Microsoft's Cultural Revolution (Translation)

I found a Newsweek article in the library with Bill Gates photoshopped as Chairman Mao on the cover, titled “Microsoft’s Cultural Revolution.” The full article follows:

[Newsweek article by Sarah Schafer, June 28, 2004 — about Microsoft’s struggles and strategy shift in China, covering piracy, government relations, Linux competition, and the appointment of new China CEO Timothy Chen]

After reading this, I can’t help but worry about China’s software industry again. The article describes the Chinese government as “embracing Linux while tolerating piracy and criticizing Microsoft’s monopoly” — what will foreigners think of China’s government and software market?

I’ve always been critical of foreign software companies’ China operations. They hire China’s best software engineers but give them the most menial work, mostly outsourcing disguised as “IT Service.” Companies like PH, BMI, Oracle set up so-called “R&D centers.”

Meanwhile, China’s best software engineers end up doing manual labor at foreign “R&D centers” for decent pay, while engineers working on China’s core technology and national software — like Kingsoft PowerWord installed on almost every computer — don’t get the待遇 (treatment) they deserve. Why? Piracy.

Piracy ultimately harms whom? Microsoft loses money in China, but it won’t die — it still profits in the US, Taiwan, and Korea. But for domestic software companies like Kingsoft, where do they get their profits? When local market profits can’t be guaranteed, no wonder domestic software companies never grow up.

Next time you curse domestic software, think about this first.