PIN-SME

Brussels, 21 January 2009. Millions of European small businesses who want to enjoy access to inexpensive or free Internet applications could benefit from the European Commission's antitrust action against Microsoft's control of the web browser market, the PanEuropean ICT & eBusiness Network for SME's said on 21st January 2009.

Browsers serve as the gateway to the Internet, and the Internet will only remain open if healthy competition exists among browsers. At present, Microsoft's Internet Explorer's dominance threatens access to the net. Internet Explorer is the worst rated browser - with an approval rating less than 10%, according to the Market Share website. Yet the same website reports that Explorer has by far the largest market share of almost 70%.

In a true competitive marketplace, computer manufacturers would offer the most effective browser to go with their PCs. Yet almost all load low-scoring Explorer. This market disfunction makes Web 2.0 applications running cloud computing dependent on a Microsoft browser implementing proprietary standards. 

"Small businesses can't build different sites for different browsers.  We need to know that they will all respect the web's open standards" says Sebastiano Toffaletti, Secretary General of PIN-SME. The Internet is redefining small business's approach to Information Technology. Email, documents, calendars and other business communication tools are increasingly being delivered and hosted online via a trend known as 'software as a service' or 'cloud computing'. In this simple concept, applications and data are delivered over the Internet via a third party. It's a transformational technology and it depends on open standards.

Once you're hooked up to the web, the cost of buying licenses, purchasing servers and maintaining them is reduced because it's possible to effectively 'rent' business applications from a third party. From a budget perspective, this brings predictable costs for IT and dramatically reduces spend on traditional desktop software. The Broadband Stakeholders Group (BBSG) estimates the online model would save companies £350m a year per person in support costs. If 30% of SME staff made the switch to cloud computing, the savings across the UK would total £620m a year.   Imagine what the savings across Europe could be!

The European Commission can help fix these problems. Besides forcing Microsoft to unbundle Explorer, the most effective approach would be to insist that all browsers should comply with Open Standards.

Small companies now must invest in large IT infrastructures and pay hundreds of euros to buy individual operating systems and office applications. Thanks to the European Commission, they soon may have an opportunity to receive equally or better performing low cost or free applications on the Internet.