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Microsoft to Crackdown on XP Pirates
By James Mason
www.jamesmason.ca

In a contradiction of sorts, Microsoft has acknowledged that
it intends to end support for anyone who uses pirated or
unregistered copies of Windows XP in the near future.
The shift in philosophy seems to have emerged after Will
Poole, Head Of Microsoft's Client Unit told a group of
financial analysts last summer that the software giant was
missing out on the huge revenue stream potential involved
with getting users to purchase licenses or CD's from
Microsoft in order to use Windows XP.

Piracy is a huge problem for Microsoft right now, and Poole
pointed out that despite his unit growing financially by 5%
in the fourth quarter of last year, PC shipments had more than
doubled in the same time frame which meant that more
and more users were likely using pirated versions of Windows XP.

Poole estimated that while in the United States pirated versions
of XP counted for about 22% of users, overseas that number j
umped significantly like in China where it's believed that 1
3 million computers have illegal copies of XP, or 92%
of all desktops in the Asian country.

"We see good revenue opportunity for us to try and work
with consumers to have them understand the value of
genuine Windows," said Poole at the time.

The move to crackdown on pirated copies of Windows
XP is in stark contrast to the company's philosophy six
months ago when it released Service Pack 2 (SP2) for XP.

"We haven't explicitly done anything to SP2 to exclude it
from pirated copies," said Microsoft Product Manager
Barry Goffe at the time of SP2's roll-out. "We decided that
even if someone has a pirated copy of Windows, it is more
important to keep him safe than it is to be concerned about
the revenue issue.....Having these unsecured users means
bigger worm and virus outbreaks - which also impacts the
Internet and consequently, our legitimate users as well".

2004 was a tough year for Microsoft as many began to
question the overall security of XP, as security holes, bugs
and viruses ran rampant throughout the internet targeted
directly at Windows-based machines. Microsoft hoped
that SP2 would change all that.

However despite their best efforts Apple continues to gain
ground on Microsoft in terms of market share, thanks in l
arge part to the stability and security of OS X., and the introduction
of the Mac-Mini. In addition many corporations and governments
have began to cancel contracts with Microsoft and opted to use
open source solutions like Linux on their employees desktops and
IT infrastructure.

The shift in philosophy at Microsoft has already to begun to take
shape as users of unregistered copies of XP can no longer
download patches or updates from WindowsUpdate.com,
although critical updates can still be acquired.
"Too much money is being lost, said Yankee Group Analyst
Laura Didio when asked about Microsoft's latest crackdown
in an E-Week interview. "In the past four years, the percentage
of revenues from new software
licenses was down across the board. The vendors really have
no choice but to get tough."

--
James Mason
www.jamesmason.ca
www.closetgeek.net


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