Thursday, April 13, 2006


How Piracy Opens Doors for Windows

`Microsoft Corp. estimates it lost about $14 billion last year to software piracy and those may prove to be the most lucrative sales never made.

Although the world’s largest software maker spends millions of dollars annually to combat illegal copying and distribution of its products, critics allege and Microsoft acknowledges that piracy sometimes helps the company establish itself in emerging markets and fend off threats from free open-source programs. [..]

The proliferation of pirated copies nevertheless establishes Microsoft products particularly Windows and Office as the software standard. As economies mature and flourish and people and companies begin buying legitimate versions, they usually buy Microsoft because most others already use it. It’s called the network effect.’

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