[Politech] Felipe Rodriquez on Microsoft and the Internet's "paradigm shift"

From: Declan McCullagh (declan@private)
Date: Wed Jan 14 2004 - 06:20:42 PST

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    Cc: politech@private
    From: felipe rodriquez <felipe@private>
    Subject: paradigm shift
    Date: Wed, 14 Jan 2004 12:51:09 +1100
    To: Declan McCullagh <declan@private>
    
    Declan,
    
    Here is a little blurb I wrote yesterday:
    
    
    I have this image forming in my mind about a cultural change through the 
    Internet. Its about a community that becomes increasingly vocal, creative 
    and constructive. Feel free to share it with others.
    
    I have observed the Internet since 1989 and loved it myself for its 
    potential. That drove me to start my company in '93. I've been virtually 
    full-time immersed in the Internet since ~1991. I like it because of its 
    community and because of the way people self organize to achieve a common 
    goal. I have participated in many communities and usually loved it. In many 
    ways it is human evolution into a very different future world, society and 
    the international community will change, has changed, because of it. 
    National boundaries start dissolving, some traditional legislation can no 
    longer be enforced, new international subcultures form, communication can 
    not be controlled, the media have a harder time fooling us et cetera. This 
    has already happened.
    
    Spontaneous self organization of people is what created the Internet. 
    Before it became commercial it drove on academics who donated their time to 
    participate in programming projects to develop the technology. The Internet 
    was created by the people, not by a business. The US government funded the 
    actual hardware network, but the software was mostly a community effort.
    
    As the Internet is growing it is becoming more obvious what shape these 
    initiatives are taking. There is a huge Open Source community that develops 
    software that is free. That is where Linux, Darwin, FreeBSD et cetera come 
    from. A clone for Microsoft Office was also created in that community, and 
    a Microsoft emulator for Linux has been in development since 1993. The best 
    anti-spam software also comes from it, the world wide web too, email too et 
    cetera
    
    Now these little communities move into other areas. I am very impressed by 
    the Wikipedia project at www.wikipedia.org This is an online encyclopedia 
    by the people for the people. It is completely free and operates on a 
    shoestring.
    
    People are opening their wireless connection for the community. With long 
    range wireless like 802.16 people will start community networks, bypassing 
    commercial companies. It will be like HAM Radio for the masses.
    
    Who knows what happens next. In this world when there is a group of people 
    that want something, there is a common goal, and they are online, then it 
    simply happens. Geographical location is not that important anymore. The 
    way we experience the world is undergoing tremendous changes and this 
    causes friction. Governments have already had their anxiety and tried to do 
    something about it by setting up censorship, surveillance and anti-spam 
    legislation. The censorship laws had no effect at all, the Internet routes 
    around it.
    
    Not all fish know how to swim in this pond, it causes a culture clash for 
    many people and companies.
    
    Microsoft is wetting their pants because of their angst of the Open Source 
    community. Free software is quickly catching up with the sophistication of 
    Microsoft. Office has already been replicated. A good writer friend of mine 
    in .nl always used Microsoft and has switched to Linux successfully. She is 
    not a geek expert hacker chic.
    
    The reason Microsoft is scared is not just because the competing products 
    are catching up fast, it is also because Microsoft is increasingly under 
    attack from hackers and virus writers. This has been going on for years, 
    but now we're at a point that viruses come in by Email every day. Security 
    has never been Microsoft's forte.
    
    In the old days when I was a hacker the main problem was that suppliers 
    would ship their unix mainframes with insecure settings. As a consequence 
    it would be trivial to gain access and get superuser privileges. Most unix 
    platforms that are shipped these days are watertight. Microsoft has a long 
    road to go to match that kind of security, and many monsters lurk on that 
    road to try and derail Microsoft.
    
    Microsoft has a classic problem. Many companies and managers become very 
    defensive when there is a threat. They fight tooth and nail to defeat the 
    threat. This becomes a problem when the threat is the community at large. 
    It is the same mistake Scientology made and is continuing to make. The 
    Music industry is in this space too. So is SCO. Business-models will need 
    to change in order to survive. Embracing the community is survival, 
    coercion, legal battles against many individuals, aggression and 
    incompetence are certain death.
    
    Microsoft has always dealt with threats successfully. Most competitors have 
    been wiped out. But can they win the sympathy of the community ? Can they 
    transform themselves into a pink, warm and cuddly company ? Will they 
    cooperate with the community to make a better product ? What other 
    companies are adapting poorly ?
    
    Examples of companies that are doing this well are IBM, Apple, Cisco, most 
    Linux companies, Adobe. You can usually see by finding out if the company 
    provides an open online forum where products and problems can be publicly 
    discussed. For some reason many people and companies have a natural 
    tendency to not accept these kinds of feedback systems because they easily 
    feel threatened, they do not want their customers to organize themselves. 
    But it makes economic sense to listen to customers and give them what they 
    need, instead of being scared of the customer.
    
    These are dilemmas many companies face. The world has changed much, is 
    always changing. Old habits die hard. In some cases the old habit will kill 
    the culprit. Darwinian evolution kicks in and takes out the elements that 
    do not work. Some companies will die or become obsolete, others will 
    mushroom. The trick will be identifying them. Which companies will 
    understand that it is better to ride the wave than to swim against the stream ?
    
    Don't invest in Encyclopedia companies :-)
    
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