How Ballmer’s Employment Choices Could Boost Desktop Linux
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Microsoft’s head made it clear in this piece that if the US government opts to raise its taxes, Microsoft will indeed be moving employment positions offshore. And while I agree with him that raising taxes in this economic downturn is pretty dangerous if you are hoping to keep others from not further off-shoring our jobs, I cannot help but wonder about another benefit.
It seems to me that in a round about sort of way, desktop Linux, would be a real position for growth here. Because MS is concerned about having to pay more of their share, companies looking to avoid what would likely be an even bigger increase in prices with software if MS was instead, to keep jobs here locally despite the tax rules being changed.
My take on the matter. Linux companies by nature, are more nimble and are not threatened by this proposed change. First of all, some of them are not even based here in the states. And those that are, have not made their concerns heard about this likely because they see a possible benefit yet to come about.
3 Comments
Hotrao
June 6th, 2009
at 8:42am
“In my opinion it’s not (only) a problem of labour and tax costs.
It’s also a problem of desired gross margin. Now OS market is quite full (intending with this that Microsoft has, of course a dominant position) and so, costs and revenues curves could be not so balanced at this time.
The first wave brought many work places to India ad other high-tech-developed-but-low-labour-costing-countries.
At this time, I think Mr. Ballmer and othe IT big company will have to bounce a little bit more (Argentina, east europe, asia,…) to find truly lower labour rates.
Unfortunately I think that Linux is only a mid term solution, because if it gets bigger market share, companies dimension will necessarily increase and sooner or later will have to deal with cost optimization.
bogopogo
June 6th, 2009
at 7:08pm
I think that if he moves jobs “off shore” - then some yahoo in Congress will introduce a bill to tax them at an ever higher tax rate.
so - they can keep the jobs here and pay higher taxes, or they can move them off shore and pay even higher taxes.
when they’re so desperate for money that they’ll raise taxes in an economic downturn, they’re pretty desperate enough to do anything.
Richard L Walker
June 6th, 2009
at 9:17pm
I bought my PC with Windows XP installed. I have no doubt that Microsoft negotiated to get Windows XP installed on the PC and other PCs being sold. Then they devised Windows Genuine Advantage and promptly told me my copy was illegal. The whole scenario appears to be a cheap way to get Windows XP installed on new PCs and then a way to get money out of the buyers of those PCs without having to sell anything … just convince the owner he is a crook. I have been moving to Linux ever since. This most recent announcement will have not convince me to stay or leave Windows. That decision has already been made. My personal belief is that companies who move to other countries are violating national security … but I’m sure nobody else agrees with that. It is easier to claim that the destruction of our economic system is simply natural.