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Microsoft puts the squeeze on NW schools
The Oregonian ^ | April 21, 2002 | Steve Duin

Posted on 04/22/2002 12:23:58 PM PDT by Doug Loss

Predatory? Monopolistic? Customer-unfriendly? Microsoft?

Say it ain't, Joe . . . and Steve and John and Scott and the rest of the computer tech supervisors at the 24 largest school districts in Oregon and Washington.

At the busiest time of the year for those districts, Microsoft is demanding that they conduct an internal software audit to "certify licensing compliance." In a March letter, the software giant gave Portland Public Schools 60 days to inventory its 25,000 computers.

"Which," said Scott Robinson, the district's chief technology officer, "is a virtual impossibility."

Microsoft is well within its rights to call for an audit. Everyone says so. Everyone has read the contract. But school officials in both states are calling the audits "untimely," "outrageous" and "typical of Microsoft: not very bright."

Many also consider the audit requirement a strong-arm tactic to push school districts into Microsoft's costly system-wide licensing agreements.

"Given the fact that the letter came from their marketing department, and included a brochure about their school licensing agreement, this didn't seem terribly subtle to any of us," said Steve Carlson, associate superintendent for information and technology for Beaverton schools.

"I have a more simplistic view," said John Rowlands, director of information services for the Seattle School District: "They just want to squeeze every nickel out of us they can."

For sheer irony, it's hard to beat the fact that the Bill and Melinda Gates Foundation is pouring millions of dollars into small, high-tech high schools even as Microsoft is looking for loose change at schools such as Jefferson and Marshall.

The school districts are considered guilty of software piracy until they can prove they're in licensing compliance. If the district can't drum up the staff to manage the inventory, Microsoft is willing to show up with its own audit crew, but if a single computer is found with illegal or undocumented software, the district must pay for the audit.

"This doesn't recognize any of the complexities of the educational environment," Robinson said. Many of the 25,000 computers in Portland schools were donated and arrive without pedigree or papers. "We're bubblegum and baling wire in terms of what we're putting on the desktops. For us to try to manage every donated desktop that comes in from a business or an individual is ridiculous."

Ah, but wait. Microsoft has an offer it thinks you can't refuse, if only to avoid the audit: the vaunted Microsoft School Agreement. Under the terms of this agreement, a school or district simply counts its computers and pays Microsoft somewhere in the neighborhood of $42 per machine for one systemwide annual license.

As Rowlands noted, IBM rolled out this idea years ago. Schools liked it because they could add hundreds of computers over the course of the school year and not pay for the additional software licenses until the next computer count.

But Microsoft has put a new spin on the agreement, requiring an "institution-wide commitment." That means the district must include in its count not only the PCs, but all the iMacs and Power Macs that might conceivably use Windows software.

What would it cost Portland Public Schools, which is already facing a $36 million shortfall, to sign that Microsoft School Agreement?

"A rough number? $500,000," Robinson said, "which translates, roughly, into 10 teaching positions."

No one at Microsoft -- and I dialed three different offices -- returned phone calls Friday to explain why the "random" audits targeted the nine largest school districts in Oregon and the 15 largest in Washington. Nor was anyone available to explain why Microsoft failed to notify the two groups chartered to represent the schools in licensing negotiations, the Oregon Educational Technology Consortium and the Washington School Information Processing Cooperative.

"Everyone has a bad taste about the way this came down," Carlson said. "The audit is heavy handed; its non-participatory. Either they're starting out with the assumption that we're all crooks or they feel they can bludgeon school districts into their marketing agreement. It's clear they're not spending much time talking to the schools they're purporting to be supportive of."

Thus, it's not surprising that several schools are asking, along with Robinson in Portland, "whether we want to continue with the Microsoft platform."

One of the options is Linux, open-source software schools can run on their desktops free of charge and without a license. Linux is particularly useful on donated computers that aren't worth the $100 Microsoft charges for a software license.

Paul Nelson, a teacher at Riverdale, and Eric Harrison with Multnomah ESD have developed a thin-client software called K12LTSP that runs Linux. In the last nine months, they've distributed the software to 5,000 schools.

"Schools and government agencies that are paying for Microsoft Office are wasting money," Nelson said. "They should be using free software. A lot of this stuff has become generic. It doesn't take a fancy program to make something bold."

R. Thor Prichard, the executive director at the Oregon Educational Technology Consortium, observed, "Microsoft has made it known they're concerned about Linux invading their territory. They're doing a lot of strategy building about eliminating Linux as a threat. Some of the districts they targeted are some of the districts doing initiatives in Linux."

Subtle? Artful? Benevolent? Microsoft? That'll be the day.

Reach Steve Duin at 503-221-8597, Steveduin@aol.com or 1320 S.W. Broadway, Portland OR 97201.


TOPICS: Business/Economy; Culture/Society; Miscellaneous; News/Current Events; Technical; US: Oregon; US: Washington
KEYWORDS: microsoft; techindex
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1 posted on 04/22/2002 12:23:58 PM PDT by Doug Loss
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To: *Microsoft

2 posted on 04/22/2002 12:32:12 PM PDT by Libertarianize the GOP
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To: Doug Loss
Why aren't all of these perpetually (supposedly) budget-strapped public schools ALREADY running Linux? Maybe this will inspire them to do so.
3 posted on 04/22/2002 12:40:59 PM PDT by StockAyatollah
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To: Doug Loss
They out to send a report to Microsoft that says 84,275 computers, all using Linux.
4 posted on 04/22/2002 12:42:55 PM PDT by eFudd
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To: Doug Loss
So? Businesses and corporations are expected to pay the licensing fees, why shouldn't the school system?

I'm no fan of Microsoft's products, but I do feel they've been improperly vilified. Ostensibly because they didn't donate enough to the democRATs. Microsoft has probably gotten fed up with the b.s. from all sides and finally just said screw 'em all.

5 posted on 04/22/2002 12:45:43 PM PDT by LoneGOPinCT
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To: StockAyatollah
That's a hot button topic for me.

Years ago Oregon instituted the lottery to "help" pay for education. So why are the schools in Oregon in such grave financial straits?
Further, our corrupt politicians have shifted a higher percentage of school dollars to the Portland metro area, leaving the rest of the state with very little. My kids are in a rural district. The elementary school doesn't have a lunch room, the kids have to pick up their trays and take it back to their class to eat. Also, there is not enough room for the fifth grade classes, so they bus them to another school. And the Jr. High doesn't have a lunch room, they have to walk over to the High School to eat. And to even think there are such luxuries as Marching Bands is laughable. It seems that the Portland school districts (with the help of some gov officials) are doing a little squeezing of their own.

6 posted on 04/22/2002 12:59:32 PM PDT by UnsinkableMollyBrown
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To: LoneGOPinCT
The problem here is they don't have any specific evidence to show that there are license violations; Microsoft is basically extorting the taxpayers on this. This is just more of those infamous Microsoft business tactics that have made so many people hate them...

I think the school district should tell them to get a court order, and challenge their legally-questionable EULA.

Meanwhile, a lot of people on slashdot are volunteering to help them migrate to Linux. :-)

7 posted on 04/22/2002 1:12:22 PM PDT by B Knotts
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To: tech_index, Dominic Harr, Bush2000
*ping*
8 posted on 04/22/2002 1:13:06 PM PDT by B Knotts
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To: Doug Loss
Microsoft is well within its rights to call for an audit.
 "They just want to squeeze every nickel out of us they can."

Piss off.

9 posted on 04/22/2002 1:19:05 PM PDT by gcruse
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To: B Knotts
The problem here is they don't have any specific evidence to show that there are license violations;

Sorry, Knotts. The license specifically gives MS the right to audit enterprise customers.

Microsoft is basically extorting the taxpayers on this. This is just more of those infamous Microsoft business tactics that have made so many people hate them...

Awwwww, my heart just breaks over all your widdle hurt fee-wings. Read this: http://wsrn.com/apps/news/art.xpl?id=4239669&f=NEWS&s=MSFT. MS has been screwed for years by people stealing its software -- and enterprises are generally the worst offenders. Sorry, no sympathy here. Either pay, or stop using the software.

I think the school district should tell them to get a court order, and challenge their legally-questionable EULA.

It's a contract, Knotts. I know that that's inconvenient -- you know, signing a document and actually having to live up to the terms -- but it's reality. And it would be pretty funny seeing the school district pay for a bunch of fancy lawyers in its current so-called "cash-strapped" state (which I don't buy for a minute). The only reason they're having problems complying is they have a bloated bureacracy that can't tie its own shoelaces -- a bureaucracy, I might add, that costs twice as much per student as other industrialized nations and can't meet the same quality bar ...

Gee ... I really feel bad for them /sarcasm

Meanwhile, a lot of people on slashdot are volunteering to help them migrate to Linux. :-)

I think that's a great idea. Once the district comes in contact with some of those vitriolic losers, they'll never look at open source crapware ever again...
10 posted on 04/22/2002 1:23:28 PM PDT by Bush2000
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To: Doug Loss
25,000 computers, assume 5 year average life, also assume new software with new computers.

Windows at $70, Office educational edition at $100. Also 1000 (for the older kids) copys of Dev studio leaning edition at about $100. That's in the neighborhood of a million a year.

On it face it seems like the license terms will save the schools money. Also allow the schools to install uniform OS's and tools across all machines. If MS wants this kind of money just for windows though they should get stuffed.

Except the schools would have to buy 'naked PCs' and install all the software thmselves. But with students messing with things (I deleted the /system32 folder, Microsoft messed up my PC!) the schools have got to have the reinstall process down pat.

11 posted on 04/22/2002 1:24:39 PM PDT by Dinsdale
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To: Doug Loss
"Schools and government agencies that are paying for Microsoft Office are wasting money," Nelson said. "They should be using free software. A lot of this stuff has become generic. It doesn't take a fancy program to make something bold."

Schools and government agencies that are paying for useless teachers and bureaucrats are wasting money," Bush2000 said. "They should fire them."
12 posted on 04/22/2002 1:24:43 PM PDT by Bush2000
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To: Doug Loss
I think it's typical of the habitually ruthless to bring to bear the most unreasonable pressure at the most inconvenient time. . . . all very legally proper, of course. . . at times. . . . in some contexts. . . .
13 posted on 04/22/2002 1:28:06 PM PDT by Quix
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To: Bush2000
I think the school district should tell them to get a court order, and challenge their legally-questionable EULA.

It's a contract, Knotts.

In fact click through licences have generally not been found enforcable. And yes you have a right to use software absent any EULA. You got the legal right because you paid for it. EULA's restrict that right, they don't convey it.

14 posted on 04/22/2002 1:28:37 PM PDT by Dinsdale
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To: StockAyatollah
Simple. Schools are run by C students. While Linux is very powerful it is not very C student friendly.

Also remember the majority of computers in schools are in the student lab to teach students something that supposed to be useful. MS rules the computing world, teaching students how to use Linux won't give them any useful skills in a world where 90+% of the desktops aren't Linux.

15 posted on 04/22/2002 1:32:14 PM PDT by discostu
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To: Bush2000
I won't argue that the school district people are anything other than incompetant boobs, but...it should be illegal to waste taxpayer money on licenses and license compliance for proprietary software when free software exists for the application intended.

And, Microsoft isn't going to win any support for their current antitrust position by employing extortionist tactics against school districts and other taxpayer-funded organizations.

16 posted on 04/22/2002 1:33:22 PM PDT by B Knotts
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Comment #17 Removed by Moderator

To: Dinsdale
In fact click through licences have generally not been found enforcable. And yes you have a right to use software absent any EULA. You got the legal right because you paid for it. EULA's restrict that right, they don't convey it.

Wrong, totally wrong. And there are many examples that prove you are wrong...
18 posted on 04/22/2002 1:38:09 PM PDT by Bush2000
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To: Bush2000
In this case, Adobe's EULA was found to be irrelevant.
19 posted on 04/22/2002 1:41:59 PM PDT by B Knotts
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To: B Knotts
I won't argue that the school district people are anything other than incompetant boobs, but...

Here we are in agreement...

it should be illegal to waste taxpayer money on licenses and license compliance for proprietary software when free software exists for the application intended.

Illegal?!? Are you smoking crack?

And, Microsoft isn't going to win any support for their current antitrust position by employing extortionist tactics against school districts and other taxpayer-funded organizations.

I doubt they care. The NEA is filled with socialist teat-suckers, anyway, so their support for any business is highly questionable. Personally, I'd write 'em off...
20 posted on 04/22/2002 1:42:06 PM PDT by Bush2000
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