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March 16, 2007
Product Activation - Why?
Foreword: This blog is written to express my personal viewpoint of why Diskeeper Corporation has included activation in the latest Diskeeper 2007 version.
A few years ago, Diskeeper Corporation began a global expansion plan. That plan targeted Asia as a huge and growing market, about to come into its own in the world of software. China is predicted to be the world economic power in a relatively short period of time. One example of this is the city of Shenzhen. Shenzhen has grown from a few hundred thousand locals in 1980 to about 10 million people today. This city was "created" by the Chinese government as a modern industrial city and trade center to the world.
Pioneers such as Adobe and Microsoft have long since moved to take advantage of this burgeoning market. As part of that process they developed anti-piracy technologies and began educational campaigns in many parts of the world, including Asia.
Diskeeper Corporation has established great partners in these new locations to help expand the company. They are there to aid customers in their respective regions with Sales and Support. They are also a tremendous asset in that they are local to their regions and know the culture. We understand that we, as an American company, have a lot to learn with respect to doing business with the rest of the world.
While I can't speak for the reasons Microsoft, Autodesk, or Adobe have added activation, I am privy to much of the same type of information from which they are operating. These are the reasons Diskeeper Corporation has moved in this direction. In many parts of the world, digital piracy is rampant.
So why is the piracy rate so much higher in other parts of the world than in North America or Western Europe? Are people in those regions "bad people" or more prone to steal? No. In large part it is cultural. In many East Asian cultures, "copying" is considered flattery. If you have a desirable product and others want it to the point of copying it, that is considered a compliment to the original creator. Little has been done to educate these markets that copying movies, music and software hurts the artists/companies and the employees of those companies, who create these products. The Western concept of "copying is illegal" does not exist in the same form. We cannot judge other cultures by our standards. If there is disagreement, then it is our job to educate, understand, and come to a cooperative arrangement.
Another consideration is pricing. Music [MP3] piracy was rampant in the late 90's (Napster, Kazaa). It's not that it isn't a problem now, but legal outlets to purchase electronic music at more consumer-agreeable pricing have helped. Being able to spend just $.99 USD/per song, for a couple of songs you like off of a new music CD, rather than paying $12.99 USD or more for 10 songs, 8 of which you did not care for makes getting what you want for a price you are willing to pay feasible. In less economically-developed parts of the world, prices originating from more-developed nations may exclude the affordability of a product. In many parts of China a family making $500 USD a month is considered middle class. Selling Windows, for example, for a price of $300 or so USD would mean that a family would have to work weeks to be able to purchase it. Local economies work on a relative scale so schools in those regions would not be able to purchase Windows. That is why Microsoft has special products, such as the Starter Edition for Vista, and why Diskeeper Corp is working with partners local to these developing nations.
While much of the foreign piracy is a matter of differing philosophy, there is an entire industry of piracy in Asia - it is big business. Yes, the people in this industry are well aware what they are doing is wrong. And yes, it is illegal in those regions to do this, but on the streets they run the operation much like a drug dealer would in the US. I recently returned from a trip to East Asia where I saw street vendors selling pirated software. One "booth" in particular that I photographed was a table covered with pieces of paper identifying different software products by name only - mostly Microsoft and Adobe. Buyers pick a title they want to buy. They tell the booth attendant who then disappears around a corner. The attendant tells another hidden partner who then also disappears. A few moments later the attendant returns with the chosen software package - often in perfect replicas of the original package. It's all very orchestrated and covert.
Diskeeper is not in the position of Microsoft, we just don't come anywhere remotely close to them in market presence and power. We are a small, humble company with a very focused existence. We do not believe, for a second, that those who willingly and knowingly pirate our software will purchase it, and we aren't trying to change that. Personally, I'm not opposed to Microsoft's activation - I agree with it, given it is done right. I also agree with the Recording Industry Association of America's movement to protect digital content under the same circumstances. Why? Because they will put that revenue back into their products and services and the result of that will be benefit me. And no, I don't buy into the "they make enough money already" excuse. It's real people (artists, developers, actors, and the supporting staff) that are affected.
I agree that those who will steal, will still find a way. Some will view Windows Activation procedures as a challenge, just as they view the creation and distribution of destructive viruses as a challenge. They'll do everything in their power to defeat activation, create viruses, spyware, etc... In the long run, I agree that it will take the individual to be morally responsible for their own actions. I think for that to occur the manufacturer's who create, or represent the artist/intellectual property(IP), will first need to educate the world on how to view and respect IP. That will take time. The "casual" copier will hopefully come around, and the real bad guys will hopefully either reform and use their technical or business talents to be productive helpful members of society (and probably make a lot of money doing so), or be caught and shut down.
Are we trying to penalize the honest buyer in Omaha, Toronto, Frankfurt, Shanghai, Jaipur, etc...? No, and I do not think that the technology we have built and refined does so. Some companies have made mistakes in the past and developed technically incorrect or invasive anti-piracy technologies. Of that there is no doubt. Diskeeper Corporation is in the privileged position of being able to learn from the mistakes of others and not repeat them. That affords the ability to properly execute "best intentions". We spent many years of R&D to get the technology to where it is today.
We are not trying to stop the casual copier, and we are not adding activation out of arrogance. We are adding activation so that we can grow our company and make money in markets where we could not otherwise do so. If the only way to accomplish this expansion was to screw over existing customers, we would not do it. Our existing loyal customer base is why we are where we are. It's why I and all the rest of the staff as Diskeeper Corp have a job.
I do, however, think it is unfair to customer's who pay for the software to have others illegally download the same software and not pay for it. As a paying customer, I'd be upset that someone else can easily download a pirate copy of the latest Norah Jones or The Shins CDs for free when I've paid for it. That's not self-righteousness, it is simply not fair to me, or for that matter, to you as a loyal paying customer in the case of Diskeeper.
Ultimately, the choice is yours. Unfortunately some will say activation, on sheer principle, is unfair, unjust, and invasive. If an anti-piracy technology is invasive or irresponsible then I would agree that it is not acceptable. I would not buy it, nor would I expect anyone else to do so. Yes, this has been done in the past, but the "guilt by association" principle connection to Diskeeper is not true. I think we have done a good job making this technology seamless. I'd like to think it is perfect, but there is always room for improvement and we definitely want to hear from you on how we can better service you. That is what has made Diskeeper successful and nothing else (and we'll never forget that).
-Michael
PS: We have had a section in the FAQ page on Activation since the release of Diskeeper 2007. If you have any questions that are not answered there, let us know. More information for volume license customer will be coming soon.
Posted by Michael at March 16, 2007 05:56 PM
Comments
Microsoft has no real competition. Turbo Tax did so does Diskeeper. Activation is bad for business. No one like Windows Activation and when they had a choice (Turbo Tax) they choose NO ACTIVATION.
Posted by: Andrew at March 24, 2007 04:18 AM
Hi Andrew,
Preface: As always, the blog is my unedited, unbiased -usually :-) - personal opinion.
I would argue that MS does have competition. In the consumer space, Macs are a user friendly, albeit a bit pricey, option. In the corporate market, I agree it is tough to consider anything but Windows on desktops, but there is definitely a strong Unix and Linux presence on servers. I spend several months of the year visiting customers and getting first hand accounts of what IT Pros are dealing with in IT - I hear a lot about Linux migrations. We do heavy surveying. Much of that surveying is email based as many of you know, and like to call Diskeeper spam; lovingly I hope ;-). We have researchers who track industry trends. From my perspective, MS has very real competition.
For all the strong-arming that MS is accused of, they are one of the most conscientious companies, when it comes to considering the needs of the user. They get a bad wrap because, in my opinion, they are a big company and tend to react a bit slow. I'm not suggesting they should be canonized (they have their flaws), but they are a perfect target in a world that loves the underdog.
As for TurboTax, yes they made a mistake and they have admitted this by removing it. If you recall, that activation technology was very complicated and problematic. They have kind of burned their trust with some customers for the immediate future with regards to activation. Personally, I use and have used TurboTax for years and have never had a problem with activation or the performance of the software. I'm not saying it is the best product, only that I've been happy with it and continue to use it. It has legacy support and advanced features not available elsewhere that justify, for me, the higher cost. Just for the heck of it, I asked our research guy to look up the numbers. TurboTax still does 3x the revenue of TaxCut. Did the debacle of a few years ago cost them, yes. They made mistakes and learned from it, as did other software companies who watched it happen. Are they dead and out of business, nope. They still dominate the market. They've learned and still have the opportunity to make back market share they've lost.
As for Windows, I've had to activate Windows XP multiple times. Using the Net and, because I regularly swap out hardware components, phone activation. The phone system took me a couple of minutes, but it was not big deal.
Is it bad for business? I think that depends on several factors, the most important being - "is activation a burden for the customer?". If it is, it's a bad idea 100% of the time. If it isn't a burden then it will result in benefit to the user, it just won't necessarily be immediate. If TurboTax had implemented a non-invasive activation technology, they would not, legitimately, be a target for bad press.
Diskeeper Corp designed our activation technology to be automatic and silent for anyone with internet access. It was modeled after AutoCAD - which we found, by surveying users, to be a very easy/user-friendly design. For those without internet, there is simple "offline" process to run that takes 4-5 minutes. For corporate customers there are other options that an IT Pro can go over with their Sales Reps.
If the "big dogs" like Microsoft and Adobe, did not shift the industry, create standards, and educate the market, we as consumers would not have a great deal of the freedom we enjoy. In the end they are doing it for us, not because they seek corporate sainthood, but because in the end it allows them to be more profitable. That means they can deliver better products at a lower cost, both to them (to produce) and to us. When a company like MS, Apple, or Adobe makes more money, we get better products from them. A good example is the new PhotoShop CS3.
As a consumer, on principle, I'd prefer to not activate. And I do understand that a consumer isn't considering the best thing for them AND the company in the long term - just what they see in front of them today. In the long-term, activation means Diskeeper will make more money (expansion into China, etc...). While it is unlikely we'll drop prices, (though we may be able to offer more specials) we certainly we be providing a greater value in new versions. We can hire more developers and increase the core competency of our development crew. Future Diskeeper Corp products will have more features and provide even greater benefit for the customer. Had I encountered issues with TurboTax years ago, I'd probably be a loyal TaxCut customer at this time. If XPs activation burned me, I'd be running MAC or Linux on my main systems. If Diskeeper's activation causes you real headaches, I'd expect that you would seek alternatives.
Diskeeper Corporation is a little company. In the world of the Symantec's and Microsoft's we are a huge underdog. While the Diskeeper product can stand tall with the big boys, it's our only ammo. If we screw up activation we go bye-bye, and I certainly don't want that, nor do I want to lose you or anyone else as a customer.
We toyed with naming activation by some other wording, such as "guaranteed genuine". Yes, that would be indirect marketing fluff, which is why we avoided it. However, there are other companies who employ activation by other names. They do so because they don't want the incorrect association to poorly executed activation designs of the past (i.e. TurboTax and others). They are not the same, nor is Diskeeper's.
Posted by: michael at March 27, 2007 10:09 PM
I continually get spam from 'diskeeper corporation europe' at my business email address. Diskeeper continue sending this despite 2 polite email requests to stop. I just got another one, containing a large colour jpeg advertisement. So I tried searching the web for a solution, and ended up here. What can I do to stop these spammers?
Tony
Posted by: Tony at July 24, 2007 11:25 AM
Hi Tony,
Every email you receive from a company (Diskeeper included) should include an "opt-out" option (hyperlink) at the bottom of the email to stop further emails. In the case of Diskeeper, this is a very automatic process and you need only click on the link. If, for some reason, this does not work, you can send and email to the webmaster.
Contact information for Diskeeper Corporation Europe can be found here:
http://www.diskeepereurope.com/en/07_general/contact.htm
Posted by: michael at July 25, 2007 07:16 PM
Hi, I don't have much issue with activation as long as more agreeable pricing scheme is developed for home use. I have 5 computers at home, 3 of them I use sporadically, and having to buy 5 licenses at 4.5 times the individual license price is cost prohibitive to use your product. Some other companies allow unlimited use license options for the same licensed user, e.g. on their home network. Will Diskeeper provide such an option at a reasonable price. I guess I could put all my hard drives on the same computer, but that would create a risky situation, e.g. if that computer dies.
Posted by: Lajos Molnar at October 25, 2007 07:03 PM
No... that is not true. If your PC dies, it has NOTHING to do with your Hard drives unless it was the drives that crashed.
My take on activation is this... I purchased Acid D.J. years ago but never used it. When I finally decided to use it I discovered it had to be activated but worst than that it couldn't be activated - the company was out of business.
So, I'll never buy an activation product ever again. We pay money for products that may have limited activation or may be unactivatable in the future whereas the pirates and bootleggers get free copies without activation locks.
So technically, all I'm paying for is the activation locks. Sorry, I think I'll pass on it.
So if it comes down to me losing $100 or a billion dollar corporation losing $100 - I think that choice is easy.
So if losing the activation lock is pirating... what do you call it when I lose money - reverse pirating?
Posted by: z at July 12, 2008 03:32 AM
Hi Z,
I understand what you are saying, and respect your opinion. We've been around for 27 years, so a customer can feel pretty safe that they won't lose the ability to use a Diskeeper license.
Assuming Acid DJ wasn't acquired by someone else, they should have considered releasing the software to the public under GNU public license or similar.
Posted by: michael at July 18, 2008 08:55 PM