EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

05.24.09

Microsoft Sued Over Its Corruption in Switzerland, Microsoft Debt Revisited

Posted in Europe, Finance, Fraud, Law, Microsoft, Red Hat at 2:23 am by Dr. Roy Schestowitz

Switzerland money

Summary: Microsoft is sued by Red Hat for secret deals while the red ink seems to be quietly dripping

MICROSOFT’S illegal dealings in Switzerland are a subject that we wrote about earlier this month in:

Switzerland, being a nation of banking for the most part at least in people’s minds, thrives in trust and responsibility. Swiss citizens knew what Microsoft was up to and they responded:

Asking Switzerland for more neutrality …

[...]

Well – a lot of people in Switzerland and almost 20 companies are not really happy. Among these companies is Red Hat. So Red Hat is joining the official appeal that asks the court to stop this contract, force BBL to evaluate the alternatives that exist and are in active use, even in Switzerland in the offical way of public tendering.

Effectively the appeal asks the BBL to defend competition. In a vendor neutral way. Based on technical merits. I think it is fair to ask. Let the court decide.

And ofcourse the irony of asking Switzerland of all countries to act in a (vendor-) neutral way is quite funny.

As the above already suggests, Red Hat’s legal team is stepping in.

Red Hat is a leader of an appeal by 18 technology companies of a Swiss government agency’s award of a no-bid contract to Microsoft. The challenge raises important issues of openness in government and of a level playing field for open source and other competitors of Microsoft. Red Hat is seeking a public bidding process that allows for consideration of the technical and commercial advantages of open source software products.

There is some press coverage only from Peter Judge, but hopefully the word will spread and inspire other countries to do the same thing. It is certainly a broader issue.

£8 million a year to Microsoft, with no public bidding. And that’s just the tip of the iceberg, say open source activists

Linux vendor Red Hat, and 17 other vendors, have protested a Swiss government contract given to Microsoft without any public bidding. The move exposes a wider Microsoft monopoly that European governments accept, despite their lip service for open source, according to commentators.

The Red Hat group has asked a Swiss federal court to overturn a three-year contract issued to Microsoft by the Swiss Federal Bureau for Building and Logistics, to provide Windows desktops and applications, with support and maintenance, for 14 million Swiss Franc (£8 million) each year. The contract, for “standardised workstations”, was issued with no public bidding process, Red Hat’s legal team reports in a blog – because the Swiss agency asserted there was no sufficient alternative to Microsoft products.

For Microsoft to stoop down to these tactics of secret deals is not particularly surprising. See the following writings about Microsoft’s financial situation, which suffers from endless dumping of software and hefty fines:

As that last link shows, Microsoft is already taking debt. In fact, Microsoft’s debt is now receiving the blessing of a criminal company, which gives Microsoft (MSFT) debt a high rating.

DaemonFC says that “Microsoft is trying to sell debt bonds” and Twitter explains that “the $30 billion of cash had conflicts with other reports of $20 and it’s more likely they have none.”

“Microsoft is actually done with buybacks.”Further he explains: “at the end of 2008 they said they would go $20 billion in debt to buy $40 billion of their shares. Over the last couple of weeks there were a number of articles that acted like this is what they were doing. I thought they had already done their buy backs.”

Microsoft is actually done with buybacks. They announced it one month ago and it is odd because the company has purchased its stock heavily for many years. At that stage, namely the point where undisclosed buybacks are complete (their scale is disclosed, not the purchasing pace), according to their plans they would be about $5 billion in debt. Unless they cut these buybacks short, it would only make sense for Microsoft to be in debt right now. But as Twitter says, “If Microsoft is done with buybacks, why are there so many BS articles about it? [...] and this earlier article acts as if no one was sure.” To quote: “We know not why a company the size and shape of Microsoft needs to raise money through debt issuance–it already has over $30 billion in cash at hand on its books–but if this is a cost-of-capital initiative that leads to the company buying back some of its own float, shareholders may be in for a treat.

What exactly is going on here? Someone is not telling the whole truth as there are contradictions that we are able to identify.

“There is such an overvaluation of technology stocks that it is absurd. I would include our stock in that category. It is bad for the long-term worth of the economy.”

Steve Ballmer

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

A Single Comment

  1. amd-linux said,

    May 24, 2009 at 4:34 am

    Gravatar

    Roy,

    while not being an expert in US GAP, it could be possible that

    - cash as accounted in the MS balance sheet care mostly short and medium term bonds, not real cash or account deposits at a bank
    - the actual losses in valuation of these bonds are not being reflected fully in their balance sheet because as the are accounted as “HTM”, hold to maturity, instead of mark to market, in the hope that the issuer of these bonds can repay them, but there is currently no market with fair prices or huge spreads.

    So, in essence, their balance sheets show us huge “cash” reserves but that might give a wrong picture about their liquidity. And liquidity is want you need – cause with liquidity you pay the bills. If you assets are not liquid, you might die as a rich man, so to say :-)

    Banks did not collapse because they ran out of assets but in the cases I am familiar with, they financed long term credits they issued with short term credits they borrowed – but when the market dried out, boom…… although they had this huuuuge assets in their portfolio.

    So maybe MS manouvred itself in a similar situation, which looked very attractive until 9 months ago, as you could realize huge interest rate profits by refinancing long term, high interest rate credit facilities with short term low rate loans.

    This is my personal speculation, I have not the slightest clue if this is true – but as a model, it IMHO can explain why MS needs to borrow money.

    http://en.wikipedia.org/wiki/Mark_to_market
    http://www.americanbanker.com/glossary.html?alpha=H

What Else is New


  1. Microsoft Technology Crashes Financial Markets, Again

    SunGard, which is a Microsoft shop, is clearly failing to provide what it calls mission-ciriticaal [sic] solutions



  2. Alice v. CLS Bank (Alice/§101) Comes to Squash Software Patents Even in Eastern District of Texas

    The crackdown on software patents is coming along nicely and the Alice case is now being utilised even in the capital of patent trolls



  3. Apple's Patent Cases Against Android Are Falling Apart, as Acknowledged Even by the Anti-Android Lobby





  4. Links 29/8/2015: NetworkManager 1.0.6, Systemd Merges “su” Command Replacement

    Links for the day



  5. Microsoft Loves Linux to Death and Still Tries to Kill GNU/Linux

    Microsoft's relentless attacks on GNU/Linux and Free software in general (even if it runs on Windows) are so evident that claims of 'love' remain laughable at best (if not infuriating)



  6. Censorship, Self-Censorship and Intimidation Now the Modus Operandi at EPO

    The European Patent Office has ceased even trying to pretend that it respects human rights, including the right to free speech



  7. Patent Practitioners: "The Unitary Patent Might be Able to Open the Floodgates for Software Patents in Europe"

    The EPO-backed Unitary Patent scheme threatens to bring software patents to Europe and along with them a lot of patent trolls from all around the world (especially the United States)



  8. Microsoft Lies About Vista 10 and Increases Microsoft Surveillance (Even Beyond Vista 10 and Into Android, Vista 7/8)

    Windows surveillance expands retroactively, making its way into platforms other than Windows and also expanding to predecessors of Vista 10



  9. Another Suicide at the EPO, Fifth by Our Count

    Yet another EPO member of staff has just committed suicide, leading to the inevitable question: how many people need to die before Battistelli and his minions are out of the Office for good?



  10. Links 27/8/2015: ownCloud Desktop Client 2.0, Red Hat Downgraded

    Links for the day



  11. Microsoft-connected Mesosphere Threatens to Eliminate Free Software in the Datacentre

    Hiding behind a misleading 'open' label while actually backed by Microsoft (and based on new rumours may join Microsoft), Mesosphere wishes to eradicate Free and back doors-free software in large datacentres hosting a lot of physical and virtual servers



  12. Microsoft Aggression Against GNU/Linux Amid Vista 10's Failure

    A look at the recent assault on GNU/Linux in Munich and the likely cause for this assault (in such a timely fashion, too)



  13. Message to LinuxCon Regarding Microsoft: “It is Necessary to Get Behind Someone in Order to Stab Them in the Back.” -Sir Humphrey Appleby

    Jim Zemlin, executive director of the Linux Foundation, helps Microsoft gain influence in the Foundation after payments are received



  14. Market Share Estimates Confirm That Vista 10 Failed in a Major Way

    Confirmatory evidence that Vista 10 is failing in the market about a month after its much-hyped (paid coverage) release



  15. When Microsoft, the Master of Patent Trolls, Complains About Trolls

    Possibly the world's biggest patent abuser and monopolist, which also creates many patent trolls (including by far the biggest one), takes on a far smaller abuser in Court



  16. Letter Signed by Two German Officials Becomes a Microsoft Weapon of Propaganda

    Microsoft and its minions refuse to leave Munich alone, even though the vast majority in Munich are perfectly happy with Free/libre software



  17. Links 25/8/2015: Linux Kernel 4.2 Final RC, KDE Ships Plasma 5.4.0

    Links for the day



  18. Sabine Pfeiler and Otto Seidl Should Take Note as Russia -- Like China -- is in the Process of Banning Microsoft Windows for Security Reasons

    A look at a strange suggestion, signed by Sabine Pfeiler and Otto Seidl, who suggest going back to Microsoft which is basically a spyware company now



  19. Microsoft Windows Leads to Espionage and Blackmail: Latest Examples

    Another news overview, detailing high-profile examples of high-cost Windows deployments (including the cost of litigation and settlement)



  20. Links 23/8/2015: BcacheFS Benchmarks, Blackphone 2

    Links for the day



  21. Links 22/8/2015: Chromebook Gains, GNOME 3.18 Clues

    Links for the day



  22. Alice v. CLS Bank (the Alice Case/§101) Continues to Crush Software Patents in the United States

    Patent scope in the United States continues to be narrowed down as more software patents get their wings clipped



  23. Company of Hype and 'Fanbois' Continues Its Patent Attacks on Android/Linux

    Apple's attacks on Android (using bogus patents) may be soon be escalated to the US Supreme Court (SCOTUS)



  24. EPO Corruption of Patent Boundaries: Business Methods and Algorithms Patented

    How the European Patent Office (EPO) not only turns a blind eye to European law while patenting or granting patents on software but also openly advocates this now



  25. Who's Obsessing Over Patent Trolls in Latest 'Reform' Efforts? Larger Patent Trolls Such as Xerox

    Response to claims that the patent problem is being tackled by focusing on patent trolls and their favourite courts in the Eastern District of Texas



  26. Links 20/8/2015: Fedora 24 Plans, Ubuntu Phones in India

    Links for the day



  27. Blackmail and Lies From the Press and the Government of New Zealand Attempt to Sell to the Public a Deal That Broadens Patent Scope

    Corporate conquest or takeover of New Zealand culminates in empty promises from government officials and blackmail against citizens of New Zealand, especially the country's dairy industry



  28. Vista 10 Turns PCs Into Zombies: Microsoft to Remotely Delete Software From Windows, Like Amazon Deleted Books From Kindle

    Microsoft allows itself to remotely delete software from Vista 10 (not just Microsoft's software), as revealed by the mainstream media not too long after the failed launch (poor adoption so far)



  29. Black Duck Still Destroying, Lying, Rewriting History

    Black Duck is still carrying water for Microsoft and pretends to be working for 'Open Source', despite doing it much harm and doing nothing that is actually Open Source



  30. Ashley Madison Disaster Apparently the Fault of Microsoft Windows

    New reports serve to show that Ashley Madison's data which got leaked includes complete dump of corporate Windows passwords


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts