Microsoft BizSpark Embraces Startups With Free Software, Services
by Michael Arrington on November 5, 2008

Microsoft is launching a new program called BizSpark to encourage startups to build on their stack this morning.

Virtually everything a startup needs to build a web service (many of the tools and software compete with open source alternatives, such as MySQL) is being offered to startups for free for three years. The program, run by VP Strategic and Emerging Business Development Dan’l Lewin, is global and provides access to full-featured development tools and production licenses of server products with no upfront costs. BizSpark also provides the necessary hand holding with free technical support.

The fine print: startups need to be referred in via a network of venture capitalists, consultants and other professionals in a position to flag promising companies. To qualify a startup needs to have been in business for less than three years and have less than $1 million in revenue.

What startups get: a free, tech-supported alternative to open source software. Microsoft gets to train a new crop of engineers on their software and services, and lock these guys in after three years when fees start to be charged. Brilliant.

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  • Just thought I would chip in to say that ‘Howard Baines’ is a BizSpark partner working with startups that want to gain access to this program.

  • Just a step

  • hA HA! What a joke :-) Anyone who can startup at this bad economy and survive for more than a year, will not be stupid enough to opt for microsoft services.. LMAO!

  • Overall I think these programs are welcome. We’ve enrolled in MS Empower for ISV program from the start. It is not three years and it does cost a few hundred bucks, but it really helps, as it saves thousands of dollars of purchasing software licenses.
    Of couse the ISV program has no real “lock in” mechanism like you described, as it’s existence doesn’t affect our technology choices. The BizSpark (sounds like AllSpark from Transformers) is intended to make people use MS instead of the many alternatives. MS is using the big boy advantage, and this time in a more subtle and useful way.

  • BCentral probably turned off so many people during the past 10 years that I doubt businesses that have more than 6 months of experience will ever want to use Microsoft services again.

    ATTN: Micheal Arrington

    Now that I have the Google G1 phone I no longer use my PC for anything except software development. I even have SSH on my G1.

    With that said, the G1 can NOT post comments to Techcrunch.
    You need to BUY A G1 and QA (Quality Assurance) the Techcrunch.com website for use with the Google G1 and Android.

    If you can’t afford a G1, you can use the Android emulator available at Google.com

    When you post a comment on the G1, the screen turns blank and the comment was not posted.

    Android Apps that critically still need to be made:
    Flickr uploader App
    WinSCP

    The Android store is very cool, but there aren’t very many good games aside from Pac Man. Super Breakout needs to be implemented on Android NOW.

    http://www.flickr.com/photos/8.....993624599/

    So with this in mind, PLEASE test all your sites for Android compatibility. Less and less people are going to use PCs now that Android is out and available. Again, I only use mine for software development now.

    • “So with this in mind, PLEASE test all your sites for Android compatibility. Less and less people are going to use PCs now that Android is out and available. Again, I only use mine for software development now.”
      am sorry… less and less people are going to use pcs WHAT ?

    • Critical Android App still needed:

      Adblocker plus

      because even 3G can be slow when you have to load Techcrunch and MySpace adverts. If this doesn’t come out by this weekend. I am freaking building this.

      There is no reason we have to waste precious 3G band on dumb adverts.

      Just so there is no confusion, I am talking about the Android version of this add-on to Firefox which I have been using for over a year now, as do “28,068,129 total downloads” other people.
      https://addons.mozilla.org/en-US/firefox/addon/1865

      This is absolutely CRITICAL to Android, and must be developed immediately.

      Other messages:

      Congradulations Obama
      and
      Gas is under $2.50 a gallon on my street corner here in the Los Angeles area.

      You guys in Canada and Europe are total suckers. You should topple your governments.

    • Huh? How can you be late work? You have to go somewhere? That’s like web .5 dude. Besides, your android is YOUR work!! It is always with you so you can be anywhere!

    • I don’t know about you guys, but I still prefer to browse the web from my 24-inch LCD monitor than a tiny mobile phone screen.

      And I’m sure Google will be thrilled - spearheading and open sourcing all these platforms to stay true to their vision of Client, Connectivity, and Cloud - only to see people start developing software on their platform which blocks advertising - about the only way Google makes money nowadays.

  • What happens if they don’t make it long enough? The skills are learned,
    does MS get paid regardless of the businesses outcome?

  • I guess even Sun Microsystems have a similar program for startups

  • This is a joke…like Balmer dancing to energizing troops…a farce, a fiasco from the beginning.

  • I think they should have been slashed down the qualifying criteria to attract small size business owners.

  • I’m curious to read the fine print, but it seems to me that the benefit of MS “quality” doesn’t offset the potential cost down the road, especially when open-source, free alternatives like Rails, MySQL, etc. get better every day, and won’t hit you with fees just because you’re three years in.

  • I won’t claim to be enough of a technologist to analyze this but, as a startup guy…I’m extremely mistrustful of limited free offers from a company like Microsoft. It definitely appears that this is play to get designed in and then start exacting vig later on down the line once a business is built and the switching costs are high.

    So, in my opinion, this looks like a nice place to test and sandbox stuff but if you want to build a business then don’t expect a free lunch. Pay your own way and you’ll be a customer, not a prisoner.

  • A smart move - will cost MS next to nothing and even if the companies don’t make it they will be further indoctrinated at whatever job or startup they choose afterward.

    Existing experience is a huge part though - the question is how many MySQL experts would switch to SQL Server 2008 even if it were free?

  • “via a network of venture capitalists?” OoooohKaaaaay. startups need is to be referred by some vc who never invented anything and 80% percent of what they invest in loses money. i can hear them now “here mircrosoft, heres a hot prospect or ours………..got any welfare? ” more hog wash. reality is that startup game changers are few and far between. call me i can help.

    StartupLocator.com-start your engines!

    • stop spamming - you locator jackass with a free ning.com account and 1 member in your *network*

      - moron

      • @jkant
        -im good for business all the way around or i would be here, its called community. my system is unique and anybody with half a wit can see it. the power of my properties for strategic multichannel natural language location based tagging the net is bottomless. what you are experiencing is only a test. you have seen nothing my friend. share a website or a blog and maybe we can take you seriously. dont hate……integrate. i will put the “potential” of my niche offering 1300 Channel Natural Language Location Engine against anybodies Startup Search Engine anyday.

        NetworkLocator.com- search is over. location rules. find yourself.

  • Guys,
    Having been at a small VC firm for 2 years, and worked at various different large software companies (BEA, IBM) and now as a relatively new employee of MS to help them open things up, I think you’re really missing how HUGE this actually is.

    This means:
    - There are no upfront cost. Startups only have to pay $100 at graduation, after 3 years.
    - No commitment (you can try it and leave the program whenever), it is friction free.
    - Hosters like GoGrid, Rackspace or Opsource are on board with this
    - Basically, any startup can build a killer software app in the cloud, and make a living out of it during 3 years for only $100.

    Additionally, you could just use specific products from the stack. For example, if you just wanted to use Windows Server and IIS7 – you could build out your stack with MySQL on top of this using Ruby. If you’re running IIS7 as well, FastCGI allows you to run PHP, ASP.NET, and Ruby all off of one box. So essentially, you have limitless possibilities, and don’t have to worry about paying for the expensive stuff.

    Just trying to clarify…

    Thanks,
    Lauren

    Lauren Cooney
    Web Platform & Standards
    Microsoft

    • Lauren

      Why make it so that you need 1mil in VC and to be referred. by an accredited partner. By the time anybody gets to this stage they are most likely already going to be locked into a platform and difficult to change even if they wanted.

      Also the ones with 1m in VC funding don’t need free web services.

      If MSFT was smart they would reach out to the lower rungs.

      • I’ll answer you - and this will apply to all the other people who had mistaken notions regarding the VC referral and thought it was a scam.
        A. I am a member of thefounded.com - which is an entrepeneur-centric community and was referred to BizSpark free of charge and pre investment - which we are seeking
        B. Microsoft has extremely good software development tools and it would be a mistake to ignore the opportunity if you’re starting a software development project from scratch. I say this as a professional programmer with over 25 years experience and a lot of mileage in the Open Source space. I think tools like CakePHP and Rails hold their own and are extremely cost-effective but BizSpark lowers the energy barrier and that my friends is a good thing

        Danny Lieberman

  • FWIW I used to be a LAMP guy, then to make the rent one month did some work on a Classic ASP and SQL Server project. Luckily the tools came with the job so I didn’t have to buy anything (but now with Express versions of Visual Studio and SQL Server you can get a “taste” for free anyway).
    I never looked back. Sure I’ve sometimes worked on LAMP projects, and there’s always upgrades and enhacements on old sites but for something that scales and just works I’d go the MS stack.
    Having something like BizSpark around to give a startup a fee-free way to get up and running is great - if you’re not making enough money to pay for the licences at the end of the 3 years… you probably don’t have a business model worth worrying about

  • This program sounds great but I find the whole network partner aspect of it somewhat confusing as in their current list of network partners I’m not sure which, if any, are a good match for a small (1 FTE) company making downloadable (not-web-based) videogames that isn’t interested in any VC at the moment and there doesn’t seem to be any kind of consistent rules for signing up with a network partner. Are they going to charge me? Are they going to upsell me some service I don’t need to get an enrollment code? etc.

  • @ Lauren Cooney

    Thank for the points.

    If MSFT wants to attract great opportunities they need to be much more proactive. In other words they need to reach out to the entreprenuer long before a VC refers them. By the time an entreprenuer speaks to the VC they are already committed to a platform (at least first phase)
    My recommendation is that you take some of the cash off your balance sheet and create incentives for these companies that align with future growth areas of MSFT.

  • Sounds a lot like Sun’s Start Up Essentials program.

  • @ Offbeatmammal…counterpoint:

    http://gigaom.com/2008/11/05/w.....-freebies/

    MSFT is not doing this because LAMP has issues :-0

    Unless a startup’s business plan embraces targets in MSFT ecosystem, they are crazy not to go open source. Crazy.

  • This is great news in my view.

  • I’m down, I’d rather use C# than some script kiddy language like PHP. MySQL is fine, but I never understood why people think PHP is so great.

  • M$… This is a kind of a loan for three years… MS will get it’s profit since startups will be investing in skills to learn their tools and after those 3 years they will have to pay for the investment they made.
    I thing that is to expensive to learn M$ tools and to use them.
    Try investing in OpenSource tools for 3 years and you’ll get more profit.

  • We would be very interested in the success of this concept. I will definitely make an effort to learn more about this offer.

    http://www.creagency.com.au

  • I see lots of speculation here, so I am posting about my experience with BizSpark. I got my company qualified for BizSpark even though I didn’t have any existing relationship with a VC - I just picked some “Network Partner” from the list. Some folks here think that the startup has to have VC backing, but that’s not the case. Also, you don’t have to have 1 Megabuck of revenue to qualify - the opposite it true: you have to have <$1M.

    As for the value of the program, for my company it has an incredible benefit. We’re already committed to MS technologies, so having to postpone the bill for production licenses until (hopefully) steady revenue stream is available three years from now is a huge windfall for us. We are about to start shopping around for the growth capital (VCs, talk to us: http://ultidev.com/contact/), and I am very happy that production software licenses are already taken care of, because controlling upfront costs while having reputable technology provider are likely to translate into more attractive term sheets.

    Regarding the existential discussion about how crazy is to choose MS over open source, religious allegiances aside, MS tangible costs are not that high, and as a developer, their entire stack is very good overall, with some components like .NET Framework and Visual Studio are simply excellent. Our development cost are fairly low, but what’s more important is that with MS stack our RISKS are low and very well known. Tangible costs of MS platform is a reasonable price to pay for the good visibility of the scope of issues we are going to deal with in the near-to-midterm future: our workload scope and costs are very easy to predict and budget for.

    Overall, we are very happy we got access to BizSpark.

  • Excellence is driven by by open competition and sharing and from where I’m sitting - BizSpark is a good idea for entrepreneurs - as a serial entrepreneur (I’m on my 4th startup) and Open Source advocate - let’s try and stay objective:
    a) The entire top 10 on SF.net supports WIndows - even KDE is cross-platform for Windows and OS/X
    b) Never take a technical decision on a religious assumption
    c) Before taking a platform decision - clear your mind and your desk. What was true about PHP 1 year ago is no longer valid - if you consider CakePHP and what was true about ASP 2 years is no longer valid if you look at the latest in .Net and Visual Studio.
    d) Microsoft is above all a company driven by software developers and the competition with the OSS world has only been good for everyone

    Good luck to all of us
    Danny Lieberman

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