If you are a big government, M$ will show you the code. This has some consequences:
- some governments may learn how to hack into the monoculture of PCs globally for espionage or censorship
- other customers of M$ may realize they are second-class customers of M$
- this may promote/certify FLOSS as valid, undoing years of FUD
- governments that see the code may be horrified and ban that other OS in their jurisdiction
The idea that there is security through obscurity disappears when you know some really bad dudes have access to the code. Many governments have really bad reputations for lack of respect for privacy and their own laws. Giving them access to the code while denying it to other customers may not be in the best interest of others.
I would rather use software where everyone is on equal footing, FLOSS, such as Debian GNU/Linux

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Does Russia now have access to code that other World Powers use in their respective governments? The same code that other governments don’t have access to? Was the code that Russia saw the same code that runs much the the US Federal Government? What were the communications Microsoft had with the US Government before this deal was signed?
I’m not upset. No, not upset at all. This deal with Russia represents a huge crack in the facade that Microsoft presents to the World. “Our code is safe because no one outside of Microsoft sees it”. Were there any cases of death by laughter reported in the Russian Government recently? The Russians were able to announce to the World what no other entity has been able to reveal before. Microsoft must have been desperate to get that account. I’m saddened to see the Russians drift further into Microsoft’s sphere but I think the price they made Microsoft pay was worth it.
So who is next?; The Israelis? France? The UK? Brazil? Lenny Horowitz in the Bronx? (Oh, I almost forgot.) Canada?
I would be surprised if there weren’t already a number of governments that have seen at least some Microsoft code. But this is the first public acknowledgment (to my knowledge anyway). That must have been part of the arm wrenching deal.
Microsoft is getting squeezed and this new squeeze point is just one of many. Another one is the economy. It’s not just going to be a double dip according to one well known analyst. It’s going to be a world changing mega recession. Like decades. A company cannot survive charging hundreds of dollars for what others are giving away in an environment like that. I think it’s time to start the pool.
I think governments are telling M$ they need to see the code in order to rely on it for secure stuff.
This is nothing new.
http://www.microsoft.com/resources/sharedsource/eslp.mspx
This has been done before.
http://english.cri.cn/2906/2007/08/02/53@256923.htm
Of course, governments would never abuse such privileged access.
http://www.rev2.org/2010/01/15/verisign-idefense-ids-chinese-government-as-google-hack-culprit/
Well, at least there’s a remedy.
http://www.ft.com/cms/s/2/d2f3f04e-6ccf-11df-91c8-00144feab49a.html?ftcamp=rss