individual in the future. But straight so far, this company says it and do not have such intent. Nevertheless, the company business basis of his predicting Microsoft is deeper, hard shake, get free or the cloud calculative impact that advertisement income supports is not big.

The network competitors of Microsoft have different show. Among them one of subsidiary Zimbra that are Yahoo, its provide the office software that is a center with Internet, include email, word processing and electronic form software. Individual consumer can use the product of this company freely, but enterprise user is annual every accredit software should pay cost 50 dollars. Current, this company has enterprise user about 20 thousand companies — it is small company for the most part among them, they are users paying fee.

Say according to Forrester Research of market research organization, to Office software, microsoft from big company annual collection of every accredit software 75 dollars, and as a child this one charge of company collection is highest can amount to 300 dollars. Zimbra general manager Sa carries Xi Damalaji (Satish Dharmaraj) expresses, this company can offer the price under Microsoft, because it is being built,be, safeguard, repair and upgrade the cost photograph on software is compared lower, because software is center of moving centrally data, on the personal computer that is not an innumberable families.

Nevertheless, the industrial analyst Gao Deer of Forrester Research (J.P. Gownder) thinks, microsoft software still has appeal to consumer relative to higher quality. He says, microsoft has an opportunity to develop the compositive edition of its software, the made security that holds software of the word processing on table computer concurrently, have cloud calculative advantage again, microsoft maintains and extend its Caesarean territory in order to help. Gao Deer says: “This is the main reason that Microsoft buys Yahoo. Valueing network advertisement income just is a good short-term deed, from long-term for, what Microsoft values is Internet application. What Microsoft values is Internet application..

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Written by ITTech · Filed Under IT Magazine