[ox-en] Barzil: Wall Street Journal. (fwd)
- From: Graham Seaman <graham seul.org>
- Date: Tue, 9 Sep 2003 05:17:10 -0400 (EDT)
From: Wagner Meira Jr <meira dcc.ufmg.br>
To: psl-brasil listas.cipsga.org.br
A Brazilian Challenge for Microsoft
Government's Preference
For Open-Source Software
May Tilt the Playing Field
By JONATHAN KARP
Staff Reporter of THE WALL STREET JOURNAL
SAO PAULO -- Brazil is about to raise the stakes in the global battle
between commercial and free software by tilting the playing field away
from Microsoft Corp., a move that renews investor concerns about
intervention by the Workers Party government in the marketplace.
President Luiz Inacio Lula da Silva is finalizing a policy recommending
that federal ministries, agencies and state enterprises install
open-source software, such as Linux, instead of proprietary software,
such as Microsoft's Windows, in new computer equipment. Sergio Amadeu,
Mr. da Silva's information-technology adviser, says the goal is for at
least 80% of government computers bought next year to feature
open-source software, though the guidelines aren't binding.
The government, including state-owned companies, is this country's
biggest consumer of computer hardware and software, so any shift by
Brasilia is bound to send ripples through one of the world's most
important developing economies. "At no point will we require the use of
free software. The market will have to choose," says Mr. Amadeu, who is
also pressing government bodies to migrate where possible to
open-source systems from Microsoft on existing computer networks. But
he adds, "We will use the state's purchasing power to make technology
policy. The U.S. government does this. Why can't we?"
The free-software movement in Brazil has gained momentum since the
leftist Workers Party took office in January. Four states have now
passed laws encouraging the use of open-source software, and a Workers
Party-sponsored federal bill urging the same is gaining traction in
Congress after languishing for years.
To Mr. Amadeu and his allies, open-source software is critical to
reducing heavy software license fees, achieving the government's social
goal of providing greater computer access to Brazilians and spurring
the country's technology industry. There's also a moral element. "Free
software is like generic drugs," Mr. Amadeu says, referring to Brazil's
high-profile crusade to find alternatives to costly AIDS medicine. In
this case, though, there's no threat to break a patent.
Local entrepreneurs agree that lower software-license fees and the use
of free software can benefit a developing country such as Brazil. But
like Microsoft, many say the government is waging an ideological battle
that could hurt Brazil's software industry and exports because most
entrepreneurs develop products and applications for Microsoft's
platform. "It's technological McCarthyism," says Cid Torquato,
executive director of Camara-e.net, an industry association in which
Microsoft is a member. "The government wants an industrial policy for
software that's like telling right-handed people to use their left
hand."
The debate cuts to the heart of a lingering doubt about Brazil's
government. Mr. da Silva, whose party traditionally favors a big
government role in economic development, has won over skeptical
investors with budget prudence and success in passing difficult
social-security reform. Still, says John Williamson, a senior fellow at
the Institute for International Economics in Washington, "My concern is
whether the state will do something to override the market in
microeconomic policies, such as industrial policy or regulation."
Brazil isn't the only country where Microsoft faces a mounting
challenge from Linux and proponents of open-source software. Federal
and local governments are openly courting free software. In Germany,
for instance, the city government of Munich is dropping Windows on
thousands of PCs in favor of Linux. Last week, a government official in
Japan said his country would work with South Korea and China on an
open-source alternative to Windows.
Microsoft, in response, is lobbying governments around the world. One
of its biggest moves has been to let government agencies view its
"source code." Many proponents of open-source software say that since
open-source code is viewable, it can be made more secure than Windows.
Brazil, along with China, India and Russia, is strategically important
to Microsoft. Chairman Bill Gates was among the first U.S. businessmen
to meet privately with President da Silva, to discuss Brazil's software
development and the new government's priorities.
"We have nothing against Microsoft," insists Mr. Amadeu, who uses a
laptop computer that runs a Linux-based operating system. Yet Mr.
Amadeu foresees offering government credit incentives for Brazilian
companies to switch applications to open-source software. "The
proprietary software model isn't sustainable for developing countries,"
he says.
Microsoft bristles at the change in official thinking. Luiz Moncau,
marketing director in Brazil, says that while the last Brazilian
government "let the market decide what software to buy, the current
government thinks regulation would work better than autonomy." Armed
with market studies, Microsoft is trying to show the government how
proprietary software can be more cost effective than free software,
when service costs are included. "It's hard to get the message across,"
Mr. Moncau says.
In a country where just 10% of the population owns a personal computer,
Microsoft has made inroads. Brazil's banking industry and government
boast first-world technology systems. And one in every five electronic
voting machines used in last year's election operated Windows CE.
Microsoft also helped implement proprietary software to run procurement
systems for the Sao Paulo state government and Brasi'lia. The software
required a license fee but has saved the government money by
streamlining purchasing operations. Yet, the Workers Party government
has decided to migrate the program to an open-source operating system.
The national Congress joined the fray in August, sponsoring a "Free
Software Week," featuring seminars and hearings. Microsoft declined an
invitation to make its case before a congressional committee, waiting
for a hearing in a less-charged atmosphere. A 1999 bill sponsored by a
Workers Party legislator and seeking the preferred use of free software
in the public and private sector is also gaining attention.
"The noise this creates is bigger than the actual impact on sales," Mr.
Moncau says. Microsoft believes that the laws violate constitutional
principles of free choice, but the company so far hasn't challenged
them in court. Meanwhile, Mr. Moncau says, talks continue with the
Brazilian government, which accounts for some 6% of Microsoft's sales
in Brazil, on lowering license fees and opening access to source code.
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