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Judge uses wisdom of Solomon on MS

Judge uses wisdom of Solomon on MS

Microsoft is so confident it will not be split in two separate companies, it will not even consider revising its local distribution model, despite District Court Judge Thomas Penfield's order.

The US District Court Judge approved the Depart- ment of Justice's plan to split Microsoft into two companies, with the operating system architecture separate for application software.

It would seem Microsoft is implementing the ostrich technique in response to the ruling, with the local managing director Paul Houghton stating the company was not considering alternate distribution strategies, even as a worst-case scenario.

"We don't expect that the company will split so we are not contemplating any action," he said. "From a distribution and partner point of view, we will continue to move forward. The channel will not be impacted."Furthermore, Microsoft will not consider alternative distributions strategies on any level, he said.

"Today's distributors get products from hundreds and thousands of vendors, and that model will not change.

"At the end of the day, our distribution model is simply not on resellers' radar screens. Our products stand alone and are very successful in the market because they are good products with good partners supporting them. The Australian channel is very strong, with a robust reseller base."Microsoft will appeal Judge Jackson's order and will also seek a stay in the implementation of the order pending the outcome of the appeal. Houghton said the time frame for the process could take as little as a few months, but would more likely take more than a year to finalise.

"Most of our partners in the marketplace are supportive of our position," Houghton said. "There haven't been any market-driven requests to come out with plans and contingencies.

"At the end of the day we have built a model that heavily relies on a strong partner community and have brought technology together to develop good products. Why stop a good thing?"


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