Blackfriars' Marketing

Tuesday, March 13, 2007

Microsoft admits piracy is actually a form of marketing

Microsoft has always viewed unauthorized copying of its software as a lost sale and has built rather absurd systems like Windows Genuine Advantage (WGA) to regularly force its own customers to prove that they have legal Windows copies. Well, the school in Russia that ditched Windows in favor of Linux because the local police brought charges against it for piracy have changed Microsoft's mind. Microsoft business group leader, Jeff Raikes, recently admitted at an investor conference that it benefited from piracy, saying:

"If they're going to pirate somebody, we want it to be us rather than somebody else," Raikes said.
....
"We understand that in the long run the fundamental asset is the installed base of people who are using our products," Raikes said. "What you hope to do over time is convert them to licensing the software."

We think he left out a word. We think the quote should have read "satisfied people who are using our products." And that isn't going to happen until Microsoft figures out it must treat users as paying and future customers, not theoretical lost revenue.

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