This post originated from an RSS feed registered with Java Buzz by Carlos Perez. Original Post: "Protection Insurance" The New Business Model Feed Title: .:Manageability:. Feed URL: http://www.manageability.org/blog/stuff/rssDisabled?portal_status_message=Syndication+is+Disabled Feed Description: Random thoughts on the manageability of complex software. Latest Java Buzz Posts Latest Java Buzz Posts by Carlos Perez Latest Posts From .:Manageability:.

It seems "Protection Insurance" is the latest trend in business models.  SCO started the ball rolling by introducing a new licensing model.  The new licensing model is that to avoid the "possibility" of a lawsuit, it may be wise to license their product.  Now its still as murky as ever if SCO has a case that can hold up in the court of law, however that's not the point of the business model.  The point is to make a credible looking threat and make you pay to avoid the threat.  If you don't pay, well there are no guarantees then. 

Now of course Microsoft is that master of all this.  We've all heard of "License 6" a license tantamount to buying insurance.  That is, if you don't pay today, well then you just never know how much you'll have to pay tommorrow.   However, a true master of the "Protection" business does not ever admit that he's going inflict physical harm on your business, no that's a complete mistake.  He only implies that "someone" might inflict that punishment, and in essence you're paying him for security.  All nice and legal looking.  SCO is the thug and Microsoft the collector.  It's just no surprise that we now hear of Microsoft's new licensing agreement, that is they are now willing to pick up the tab on any lawsuit like SCO's.

Yeah, the mob knew how to make money back then, and Microsoft and SCO are only following in their footsteps.