Top ten reasons why Microsoft is a good citizen

COMMENTARY--Why does everyone have to dump on Microsoft? Despite its antitrust troubles, the company has done some very good things for us all.

One of the main things that you give up upon leaving the United States is late-night television. I haven't seen David Letterman in over two years. My cultural lifeline to the Etats-Unis (as the natives here in Switzerland call it) has been Conan O'Brien as featured on CNBC, although I'm finding that my ability to recognise his guests is inversely proportional to the amount of time I spend in Europe.

Thus, in honour of my one-time favorite late-night talk show, I present the top 10 reasons why Microsoft is a good corporate citizen.

10. Microsoft drives computing costs down
With all the rhetoric surrounding Linux and its "free" status, it is often forgotten why consumers (Linux users included) pay so little for computer hardware these days. Not only have Microsoft's desktop efforts led to greater hardware economics of scale, the company has actively worked to drive down hardware prices through standard PC specifications, including simple things like the WinModem. Though WinModems drive Linux aficionados to distraction, the reason WinModems exist is that they cost less, saving consumers money on new PCs.

Furthermore, let's not forget that Microsoft has historically charged FAR less than its proprietary cousins. Compared to Sun Microsystems' high-priced Unix servers, Oracle's incredibly expensive database and the price combo of Apple hardware with ANY Apple OS, Microsoft products have been an incredible bargain.

9. Microsoft has been instrumental in bringing computing to ordinary people
Although that might be a "negative" for those who don't want to be bothered by hordes of "newbies," non-technical computer users wouldn't be on the Internet if it weren't for handholding from companies such as AOL and, of course, Microsoft. Through its marketing and products, Microsoft has done more than any other company to help users find ways to integrate computing into their daily lives.

8. Microsoft employees absolutely love their company
Microsoft regularly is ranked one of the best places to work. Programmers are respected, and creativity is encouraged. Plus, the company pays well to boot. That leads to one of the lowest employee turnover rates in the industry, even at a time when the company is in the midst of a government suit which has dragged its name through the mud.

7. Microsoft pays loads in taxes
According to information found on Yahoo! Financials, Microsoft paid US$1.288bn in income taxes for the fiscal quarter ended 31 March. This will probably go down in the history books as my stupidest analogy ever, but imagine Microsoft paid that sum in pennies. A penny weighs 2.5 grams, and at a grams-to-pounds conversion rate of .002205, would result in a weight of pennies of approximately 270,774,000 pounds (or 135,387 short tons). To put that in perspective, the USS Eisenhower aircraft carrier weighs in at 95,000 tons, making Microsoft's quarterly income tax charge worth the weight of 1.5 aircraft carriers.

6. Its founder has donated more money to charity than anyone in history
At the last count, Bill Gates, as an individual, has given about US$22bn -- or just under 26 aircraft carriers -- to charity. To put that in perspective, George Soros' donations as an individual total a "measly" US$2bn. Andrew Carnegie, the famed philanthropist, gave only US$3bn in current dollars over the course of his life.

5. Microsoft creates a computing economy worth far greater than its own net worth
If one counts up all the companies that develop Windows-compatible software (including such industry luminaries such as Oracle and IBM), all the hardware companies that make money selling to Windows users, and all the technicians engaged in writing software for Windows or providing technical support for it, you'll find that there is far more money made from Microsoft products outside of Redmond than is made inside of it.

4. One of the largest R&D budgets in the industry
In fiscal year 2001, Microsoft spent US$4.4bn, a spending total that rose to more than US$5bn in fiscal year 2002. R&D benefits us all through technological advancements. Though developing software that is more productive might not seem as earth-shattering as, say, finding a cure for cancer, such advances improve the efficiency of the digital infrastructure upon which we build our lives.

3. Microsoft takes risks
This might seem a strange reason to consider Microsoft a good corporate citizen, but consider the results. How many companies would have the courage -- much less the stamina --to take on Sony in game consoles, Palm computing in handhelds, Sun in server operating systems, Oracle and IBM in databases, AOL in internet access, and practically every wireless phone maker in existence (Nokia and Ericsson among them) in the provision of operating systems for advanced cell phones? Not many.

Microsoft is the primary competitor to these leading companies in most of these markets, which helps boost quality and innovation. I might be going off on a tangent, but if Microsoft can enter already dominated markets and manage to keep its head above water, why can't other large companies compete in markets Microsoft dominates?

2. A beacon of profitability in a sea of red ink
Microsoft is one of the few companies to have managed to maintain robust sales throughout the current recession. That should matter to those who care about the health of the US economy.

And last but not least...

1. No accounting scandals at Microsoft
In contrast to all the revenue-padding at Enron, WorldCom and even AOL, Microsoft was prompted by the Securities and Exchange Commission to adjust its past income upwards.

So there you have it. My apologies to David Letterman for dragging him into the mother of all geek wars.

John Carroll is a software engineer who lives in Switzerland. He specialises in the design and development of distributed systems using Java and .Net.

So, is Microsoft really the high-calibre corporate citizen Carroll paints it as, tell us what you think through Talk Back!

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Talkback 6 comments

    No corporation, organisation o ...Con Zymaris -- 31/07/02

    No corporation, organisation or technology is solely evil or solely good. As with all complex issues, there are myriad shades.

    Most of the points that the article's author brings to the fore can be contested. For instance, about the R & D. Sure, Microsoft may say they spend up on R & D. We have no way of disproving their internal money-shuffling. What we do have, is a way to examine the _output_ of this supposedly wonderful R & D, and here, this company has been found lacking for over 25 years. Particularly when compared to the output of other organisations, such as IBM, who may proffer a lower level of funding for thier R & D, but deliver industry changing technologies.

    Correspondingly, none of the points that really annoy people about Microsoft's practices are discussed

    It makes me wonder why Mr. Carroll felt the urge to author this piece.

    hmmm.

    Well Con, you certainly prove ...Anonymous -- 31/07/02

    Well Con, you certainly prove yourself to be a devout Microsoft-hater, judging from your various talkback comments over the past. How can you possibly infer that Windows has not been an industry changing technology! Indeed, it is reason that our industry exists today! Do you not remember operating systems on the x86 architecture stretching further than 10 years ago? IBM compatibles were probably one of the least popular consumer systems until windows arrived... Names such as Commodore, Atari, Apple, Amstrad and Acorn were more favourable than any x86 offering. How blindly you hate... It makes me wonder why YOU felt the urge to author your mindless dribble.

    "No Accounting Scandals a ...Anonymous -- 31/07/02

    "No Accounting Scandals at Microsoft".

    An interesting comment, given recent declarations regarding cookie-barrel style profit reporting which, though not illegal, are somewhat misleading. I thought that's what the US authorities asked them to revise.

    And that's before you buy in to the flack that surrounds Microsoft and their share price and the fact that dividends haven't been paid since day one...

    They've done quite a few good things but some of the less than correct things may catch them up yet.

    To: "Anonymous" Firs ...Con Zymaris -- 31/07/02

    To: "Anonymous"

    Firstly, why do you hide behind the "Anonymous" tag? I give my full details; email address and employer on _all_ my posts. Who are you? Who do you work for? What are you hiding?

    Secondly, it's _because_ I remember the industry before Microsoft throttled it that I can make the observations that I make. I've been tracking the local IT industry since 1979. When did you join the industry, "Anonymous"?

    Thirdly, your response to my missive is so off target and so trollish that I should perhaps not bother to reply, but in keeping some concept of good faith, let's continue.

    You state:
    "Do you not remember operating systems on the x86 architecture stretching further than 10 years ago? IBM compatibles were probably one of the least popular consumer systems until windows arrived... Names such as Commodore, Atari, Apple, Amstrad and Acorn were more favourable than any x86 offering."

    Which is so far off target that you must be either a teenager with no sense of the history of IT in this country, or a relative newcomer to IT.

    Here are corrections to the errors in your statement:

    1) Windows has been out for 16 years, not 10.

    2) All of Amstrad, Acorn, Atari and Commodore were dead players in this industry 10 years ago. Apple held 15% of the market. It now holds less than 5%.

    3) The IBM PC archicture has held the majority of the personal computer market for about 17 years.

    4) There _was_ a vibrant PC industry prior to Microsoft having written a single line of operating system code.

    Once again, what all this has to do with my initial response we can only guess at. You seem to be fumbling for a complaint, but the target eludes you. Feel free to re-read my response, and perhaps reply in a more thoughful, truthful and open manner next time.

    Let's not forget that Carroll' ...Sam Varghese -- 01/08/02

    Let's not forget that Carroll's two most recent pieces (prior to this one) were about the "very real" limitations of Open Source and facing the Open Source "firing squad."
    For the uninitiated, I give below the definition of a shill: One who poses as a satisfied customer or an enthusiastic gambler to dupe bystanders into participating in a swindle.
    Nuff said.

    I cannot believe that zdnet is ...CPJ -- 01/08/02

    I cannot believe that zdnet is peddling such rubbish. I take extreme exception to the fluff being peddled by Mr Carrol and other apologists for microsoft. Perhaps such apologists should declare *ALL* their interests before being able to spout this rubbish.

    This is so wrong that I hardly know where to start.

    Firstly, let me say that I am a desktop and networking consultant with over 15 years experience in

    the computing industry. I am MCSC qualified and I have experience with every microsoft product

    since DOS 3.1

    The fact is that if any other company in the world was to release a series of products so flawed,

    so faulty, and with so many 'undocumented' features (read bugs) as to make the installation

    and configuration beyond the capabilities of the average user, that company would be flat broke

    and the directors would be in the slammer.

    Installation of the product in the home by the purchaser is nigh impossible without the assistance

    of a highly paid technical engineer, and if the poor customer finds that he must contact the

    manufacturer for support, he is obliged to pay for the privilege, even tho he may only have

    purchased the product that day.

    The fact is that Microsoft has a monopoly because of it's history of targeting weaker competitors

    and driving them out of business, one by one, and by a series of sweatheart deals with other big

    players to manipulate the market. This process continues unabated

    today.

    Lets face it. Not one Microsoft product released since the inception of the company has been

    faultless. Quite the opposite. Every product has required so many service packs and bugfixes (which in turn have served to only introduce a new set of faults / bugs) as to make the maintenance and upkeep of the system for the average end-user well nigh impossible.

    Microsoft continues to force consumers to upgrade to newer (and increasingly buggy) products by

    discontinuing sales and support of older products as soon as possible. To this day, I can point

    out unresolved issues / faults with every microsoft operating system since and including DOS. Indeed as I write this, I am wrestling with the buggy networking of windows 98. After 15 years working with these products, and I still get into trouble !!

    In the 'real world', even the humble washing machine manufacturer MUST guarantee availability of replacement parts and support for 7 years after the release of a new washing machine, but not so for Microsoft. The microsoft motto seems to be 'Move on to the next version before they find out all the bugs with the last.'

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