Steve Ballmer and licensing: The video

Rupert Goodwins ZDNet UK | October 6, 2009 7:26 AM PDT

Summary

ZDNet UK was at Microsoft's London HQ yesterday, listening to Steve Ballmer talk about Windows 7, Server 2008 R2 and pertaining matters.

Topics

Steve Ballmer, Video, Microsoft Corp., Microsoft Windows 7, Corporate Communications, Microsoft Windows, Marketing, Operating Systems, Software, Ballmer, Windows 7, Rupert Goodwins ZDNet UK

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ZDNet UK was at Microsoft's London HQ yesterday, listening to Steve Ballmer talk about Windows 7, Server 2008 R2 and pertaining matters.

We weren't allowed to ask questions - but customers in the audience were. They were good questions, too: one of the best was about the complexity of Microsoft's corporate licensing and the unwelcome, inquisatorial habit of Microsoft's auditors in trying to find breaches of fine print. The question got the only spontaneous round of applause of the day, and Ballmer took it seriously.

Which is not to say he actually answered it. He seemed to be saying that simplification is unacceptable because it either increases or decreases cost: if it decreases cost, the shareholders are unhappy, if it increases cost, the customers aren't happy.

Make your own mind up. We captured the question and answer on video, or you can read the transcript.

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Loud and clear

I thought he answered the question fully. Another of my translations (seem to be doing a lot of them today)

"There are no changes possible to the rules which will retain the level of revenue expected by shareholders. Any further changes will result in savings to customers alone. So we've kept things as they are for six years. Please feel free to email me direct if you have any ideas which will increase shareholder yield."
johnfenjackson@...
6th Oct 2009
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Ballmer: Customers can screw themselves.

That's the essence of it.
CounterEthicsCommissioner-23034636492738337469105860790963
6th Oct 2009
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I think he really misses the point.

I don't think he quite gets it, lower costs don't always
mean lower profits. Especially in software, as lets face it,
the unit cost is close to zero (there's a box, a manual {har
har} and a DVD) the development costs are high, nobody's
denying that. But if you reduce the cost by say 30% but sell
40% more, well you're doing better from a profit point of
view.

So I really don't think he gets it. This is also my argument
against the Windows SKUs, why doesn't everyone get
"ultimate" the box doesn't cost more than any other SKU,
and the development cost are all incurred - why the SKUs?
How many people are really running "ultimate"? If we made
all versions cost the same as "business" or "home
premium" would Microsoft really make less?! I don't think
so, and developers could rely on all the features being
there (and make more compelling applications, which let's
face it is why people run Windows).

Seriously, he should get a Mac, see how that's done and
leverage that on the PC (and I don't mean copy the Mac,
but get the idea that one OS SKU is much more healthy
than the myriad that they have).

What really amazes me is how "warm and fuzzy" they are
around the Xbox360 - it's like a different company, buying
an Xbox360 is a great experience (and yes, I know you
have to pay for Xbox Live, and Sony et al give that to you
for free). If (some might say "when") you have a problem
with your Xbox360 they just fix it, a really good service -
so they are PC owners treated so badly? (Especially those
who bought Vista Ultimate - which let's face it, was a snow
job)

I just don't think he gets it.
jeremychappell
6th Oct 2009
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"I just don't think he gets it"

I think he DOES get it. And take it to the bank. The customers and shareholders can take care of themselves. Their problems aint no skin off his nose.
Ole Man
6th Oct 2009
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The way WE want it

"So what we're really trying to do is help
people use the products and use the licences
the way we intend."

Yeah. And they're trying to help people use
their computers the way Microsoft intended. And
their documents. And their music, their video,
their files and just about everything else that
belongs to the customer and not to Microsoft...
supermadman
7th Oct 2009
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