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| | Today Microsoft is an international company present in 102 different countries, employing 76,000 people and generalting a profit of $44.28 billion per year. | | Today Microsoft is an international company present in 102 different countries, employing 76,000 people and generalting a profit of $44.28 billion per year. |
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| − | Microsoft takes up 18.3 million square feet of office building space and is ranked 15th in the world top 500 companies. Microsoft's has driven 93% of the world's desktop computers since 1991 and its office software dominates 90% of the market and earns the company $9 billion a year. In 1990 Microsoft became the first software company to reach $1 billion in revenue. In 2003 Microsoft's revenue increased by $3.82 billion to $32.19 billion with a net income of $9993 billion. Although Microsoft have been accused of fraudulent accounting in order to show profit. | + | Microsoft takes up 18.3 million square feet of office building space and is ranked 15th in the world's top 500 companies. Microsoft's has driven 93% of the world's desktop computers since 1991 and its office software dominates 90% of the market and earns the company $9 billion a year. In 1990 Microsoft became the first software company to reach $1 billion in revenue. In 2003 Microsoft's revenue increased by $3.82 billion to $32.19 billion with a net income of $9993 billion. Although Microsoft have been accused of fraudulent accounting in order to show profit<ref>Corporate Watch (2004) '''Microsoft: A Corporate Profile'''[http://archive.corporatewatch.org/profiles/microsoft/microsoft4.htm Corporate Watch] (accessed 05/04/07)</ref>. |
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| − | | + | The company headquarters are in Redmond, Washington, USA. |
| − | The company headquarters are in Redmond, Washington, USA | |
| | Microsoft have ownership of MSNBC cable television network, the MSN Internet portal, and the Microsoft Encarta multimedia encyclopedia. | | Microsoft have ownership of MSNBC cable television network, the MSN Internet portal, and the Microsoft Encarta multimedia encyclopedia. |
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| − | The company has faced much controversy over the years as many have attributed their success to their illegal monopoly over operating systems which effectively pushes competition out of the market. The company has faced legal proceedings aroung the world and have been found guilty on the charges of holding an unfair monopoly. However, as microsft are an extrmely rich compnay the finacial penalties they face are insignificant and they often pay their way out of any legal obligations to rectify this monopoly. {{ref|38}} | + | The company has faced much controversy over the years as many have attributed their success to their illegal monopoly over operating systems which effectively pushes competition out of the market. The company has faced legal proceedings aroung the world and have been found guilty on the charges of holding an unfair monopoly. However, as microsoft are an extrmely rich company, the finacial penalties they face are insignificant and they often pay their way out of any legal obligations to rectify this monopoly. |
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| − | == Microsoft's Partner Companies == | + | == Microsoft’s Philanthropy == |
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| − | [[Charteris plc]]
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| − | ==Global Conflicts ==
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| − | == Affiliations ==
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| − | [[Business Software Association]]
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| − | [[European Information &Communications Technology Industry Association]]
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| − | [[Computing Technology Industry Association]]
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| − | PR Firms
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| − | [[Edelman]]
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| − | [[APCO]]
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| − | [[G Plus]]
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| − | Media
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| − | [[MSNBC]]
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| − | [[Slate Magazine]]
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| − | [[Tech Central Station]]
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| − | ==US Conflicts ==
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| − | Wired magazine has quoted Bill gates as saying "Of course I have as much power as the president has" {{ref|42}}
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| − | According to [[James Love]] from [[The Centre for Public Technology]] "Microsoft's efforts are an aggressive attempt to change government" Just as Microsoft perceived Netscape as a threat, "that is pretty much how they approach the government, as a threat." {{ref|43}}
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| − | These allegations arise from the high profiles anti trust case brought against Microsoft by the United States Department of Justice and 20 US states. Microsoft was accused of abusing their monopoly power in operating system sales and web brower sales. The main question was whether Microsoft was legally allowed to combine its flagship internet Explorer web brower with it Microsoft Windows operating system. Microsoft were accused of acting illegally and unfirly restrictingtheir competitors in the web browser market. It was argued that Microsoft altered it applicationprogramming interfaces in favour of Internet Explorer and to the detriment of third party web browsers. Questions over Microsoft's conduct in forming restrictive liciencing agreements with OEM computer manufacturers was also highlighted in the dispute.
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| − | The conclusion of the trial found Microsoft guilty of monopolization and ruled that Microsofty must provide operating systems and software components seperatly
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| − | :"They have established phoney grass-roots groups, hired people to write opinion pieces for newspapers and magazines, pose as ordinary citizens in various internetchat rooms, sponsored polls to make it appear they have a grounswell of support and have enlisted their stockholders and business partners to lobby for them."{{ref|44}}
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| − | [[The Initiative for Software Choice]] in May 2002 is chaired by [[The Computer Technology Industry Association]] whose biggest software backer is Microsoft.
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| − | Microsoft are also involved with [[The Association for Competitive Technology]] and [[The Americans for Technology Leadership]] The latter were accused of sending letters, from two dead, people to Mark Shurtless, the Utah Attorney General, asking for lenient treatment to Microsoft for their monopoly conduct. This is reportedly part of Microsoft's strtegy to influence Congress
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| − | :"encourage prosecutors to pursue a settlement in advance of a court hearing on how the Redmond company should be punished for illegally maintaining its monopoly on computer operating systems. At the same time the company stepped up campaign donations, becoming the fifth-largest "soft money" donar to the national republican and Democrat parties in 1999-2000."{{ref|45}}
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| − | In 1997-1998 Microsoft almost doubled its lobbying budget:
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| − | :"Part of its efforts were spent lobbying to defeat a budget increase for the Justice department's anti-trust division, the department responsible for bringing the case against the company. It has also lobbied Congress fort ax relief, for stronger intellectual property protection and for a greater number of visas for foreign high-tech workers." {{ref|46}}
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| − | == Microsoft In Europe ==
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| − | [[Gordon McKenzie]]
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| − | == European conflicts ==
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| − | The European Commission fined Microsoft 497 Euros for misconduct in the market place.
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| − | Two complaints were made against Microsoft:
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| − | The first accusation was that Microsoft 'illegally tied the availability of Windows to Windows Media Player, making it impossible to obtain the former without the latter, and so distorting the market in media Players.'{{ref|y}}
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| − | The Second complaint was that 'Microsoft enagaged in conduct designed to make it difficult for other compnanies or organisations to write software with interoperates with Windows in particular important ways.'{{ref|x}}
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| − | The European Commission demanded that Microsoft remody the situation and stipulated that Microsoft produced a version of Windows with the Windows Media Player. However, although Microsoft have complied they have attempted to undermine these stipulations. firstly they suggested that the new versions would be given "Not with Windows Media Player" labels. The EU did not agree to this and so following further negotiations they agreed to "Edition N"
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| − | Microsoft have retailed the new versions at the same price as the older version, ensuring its failure in the market place.
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| − | The second remody demanaded that Microsoft publish the specifications of the CIFS protocol. However, Microsoft provided further barriers to this demand. The main competitor in the CIFS server space is a free software project named [[Samba]]. Samba are generally a generation behind Microsoft as the have to 'reverse-engineer all the behaviuor from scratch.'
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| − | :"For example, machines in Windows domains which talk to each other using the latest versions of CIFS use a machine acting as an Active Directory Domain Controller to keep order. At the moment, Microsoft has a monopoly on these Domain Controllers - the code is built into the expensive Server versions of Windows 2000 and Windows 2003."
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| − | The information that would have to be publish would assist Samba in catching up with Windows and would make the more expensive Microsoft products redundant.
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| − | Microsoft have not fully complied with the demands set and the EU's Monitoring Trustee ruled that 'using the current documentation to implement anything would be "frustrating, time cinsuming and ultimately fruitless." Thus, the EU ruled that unless Microsoft fully complies 'by the end of January, it will be fined £1.5 million per day,back dated to Decemnber 15, for non compliance.'
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| − | However, Microsoft makes £14 million per dayfrom Windows client operating system liciences. This success is credited to their monopoly over operating systems. Therefore, £1.5 million per day is a small price to pay for a company that has a monopoly that will earn then £14 million. {{ref|36}}
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| − | During this trial Microsoft recruited [[Detlef Eckert]], who was working on information technology policy in the European Commission. The official line was that Eckert would help help Microsoft develop better computer security.
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| − | The president of [[The Computer and Communication Industry Association]], [[Ed Black]] visited Eckert put forward their concerns of Microsoft’s misconduct. The Association have been lobbying the European Commission to impose an anti trust ruling on Microsft. Black reports Eckert as saying:
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| − | :“he was not within the competition directorate but he was probably in the directorate most closely involved in this case. {{ref|80}}
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| − | Despite the European Commissions assurances that Eckert signed an agreement to fully respect with the conflict of interest rules and refrain from revealing confidential Commission information to Microsoft his involvement will surely be of no political use to the company.
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| − | == Microsoft's Involvement with UK Public Services ==
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| − | '''NHS UK'''
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| − | The UK's National Health Service has a nine year licensing deal with Microsoft, climing that it will amount to savings of £330 million.
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| − | The discount come from the liciencing fee but is suspicious as the NHS were not paying this fee in the first place.
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| − | The December announcementwas followed by a [[Bill Gates]] summit with [[Richarad Granger]], the IT director general for the NHS and Secretary of State for Health [[John Reid]]. This meeting was followed by by discussions between Granger and Microsoft CEO [[Steve Ballmer]] which ultimately lead to the deal.
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| − | The contract, in effect, ties the NHS into a single supplier for desktops, and in that sense flies in the face of Office of Government Commerce advice in its OSS report to "determine whether current technologies and IT policies inhibit future choice; and if so consider what steps may be necessary to prevent future 'lock in'". The OGC has been evaluating open source precisely because it needs government departments to have an alternative to Microsoft.
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| − | This standardisation is effectively eliminating smaller suppliers, for example [[EMIS]] who claim that although they produced the most widely-used GP system they have been unable to gain contracts with any of the five five English Local Service Providers (LSPs) for the NPfIT, climing that
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| − | "the conditions that would have been imposed on it were "untenable." In a letter stating its position the company claims the "NPfIT is intent on standardising NHS IT not by encouraging innovation and competition but by monopolising the market place..." {{ref|26}}
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| − | '''NHS Wales'''
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| − | In 2006 the Welsh NHS made a deal with Microsoft for desktop and mobile computing software climing that it would lead to savings of £8.5. The deal includes 35,000 desktop software liciences and incorporates all local health boards and trusts inwales for three years.
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| − | Health workers will recieve IT vouchers and "home -use" scheme will allow staff to purchase cheaper software liciences for their home computers.
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| − | The Health Minister at the Welsh Assembly Dr [[Brian Gibbons]], the director of IM&T [[Mike Lugg]] and the head of IT in Bro Morgannwg
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| − | [[Carol Mustad]] have all commented positively on the new deal.{{ref|35}}
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| − | == Does microsoft's involvement with Public Services create Greater Efficiency ==
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| − | A recent Dispatches investigation in the NHS found that a great proportion of NHS money is wasted on their IT system. £xx millions have been spent onan internal database used by doctors to book patient hospital appointments. However, the investigation found that 80% of doctors use this system as many feel it is too complicated, time consuming and unreliable. The Health Minister said ....('''get the quote for this''') {{ref|6}}
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| − | How much was Scotland paying on IT before they signed up with Microsoft?
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| − | == Microsoft Scotland ==
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| − | Microsft Edinburgh 127 George Street Edinburgh EH2 4JN
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| − | 08706010100
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| − | === Microsoft Workers ===
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| − | [[Raymond O'Hare]]
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| − | Microsoft Scotland have a work force of 40 people mostly working in sales and technical support
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| − | == Scottish Company Investors ==
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| − | [[Scottish Widows Investment Partnership]]
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| − | [[Aegon]] UK
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| − | [[Scottish Equitable]]
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| − | [[Aberdeen Asset Management]] employ a PR company called [[BIG Partnership]] whose other clients include the Scottish Executive
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| − | == Microsoft's Involvement with Scotland's Public Services ==
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| − | '''Police Force'''
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| − | On the 11th August 2005 Central Scotland Police announced that Microsoft Windows would replace some open source technologies as part of the police modernization agenda, flexible working arrangements and better engagement with other public sector partners.
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| − | A fundamental reason fgor the switch was said to be value for money following a review of the police IT system which suggested the following changes:
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| − | • Immediate use of off-the-shelf programs to reduce the need for customized applications
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| − | • Greater compatibility with partner organizations’ ICT systems
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| − | • Increased staff satisfaction through use of familiar technology
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| − | • Reduced number of operating systems
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| − | • Increased access to a wider range of software products
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| − | This was a follow up to an earlier study by the police service which resulted in the decision of Central Scotland police to work with Microsoft.
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| − | “Central Scotland Police is basing its IT system on the Microsoft platform because its internal study shows that it offers the best value in total cost of ownership, ease of use, interoperability, reliability and support,” said [[Nick McGrath]], head of Platform Strategy for Microsoft Ltd. “Central Scotland Police estimates that it could save 30 percent on IT maintenance costs and 25 percent of IT staff’s time by using Microsoft technology.”
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| − | [[Charteris plc]], a Microsoft partner, is providing training and consultancy.
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| − | [[Terry Smith]], senior director for Microsoft Ltd.
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| − | “Naturally we are delighted with the conclusions arrived at by Central Scotland Police, which enable us to prove the value and interoperability that Microsoft products offer. We look forward to working with the police force to introduce new products and services, including document and record management and collaboration technology,” {{ref|25}}
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| − | '''NHS Scotland'''
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| − | NHS Scotland has signed a national deal with Microsoft to supply office software and desktop operating systems at a discounted rate, saving an estimated £8m.
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| − | Professor [[Stuart Bain]], chief executive, NHS National Services Scotland, said: "We see this agreement as a key building block in realising a modern, integrated and efficient health service."
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| − | [[Raymond O'Hare]], director of Scotland for Microsoft UK, told EHI NHS Scotland would make "some significant savings"
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| − | "We are pleased to support its modernisation objectives by providing NHS professionals across Scotland with access to the most advanced Microsoft software available."
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| − | Software will be provided to NHS Scotland through an appointed reseller, [[Trustmarque Solutions]].
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| − | [[Ross Miller]], managing director at Trustmarque, said: "We are pleased to be part of this agreement and a trusted partner of NHS Scotland and Microsoft, in delivering a true value offering to enable the '[[Delivering for Health]]' strategy. This agreement ensures a best value offering, leveraging the significant buying power of NHS Scotland." {{ref|4}}
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| − | The recent deal between Microsoft and NHS Scotland followed public criticism by Microsoft that NHS Scotland was wasting billions on IT
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| − | MICROSOFT’S former director for Scotland, [[Gordon McKenzie]] publically criticised NHS Scotland for it's inefficiency and claiming that the NHS in Scotland pays four times more than the English health service for its IT systems.
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| − | Down south, the NHS has signed a 10-year agreement with Microsoft that will represent a substantial discount on what would have been paid if each constituent part of the organisation had negotiated with the company.
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| − | "But NHS Scotland is still operating in a piecemeal way," said McKenzie. "Royal Bank of Scotland has 100,000 employees and one IT system. The NHS in Scotland is about the same size, but there are 14 NHS trusts and even within each trust there may be four different systems. They even have different e-mail systems."
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| − | McKenzie said there was "no plan for convergence" in the NHS and that the public services, including local government, could be heavily streamlined so there was one system for HR, one for payroll, and even one council tax across Scotland, but he said Microsoft was "making more money out of the mess". {{ref|5}}
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| − | [[NHS Scotland before the Microsoft deal]]
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| − | === Microsoft and the Scottish Executive ===
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| − | Microsoft are linked closly with the Scottish Executive, selling their technology to public services such as the police force and the NHS. Recently Microsoft have been cofounders of the Not in Education or Employment Project (NEET) aiming to train young Scots who are not in employment or education in an attempt to give them key transferable skills to compete in the job market. They are also invloved with other Scottish organisations such as [[Learn Direct Scotland]].
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| − | Microsoft want to engage in this project on the basis of The Microsoft Citizenship Strategy and core business model includes inclusion, innovation, skills, regional development, local software economy and online safety. Microsoft envisages supporting NEET through the use of the microosft brand, seconding a senior person for 2/3 days per week, facilitating access to the Microsoft Partner network(1500 SMEs), all of which aim to deliver ICT solutions customers, connecting to Microsoft's existing skills and education programmes and helping ensure new programmes are practical and offering IT and software developmetn expertise. {{ref|50}}
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| − | The Executive identified seven local authorities 'where NEET is a particular challenge and where reducing NEET locally would make an impact nationally." {{ref|49}}These included Glasgow, West Dunbartonshire, North Ayrshire, East Ayrshire, Clackmannanshire, Inverclyde and Dundee.
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| − | Four high profile recruits have agreed to support the work of the NEET Programme Board in improving access to opportunities for those identified as NEET, estimated to be around 20,000.
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| − | Four recruits helping in the NEET project
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| − | Mark Adams from Microsoft
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| − | David Watt from KPMG
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| − | Euan Davidson, formerly CEO of the Princes Trust
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| − | Ray Perman from the Hunter Foundation
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| − | Microsoft have fiercley lobbied the Scottish Executive to have access to scotland's public services. The Scottish Executive and Microsoft are both clients of the lobbying agency [[2Collaborate]]
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| − | == Shared Services ==
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| − | Shared Services is a partnership between the government and the private sector aiming to use private business to run public services.
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| − | The Minister for Finance and Public Service Reform [[Tom McCabe]] etimated savings of between £250 million and £750 million a year across the whole of the Scottish public sector.
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| − | "The Executive is committed to spending taxpayers' money as efficiently and effectively as possible. This new shared services strategy on which we are seeking views is a central plank of our Efficient Government initiative which aims to tackle bureaucracy and duplication in the public sector.{{ref|23}}
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| − | == Microsoft Government Leaders Forum ==
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| − | The annual forum brings together Prime Ministers, Ministers, EU Commissioners and policy advisers from across Europe, marking one of the most senior gatherings of European leaders Scotland has seen.
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| − | The Government Leaders’ Forum Europe is one of Microsoft’s flagship events for government, parliamentarians, education and business leaders across the continent and is being supported by a partnership of the Scottish Parliament and the Scottish Executive.
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| − | The event provides a forum to formulate successful strategies in key areas relating to connected government, digital learning, employability skills and the transition to the knowledge economy. This year will reflect a number of Scotland’s experiences as the host country
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| − | Presiding Officer of the Scottish Parliament, George Reid MSP said:
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| − | :“This conference provides an opportunity to debate key issues of engagement and economic development which affect citizens and states across Europe.
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| − | The President of Microsoft International, Jean-Philippe Courtois said:
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| − | :“The Scottish Parliament offers a unique setting to hold a very interactive and participative Government Leaders’ Forum. This event offers an excellent opportunity to bring together top policy makers and industry leaders from across the continent to facilitate a discussion around the impact of ICT on parliaments and their citizens. Microsoft is grateful to both the Scottish Parliament and the Scottish Executive for their support and cooperation in bringing the GLF to Edinburgh.” {{ref|2}}
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| − | [[Microsoft Government Leaders Forum]]
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| − | Bill gates accompanied Jack Mc Connell in a press statement highlighting the philanthropic work both the Microsoft Corporation and the Scottish Executive will undertake in helping young Scots achieve. The signed agreement aims to train 100,000 Scots in computer skills {{ref|25}} The project is aimed at those not in education, employment or training (NEET)
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| − | == Microsoft Board of Directors ==
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| − | *[[Bill Gates]]
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| − | *[[Steven A. Ballmer]]
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| − | *[[James I. Cash Jr.]] Ph.D.
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| − | *[[Dina Dublon]]
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| − | *[[Raymond V. Gilmartin]]
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| − | *[[David F. Marquardt]]
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| − | *[[Charles H. Noski]]
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| − | *[[Jon A. Shirley]]
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| − | == UK Executives ==
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| − | [[Gordon Frazer]]
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| − | [[Neil Thompson]]
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| − | [[Nick Barley]]
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| − | [[Sharon Baylay]]
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| − | [[Steve Dunn]]
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| − | [[Scott Dodds]]
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| − | [[Andy Watson]]
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| − | [[Matthew Bishop]]
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| − | [[Tery Smith]]
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| − | [[Chris Parker]]
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| − | [[Alison Dodd]]
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| − | [[Bronwyn Kunhardt]]
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| − | [[David Gartenberg]]
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| | + | Bill Gates likes to consider himself above all as a philanthropic man. At the Government Leaders Forum he quoted Carnegie: ‘he who dies rich dies disgraced.’ Although Gates found the funny side to this, saying that he was still working on it, his charity has been described as the ‘Microsoft of charities’. The Bill and Melinda Gates Foundation was launched by a donation from Bill Gates of £54 million in 2000. Gates has a very philanthropic public image and has joined Bono on the cover of Time magazine as Humanitarian of the year and was voted 8th in the list of “Heroes of our Time” by the New Statesman. |
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| | + | However, the ‘Microsoft of charities’ may hold alternative meanings as it has been criticised for disinvestments. In January the Los Angeles Times exposed the foundation for investing over £254 million in oil companies including [[Royal Dutch Shell]], [[Exxon Mobil]], [[Chevron]] and [[Total]] who were being accused of causing health problems in Nigeria which, ironically, is another area of funding for the trust<ref>MChinty, S (2007) '''Billionaire, benefactor...but is Bill Gates a force for good?''' [http://thescotsman.scotsman.com.index.cfm?id=161002007 The Scotsman] 31st January (accessed 28/02/07)</ref>. |
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| | + | == Microsoft's Partner Companies == |
| | + | [[Charteris plc]] |
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| | + | ==Resources== |
| | + | *[[Microsoft:Products / Projects]] |
| | + | *[[Microsoft: Company Structure, Ownership, People]] |
| | + | *[[Microsoft:Influence / Lobbying]] |
| | + | *[[Microsoft:Corporate Crime]] |
| | + | *[[Microsoft:What you can do]] |
| | + | === International role === |
| | + | Microsoft have faced criticism and legal action around the world. The main accusations are that they constitute a monopoly and effectively push competitors out of the market. Court cases in the US and Europe give some indication of how they conduct their business and political activities. |
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| | + | *[[Microsoft: US Conflicts]] |
| | + | *[[Microsoft: European Conflicts]] |
| | + | *[[Microsoft: UK]] |
| | + | *[[Microsoft: Wales]] |
| | + | *[[Microsoft: Scotland]] |
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| | + | ==Lobbying firms== |
| | + | *[[APCO Worldwide]]<ref> [http://www.appc.org.uk/members/register/register-profile/?company=APCO%20Worldwide Register 1st September 2014 - 30th November 2014] ''APPC'', accessed 28 January 2015 </ref> |
| | + | *[[Edelman]]<ref> [http://www.appc.org.uk/members/register/register-profile/?company=Edelman Register 1st September 2014 - 30th November 2014] ''APPC'', accessed 29 January 2015 </ref> |
| | + | *[[Weber Shandwick]]<ref> [http://www.appc.org.uk/members/register/register-profile/?company=Weber%20Shandwick Register 1st September 2014 - 30th November 2014] ''APPC'', accessed 29 January 2015 </ref> |
| | + | *[[Hanover Communications]] <ref>[https://registerofconsultantlobbyists.force.com/CLR_Public_Profile?id=0012400000600D4AAI Hanover Communications profile 2016], ''Register of consultant lobbyists'', accessed 25 April 2016</ref> |
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| | == Notes == | | == Notes == |
| | + | <references/> |
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| − | #{{note|1}} Microsoft website [http://www.microsoft.com/presspass/exec/steve/default.mspx Board of Directors]accessed 30/01/07
| + | [[Category:Media Industry]][[Category:Transnational Corporations]] |
| − | #{{note|2}} Microsoft website [http://www.microsoft.com/presspass/exec/steve/default.mspx Board of Directors]accessed 30/01/07
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| − | #{{note|3}} Microsoft website, [http://www.microsoft.com/presspass/bod/jcash/default.mspx Board of Directors]
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| − | #{{note|4}} Microsoft website, [http://www.microsoft.com/presspass/bod/jcash/default.mspx Board of Directors]
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