Fri, Oct 9, 2009 13:46 EDT

Get Over It Ballmer: Free Isn't a Dirty Word

Steve Ballmer's recent comment that Microsoft can't make money from free software and services is a bewildering contradiction.

Topic: Infrastructure

Current Rating: Comments: 6

There are moments when you wonder if Microsoft is really embracing our Web 2.0 world or just reluctantly following along because it has to.

The software giant has obviously made adjustments to the era of free software and services: It has the Windows Live platform, Microsoft Security Essentials malware protection, the Bing search engine, and soon there will be a Web version of Office with the release of Office 2010 next year. They're all free.

Somebody should tell CEO Steve Ballmer.

While in Paris debuting Windows Mobile 6.5 this week, Ballmer was quoted by Reuters as saying: "Free is not a business model. We are a commercial company. We will look to gain revenue and profit from our activities. You'll have to ask our competitors if they'll make money on free things."

Ok, I get what he's saying: free by itself is not a business model. But we knew that. Ballmer did not need to clarify this point, and he seems out of touch. As for the competitors that make money on free things. I haven't paid a cent for the Google services that I use, and last I heard that company is doing just fine financially.

"Free" is an important component of today's business model. You use the free products to promote or leverage other more lucrative parts of your business. Microsoft obviously knows this. It is frantically trying to catch up to Google in this space, which makes Ballmer's comment so puzzling.

Microsoft has watched Google make a fortune from offering free software and services and has been investing billions of dollars in its own free services like Bing and Windows Live. Clearly, Ballmer believes in the value of free services or he would not have invested so much in them.

But he is an old school business man and the idea of giving anything away for free still irks him, and sometimes he speaks without a filter, to put it lightly.

Mostly, I think, Ballmer's "free" comments show his frustration in having to change. Not only has he contradicted himself by saying Microsoft shuns free stuff when it has been consistently releasing free software and services, but he comes across as stuck in the past, recalling a time when Microsoft comfortably dominated software and charged for everything.

It's all right to be old school, but Ballmer's latest foot-in-mouth just makes Microsoft look old.

Shane O'Neill is a senior writer at CIO.com. Follow him on Twitter at twitter.com/smoneill. Follow everything from CIO.com on Twitter at twitter.com/CIOonline.

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Mon, Oct 12, 2009 7:31 EDT

Balmer

Posted by: Patty
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It was a confusing comment certainly, but what specific question was he responding to when he made it?

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Mon, Oct 12, 2009 10:26 EDT

Much interjection

Posted by: Donny
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I believe the author has taken a single line and attempted to write a novel.

Ballmer stated that Microsoft must make a profit and cannot operate like FOSS.

Simple statement, simple point.

Also, remember that someone does foot the bill for Google - advertisers. If those advertisers wakeup to reality (low click count), then Google will charge you.

And please drop the Web 2.0 jargon...

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Mon, Oct 12, 2009 14:52 EDT

Horrible Journalism

Posted by: ShaneOneillisanIdiot
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Wow.

Let's take something completely out of context, dirty a great company that niche people love bashing, and stir the pot a little bit.

Nice work.

Its wonderful articles like this that make CIO.com less and less worthwhile. How did you get your job anyway?

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Mon, Oct 12, 2009 15:21 EDT

Taken out of context

Posted by: Lee
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Steve Balmer does need to embrace the new technology trends OR make significantly better/innovative software.

The issue is there are many free products that are good and comparable to some of Microsoft's products.

Anyone who reads this site will agree that they would willingly pay (or pay more) for software/support that is better than what you can get for free.

Microsoft used to be a leader in every sector they competed in, now they seem content to be the status quo in many of those sectors.

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Tue, Oct 13, 2009 11:43 EDT

MS have provided free for long

Posted by: Clear vision
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MS have provided free SW for long! In fact, they for instance killed early browsers that were not for free by providing Explorer for free. And giving free components goes on at MS as we speak. So what/ever MS/Balmer says is right as long as it fits their purpose...

So, we are far down the (free) road already and pehaps, MS have contributed to it the way they have created their market dominance since long. Anyway!

Life is Good :)

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