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June 16, 2009 6:07 AM PDT

Microsoft legislates against iPhones

by Matt Asay
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The dirty little secret at Microsoft (and at Red Hat, for that matter) has been the rise of the iPhone within employee ranks.

It's one thing to try to impose one's technology on an unsuspecting market, but Microsoft employees know that the iPhone makes their Windows Mobile devices look like Tinkertoys, which is why it's so easy to find iPhones at Microsoft's Redmond campus.

Or has been. In a relatively recent move, as The Business Insider reports, Microsoft has cut off reimbursements for data plans other than those linked to Windows Mobile devices. The move was ostensibly made to cut costs but likely also intended to save face by ensuring company employees use company technology.

It's a noble attempt to impose change through legislation. Perhaps Microsoft has learned something from European regulators.

Not that Microsoft is alone in trying to restrict choice. Microsoft enthusiast groups like the JCXP site are calling for a ban on the Opera browser to protest its involvement in recent European Commission antitrust proceedings. It's unclear whether the protesters will actually be able to find any Opera users to persuade away from the browser.

But good luck all the same.

There was a day when Microsoft was so impervious to competition that actions like this would have been unthinkable. Those days are gone. Microsoft is still dominant, but it's becoming clearer every day that there are mainstream alternatives to Microsoft technology that are clearly better than its own offerings.

Rather than legislating change, Microsoft could try innovating change. Those who can, compete....


Follow me on Twitter @mjasay.

Matt Asay brings a decade of in-the-trenches open-source business and legal experience to The Open Road, with an emphasis on emerging open-source business strategies and opportunities. Matt is vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure. You can follow Matt on Twitter @mjasay.
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Add a Comment (Log in or register) Showing 1 of 2 pages (48 Comments)
by Kwasiowusu June 16, 2009 6:37 AM PDT
Article headline: "Microsoft learns from EU, legislates against iPhones"

First of all, that Microsoft is not a legislative body, and therefeore can't make laws or legislate.
Secondly, Microsoft is not stopping anyone from using iPhones if they want. What Microsoft is saying is : If you are a Microsoft employee and you wanna use iPhones, you pay for it yourself. Don't exepect Microsoft to use shareholders money to subsidize a competitor's products, by paying for your expensive iPhone and expensive data plans.
This is no more or less than what practically ever car company on the planet has been doing for decades. Toyota never subsdize their executives to go buy/rent Honda' with company money for official duties. Neither does Ford, GM or Nissan .
The real outrage here is why Microsoft was subsidizing iPhones for their employees in the first place. That should never have been allowed to happen

From article :"It's one thing to try to impose one's technology on an unsuspecting market"

Ummm..last time I checked, no one holds a gun to anyone's head when they go to Best Buy to go buy a computer. They use their own free will, to walk past the Apple Macs and go buy better configured, better priced Windows PC's 90% of the time.
Contrary to what the open source high priests would have you believe, the public is not as stupid as the open source crazies would have you believe. People work hard for their money, and are not prepared to hand over a big chunk of their pay to Apple for their overpriced Mac's.
Reply to this comment
by Peter02l June 16, 2009 7:36 AM PDT
It would only be fair for the employees not to answer any work related phone calls on their un-reimbursed cell phones.

"It's one thing to try to impose one's technology on an unsuspecting market", does not refer to shopping at Best Buy. It refers to such tactics as "embrace and extend" used by Microsoft to lock people down to it's own technologies.

As for your last two sentences, what does open source have to do with overpriced Macs?
by DeeBAG June 16, 2009 8:21 AM PDT
I do agree that it is Microsoft's prerogative whose data plans they want to pay for... they are taking away a privilege, not punishing anyone. I do have to say though, your last paragraph was pretty stupid. You arbitrarily maligned open source, then claimed macs were too expensive as a reasoning to use windows. If price is your driving point, wouldn't open source be the cheapest solution?
by Dalkorian June 16, 2009 11:50 AM PDT
@Everlovin G - why not? This troll can't starve because he's been suckling on the M$ teat for years now and doesn't appear to be ready to be weaned any time soon. So why not have fun with it?
by henk goewie June 16, 2009 11:54 AM PDT
I personaly am too "overpriced" for my clients to loose my time with anything other than Iphone as my mobile!

Also I am too "overpriced" to loose my time tinkering with the settings of a "better priced" Windows PC!

My meter is running! So are my clients' meters!

Judging from the length of you troll, yours' obviously isnt!
by gggg sssss June 16, 2009 5:54 PM PDT
let those that think this is unfair rememberwhat happened to GM workers who drove Hyundais. Bloddy right to keep them out of teh building.
by osvipag June 16, 2009 5:56 PM PDT
Here we go again. I work hard for my money and neither Microsoft or Apple tells me what to buy. Since the 80s I have bought and even build PCs for my private use. So I know what a low cost PC can do and how it feels. But when I want a PC that works flawlessly, with a cohesive and consistent operating system and 100% integration with peripherals and software, the Apple product is superior and justifies the higher price. That is not overprice, is the cost of high quality, system integration and technological innovation. Using your car analogy both a Chevy Cobalt and a Mercedes Benz 300C can take you to the same place, but how you travel there and the quality of that travel are different, and you have to pay for that difference. If you can't afford it, get in to the bus and stop bothering those that can and will appreciate a higher product.
by monkeyfun14 June 16, 2009 7:47 PM PDT
@Everlovin G

Apparently anyone who disagrees with the Church of Jobs is a troll now? Interesting.
by lkrupp June 16, 2009 7:56 AM PDT
The juggernaut's wheels are getting wobbly as it slowly but surely grinds to a halt. And speaking of the EU, how about the way Monkey Boy decided to deal with them on the matter of browser choice? Windows 7 will ship without ANY web browser in Europe. That'll fix 'em, won't it, Ballmer!
Reply to this comment
by Vegaman_Dan June 16, 2009 9:08 AM PDT
Why yes, yes it does. Including no browser means the end user has the open choice of *any* browser they want out there and not limited to the few the EU had decided on your part of which you are allowed to choose from.

Freedom of choice sometimes has its downside. You can't have it both ways.
by Staszek June 16, 2009 10:25 AM PDT
@Vegaman-Dan

While you are correct, what it does to is make it more difficult for the user. Most people wouldnt know how to install a new browser if it was done for them. Now they are going to get a PC without a browser to even download IE or the competition if they would like to. Hopefully PC makers will add that on their own or include an install disk with the shipments.

I think this is partially the EU's fault because they are a little arbitrary but there were other ways around this for MS then just leaving the customer high and dry. What they should have done is preloaded IE and at least Firefox or one other browser and gave the customer a choice. Since MS is so large I am betting most of the people would have picked IE anyway because they dont know anything else.
by Dalkorian June 16, 2009 11:54 AM PDT
by Staszek June 16, 2009 10:25 AM PDT
@Vegaman-Dan

While you are correct, what it does to is make it more difficult for the user.

--------------------------------------------------------------------

Yup, that seems to be the new M.O. for M$. Consider UAC, which was designed to be as annoying as possible to punish the user into complaining to the developers that weren't playing ball with M$.

Slaves don't complain much when they're being beaten for no good reason. Why would they - they're slaves after all!
by santuccie June 16, 2009 12:10 PM PDT
@Dalkorian:

What do you think UAC is, a HIPS firewall like ZoneAlarm or Comodo? No, it's an authentication mechanism, just like those in the platforms Mac OS and Linux that you pretend to think are so great.
by santuccie June 16, 2009 12:45 PM PDT
BTW, when you talk about getting users to complain to the developers who don't play ball with MS, it doesn't sound like you're talking about UAC. UAC itself doesn't create compatibility issues; it's just an authentication mechanism (which you should understand if you'd do your homework instead of taking blind shots at MS). There are components like service and process isolation, driver signing, and especially KPP in 64-bit versions, which do shut out some legacy applications. But that's why MS created file and registry virtualization in 32-bit versions, to temporarily bridge the gap until developers got with the program. And although many developers have already done so, a number of them have continued to lag behind. So, Windows 7 will continue to bridge the gap with XP Mode.
by Peter02l June 22, 2009 12:08 AM PDT
@ Vegaman_Dan,

If you have no browser, how do you get online to exercise you choice to download and install *any* browser?
by pairof9s--2008 June 16, 2009 8:03 AM PDT
I'd agree with Peter02l.

You've pretty much misconstrued the article on every point you tried to make.
Reply to this comment
by The_happy_switcher June 16, 2009 8:04 AM PDT
Ha ha I love it. I wonder if Ballmer's big bald head is hanging on the walls like Big Brother in 1984.
Reply to this comment
by wigmo June 16, 2009 8:07 AM PDT
And in addition to the above comments, there does seem to be a reoccurring theme of bias towards Microsoft in your articles.
Reply to this comment
by jchanski21 June 16, 2009 8:16 AM PDT
"...Microsoft employees know that the iPhone makes their Windows Mobile devices look like Tinkertoys...

...Microsoft is still dominant, but it's becoming clearer every day that there are mainstream alternatives to Microsoft technology that are clearly better than its own offerings.

Rather than legislating change, Microsoft could try innovating change. Those who can, compete...."

Then I must have misunderstood this. I thought he was pointing out how Microsoft was in this position because their products are falling behind.
by Vegaman_Dan June 16, 2009 9:11 AM PDT
@jchanski21:

These are the blogger's thoughts and opinions and nothing else. Don't get Matt's blog posts confused with actual news. They don't have to be vetted, or backed up with any evidence whatsoever.

Matt believes their products are failing, but that's just his opinion. He's free to say the sky is falling too with exactly as much legitimacy behind it.
by ulric2 June 16, 2009 8:21 AM PDT
terrible tabloid article, that's not what "legislation" means.

Every company right now is cutting on phone expenses, cutting blackberries and other phones, especially given that very few employes except those that travel actually need them!

Does it make sense for microsoft to stop paying for employes' iphone data plan when they generally don't need it (what with being in front of a computer all day anyway) and it doesn't contribute to testing the company's own product? absolutely.
Reply to this comment
by ToddWBeaver June 16, 2009 8:25 AM PDT
Please name companies that reimburse employees for work-related use of competitor's products?

Anyone?
Anyone?
Bueller?
Ferris Bueller?
Reply to this comment
by pairof9s--2008 June 16, 2009 8:53 AM PDT
Obviously Microsoft did if they now retracted that privilege.

This really is not a big deal to anyone other than the understandable frustration of those Microsoft workers who can no longer enjoy the privilege their co-workers received previous to this edict.
by gggg sssss June 16, 2009 5:57 PM PDT
well there was GM - driv eyour piece of krap Sart car and get your mileage reimbursed. Too bad teh smart car drivers are out on wlefare now. Servers them right.
by Ungod June 16, 2009 8:26 AM PDT
I must have missed the open source part of this article .... weird. I did see a very quick reference to RedHat but nothing was explained what that had to do with the article.
Reply to this comment
by sting7k June 16, 2009 8:27 AM PDT
Does RIM pay for employee data plans for those who have WinMo, iPhone, or what ever?

Does Apple pay for employees who have WinMo or BBs?

Why is this even news or why does anyone care. Microsoft doesn't want to pay to support a competitors product. End of sentence/story. I'm pretty sure this is standard practice for just about every company out there.
Reply to this comment
by Peter02l June 22, 2009 12:17 AM PDT
"Does Apple pay for employees who have WinMo or BBs? "

Yes they would. However, good luck finding any Apple employees that use WinMo or BBs.
by CNETChris99 June 16, 2009 8:53 AM PDT
This article is really below standard. It's written with next to none respect towards Microsoft, has a clear bias and didn't appear to research the facts in any way. "Microsoft could try innovating change" - common, let's be serious; you actually have any idea what Microsoft does? Ever heard of technologies like Surface, LINQ, Natal, WPF, WF, WCF, ... ???

Worthless - feel sorry for CNET they have such a biased writers.
Reply to this comment
by man_w_balls June 16, 2009 10:09 AM PDT
The article is written clearly to expose another example of desperate lameness on the part of Microsoft.
I assume the reason that CNET bloggers write such articles is akin to siding with all the people who have spent years frustrated with the clunky, bloated, unintuitive offerings that Microsoft has shipped out to the masses.
by lennie22 June 16, 2009 1:13 PM PDT
@man_w_balls:

"The article is written clearly to expose another example of desperate lameness on the part of Microsoft." guy, are you serious? how it is lame for a company to cut back on cost? I wouldn't be surprised if MSFT saved $900,000 a year from this move.

Maybe Cnet should do a little research and find out how much MSFT will save because of this.
by mbenedict June 16, 2009 9:01 AM PDT
RIM employees are NOT allowed to use competitor products at work either. My friend at RIM says this has been RIM's policy for as long as he's been working there (several years).

Moreover, large enterprises usually require employees to use standard devices, such as *particular models* of BBs or WinMo, etc. The reason is to cut IT procurement and support costs. Another reason is relates to information security. iPhones in particular are usually banned because there is no provision to encrypt data at the filesystem level (unlike BB, for example).

But as usual Matt displays his ignorance and chooses to write bizarre Microsoft-bashing articles instead of anything remotely related to Open Source.

I wish CNET would CONSIDER replacing this excuse for a blogger with someone who actually lives and breathes open source, instead of someone who's a shill for proprietary Apple products. There's so much going on in the open source world, new exciting features from Python, Apache, PHP, Linux, Ruby, FreeBSD... none ever get mentioned here!!
Reply to this comment
by Vegaman_Dan June 16, 2009 9:16 AM PDT
You've nailed a big item right there- Security. The iPhone has zero security on it- since every application runs as root, there is really no way to protect it from exploitation. It doesn't support certificates to the level necesary to be on a domain, nor can it even join domains. Exchange email support is kludgey at best. It is not a device you would want on a corporate network. It's fine for the wilds of unregulated public areas though.
by jspaleta June 16, 2009 9:13 AM PDT
Matt,
The dig at Red Hat seems a bit misplaced in the opening sentence. Red Hat doesn't compete in the cellphone space at all. By the logic introduced in this article and the linked article , Red Hat employees would have to choose not to use any cellphone technology at work to satisfy implied standards of company loyalty. Matt, that's just not a rational argument to try to make. A count of iphone usage at Google would be a better comparison with Microsoft's internal usage now that Android is all the rage.

-jef
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by mskenny June 16, 2009 9:20 AM PDT
Do you know what happens if you work at Coke and get caught with a Pepsi? You're fired!
Reply to this comment
by gggg sssss June 16, 2009 5:58 PM PDT
in addition to having just really bad taste.
by defcas June 16, 2009 10:32 AM PDT
Not sure how this policy relates to "a day when Microsoft was so impervious to competition" since MS has never been dominant or at all "impervious" in the handset space.

But I fully expect you to follow the herd and find a way to link every Microsoft story to their impending downfall, instead of writing something that anyone gives a crap about. Thanks for the interesting read on corporate cellular reimbursement policy though.
Reply to this comment
by protagonistic June 16, 2009 10:55 AM PDT
This could be a double edged sword. MS would lose a lot of face if the employees decided to bite the bullet by keeping their iPhones and paying for their own data plan instead of getting a device that ran the Widows phone OS. If MS wants them to use a MS device then Microsoft should give them the device. That would sove the whole problem for them.
Reply to this comment
by lennie22 June 16, 2009 1:18 PM PDT
it's about cost cutting, while giving the loyalist some perks for being actually being loyal to the company.
by gggg sssss June 16, 2009 5:59 PM PDT
those employees could of course go to the head of the line when HR does its next round of layoffs.
by allenbennett_dotmac June 16, 2009 10:59 AM PDT
Non-Apple apps cannot ever run as root. They aren't allowed out of their "sand box" unless you stupid enough to jail-break it.
Reply to this comment
by mbenedict June 16, 2009 11:41 PM PDT
The fact that jail-breaking exists at all means that any malicious third-party could potentially write a system (such as a Trojan horse) to do the same: break the sandbox, run as root, and control your data. That is, there are multiple known weaknesses in the sandbox implementation which user organizations cannot independently patch or otherwise mitigate.

Some of the weaknesses appear to be hardware related, which means all current iPhones can always be subverted. Even if the 3G S fixes them, no one can be confident there wont be others.

As a colleague likes to say, the iPhone lacks "defense-in-depth". It takes just one software or hardware vulnerability to defeat its entire security architecture.
by pairof9s--2008 June 17, 2009 6:40 AM PDT
Yes, it's a drag having to reboot and reinstall my iPhone every other day due to all the viruses, Trojan and malware that infects it. I can barely get thru 2 years of using it before this crap shows up.

Without a doubt, I would NEVER buy a phone, or a computer, or a TV, or a car, or a house, or a pair of pants, or a peanut butter & jelly sandwich that I wasn't 100% sure it was secure first & foremost. No use in making a call much less having a phone unless it's 100% secure!

/
by Peter02l June 22, 2009 12:28 AM PDT
@mbenedict,

Where do you come up with this stuff? Are you by any chance a Limbaugh fan?

If you find some fellow who likes to write his atm code on his card, you shouldn't blame the bank for being insecure!
by CreativeMalcolm June 16, 2009 12:20 PM PDT
I work for a Rogers dealer, you're allowed to have a phone by a competitor but it's pretty clear you shouldn't be demoing it for customers or letting them see you with it. It was bad though when I worked at a competing carrier and had to try and hide my iPhone from customers when I'd rather tell them how great it was :)
Reply to this comment
by jimmyhoops June 16, 2009 12:35 PM PDT
Ha! I doubt this is much of an issue on the Apple campus. I think this is hilarious!
Reply to this comment
by medezark June 16, 2009 12:47 PM PDT
Not sure how this article has any relevance to open source (unless "open source" has been redefined to mean pointless bashing of anything microsoft does).

The move by Microsoft makes sense from multiple angles:

#1: Employees still retain a choice of which device to use, however if they've chosen a competitors product they must pay for it themselves.

#2: Reduced cost in support

#3: Employees using WinMo devices who are not satisfied with WinMo for whatever reason can WORK ON CHANGING AND IMPROVING WINMO.

#4: Less MS money going to help Steve Jobs rule the world.

Not reimbursing employees for purchases/rentals of a competetors product is standard operating procedure. Instead of condemning microsoft for finally taking this position, you should be praising them for having allowed it for so long, and for finally taking a stand which encourages #3, above.
Reply to this comment
by Constable Odo June 16, 2009 3:54 PM PDT
Ballmer can suck it. I can't wait to see his next dance of developers, developers, developers and none of them are there because they've all gone to the iPhone/iPod Touch platform.

If his employees want to use iPhones he should let them use it and he himself volunteer to pay for it because it's the only thing that will increase their productivity. Just because Bill Gates won't let any of his family use iPhones, there's no reason to try to stop every Microsoft employee to stop using them by making them pay out of their own pocket. I'm sure they don't want to use that grungy WinMo OS which will try to copy OSX Mobile and will fail miserably. Yeah, what Microsoft is doing is standard practice and makes sense but I just like to rub MS's nose into the doodoo merely to lighten my mood. Haha.
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About The Open Road

Matt Asay brings a decade of in-the-trenches open-source business and legal experience to the Open Road, with an emphasis on emerging open-source business strategies and opportunities. Matt is general manager of the Americas division and vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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