Beijing dumps Microsoft

Beijing dumps Microsoft

Summary: Microsoft's contract with Beijing, which had caused controversy within China, has been cancelled

TOPICS: Tech Industry
The recent deal Microsoft won with the Chinese government has fallen though.

Beijing had received criticism for choosing Microsoft for the three-year, $3.6m deal instead of homegrown software providers, with an official from the Chinese Science and Technology Ministry calling the deal a threat to national security.

Chinese law stipulates that domestic software should be favoured in such deals.

Nearly two weeks after the contract was signed, the Chinese government's procurement office announced that it has changed its mind.

According to reports, the Chinese government had originally made the decision to place the order with Microsoft after counterfeit software was found to be in use in China's civil service. China currently has a software piracy rate of over 90 per cent, according to the Business Software Alliance.

A Microsoft spokeswoman said: "Microsoft appreciates and supports the measures taken by the Beijing municipal government to strengthen its efforts to legalise software used in government offices. We will actively support and accelerate the commercial negotiations with the municipal government and are committed to continuing our support of the development of the Chinese software industry and economy."

However, the decision could put the software giant at a serious disadvantage in the Chinese market.

It's thought that other government offices may turn their backs on Redmond in order to show they are in step with Beijing.

Topic: Tech Industry

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  • I wish the UK gov. would choose home-grown software vendors over Microsoft and the few other biggies (i.e. IBM, Orcale etc.).

    A good IT industry would be an absolutly massive boost to the economy, yet rather than provide support for UK companies, the UK government often seems more willing to shovel large amounts of money overseas to software vendors providing what their marketing agents call 'ready-to-go' solutions which as we've heard about recently, in reality end up not so 'ready-to-go'.

    Over the years, the bills for these software taxes (i.e. Microsoft's Windows and Office software tax, which MUST be paid every couple of years or face the myriad of security holes and technical bugs) add up to cost the UK (both the government and private companies) 100's of billions .

    Surely this money could be a lot better spent developing a world-leading IT industry here.
  • Microsoft is also a threat to US security. With the US government foolishly supporting Microsoft through military contract, it's only a matter of time before the Microsoft infrastructure collapses due to no security.