Feeds

Corel compensated over unfair MS Office contract

But MS Office got the contract anyway, so who won?

  • alert
  • submit to reddit

Build a business case: developing custom apps

Here are some interesting numbers. Corel has won C$9.9 million compensation over a Revenue Canada contract, the bidding for which Corel successfully argued in court was skewed in Microsoft's favour. But Microsoft Office got the contract via GE Capital anyway - if all of the options are taken up, then the deal will be worth C$55 million. So Microsoft must be crying all the way to the bank, right? Well, up to a point, Lord Copper. The contract in question, which Revenue Canada put out to tender, is an interesting example of where integration blurs into immolation. Revenue Canada was already an MS Office shop, and had asked companies bidding for the deal with software other than MS Office to include estimated conversion costs in their bids. A series of Canadian courts ruled that this was unfair, and that Corel hadn't been given enough information to be able to submit a bid for WordPerfect. Revenue Canada was told either to reopen the competition or pay compensation. The deal certainly remains a win for Microsoft, but Corel's legal victory represents a shot across the bows for the Canadian government - its departments will be less likely to be quite so cavalier in 'open' tenders in the future. And of course you could view it as an awful warning for business in general - when you're getting into this integration thing, remember to figure out your likely exit costs first. Of course, as the majority of businesses are now already in there with Office, and standing on the old upgrade ratchet escalator, that's not a lot of help to them, is it? ®

Boost IT visibility and business value

More from The Register

next story
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.