The other day you got to read about some motivational buffoonery that is often implemented in the IT field, how to demoralize your troops with a self-congratulating motivational speaker that isn’t qualified to work in this field to begin with. In case you are not motivated to read it, in a nutshell: Don’t put idiots in front of your staff because they are smarter than that and will resent you.

The same principle of “People that work here aren’t fools..” applies to the communication on corporate change. Takeover. Sale. Bankruptcy. Financial problems. High profile layoffs, legal problems, going concerns. Larger companies have to state their going concerns (or in plain terms “ah, crap”) every quarter in their financial paperwork, but smaller companies resort to a smaller and more inappropriate way of doing this: bullshit through rumors. That’s the business term for it, trust me, I went to a business school.

How does BTR work? Well, instead of being honest and up front with your staff, you call in a meeting and just start dropping hints about what is coming without being explicitly clear about it. Things like, “Our property has appreciated 800% over the past three years, so we will have some realtors around to give us an idea of exactly what its worth. Oh, I am also going to be flying to New York for about a week on business, in my absence Marcy will run the operations.” Then Marcy takes the post after the big boss leaves and she gets to answer the question if we’re for sale. She denies it, because even she may not know, meanwhile the big boss starts showing up less and less at the office. Rumors start to fly, and there is nothing like a business that is held together by collective fear of uncertainty.

Lesson: Never bs your people. They are on your side. Screw them once and you have enemies for life, making it virtually certain you can’t come back to the same market.

Is it natural for business owners to have to lie? Well, kindda; maybe not be as forthcoming about whats going on? Sure. You don’t want to break a deal just because the rumors get out because you spelled out every detail of the upcoming transaction. You also don’t want your best people looking for a new job because the last deal you spoke so highly of fell through and now they don’t get their golden parachutes. But there is a happy middle. For example, I always say we are not for sale. I always say there is no interest in going public. Knowing full well that I would catapult OWN to the moon if the price were right. This is something that is discussed though, not swept under the rug. Are you in a for profit business? Say it. Does the property you sit on have an offer on it that is higher than the profits the business will generate over the next five years? Sell it. But don’t pull dirty tricks when you do it. Don’t send your 162 workers home for refurbishments for a week, and then a day later announce that you’ve sold the biz, closed operations and here’s two months salaries — good luck finding jobs in the tourist area during off season, we’re going to Bahamas!

That is exactly what Dolly Parton did, and its what IT companies do all the time, completely preoccupied with politics, scheming and moving all the while not having any respect for people that work for them. We’re not in days of Al Chainsaw anymore, throw that stale “Big Tales From Management Nightmares” book out the window and treat people right. Food for thought: Al “Chainsaw” Dunlap guys are no longer around, but office shootings are on the rise.

Recently I asked our local IT Pro group about Microsoft sales folks getting more and more desperate. I can't blame them, with their options wasting away through product delays they have to move more product. I brought this story to my ITPRO group and asked how local consultants engaged their clients to provide them with a liason with Microsoft's ever-confusing licensing. How do you make your clients understand their need to comply with legal software licensing? Todays response, completely attributable to Robert Belon, nearly knocked me out of my chair:

Hi I am all that stands between you and the "JAWS" of the software police. Your next stop on this License roller-coaster is a jail cell occupied by Luther "the ass-monkey" Smith.  Can I exercise some of your corporate dollars from the bank vault now??? - Robert Belon

Now thats what I call an elevator pitch! Eric, the domain is still available

Last paragraph is not for the faint of heart, you've been warned. Eric Ligman, the only person at Microsoft capable of explaining licensing, has posted about the NFR software and the few famous posts that we've drilled Microsoft over. He's in a firing mood, hopefully none of the PCM's get on his bad side today. To sum it up, he explains exactly what you're buying with the now infamous offer by Surplus Computers, which by the way still has SBS Premium available for $169. Eric breaks the offer down and explains what you're buying. Pretty entertaining read, even if you're not excited by Licensing. I do have a comment and a suggestion: Comment: It's not the Small Business Specialist going into the shop and selling SBS NFR to the customer. It's the customer hiring the Small Business Specialist to come and install SBS they purchased online. Illegal? You bet. But that Small Business Consultant has to eat. Will he starve for Bill Gates and walk away from the questionable (and illegal) software license, or will he turn the blind eye to how the software ended up in the customers hands and just finish configuring the network for the DIY business owner? Thats a bet for Microsoft to answer, considering the Surplus Computer still has this item on sale it appears clear that there may not be a punishment for this. Are you starting to see the problem with the NFR software now? Even if you are a bystander, everything you do and touch has a percieved value. Let's say you looked away as they installed $1,500 worth of software for $169. What do you think your chances are on upselling this client the time upgrade cycle comes around? Furthermore, what are your chances of collecting on the large job from that client when you already know they are a thief. Think they'll stop at taking money from Bill Gates? Ethics and integrity tend to disagree. Question: $150,000? What $150,000? The assumption that there is the $150,000 penalty for piracy is largely ignored by the business owner because there doesn't appear to be any punishment. Let me quote my college law professor:

"Law is only as valid as its enforcement." - Robert Emerson

If you don't enforce the piracy punishment, it becomes an acceptable practice. It is Microsoft's software, Microsoft's task to enforce. Partners should do their fair bit too, but partnership requires action on both sides. I've documented my actions and Microsoft has officially sued 30 companies. The people I reported? Still up and running. Vlad Advisory Services Bill, Steve.. this one is on me. How do we solve this problem? Well, Eric Ligman is famous for some very funny sites that help you show clients the value of Microsoft software, namely: lessthanfries.com and lessthancoffee.com. So whats our problem here Mr. Ligman? We don't have enough ways to show people that they might get punished for being pirates. Here are some of the names I would suggest for the piracy awareness campaign Microsoft should launch: wouldyoulikekywiththat.com - Show a pirate bent over in a prison cell. bitethepillownfrbitch.com - Same as the above. andyouthoughtSBSSP1wasbad.com - Same as the above but with a pimp smack. whosthebanditnow.com - I'm afraid of describing this one. andyouthoughtpassingaroundthevolumekeywasfun.com - Exceeds the domain size but its a fun line anyhow. Oh, double score! You get the idea. Give me a martyr, slap him on a postcard, and send me a stack of 50 to give away at the next group meeting. Seriously. Look at Microsoft Piracy center. It's such a happy nice page. Piracy isn't that bad is it? Now show me Bubba and Frank in a prison cell and a geek hiding his privates behind a NFR CD and I think most think twice before calling the activation center to get that 50th activation key for the Windows XP Pro they got at Market Pro for $60.

There are way too many lawyers. These two articles prove that. Good Technology Sued over Wireless Patents NTP, having had its patents invalidated countless times has taken a stock in Visto and opened another litigation front, this time against Good Technology. I guess they coulnd't completely drain RIM's pockets so they have taken on additional fish. Microsoft Changes Blog Shutdown Policies Yup, we're world wide with this blogging thing. Microsoft is saying that they will notify visitors when the content has been removed and will in some cases actually move it elsewhere to make local (censuring) governments happy. Nice duck and cover. Is it just me or is this censure and legal action instead of innovation becoming a little too prevalent?

I wonder how many phone calls this post is going to generate but rest assured: If you call me, I will be asking the questions. Why such a polite post? Well, it appears that our friends from SurplusComputers are back selling Microsoft Windows 2003 Small Business Server Premium NFR for $169 with free shipping. Note the NFR tag which means, ironically enough, not for resale. How does that make sense, how is someone selling software thats not for sale? You already know the answer to that question. Now riddle me this: Why has Microsoft done nothing to stop this? Here is how a fellow Microsoft Certified Partner reacted to the news of this:

How they are able to continue doing this without Microsoft coming down on them with a lawsuit I have no idea - hence my utter frustration with Microsoft. I am making this note not to inspire piracy, but rather to BEG anyone from Microsoft to please stop this. It really impairs our ability as legitimate partners to consult and deploy the product (charging $2k or more for the deployment) when the software itself can easily be obtained for $170!!! Not only that, but unethical computer people go in, sell the illegal product, and then we're called in to fix or deploy and we have to give clients the bad news that they have an illegal copy!!! I'm including the link so that Microsoft can (hopefully) take swift action.

Now what would have certainly sent Rick right over the edge would be the news that I reported this very same company to Microsoft and BSA back in October (as a matter of fact, the blog post on mssmallbiz.com is a direct consequence to us informing the Microsoft small business licensing watchdog about Surplus Computers who at the time was selling the SBS NFR for $169 and Office XP NFR with the GE mouse for $69). So lets face it - Microsoft has done nothing - yet.. I'm sorry, Surplus Direct is a major electronics outlet in United States and believe you me, it does not take months for someone in Microsoft to write a cease and desist letter. So don't deceive yourself with the "well, I am sure its happening, we are just not plugged in to the behind the scenes of Microsoft legal and licensing enforcement." We are not talking about something that started last week, last month… We are talking over three months here. So I'll get to my point: Where is Surplus Direct obtaining Microsoft NFR software? How is it that a major electronics outlet is allowed to illegaly distribute Microsoft software for months, and more importantly, where are they getting such a big stock of NFR media? Microsoft Licensing - please stand up and protect your partners and your customers before you lose both.

Now I know you've heard that expression but the folks over at Microsoft Mobile are really saying it today. Research in Motion, the maker of a popular business communication brick Blackberry, has been in a patent lawsuit for a very long time allowing Microsoft to grow and become a serious contender in the mobile business communication. However, Microsoft was always criticized for having no push support for email or centralized security for its mobile devices. All that changed with the release of Exchange 2003 SP2 which integrated management interfaces for mobile security, management, push email and more. Now the only missing piece of the puzzle is the software that goes onto the Windows Mobile device called Microsoft Mobile Security and Feature Pack (MSFP) which enables the device to work with the Exchange server to establish a security poliy, push email and get wiped remotely. Microsoft released this piece to its OEM's (guys actually making the phone or handheld device) for testing and development in November and we were told to expect it in the first quarter of 2006. But yesterday a former Microsoft partner and an ISV decided to file a lawsuit contending that technology behind MSFP is covered by their patents. They put out this press release just days after RIM lost their patent fight. Ouch, talk about karma. Now this part made me laugh because it comes on the heels of the post I wrote just yesterday:

"For more than a decade, small, innovative companies in Silicon Valley and elsewhere have lived in fear of the day Microsoft decides to enter their market," Bogosian said. "They are a big, powerful, wealthy company, but they have no real growth, even in their most profitable divisions. They want to show investors that they can sustain growth in a new, developing market, like mobile access to email and data, but they cannot be permitted to do that by misappropriating another company's intellectual property." "Innovative companies have been pummeled out of existence or into minor players after Microsoft decided to enter their markets," Bogosian added. "Netscape and RealNetworks are among the best known examples. Courts around the world have ruled time after time against Microsoft, saying that it has acted either inappropriately or in violation of the law, especially concerning how they have treated competing companies. We will not let that happen to Visto."

Now mind you, my article was written from a standpoint of a software publisher and a small business owner so my look was more on the changing face of software and big business competition. I think we all can learn and owe it to our companies to see the big picture and see how remarkably successful companies are trying to eliminate their competitors. Visto is on the receiving end of that equation, and really going after Microsoft on this one. So there is your business lesson for the day - either learn to compete and negotiate or CYA with patents and hope the lawyers you have will work on contingency basis. Good luck with the lawsuit boys, statistics are against you. And if someone has some spare cash to sue Microsoft could you please demand immediate release of MSFP? How you settle with Visto is between you and them, but I need to get my spam a lot faster than I do now. (No, I still don't have it, do not email asking for it..) Come on, someone go to Taiwan and crack the whip on HTC already!