KEY POINTS:
Microsoft estimates up to 2000 New Zealand technology businesses could be eligible for free software under a global scheme it is announcing today.
The software giant says its new BizSpark programme - offering start-up technology companies the use of Microsoft's software development tools free for up to three
years - is aimed at fostering economic growth.
But some observers take a more cynical view, saying the scheme is an attempt by Microsoft to lock new businesses into using its software, forcing them to pay significant fees once the programme ends.
Scott Wylie, the director of Microsoft NZ's developer and platform strategy group, said the company realised that start-up businesses could choose from a number of technology options and BizSpark was about encouraging them to choose Microsoft's platform. He said the technology development industry was a high-growth sector with a lot of economic potential for New Zealand and he believed there were 1500 to 2000 start-up businesses in the country that could potentially fit the programme's requirements.
"We're hoping that, especially for the people at the newer end of the spectrum who are still making that technology platform choice, we are going to snare quite a few of them," Wylie said.
To be eligible for the BizSpark programme, technology companies must be privately owned, be less than three years old and be generating less than $1 million in annual revenue.
Businesses that sign up receive access to a range of Microsoft development software including Windows Server, SQL Server and SharePoint Portal Server. Microsoft says the only cost is a US$100 fee payable at the end of the three-year programme.
The scheme also offers businesses technical support and, locally, is being promoted by industry and development organisations including Incubators NZ, the NZ Software Association and Angel Association NZ.
Even before it had been launched, the programme came under attack from the anti-Microsoft lobby.
Blogger Donna Bogatin said the world's largest software company's strategy is "to dupe technology start-ups into building their entire businesses on proprietary Microsoft software, supposedly free-of-charge to qualifying start-ups".
After the three-year period of the programme ended, Bogatin said, companies would have to pay "juicy licensing fees to Microsoft for permission to continue business operations as developed with the so-called 'free' Microsoft software".
Wylie said while Microsoft was looking to foster a "commercial relationship" with new businesses through BizSpark, there were also other cost-reducing incentive programmes they could move across to at the end of the three-year programme.
"At the end of the three-year period, most start-ups that have had some level of success will move on to some other partner programmes where they receive further benefits, so it's not a turn-off-the-tap situation," he said.
Chairman of Incubators NZ Jonathan Kirkpatrick said BizSpark would "simplify important technology decisions for start-ups in the early stages of growth by giving them an industry-leading platform with no immediate cost".
BizSpark follows another Microsoft initiative, DreamSpark, launched earlier this year, which gives tertiary students free access to software development tools.
"Both of these [programmes] are focused on the next generation, and yes we're making a play to say we believe we've got the best platform.
"Try it out," said Wylie. "It's a no-barriers way to find out if we're telling the truth."
