- Related Stories
-
Microsoft: Legit Windows or no updates
January 25, 2005 -
Microsoft battles piracy with free software
October 27, 2004 -
Microsoft: Can we check your software license?
September 17, 2004 -
Study: Software piracy on the wane
August 5, 2003 -
Italian police shut down piracy ring
June 16, 2003
But it's not Linux. And sorry, Apple Computer fans, it's not the Mac.
The biggest rival to Windows sales is Windows itself--or rather pirated copies of the OS. And Microsoft is starting to put its foot down.
What's new:
Microsoft is beginning to crack down on unauthorized versions of Windows by forcing people to authenticate their OS before getting security patches and other updates.
Bottom line:
The move has the potential to boost revenue for Microsoft, but it could push some people toward Linux and it adds some security risk for legitimate users.
Those with unlicensed copies of Windows will be blocked from getting both add-ons to the OS and security patches through Microsoft's download site (though they will still be able to use the Automatic Update feature built into Windows).
"They've let it go until now because PC growth has been so good," said Matt Rosoff, an analyst at research firm Directions on Microsoft.
But that's begun to change.
Sales of Windows have started to lag those of the PC market as a whole. The issue has become more acute as an increasing amount of the growth in computer shipments is coming from emerging markets, where piracy is far more prevalent.
Analysts agree that cracking down on unlicensed copies of Windows is one of only a few ways Microsoft can grow the business, which is a key generator of profits. But they also point to significant risks involved in taking a harder line.
Historically, Microsoft has trod carefully when it comes to crackdowns, particularly in emerging markets. Though clearly eyeing growth, the company has not wanted to push too hard in countries where piracy is rampant, and thereby force customers toward Linux. Also, some say that by threatening to withhold security updates, Microsoft is making the entire Internet less secure, harming legitimate customers as well.
In an effort to placate that concern, Microsoft will allow those with unlicensed copies of Windows to continue getting security patches by turning on Windows' Automatic Update feature.
Despite the risks, though, the potential increase in sales by cracking down on piracy is hard for Microsoft to ignore.
Piracy is a big problem for the software maker--one that has cost it billions of dollars in recent years. Last quarter, for example, Microsoft saw revenue in the Windows client unit grow by 5 percent, but PC shipments grew more than twice that fast. Until this year, the client unit had been growing its revenue at a compounded growth rate of 12 percent. Any slump in the Windows client business is cause for concern: Last quarter, the unit accounted for $2.5 billion in profits--more than half of the company's total $4.7 billion earnings.
In a presentation to financial analysts last summer, Will Poole, head of the Windows client unit, identified a reduction in unauthorized use of Windows as a key growth opportunity for the business. He mentioned it alongside efforts like Tablet PC and Media Center, which are
See more CNET content tagged:
piracy, security patch, emerging market, Automatic Update, copy
How does Microsoft propose to verify licensing? If it is by typing in the original license key then we are in good shape (at the 90% level) but there are going to be a large number of people who are totally hosed. (We are actually in better shape since we anticipated this and bought into an "Enterprise licensing scheme with MS" but that's another story).
The easiest way would be for them to write a script that pulls the key from the registry, decrypts it and then does the comparison automatically.
That would be the smart thing to do.
If it is manual input though you can still be saved because if you look on the net there is at least one small program floating around out there that will read the key from the registry and display it for you. Just run it on all your "unknowns" and it will tell you what key was used.
Unfortunately I cant give you much more detail because I dont remember what it was called or where I found it but I had to use it before myself .
'Windows Activation' thing you had to either log in to activate
Windows, or call up MS to get the code. If you call that number
now you don't even talk to someone, they don't verify crap, they
just give you the code you need to verify your copy. I guess MS
simply doesn't realize that as long as you have AN instalation
code, you're good to go. The only thing it sounds like they are
cracking down are are actually hacked versions of Windows in
which the activation system was either broken or removed.
As smart as some of their engineers are, there is someone out
there that will beat them at their own game.
Also, doesn't it worry anyone that an MS website can see so far
into the system to verify it's authenticity? Couldn't that be a
massive security hole?
Well, consumers not as much as you think. Corporate customers, and small businesses, silly. It's all about money, and the way to get it is from people that really need updates... companies that are vulnerbal and are avoiding extra fees. A consumer wont bring down a network as much as someone in the company network the brings all 20 clients and servers down.
I use neither a pirated version or a Linux box.
I simply don't need the cartoonish look and added instability of XP, so I stick with the Win2k I bought with my previous machine.
Will Microsoft's next move be to block critical updates for Win2K users, or will they tweak their licence so that it must stay with the machine it was first installed on ?
Are these people using pirated software doing worst than Microsoft's selling overpriced copies?
I'd feel guilty if I was using a pirated copy of Windows, but at the same time I feel robbed when I see the big profits MS makes out of selling at current prices.
This statement in your article is absolutely FALSE. Security updates will not be denied ANYONE based on this program.
But the real question should be "What's it going to cost to be illegal" - and the cost should be high. Actually, nobody should be upset about this: the people that have a legal copy have all the benefits; the others, wont.
As for the usual MS bashers ? what is your problem? If you don?t like Windows, you can just download Linux for free.
I have a couple thousand dollars invested in software that won't run on Linux. I have this investment because starting years ago I was forced to buy into the WinTel alliance if I wanted to use the software I needed at the time. This was entirely due to MS's monopolistic practices. If I could go back and start over I would choose Apple systems and find work-arounds for my software needs. I intend to buy a Mac in the near future anyway and gradually migrate my software as I can afford to replace it. Answer your question?
The whole idea behind that is that OEM copies are usually customized to the machine model you bought (Dell, HP, etc.). However when it is white boxes you are dealing with, then the manufacturer usually doesn't do any customization besides a logo.
However, as long as we are being fair it is also only fair that when a person pays the price for Windows that they get on OS that is secure, stable and isn't loaded with more bugs than a 50 foot roach motel in NY. Fair is fair.
When Windows becomes a better OS, people will pay for it. At least more will. Right now there is no incentive to pay for it. Windows XP is the best Windows ever released, but on a scale of 1 to 10 it is still a 4 or at most a 5. That should give you some idea about previous versions. For people to feel it is worth the high cost of the OS it needs to be an 8 or 9. This is something I don't think Microsoft is capable of producing them seem to have too many irons in the fire and are spreading themselves too thin to really do anything really well.
I also think that Microsoft needs to concentratre more on the source of these pirated copies and the source for most of these are people that build PC's and sell them through computer shows, ads in the paper and even small mom and pop shops. They are the ones most likely to install a pirated copy not the person that bought the computer to start with. I think Microsoft is picking on the wrong people.
In the end a crack will be found that will by-pass this, sales will dip and most importantly their will be more people that hate Microsoft because after all they only bought a PC, it isn't up to the consumer to make sure it is legit, it is up to Microsoft to make sure those that are offer it's products for sale are selling the real thing. It is in Microsoft's best interest all the way around.
Robert
Don't like it? Use Linux or buy a Mac.
Its funny how many times someone loses interest on asking me to build them a PC after they learn that I will not install an illegal copy of the OS. They either buy it and have me install it or they get the PC with no OS.
New CPU
New Motherboard
New Video Card (old not usable in new MB)
New RAM
New Hard Drive (add a bigger one for storage)
New Audio (on Mother board)
New ...
It's the same box but basically nothing in side is what came with the box. So, since XP wouldn't run any more, I'm back to my old Win2K that I bought years ago. Actually, I prefer Win2K to XP anyway but,
MS made it impossible to recover from a major hardware failure and they would NOT give me a new access over the phone - Pay for a new license is what they said.
1/Windows costs too much..
If you think windows costs too much - buy a Mac or install Linux, which is easily obtainable for free.
SP2 was given away for free, Mac owners had to pay the full OS price for their latest update, that offered no significant OS changes, except for a ripoff of a freely distributable piece of software, and a few security updates.
2/But what about security, unpatched pirated versions of Windows put us all at risk!
No they don't, because all you have to do to continue to receive critical updates in a timely manner is switch on Automatic Updates.
In any case, these patches are almost certainly going to be easily accessible. Getting a Corporate licenese key is as simple as a google search, and if the people who've pirated windows can't be bothered to get their updates from the same place, then the chances are they'd be too lazy to update their machines at all.
Bottom line is that the people chose Windows as the dominant OS, and now they're getting their deserved reward. Especially those that abandonned other computer systems for a PC running a pirated OS.
At least half these people would still be using Ataris and Amigas if Windows wasn't easily pirateable, and certainly don't have the expertise to run a system like Linux or the money to run a Mac.
Tough luck is all I can say, and bollox, because now I have to buy my version of Windows...
price for their latest update, that offered no significant OS
changes, except for a ripoff of a freely distributable piece of
software, and a few security updates."
Which 'update' are you referring to? Panther? If so, to say it had
no significant OS changes means you are quite misinformed and
not willing to do any research. And like Microsoft, Apple
continues to offer interim updates for free.
P.S. The cost of a Mac OS X license is still lower than Windows,
costing only $130.
MS needs to discontinue XP Home for mature markets, lower the cost of XP Pro at or below the cost of XP Home presently. This would make it more enticing for businesses to upgrade. XP Home makes sense if it is the only computer at your house, but with three or more computers the crippled networking features in XP Home makes it difficult to network the computers.
XP Home should replace the "Windows Lite" that MS has started to offer in emerging markets. Why would a person pay for "Windows Lite", that is crippled cannot be networked, and only a few applications can be run at a time, when they can get a pirated copy of XP Pro for less.
Yes MS needs to make money to stay in business and keep their investors happy. However as several sites have reported that the cost of Windows has gone from being a minor cost of owning/buying a computer to being a major cost. It cost me $100 to upgrade to 98, another $100 to upgrade to 98SE, which was not even a huge upgrade, and finally another $100 to XP Home. The trend is MS believes they own the market and can charge what they want. I counter this and say that there are two threats to this Apple (the new Mac Mini actually makes buying a Mac affordable) and Linux (I know it has been said before, but I feel that in about 2 years I will be able to suggest Linux to my mom, who is computer illiterate).
Personally if it would be about $50/year per computer I would go for a license for Windows provided the cost would include all future upgrades, transferable to a new machine as the old machine dies or becomes outdated, and would be the equivalent of XP Pro. MS would have revenue coming in, and all the users would be guaranteed to have the latest product from MS. I feel that $25/year per computer would be good for XP Home equivalent OS.
investments, no matter what the argument is.
It's been a long time coming, but the writing is on the wall.
Software registration with automated on-line verification is a
simple and practical matter, in itself.
However, Microsoft has a real problem in this area. Since their
software did not enforce these rules from the beginning, they
have a proliferation of multiple versions across the globe. How
do they begin to truly differentiate between legitamite and
illegitimate versions of their OS from an automated standpoint?
Would it cost more to try to clean up this mess by having to deal
with millions upon millions of phone calls? Obviously there are
going to have to be some loop holes to keep that down. Taking
a "hard-line" would only alienate existing consumers who have a
legitamite Microsoft applications running on an illegitamate
copy of windows.
Bottom line, even though I am not a Microsoft fan, I hope they
find the correct solution for this problem. I whole-heartedly
support their efforts to thwart illegal copies of their operating
system.
Who knows, maybe they will be able to offer the OS at a lower
cost. But then again, the cost of cleaning up their section of the
market will offset the possibilty of any cost reductions to the
consumer, and might even inflate them.
All software manufacturers have the right to protect their
investments, no matter what the argument is.
It's been a long time coming, but the writing is on the wall.
Software registration with automated on-line verification is a
simple and practical matter, in itself.
However, Microsoft has a real problem in this area. Since their
software did not enforce these rules from the beginning, they
have a proliferation of multiple versions across the globe. How
do they begin to truly differentiate between legitimate and
illegitimate versions of their OS from an automated standpoint?
Would it cost more to try to clean up this mess by having to deal
with millions upon millions of phone calls? Obviously there are
going to have to be some loop holes to keep that down. Taking
a "hard-line" would only alienate existing consumers who have
legitimate Microsoft applications running on an illegitimate
copy of windows.
Who knows, maybe they will be able to offer the OS at a lower
cost. But then again, the cost of cleaning up their section of the
market might offset the possibility of any cost reductions to the
consumer, and might even inflate them
Bottom line, even though I am not a Microsoft fan, I hope they
find the correct solution for this problem. I wholeheartedly
support their efforts to thwart illegal copies of their operating
system.
The really horrifying thing is that Microsoft will be setting a standard with this.. once they force something down our throats and we accept it because we have no other choice the rest of the software world follows suit and it becomes the norm.
Eventually it will become so oppressive that the general public realizes their situation and fights back.
Viva la révolution
But it's not Linux. And sorry, Apple Computer fans, it's not the Mac.
The biggest rival to Windows sales is Windows itself--or rather pirated copies of the OS. And Microsoft is starting to put its foot down.
News.context
What's new:
Microsoft is beginning to crack down on unauthorized versions of Windows by forcing people to authenticate their OS before getting security patches and other updates.
Bottom line:
The move has the potential to boost revenue for Microsoft, but it could push some people toward Linux and it adds some security risk for legitimate users.
More stories on Microsoft and piracy
In its most serious bid yet to reap revenue from those who've been getting Windows without payment to Microsoft, the company plans to require computer owners to verify that their copy of Windows is properly licensed before allowing them to download software from Microsoft's site. By mid-year, the once voluntary Windows Genuine Advantage program will become mandatory.
Those with unlicensed copies of Windows will be blocked from getting both add-ons to the OS and security patches through Microsoft's download site (though they will still be able to use the Automatic Update feature built into Windows).
"They've let it go until now because PC growth has been so good," said Matt Rosoff, an analyst at research firm Directions on Microsoft.
But that's begun to change.
Sales of Windows have started to lag those of the PC market as a whole. The issue has become more acute as an increasing amount of the growth in computer shipments is coming from emerging markets, where piracy is far more prevalent.
Analysts agree that cracking down on unlicensed copies of Windows is one of only a few ways Microsoft can grow the business, which is a key generator of profits. But they also point to significant risks involved in taking a harder line.
Historically, Microsoft has trod carefully when it comes to crackdowns, particularly in emerging markets. Though clearly eyeing growth, the company has not wanted to push too hard in countries where piracy is rampant, and thereby force customers toward Linux. Also, some say that by threatening to withhold security updates, Microsoft is making the entire Internet less secure, harming legitimate customers as well.
In an effort to placate that concern, Microsoft will allow those with unlicensed copies of Windows to continue getting security patches by turning on Windows' Automatic Update feature.
Despite the risks, though, the potential increase in sales by cracking down on piracy is hard for Microsoft to ignore.
Piracy is a big problem for the software maker--one that has cost it billions of dollars in recent years. Last quarter, for example, Microsoft saw revenue in the Windows client unit grow by 5 percent, but PC shipments grew more than twice that fast. Until this year, the client unit had been growing its revenue at a compounded growth rate of 12 percent. Any slump in the Windows client business is cause for concern: Last quarter, the unit accounted for $2.5 billion in profits--more than half of the company's total $4.7 billion earnings.
In a presentation to financial analysts last summer, Will Poole, head of the Windows client unit, identified a reduction in unauthorized use of Windows as a key growth opportunity for the business. He mentioned it alongside efforts like Tablet PC and Media Center, which are
Poole said that 92 percent of software in China is pirated, which means the software on 13 million computers. And though the rate is estimated at only 22 percent in the United States, that still amounts to 12 million PCs, because the computer market stateside is so much larger.
"That's a big number," Rosoff said. "If they could get a fraction of that (population) to buy legitimate Windows, that could boost the business."
Rosoff notes that with the release of the next version of Windows--code-named Longhorn--more than a year off, there are not that many ways Microsoft can increase its sales, particularly to business customers.
In the presentation last summer, Poole didn't offer specifics, but he did pledge more action, planting the seeds for the current effort. "We see good revenue opportunity for us to try and work with the channel and work with consumers to have them understand the value of genuine Windows," he said at the time, promising that a variety of pilot programs would quickly follow.
This is not Microsoft's first stab at trying to combat piracy. The company added an activation requirement for Windows and spends a lot of time and money working with regulators to fight piracy through legal channels.
Microsoft said Wednesday that it believes the latest effort will raise sales but declined to offer any specific targets.
"Microsoft expects some revenue from this effort--revenue from licenses that are in effect already in use," Kurt Kolb, general manager of Microsoft's system builder and license compliance unit, said in a statement provided to CNET News.com.
A careful course
As a way of lessening the danger of driving customers to Linux, Microsoft is offering some compassion to those whose copy of Windows is found illegitimate. The company is testing a program in three countries in which those who are found to have an improperly licensed version of Windows can get a legal copy at a discounted price.
Analysts say the offer to "go legit" is a good idea, but may not go far enough.
"In some parts of the world the copy of Windows costs a lot, relative to
- Windows Vs. Windows
- by February 5, 2005 9:14 PM PST
- he cost of the PC so it still may be a tough sell," said Gartner analyst Michael Silver. Plus, there are technological hurdles. A new copy of Windows will likely mean computer owners will need to back up all of their other data, reformat their hard drive and start from scratch, something many novices may be unwilling or unable to do.
- Like this Reply to this comment
-
Showing 1 of 2 pages (102 Comments)They are trying to show some value, because basically there is not a lot of difference between a genuine copy and a pirated copy.
--Michael Silver, Gartner analyst
Microsoft has also been trying to avoid being perceived as all stick and no carrot. The company has been offering various contests and freebies aimed at giving an added benefit to those who do have genuine copies of Windows.
"They are trying to show some value, because basically there is not a lot of difference between a genuine copy and a pirated copy," Silver said. "It kind of looks the same and works the same."
In Singapore, Microsoft has been giving away prizes to those who sign up for Windows Genuine Advantage, while in the United States, the company is offering free copies of Photo Story 3, along with other incentives.
This effort has been building quietly for almost a year. The company tried out the idea with a "Windows Club" in China--essentially a series of perks rewarding the estimated 8 percent of users there that do buy genuine software.
Later in the year, Microsoft quietly debuted Windows Genuine Advantage, pitching the downloadable tool as a way for consumers to double-check whether their copy of Windows was genuine. At the time, there was neither a benefit for those who authenticated their software, nor a penalty for those who didn't.
After a few weeks, Microsoft started offering incentives for those who participated in the trial, while still not penalizing those whose copy was found to be illegitimate. Last week, though, Microsoft announced plans to make the program mandatory and prevent anyone with an unauthorized copy from downloading from its site.
Although some analysts speculated the company might eventually block all patches for unauthorized copies of Windows, Microsoft told CNET News.com on Thursday that it is "committed to delivering security updates to all users, with or without Windows Genuine validation through the Automatic Updates feature."
Despite announcing the rather bold plan, Microsoft is clearly aware of a potential perception issue. Recently, the company started asking some of those on its Windows Genuine site to take a survey about their feelings toward the effort.
The survey asked if customers believed the program would reduce counterfeiting, whether they believed the program was more a benefit for Microsoft or more for consumers, and how they would feel if the program was made mandatory.
Gartner's Silver said that ultimately, the issue for the consumer boils down to the impact on the pocketbook.
"It's going to come down to some extent on pricing," he said. "What's it going to cost to get legal?"