USAToday reports on M$'s embarrasing loss to Linux

[Stelliform]

Thanks to Slashdot I found this bit of information. USA Today has a story on M$'s loss to Linux in Munich.

This is my favorite quote...

With Unilog, the consultant, recommending IBM-SuSE, Gallman stepped up lobbying for Microsoft. He arranged technical briefings with city tech staffers to elaborate on the advantages of Microsoft's bid. At a workshop, Microsoft ''gave detailed answers on all the issues and concerns in the (Unilog) study in exactly the same order'' as listed in the study, Maack says. ''They must have had a hard copy.''

Gallman denies that Microsoft obtained a copy. He says it could provide thorough answers based on its expertise. According to city fairness rules, neither side should have had a copy of the report.

M$ cheat? Nahhh they are above that!

 

[Sun Baked]

Should stick in M$'s craw that they paid MORE for the Linux machines than the bid that M$ entered.

But MS has time and again showed that they're not above giving away huge incentives only to recover the money later when the companies are at MS's mercy.

Nice to see companies breaking the cycle of greed from the Money $ucking virus.

 

[MrMacMan]

Go Munich, Linux still is better then Windows.

 

[Kwyjibo]

aren't details of this loss old? I mean i remember this stroy from a month or two ago i though

 

[Stelliform]

Originally posted by Kwyjibo
aren't details of this loss old? I mean i remember this stroy from a month or two ago i though

But we didn't know the nit picky details. We just knew the lost and even Ballmer couldn't make it happen with huge price cuts. We didn't know about the different offerings like Word sans Windows, a longer renewal time.... So we can see what M$ knows about what people really need and want.

In a noteworthy concession, it also agreed to support Windows XP for six years -- a year beyond the five-year base contract, and said the city could skip the next Office upgrade, too. That meant Munich could use Windows XP and Office XP until 2010, and would not have to upgrade in 2009. That would save the city, by Microsoft's estimate, $1.8 million.

This ran counter to a controversial licensing policy Microsoft's introduced in 2001, which makes Windows and Office more expensive for customers who do not upgrade every three to four years.

Microsoft also took the unusual step of offering to let Munich buy Microsoft Word -- normally bundled with Excel spreadsheet, PowerPoint slide presentation, Access data base and Outlook communications software to make up Microsoft Office -- a la carte.

In explaining that concession in its letter, Microsoft indicated it possessed data showing that many workers don't need a full stack of basic programs. ''This applies in particular to our proposal to put only Word on 4,000 workstations because the other Office products are not used on approximately 30% of workstations, based on our experience,'' says the letter from Microsoft. The projected savings: $778,050.

 

[Abstract]

I don't get it. How did the Linux bid cost $35.7 million, while Microsofts was initially a $36.6 million dollar offer? How did the Linux offer cost more when Linux is cheaper than Windows?

Also, how come it costs so much to replace all the software (eg: Windows and Office) on 14,000 computers? It works out to be $2614 per computer if the original $36.6 million dollar offer is considered.