Pick up the best of Microsoft Dot Net

By Vishnu K. Mahmud

JAKARTA (JP): Everyone by now has probably heard about the new strategy of Microsoft, dubbed Dot Net. This plan is supposedly to provide the world's wealthiest company new multiple revenue streams for its products.

Instead of selling shrink-wrapped software packages with individual or corporate licenses, the company can sell "services" that can be continuously upgraded and delivered online, something akin to cable TV.

So, instead of an initial (and pricey) investment, users would be able to "rent" software over the Internet at a lower cost per month.

With Microsoft's Passport.com, another part of the Dot Net initiative, users will be able to sign in only once to browse or shop various partner websites. Thus, users will not have to log in manually every time they want to read an online news journal or have to enter their billing address and credit card number every time they want to buy a book.

Totally convenient, totally centralized.

But some privacy advocates have a problem with this. By marshaling people on the web to sign up with Passport, Microsoft will have a massive database of users in their hands; users who, with the single log-in, can be tracked all around the Web (or at least within the partner sites).

Some say that Microsoft is building the world's largest and most accurate consumer database and will make tremendous profits mining it. How? They can charge content or e-commerce partners high fees to join their network to access the gigantic pool of users. They can require a commission from every sale. They can also sell portions of the database to marketing companies who, in turn, can offer "targeted" services (or worse, "Spam") to users.

There is even the potential to tie in data between websites.

Here's a hypothetical example. After visiting an investment website, you want to buy a ticket online. With the shared data, the travel site can charge you based on how much stocks you have. You have US$50,000 in your portfolio? Forget Business Class, how about a First Class ticket at this low price?

But it is still a legal service.

Companies are always looking for ways to provide better services to their customer (in addition to seeking higher revenue). With such a centralized database, it takes the guesswork out of the equation but allows them to know a bit more about the user. Perhaps a little bit too much than what the average user would like those companies to know.

Take another example. "Greetings, Mr. Smith. Here to buy a new bag? I understand you love cars and sports and have a house in the Bahamas. You're 34-years old, married with a son. Perhaps you'd like this lovely leather red Ferrari backpack signed by Michael Schumacher himself. What about this Formula One video game? Or this lovely sunflower dress for your wife. And would you care for some suntan lotion?"

The fact that Passport is now embedded into the new Windows XP has some people even more nervous.

Are you new to computing and also new to the Internet? No problem, just click here, here and here, and we'll have you up in no time. Want to do some shopping? We have some partners here and here.

Some people argue that Microsoft provides excellent service for its users. Everything is so easy to use and the newbies (new users) are given guided tours. Guided around the Net. In the real world, tour guides usually get a cut. As such, users may not be given the opportunity or knowledge to visit other sites that may provide better services or lower prices. Pity the poor mom-and- pop Internet shops.

With such a method, Microsoft seems to have total control. They make the operating system (OS), they integrate various applications into the OS (Instant Messaging being the latest addition), they control who gets to be their partner (and at what cost) and they will safeguard confidential user information. They will be the gatekeeper for all the data.

Never mind that all this sounds rather monopolistic. They are providing a service to the customer.

But there have been security problems in the past with their server software. Microsoft's free Web based e-mail, hotmail.com, has itself been a target of a successful hack. Some hotmail users had to wait for days if not weeks to get their inbox again. And the same company asks us to trust them with your online data!

It all comes down to consumer behavior. Would you be happier with your wallet in your back pocket or with "Honest" Joe (who really is honest) down the street? If you want to buy something, do you mind if Joe makes a note of it so he can find better deals for you later? Deals that could perhaps offer Joe a commission? Do you prefer security or convenience?

The Internet is a free information superhighway. It is totally up to each individual user if they would prefer to take a path that is littered with tollbooths or one that is only a few clicks less.

The writer is an IT consultant based in Jakarta. Questions? Contact Vishnu at sundaypost@thejakartapost.com.