From: BillK (bill@wkidston.freeserve.co.uk)
Date: Tue Apr 08 2003 - 16:51:15 MDT
It seems to me that this discussion is wandering off into freedom and 
coercion byways. Remember this technology is from Microsoft, after all. 
You have to assume the MS tunnel vision outlook when evaluating it.
MS is doing this because they plan that it will benefit MS.
Now, exactly how will it benefit MS?
Microsoft promotes Palladium as a boon to user privacy, security, and a 
stopper of worms and viruses. Quote - "Our technology allows content 
providers, enterprises and consumers to control what others can do with 
their digital information, such as documents, music, video, ebooks, and 
software."
You can be sure the main "digital rights" Palladium protects will be 
Microsoft's. You will find it impossible to run Microsoft software on 
any computer other than the one to which it was originally registered.
Palladium requires computers to have a special chip, which both Intel 
and AMD have already agreed to incorporate. "Protected content" will not 
run on a computer lacking the chip, or with the Palladium features 
turned off. You will have to buy all new computers to run Palladium 
enabled software.
MS revenue stream.
Under the traditional PC software license, once MS license a program, 
they can only keep revenue flowing by releasing "upgrades" and 
convincing people the upgrades are worth purchasing. Producing these 
upgrades is a lot of work, and they are finding it increasingly 
difficult to convince anyone the upgrades are worthwhile.
Clearly, the solution to this problem is to shift software licensing to 
a subscription model. Under subscription, Microsoft can continue to 
enjoy steady income from products they do not need to upgrade at all.
Eventually Palladium is to take over license enforcement. Palladium 
supports firm cut-off dates, so if you don't pay your subscription fees, 
you will not get a new Palladium key and will not be able to use 
Microsoft programs, or the data you created with those programs.
Even subscription is not the final objective. Microsoft's long term goal 
is "Software as a Service", through the .NET Initiative. Software won't 
be loaded onto your computer at all, it will run "as a service" from 
Microsoft .NET servers. Your business data will also reside on Microsoft 
.NET servers somewhere out on the Internet. For access, you will have to 
be authenticated by a Microsoft Passport server. Subscription is an 
interim measure because the broadband Internet access required by .NET 
will not be universally available in the near term.
So, Palladium will enable MS to totally stop all illegal copies of MS 
software worldwide. That should at least double their revenue stream for 
starters.
If you go the Microsoft route you will be signing on to their revenue 
stream and you will have to pay the MS tax on a continuing basis.
That's their business plan anyway.
See: http://www.aaxnet.com/editor/edit029.html
BillK
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