Two recent announcements in South Africa raise sharp issues that characterize the raging debate between open source and Microsoft operating systems -- a debate that will ultimately affect developing countries around the world. Last Friday President Thabo Mbeki announced in his state-of-the nation speech to Parliament that Microsoft will provide free software for all of South Africa's 32,000 government schools. Previously, the South African Government's National Advisory Council on Innovation (NACI) declared its strong support for open source software, saying that it "has the potential to empower people in ways that proprietary software (such as Microsoft's) simply does not allow". For a nation that is counting on information and communications technology (ICT) to help address monumental social and economic problems, Microsoft's generous offer can make a real difference. However, many argue that open source software is more appropriate for the technology realities in developing countries. The Government -- and public -- should be aware of the implications of adopting the proprietary operating system in schools, and plan wisely to gain the benefits without suffering the consequences.