DEC. 8, 2002
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Two Slab
Income Tax

The Kelkar panel, constituted to reform India's direct taxes, has reopened the tax debate-and at the individual level as well. Should we simplify the thicket of codifications that pass as tax laws? And why should tax calculations be so complicated as to necessitate tax lawyers? Should we move to a two-slab system? A report.


Dying Differentiation
This festive season has seen discount upon discount. Prices that seemed too low to go any lower have fallen further. Brands that prided themselves in price consistency (among the consistent values that constitute a brand) have abandoned their resistance. Whatever happened to good old brand differentiation?

More Net Specials
Business Today,  November 24, 2002
 
 
Don't Bill The Gates
While the billionaire's healthcare handouts are welcome, his software handcuffs aren't.

By the time this article comes out, the world's richest man would have been here and gone. From what I hear around me, our state governments are in a tizzy, competing to outdo each other to dazzle the gent. All in a hope to get some of his cash into their state.

Nothing wrong with any of this. But let's look a little closer at why Microsoft's chief software architect is taking four days out of that hyper-valuable time to hobnob with our CMs and CEOs. He's not really here because we need his money. He's here because he needs ours.

Think about it. Microsoft has seen off legal threats. But never before has it seen such a strong marketplace challenge-in the form of Linux.

  Going By The Book
 
  Fair Streets Are Better Than Silver...  
  The Path To Moksha  

Linux is all the things a developing economy like India needs- open, well-documented, stable, secure, accepted worldwide-and, best of all, virtually free. Governments around the world, from Peru to the United Kingdom have begun insisting on open source software to power their national initiatives.

India is not far behind-Kerala, Andhra Pradesh and Karnataka were among the first to root for open source software.

This worries the famously paranoid Redmonders. Small wonder that the CMs of these very states are on Bill's list of people to schmooze on this trip. "Hey buddy, I'll come and throw a few scraps your way from my private jet - but, pal, you gotta buy Microsoft."

Governments and their directives are not Bill's only worries. India isn't that large a market for software-we barely account for 1 per cent of Microsoft's sales. But the fact is that we are home to 10 per cent of the world's software developers-and Billy boy just doesn't want Coder Coomaraswamy to go over to the Linux side of the development fence.

Corporations around the world want lower cost, more supportable and stable solutions. And the nightmare of India becoming one of the world's strong Linux-based development centres has ensured that our Ambanis, Tatas and Narayanamurthy's get treatment on par with our chief ministers. The message again: "Stay with Microsoft and we can beat off those open-source outlaws and bring the world back to a place where a monopolist can still make a decent living."

The trip is done and over with now-and hopefully some of the glamour and space-cadet glow would have faded from those who wanted to be photographed with His Billness. Time for a reality check.

For buyers, it's time to consider how the very nature of software is changing. From a point where the internet offered the ultimate open, extensible infrastructure we now have offerings like Palladium, which adds proprietary bits to TCP/IP to ensure that Microsoft gets paid virtually every time you go onto the net.

You will also see new Microsoft licensing models that force you to pay subscriptions from now till forever for whatever you use. You don't have to accept it if you don't want to. There are alternatives.

Further, you will hear standard Microsoft FUD (rumours that add to fear, uncertainty and doubt) that Linux is more expensive than Windows. This is Redmond's new anti-Linux positioning-once they realised their earlier "Linux is un-American and un-capitalistic" line actually ended up making it more popular. More FUD is expected that Linux is insecure-but this coming from bug-infested Microsoft is like Saddam evangelising humane democracy.

If you're a developer, keep an open mind. There are advantages to being part of the Microsoft camp, especially if you want framed photographs you can show your grandchildren-or your customers live under a rock and will buy MS, no questions asked. For others, the global market for Linux is rapidly developing.

And as far as the Bill and Melinda Foundation to eradicate aids? A wonderful effort by all means. The NGOs among you should strive to seek connections and funding. And having to write up your reports in Word or Excel is a small price to pay.


Mahesh Murthy, an angel investor, heads Passionfund. He earlier ran Channel V and, before that, helped launch Yahoo! and Amazon at a Valley-based interactive marketing firm. Reach him at Mahesh@passionfund.com.

 

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