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ESR Says as PCs Get Cheaper, Windows Will Die

james writes "Eric Raymond reckons Windows will be obsolete because people won't be able to afford it soon." Owning the OS gives MS too great of an advantage. They'd sell the client for 5 bucks if it meant that they could still control Office, the server market, and the zillions of other markets that their OS monopoly lets them crush.

241 of 648 comments (clear)

  1. Oh lord. by rebelcool · · Score: 5, Insightful
    More from this idiot. This is of course, assuming that microsoft has no business sense whatsoever and doesnt reduce price accordingly, or find other sources of revenue or one of a million other possibilities. Maybe if the company was ran by dumbasses. But wait, you don't get to be one of the largest in the world by being dumbasses. There goes that theory.

    No, Eric, microsoft will not go away like you've claimed for several years. Linux won't win the desktop 'war'. Get over it. Nobody cares anymore.

    --

    -

    1. Re:Oh lord. by Clay+Mitchell · · Score: 5, Insightful

      While ESR seems to be very zealous and into the (GNU)/Linux scene, he's it's worst enemy. While Microsoft may spread FUD, people look at this guy and "wtf is this idiot doing? what's he talking about?" if i didn't know better, i'd avoid linux for the sole reason i wouldn't want to be associated with that nut.

    2. Re:Oh lord. by Hamshrew · · Score: 2, Insightful

      RMS isn't much better, if you take that view. Don't get me wrong, I think he's a good guy, and I admire him for standing up for his principles. Both ESR and RMS do this. And I think it's great that people can fight for that. I do agree that they should both hold back a little... they sound more like fanatics than developers.

      What Linux needs is a spokesperson... someone that we can point to and say, "He speaks for us!" (Or she... doesn't matter to me) But, whether it be a good thing or a bad thing, the interests of the Linux "community" are too diverse to agree on one person.

      --
      - Free tabletop fantasy gaming! Grey Lotus
    3. Re:Oh lord. by CmdrStalin · · Score: 2, Interesting

      That's hardly the only place where Mr. Raymond has been making an ass of himself these days. He apparently spends more time stirring up flamewars on lkml than he does actually coding his magical kernel configuration machine. He has a tendency to make it sound like his pet project is the most important thing to happen to linux since TCP/IP; the huge threads he spawns would be amusing if he wasn't wasting the time and inciting the anger of the people who actually work on the kernel itself.

    4. Re:Oh lord. by NumberSyx · · Score: 5, Insightful

      he's it's worst enemy.

      If not ESR or RMS, then who ? The Free and Open Software movement needs someone to represent them. By your standards ESR and RMS may be a little "Out There", but they say what needs to be said and aren't affraid to take a little heat for it. Have you ever heard Michael Dell speak ?, Ballmer ? or even Jobs ? They rant just the same about how their way is the best way. I would even go so far as to say Ballmer is a spaz. nobody calls them zealots and don't fool yourself, they are. The only difference is they wear $1000 suits and live in $20 million dollar houses. The question is who would be better ?

      --

      "Our products just aren't engineered for security,"
      -Brian Valentine,VP in charge of MS Windows Development

    5. Re:Oh lord. by Zeinfeld · · Score: 5, Insightful
      While ESR seems to be very zealous and into the (GNU)/Linux scene, he's it's worst enemy. While Microsoft may spread FUD, people look at this guy and "wtf is this idiot doing? what's he talking about?" if i didn't know better, i'd avoid linux for the sole reason i wouldn't want to be associated with that nut.

      Interestingly enough the thread does not have any pro-ESR comments at this point. I think it is pretty obvious that the Linux community can interpret nuts as damage and route arround them.

      In the early days of Linux the single biggest advantage Linux had was Linus who is a pretty reasonable guy.

      ESR appears to be way over the edge on this one. First off he does not appear to know that OEMs already get Windows at deep discounts over the retail price. Microsoft does not have to provide packaging, retail discount, activation or first level support for those customers so the cost is probably more like $35 for XP Home.

      ESR also appears to overlook that Microsoft has aggressively sold its own sub $350 PC, it is called an XBox and they sell them at Toys-R-Us. Equally Microsoft has not let price bar it from the Pocket PC market.

      The other reason that ESR is wrong is that the lowest price PCs are typically sold as starter PCs for first time buyers. This is a market that requires the ability to run genuine Microsoft Word. Tomb Raider and AOL. Linux users buying this type of machine are typically buying a second, third or fourth machine to use as a cheap server.

      Finally, anyone who has tried to get Linux up on a cheapie PC will know that it is far from simple. The parts used by cheapie PCs are often sourced from obscure vendors and finding a Linux driver often means writing your own. The people who make such machines are typically doing so on a shoestring and cannot afford the cost of development or the delay incurred. In many cases the whole profit on the low cost PC is made by buying parts on 90 days credit, making the machine in 15 days, charging the wholesalers on delivery and making the profit on 75 days worth of interest.

      --
      Looking for an Information Security student project suggestion?
      Try http://dotcrimeManifesto.com/
    6. Re:Oh lord. by Lumpy · · Score: 2

      Huh?
      Oh yeah and Steve Ballmer is the perfect CEO?
      have you even paid attention to what he does and says in public?

      sorry, but if Steve Ballmer was my CEO, I'd be ashamed to work there. The man is embarassing.

      --
      Do not look at laser with remaining good eye.
    7. Re:Oh lord. by wfrp01 · · Score: 2

      The register is running a story relating ESR's frustration with Linus' ability to review and apply patches. The article doesn't happen to mention that ESR has made a habit of publically admonishing and patronizing Linus on the kernel list. Or that ESR has patches of his own that just don't seem to get merged into the main tree. I really wish ESR, RMS, Ballmer, Theo, Bill, Larry, et al (who's al?) had spent just a few hours of their childhood watching Sesame Street instead of taking their toys and playing by themselves in the corner.

      But like you say, the community generally seems able to route around the damage.

      --

      --Lawrence Lessig for Congress!
    8. Re:Oh lord. by BinxBolling · · Score: 2
      ...he made some pretty strong poits, would you pay just as much for an OS as for the hardware itself? I didnt think so.

      If the hardware is useless to you without the OS, and the total cost of the two together is still within reason, why wouldn't you?

      Yes, the hardware can still be useful to some people without Windows, but not nearly as many. Being cheaper than Windows isn't enough to let Linux win. It has to provide customers with more value for their money than Windows. And as long as most applications that most people want to use run on Windows but not Linux, Windows will beat Linux on the desktop.

    9. Re:Oh lord. by NumberSyx · · Score: 2

      for those customers so the cost is probably more like $35 for XP Home.

      I don't know about XP, but when ME was THE consumer OS, even smaller chain stores got it for under $25. If you order a Dell system and you get your reciept, it lists Windows at a cost of $0, which in corporate speak means the cost is so small they can recoup its cost on other parts. But you are right, at $350, the most expensive part of the system is the motherboard, with integrated sound, video and possibly network interface, a $35 OS is probably one of the cheapest parts, if not THE cheapest part of the system.

      --

      "Our products just aren't engineered for security,"
      -Brian Valentine,VP in charge of MS Windows Development

    10. Re:Oh lord. by Bobzibub · · Score: 2, Interesting

      ESR may or may not be a nutter but he does speak the truth. The costs of software vis hardware is climbing for low end PCs.

      Game consoles are typically sold at a loss to expand market share and manufacturers recoup their costs by selling games. I don't think games haven't come down in price over the years have they?

      I've heard that the Windows OS licence for a Pocket PC is about $5.00. So how low can they go? There are fixed costs included in producing these products. Companies have to provide support and design-build-package them too. Would MS drop its OS to $2? Perhaps if it can sell services!

      Commoditization(SP) of the pc market is very real. As you say, manufacturers are quite competitive at the low end. This also affects pdas, phones, all the trinkets that we used to pay big bucks for. I was the prowd owner of an IBM PC, and a Palm 5000. Both very cheap now (Dammit!). Now that the low end of PCs can play games and surf the web, do word processing, how can PC prices --- for your mom be justified at over $1000? Once a low end pc can manipulate video, I can't think of any use for the average user which would require an expensive PC. Then the price will inevitably drop to $100 or so which *will* squeeze OS software providers. Would MS be willing to pay for design-development-packaging-support of a sophisticated OS that generates only $10 in revenue? I doubt it.

      Many on /. would pay big bucks for the latest pc because thats our thing. We are not representive of the general PC market.

      Dude, Your getting a Dell! $999->$899 and counting:
      http://wwwc.us.dell.com/us/en/dhs/offer s/specials_ 3x_special61.htm

    11. Re:Oh lord. by Refrag · · Score: 2

      Everyone calls Ballmer a spaz. You're not making any great revelations here.

      --
      I have a website. It's about Macs.
    12. Re:Oh lord. by SirSlud · · Score: 3, Insightful

      Society honours is live conformists (Balmer, Gates) and it's dead trouble makers (ESR).

      It really doesn't matter if people buy a zealot's rants. It's the ideological equivilent of 'branding'. The ideas will assume a much more moderate and socially applicable tone should the seeds the ESRs and RMSs are planting today take cultural root in the next few decades, and thats what matters.

      Nothing changes in one day by the work of one person. Sadly, those who stand up and talk for forward-thinking principals are usually branded as extremists today, but only a fool doesn't aknolwedge the fact that they themselves are more interested in starting a slow social shift in attitudes rather than expecting the world to drop everything and follow their lead tommorow.

      --
      "Old man yells at systemd"
    13. Re:Oh lord. by Tackhead · · Score: 5, Funny
      > I would even go so far as to say Ballmer is a spaz.

      "so far"?

      After seeing "monkey boy" and "developers", I suppose one might also go so far as to describe the Grand Canyon as a ditch.

    14. Re:Oh lord. by lblack · · Score: 2

      Why would the linux community need a spokesperson that we can point to? We already have hundreds. Thousands, even. They all have their niches, they can all be spokesmen for the bit of things that they handle. Other people can oppose their viewpoints.

      ESR and RMS serve a purpose. They are fanatics -- that's because they're motivated by something more than a desire for a free, open-source, stable operating system that can compete in server and desktop markets. They have a belief in underlying principles of which Gnu/Linux is merely an effective example.

      The great thing about the Linux community is that there is no authority beyond the self-defined ones such as kernel maintainers, auditors, etc. We do not need, have not needed, nor will ever need a "spokesman" who can sum Free Software, Open Source, Linux and GNU up. Such a spokesman would be a farce, because so many within the community would disagree with whatever simplification or bent they spouted.

      What we need are better and clearer channels of communication, but that has been getting better for quite some time now, and doesn't seem likely to stop.

      It's good that there are fanatics, and moderates, and all sorts of people in the community. They're all fighting the good fight, for different reasons, and good for them.

      l

    15. Re:Oh lord. by susano_otter · · Score: 2

      Yes, but the community still needs a leader. Personally, I vote for Colonel Kurtz.

      --

      Any sufficiently well-organized community is indistinguishable from Government.

    16. Re:Oh lord. by Zeinfeld · · Score: 2
      Is buying a different 20$ sound card such a big problem?

      Since ESR's premise is that the cost of XP at approx $35 will kill the deal we have to assume that $20 is a big deal.

      Cheap parts can easily be replaced by other cheap parts. There are drivers too. Checking a hardware compatibility database at your vendor's site, is that such a big thing?

      Hah! do you think that cheapie machines have vendor web sites?

      Good luck trying to work out which obscure variant of the S3 command set the embedded video chip implements. If it is an S3 that is, it might be something else entirely.

      It would be easier to find Lord Lucan than documentation on many of these machines. So write your own is not likely to be a cost effective approach.

      Having had bought cheapie PCs for the sole purpose of running linux I would recommend anyone wanting a linux box to pay a bit more for a custom build and select decent parts from vendors who actually support Linux. Not only will it save grief, you are more likely to have the machine last more than 18 months.

      --
      Looking for an Information Security student project suggestion?
      Try http://dotcrimeManifesto.com/
  2. What? by autopr0n · · Score: 2

    Yeh, whatever. I'm like so sure that microsoft wouldn't lower their prices or anything like that if the alternative was loss of their monopoly.

    And hasn't M$ been pushing CE as a platform for low-end home equipment?

    --
    autopr0n is like, down and stuff.
    1. Re:What? by gmack · · Score: 3, Insightful

      Thay can't lower prices. To ensure their massive cash flow they need stock prices to keep rising and the only way it will do that is if they post revenue increases.

      The Desktop market is already dead for them. Too many buisnesses don't see the point of upgrading beond W2K. Office has the same problem. THis all has nothing to do with Linux.

      The server market is the one place Linux is actually doing damage.

      CE isn't making it's development money back.

      WebTV was a big flop.

      What's left X-BOX. Cell phones?

      We have a company too used to being the dominant player to be able to break into new markets and going by the spew of new products into new markets lately they know the old revenue stream is dying.

    2. Re:What? by GTRacer · · Score: 2
      Wait, wait, wait... I don't know the hard numbers (do you?) but I'd be amazed if they had to take a hit from their cash reserves if Win* sold for $25 a pop.

      How much, per copy, can it really cost when they sell a hojillion of these things a year? Sure they have really high dev and support costs, but surely they must be selling Windows far above actual cost.

      This reasoning of mine of course excludes income from other lines and assumes no net loss incurred for reducing the retail/OEM price of the OSes. No profit, maybe, but no losses either...

      GTRacer
      - Still kinda want an Xbox

      --
      Defending IP by destroying access to it? That makes sense, RIAA/MPAA. Go to the corner until you can play nice!
    3. Re:What? by rseuhs · · Score: 2
      Yeh, whatever. I'm like so sure that microsoft wouldn't lower their prices or anything like that if the alternative was loss of their monopoly.

      Wrong, the alternative is Bill Gates selling the other half of his stock and buying his own island.

      No microsoftie so far could explain to me why Bill Gates himself sold more than half of his stock already and is continuing to sell thousands of shares every week.

    4. Re:What? by nomadic · · Score: 2

      No microsoftie so far could explain to me why Bill Gates himself sold more than half of his stock already and is continuing to sell thousands of shares every week.

      His actions make sense to me. If had his stock portfolio I'd have sold them all and bought my own island already, even if I was convinced they'd double in value down the road. Hell, after that first billion do you really need more money?

    5. Re:What? by bpowell423 · · Score: 2

      hmmm... I hadn't heard that little newsbyte yet (about Bill selling his stock)... He doesn't think MS is going to do an Enron, does he? Then again, if I had the money he has, I'd like to think that I'd give most of it away, keep, oh, say, a few billion to live modestly on :) and retire. 'course I probably don't have the personality required to make those billions in the first place.

    6. Re:What? by rseuhs · · Score: 2

      So you would sell your stock for money because you don't need any more money?

    7. Re:What? by nomadic · · Score: 2

      Well, if you have it, might as well sell it. I mean, what else would you do, leave it in a big stack on the curb when you move out of your house and onto the island?

      I probably wouldn't care about making any more, though.

  3. Windows Bundles by CptLogic · · Score: 2, Insightful

    To be honest I don't think teh majority of Windows users actually bought a copy from a store.

    When you go to the shops (or mail order) and buy a new PC, usually they have a software bundle with them and that's where you get your copies of Windows and Office (Well, mostly MS Works) from.

    Because of this, and because it's very difficult to buy a PC *without* Windows, I don't think that this is at all true.

    Chris

    1. Re:Windows Bundles by HCase · · Score: 2, Interesting

      the point of the cost is that when a pc costs $350 new from a store, that the microsoft software would be taking up say, $200 of the price the store had to pay to get the system set up. that would only leave them $150 for the components, labor, and profit. with that little revenue left going to the store it wouldn't be profitiable for them to put window on it anymore.

    2. Re:Windows Bundles by Peyna · · Score: 2

      The store doesn't pay nearly the same that you and I do to put MS software on all those computers.

      --
      What?
    3. Re:Windows Bundles by richardbowers · · Score: 2
      That's the point of the article -- if you buy a PC bundled with Windows and all, the people selling it have to pay for Windows and for the hardware. So far, when PC prices have dropped, the hardware manufacturers have taken the cuts -- Microsoft's prices haven't changed.

      The article assumes that microsoft's prices will continue to be inelastic in the face of price pressure -- which is one of the many definitions of monopoly pricing -- and that hardware distributors will respond by dropping Windows.

      The counter argument, made in numerous threads and by the story editor above, is that before that would happen, Microsoft would actually start responding to price pressure. Sure, that would kill their financials, and start forcing them into negative revenue growth, but it won't "kill Windows on the Desktop".

      The article doesn't have to do with people buying/selling the OS separately.

      --
      Law is whatever is boldly asserted and plausibly maintained. -- Aaron Burr
    4. Re:Windows Bundles by tomstdenis · · Score: 2, Insightful

      Since when was that a breaking point?

      What if the mobo+sound+network+case+etc [except the CPU] was less than the CPU?

      A computer is not complete without the CPU.

      Similarly to many people a computer is not complete without Windows.

      You might say "ah lets use a different CPU!" [or OS] but the point is 99% of computer owners don't even know what "linux" is, let alone how to use it.

      In order for Linux to win it must emulate the UI of Windows. Its really that simple. People [including myself] like point and click type UI's. I mean I don't want to wave through random directories and commands and god knows what just to setup a new NIC or something...

      Tom

      --
      Someday, I'll have a real sig.
    5. Re:Windows Bundles by sofar · · Score: 2

      Because of this, and because it's very difficult to buy a PC *without* Windows, I don't think that this is at all true.

      nonsense, I'm typing this on a exotic laptop brand that bundles their laptops with about 7 M$ CD-ROMS normally.

      It took me two words to get it without an operating system (well, without winblows that is) in the order I placed with them:

      -Without Windows

      it's now humming with joy from being 100% M$ free!

      Don't whine, just *ask* for it to be delivered without windows, or else take your business elsewhere. I have also found out that shops that advertise selling PC's without OS are actually cheaper!

    6. Re:Windows Bundles by rseuhs · · Score: 2
      and because it's very difficult to buy a PC *without* Windows,

      Not anymore

      ESR is one of the 1% of the population that can actually thing farther ahead than 2 weeks.

      Microsoft the percentage of PC-maker's revenues that go directly to Microsoft has multiplied by at least 10 in the last 10 years.

      Do you really think that PC-makers don't react?

    7. Re:Windows Bundles by rseuhs · · Score: 2
      I bought my PC in parts from the store and I still use Windows. Not everyone will "move away from windows" even if windows doesn't come with their PC.

      True, not every computer. But many.

      For example, here at the university, we have a lot of computer that run the whole day Internet Explorer to display ONE SINGLE website. (It's for administration)

      And yes, the site works fine in all browsers.

      You really think anybody would pay 100$ for that?

      Linux will benefit a lot when PC-vendors don't force-bundle Windows anymore.

    8. Re:Windows Bundles by sofar · · Score: 2

      Well You're missing the point here:

      I was referring to the fact that someone complained that PC's were hard to come by without OS. getting then with M$ is no problem, and has never been an issue (anywhere).

      BTW, the company that sold the laptop just happens to include the following line somewhere in their price index:

      "- No Windows installed - $xxx price reduction"

      that *hardly* scares puter novices off, and is a very reassuring wink from the company to us geeks.

      Even the average user who drops into a puter store for a quick PC asks about 'windhose'. those who don't silently accept the fact that they get it on their PC.

      The point is: although all the normal *users* should be able to get PC's with M$-W without problems, we *geeks* should also be able to get them *without* it. IMHO this is left as an excercise to perform for every geek when he buys a new setup.

    9. Re:Windows Bundles by WNight · · Score: 2

      This isn't really much of a problem. I know nobody gives Joe Sixpack much credit, but I'm sure that after having seen a few different looking desktops (all in the MS line, from 95/2k/XP) that he could probably clue into clicking the little button in the bottom left corner, or double-clicking an icon that looks like a envelope and says 'E-Mail'.

      In fact, I think the low-end users are going to be the first target. Not only do stores have a financial motive to provide Windows alternatives, but the low-end users don't expect much out of a computer they bought for the same price as a gaming console.

    10. Re:Windows Bundles by jedidiah · · Score: 2

      You're the real Zealot here.

      Linux already supports a wide array of hardware, has a significant array of software and is relatively easy to configure new hardware for.

      For the crowd that would never consider building their own box, Linux is suitable NOW.

      Sour grapes won't change that.

      The moment the current version of WinDOS becomes older than common hardware, it quickly begins to use it's edge in ease of configuration.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    11. Re:Windows Bundles by jedidiah · · Score: 2

      It's a lot easier to do without a Microsoft OS than it is to do without a CPU. A computer simply cannot function without the latter.

      Things might be merely "uncomfortable" without the former.

      Setting up a new NIC has NEVER been horribly difficult in Linux. This is just gross ignorance on your part.

      Infact, with the strong likelihood that ALL SUPPORTED DRIVERS are alread installed onto your Linux system, there's a strong chance that installing a new NIC on Linux will be EASIER than with WinDOS.

      OTOH, with more and more hardware being included as "standard", arguments like yours are becoming a red herring.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    12. Re:Windows Bundles by jedidiah · · Score: 2

      ???

      My TV and CDR software all worked "right out of the box". This is true from Mandrake 7.2 and includes 3D hardware acceleration as well.

      OTOH, Win2K has a nasty habit of having a suitable (but less than ideal) driver for your hardware but not telling you. Plus, Win2K might not even have a driver for your particular bit of hardware.

      With Win2K you're in the same position as if you owned an iMac.

      That's simply the nature of lemming marketing.

      BTW, I haven't NEEDED to build my own kernel since Slackware '96. You bringing it up is simply a weak ass red herring. Also, the package based distros can update kernels (as well as anything else) the same way that Win2K does: binary packages.

      Unless your kernel is somehow BROKEN, there's no need for anyone to rebuild their own. Even if your kernel is somehow broken, you could just install another distro fresh.

      Without the added complexity of global binary configuration databases, the Unixen are all quite flexible when it comes to moving user config data and applications around. Isolate your personal data and you can wipe and reinstall the core OS at will with less impact than a Windows upgrade.

      BTW, it was problematic Windows upgrades that prompted me to start that sort "upgrade" scheme to begin with.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    13. Re:Windows Bundles by jedidiah · · Score: 2

      mom & pop operations don't suffice as counterexamples here.

      If they don't have any volume OEM discounts, they have nothing to lose from doing business as they see fit rather than how Microsoft tells them.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    14. Re:Windows Bundles by mpe · · Score: 2

      In order for Linux to win it must emulate the UI of Windows.

      Which UI might that be, considering Windows has been through quite a few recently

      I mean I don't want to wave through random directories and commands and god knows what just to setup a new NIC or something...

      Except that that is an A/MI (Administration/Maintanance Interface) issue.
      Most of the time people understand the difference, one of the worst things about Windows is blurring the distinction, so users end up struggling to do "techie" tasks. There is even a whole set of third party addons to Windows to explictally prevent end user alteration...
      When you look at things it's somehow strange that the fuss made about installing hardware is about needing a special interface to configure it, rather than needing a screwdriver to get it in the box in the first place...
      Do you have a car where the engine can be overhauled from the driving seat too?

    15. Re:Windows Bundles by mpe · · Score: 2

      Infact, with the strong likelihood that ALL SUPPORTED DRIVERS are alread installed onto your Linux system, there's a strong chance that installing a new NIC on Linux will be EASIER than with WinDOS.

      But shouldn't need to be a part of the user interface in the first place. Indeed it makes a lot of sense for a computer to be capable of running it at least a "user mode" for everyday usage and a "maintanance mode" which covers such things as installing/uninstalling applications and drivers, altering critical system settings, etc.
      When in "user mode" some things simply cannot be altered at all, no risk of accidentantally deleting something important. Also you probably want applications to not be usable in maintance mode...

    16. Re:Windows Bundles by mpe · · Score: 2

      For the average PC user, who buys a PC for home and small business, that's not going to necessarily be the case. They want a PC they can take out of the box, turn on and use.

      For anything other than the smallest of small business the only way you can have that is through something like either LTSP or an Xterm.
      For many places preloading the machine with anything gives no advantage, the first thing which needs to be done is to replace the OEM install with something subject to their corporate standard...

  4. Amazing logic. by TheConfusedOne · · Score: 5, Insightful

    News flash: Product fails because no one's buying it.

    Anyways, PC's are a LUXURY, not a necessity. You can either afford the box or you can't. Plus, how much of that cost is actually Windows? No one knows, no one's talking.

    The average consumer thinks Windows is "included" with their PC purchase. That means that in their mind it's free, not a major portion of the actual cost. As long as that price is hidden it won't be a factor in a purchasing decision.

    The single best thing we could get out of an MS settlement (since we're not going to get the break-up that they deserve) would be to require all PC sales adds to prominently display the cost of Windows and the percentage of total cost that it represents. That would certainly open a few eyes.

    --
    --- I wish I could hear the soundtrack to my life. That way I'd know when to duck.
    1. Re:Amazing logic. by einhverfr · · Score: 3, Interesting

      I agree with Raymonds conclusions but not his logic (he seems to be doing worse these days ;)

      Here is my reasoning: There are two markets for PCs-- They are an absolute necessity for the corporate environment because without them, larger companies cannot move the information in sufficient quantity or speed, nor can the process the inforamtion fast enough to remain competitive in today's environment.

      In the home market, they are a luxury, but are slowly becoming more necessary.

      The real problem is that hardware is progressing much faster than software, and this leads to a couple of very bad scenarios for Dell, Compaq, HP, etc. and also by extension Microsoft. If hardware is more powerful than necessary, it stays around a bit longer. This means fewer sales for PC manufacturers and often longer upgrade cycles in the IT world. We are already seeing sluggish sales, and the IDC has forcasted very modest growth in the next couple of years-- we may already be in the flattening phase.

      In the PC manufacturing market, there is a strong economy of scale, but this is even more noticeable in the software world where the vase majority of expenses fall under R&D and marketing. Shrinking markets mean higher costs both of hardware and of software. Again, this is far more deadly in the software market than in the hardware market.

      The single best thing we could get out of an MS settlement (since we're not going to get the break-up that they deserve) would be to require all PC sales adds to prominently display the cost of Windows and the percentage of total cost that it represents. That would certainly open a few eyes.

      To be honest I have never understood this logic-- the breakup plans were very bad from a marketplace perspective. Why should we breake one predatory company with two monopolies into two predatory companies with one monopoly each? IMO, this could have drastically harmed Linux and all competitors and created a baby-bell situation (referring to local service, not long-distance). Furthermore, two predatory companies are far more agile than one, and so I would FAR prefer to see Microsoft deemed guilty and only slapped on the wrist than broken up. (That way, further predatory activity could be handled by civil suits which even when unsuccessful have been shown to be effective in most circumstances, as per IBM.) Basically, I feel that we are dealing with the IBM of the early PC market here, not Standard Oil.

      --

      LedgerSMB: Open source Accounting/ERP
    2. Re:Amazing logic. by ch-chuck · · Score: 2

      "The average consumer thinks Windows is "included" with their PC purchase. "

      Yep, Msft as the 'default' system shipped with each PC is the vigorish & tax on PC's that made them billions and billions. I've been bashing my boss for years that "The hardware's cheap, it's the software that kill's you" and he STILL, this very morning, asks for "Could you setup Joe in shipping with a computer? Doesn't have to be anything fast, just an old pc with access to the database". So I wrote back, "Once again, the hardware's cheap, the software's expensive: it's going to cost about $500 for the software", to get a full Windows ME and Access 2000, to legally install the Win98 and Access 97 that we use on workstations, paying for features that we don't want or use anyway, because we don't really have any consumer 'choice', altho Msft apologist claim that 'consumer choice' is what made Msft the giant it is today. And have you seen what Monopoly price gouging prices individual Office components are?? $300 each!!!

      --
      try { do() || do_not(); } catch (JediException err) { yoda(err); }
    3. Re:Amazing logic. by macrom · · Score: 3, Interesting

      Plus, how much of that cost is actually Windows? No one knows, no one's talking.

      Well, a quick look on Newegg shows that Windows XP purchased with hardware runs $140 for a single copy. A jump to look at current prices for Office XP shows us $180 when purchased with software. OK, not the greatest price, but not the hundreds of dollars that you might think. After all, to compare OSes (not office apps, because StarOffice takes the cake there) RedHat 7.2 Professional is selling for $199.99 over at Outpost.com. Hmm. As far as a consumer goes, this is the equivalent purchase. Yes, there are cheaper distros out there. Yes, we here know that you can download ISOs of various distros for "free", but that's not a valid comparison. Consumers as a whole are not going to do that -- they want point and click, graphical installation programs like Windows has given them for years.

      Given this info, Windows isn't all THAT expensive. If the cost is $140 for XP as a single purchase, I'm sure the big PC builders like Dell, Gateway, Compaq get them in lots of 10,000 for much, much cheaper. So the whole cost of your OS is probably a very small part of your overall system price, depending on how much your system really is.

      As a gamer, I'd probably build a system around $2500, maybe more. This is without Office -- if you go to Dell's (or others') site, they'll charge you at least $200 to upgrade to Office XP. But let's say they get XP for $100 :

      $100 / $2500 * 100% = 4% of the price of my system. I think most people would be willing to pay an extra 4% to get something they're already familiar with. At any rate, it's certainly not a major portion of the cost of the computer.

      greg

    4. Re:Amazing logic. by mcc · · Score: 4, Informative
      To be honest I have never understood this logic-- the breakup plans were very bad from a marketplace perspective. Why should we break one predatory company with two monopolies into two predatory companies with one monopoly each?

      *sighs*
      this has been gone over a million times, but i'll try to do it here as best i can.
      horizontal and vertical monopolies are *very* different things. the point of such a move would not be to immedately break microsoft's OS stranglehold. the point would be to prevent microsoft leveraging its OS monopoly to create and maintain monopolies in application areas.

      The idea is that microsoft's app division has, if they so desire, direct access to all sorts of internal things that no one outside microsoft has. If MS were split into two companies, then *all communication* between the apps and OS microsofts would have to be above-ground and visible to outside-microsoft entities. For example, if MS-Apps wants to embed a web browser into the OS, then they have to publicly ask MS-OS if this is possible, and MS-OS will have to create some kind of public object framework or plug-in architecture that would make such a thing possible and publish the interface to it. The end result of this would be that MSIE can be embedded into microsoft windows, but if netscape or opera so desires they can embed themselves into the OS as well because the manner in which MSIE did this was documented. There would be three upshots of this:

      • MS-OS would be forced to create more flexible and almost certainly superior interfaces because (to continue the above example) they'd be designing "an architecture to embed a web browser in file browser windows" rather than just copy&pasting code from internet explorer into the windows graphical shell. (i will attempt to refrain here from attempting in detail to explain how years before windows 98 was even thought of, apple had a plan to use something called opendoc to eventually merge any web browser you liked into the OS, because it not relevant..)
      • It would be an important first step toward levelling the playing field insofar as software apps go. Microsoft would still have an intense head start insofar as money in the bank and product inertia goes, but if the DOJ forced MS to fully document the Word file format then microsoft word would be forced to compete on its own merits. (Never mind that all of MS Word's real competitors are now dead; never mind that after all the time MS has had for a head start, MSWord would probably win on its own merits anyway..)
      • If MS was forced to document everything for the public, then projects like WINE would have an exponentially easier time.
      You could of course say that the DOJ could just force MS to publicly document all interfaces, but MS has a quite clear history of basically spitting in the face of any legal judgements passed on them. Ensuring and enforcing compliance with something like "MS, you must publicly document all interfaces to the OS" would be near impossible, especially since MS has made it clear they are very good at avoiding obeying legal judgements. Witness the early 90s "no product tying" consent decree. . . this is just the *only* way to absolutely make certain that MS-Apps is not recieving preferential treatment, to ensure that the two divisions can only communicate by publishing APIs. Nothing else works. Moreover, once MS-OS and MS-Apps were seperate companies whose survival is not necessarily dependent on each other, if they continue to give each other preferential treatment then their respective stockholders will NOT be happy.

      This does not mean that a breakup would solve all problems. However, i think it would be an important first step towards allowing some fresh air in to the OS Apps industry, i believe there are a number of things that can only be achieved by breaking up MS. I believe that if MS-Apps was forced to compete the same way normal companies are, other companies might be able to create viable competing products, and those products might be ported to and make viable MS-OS's competitors. It may be it is too late to reverse the damage MS has done to the software industry in sucking up basically all of its resources into one entity. I don't know. Still, though, i would say that splitting up MS is certainly a valid course of action, even if it is not the most logical one.

      Does this make sense to you?

    5. Re:Amazing logic. by sammy+baby · · Score: 2
      As an OS is a tool, pick the one you need.

      "When all you have is a hammer, everything starts to look like a nail."

      OS's are tools. I don't know of anyone who only owns one tool. I have a whole kit.

    6. Re:Amazing logic. by Jeremi · · Score: 2
      The average consumer thinks Windows is "included" with their PC purchase. That means that in their mind it's free, not a major portion of the actual cost. As long as that price is hidden it won't be a factor in a purchasing decision


      Consumer goes to Best Buy and sees a row of PCs with Windows selling for $500-$1000. Then he goes to the next aisle and sees a row of PCs without Windows (but otherwise the same), selling for $300-$800. I think he can then put two and two together.

      --


      I don't care if it's 90,000 hectares. That lake was not my doing.
    7. Re:Amazing logic. by Ooblek · · Score: 2
      I thought I'd mention that my Grandfather just bought an e-machine that boots XP of of a flash ROM. I think the conculsions ESR came to were based on some not-so-great research. PCs will become cheap, but the most likely scenario will be that sales of the "loadable" version of windows will drop, but you'll get it pre-loaded in the flash rom when you buy the PC.

      We also have some smart terminals at work that cost $300.00 that run WinCE. They are used to connect to Windows terminal services. I believe you end up paying some sort of fee for the amount of maximum user connections you need anyway. Still, this beats buying even a $500-$1k machine if you just need it to run the Citrix client.

    8. Re:Amazing logic. by cduffy · · Score: 2

      The average consumer thinks Windows is "included" with their PC purchase. That means that in their mind it's free, not a major portion of the actual cost. As long as that price is hidden it won't be a factor in a purchasing decision.

      Right -- the decision isn't in the mind of the consumers, but the OEMs. As soon as the OEMs find that they have to toss Windows to make a cheaper PC than everyone else sells, that's when some of them toss Windows.

    9. Re:Amazing logic. by saintlupus · · Score: 2

      Some people might need more than just games and basic office suite components, just so that you're informed of anomalies such as this. Take for example the people who develop software..

      ...they can already set up their own dual boot system without any help from Dell.

      --saint

    10. Re:Amazing logic. by trb · · Score: 2

      Not only that, but the consumer goes to Best Buy and sees the Windows PCs running lame M$ screensaver (the app usually active at retailers), and then sees Linux running muy macho jwz xscreensaver. Once there's a row of Linux PC's at Best Buy (and therein lies the rub), M$ is d00med for sure.

    11. Re:Amazing logic. by Eimi+Metamorphoumai · · Score: 3, Interesting

      Did you read the article? The whole point was that it's not a deal breaker now, but as prices drop it becomes more and more significant. His price point was $350. When you compare a Windows machine for $450 (and no office) to one at $350 (which all the free office software being made), things start to look different. $100/$350 * 100% = 28.5% of the price of the system.

      --

      Visit me on #weirdness on the Galaxynet.

    12. Re:Amazing logic. by Hostile17 · · Score: 3, Interesting

      RedHat 7.2 Professional is selling for $199.99

      Yes, we here know that you can download ISOs of various distros for "free", but that's not a valid comparison. Consumers as a whole are not going to do that

      I can get a full version of RedHat 7.2 from Cheapbytes for $3.99 plus shipping and Handling. Granted I don't get phone support or a nice printed manual, but this is balanced by the shear amount of software I get. Developement tools, Mail/Web/FTP/Telnet Servers and clients, alot of other stuff as well that cost extra from Microsoft.

      --
      Fascism should more properly be called corporatism, since it is the merger of state and corporate power - Benito Mussoli
    13. Re:Amazing logic. by jheinen · · Score: 2

      "I can't imagine a more effective Windows-killer than widely available pre-installed dual-boot systems."

      Hah! Don't get me wrong, I've been a Linux user for years, but I've been playing around with WinXP for a couple of months, and I can tell you for certain that a dual-boot consumer PC will doom Linux. The average PC user has no use for 90% of the stuff that comes with the average Linux distro. Add that to the fact that XP is simply much easier for the average person to use, and you will quickly get a whole lot of people bitching about the wasted HD space being taken up be the difficult to use Linux partition. I'm sorry, but XP wins hands down when it comes to the functionality that the average person needs. E-mail, multi-media, word docs, and some games. That's about all the average person needs, and XP makes these things trivially easy. Just about anyone can fire up XP and figure out how to rip a CD or install a game in a matter of minutes. It is simply not possible to do that on Linux.

      Linux still has a long way to go before it can rival XP in the average person's needs department. I really wish people would forget about the whole "Linux on the Desktop" issue. I don't think we'll ever win as long as we keep playing catchup to M$. To really make inroads on the desktop, a competing OS has to be basically idiot proof, and do everything XP does, only easier, faster, and more stable.

      --
      -Vercingetorix
      "Necessitas non habet legem." -St. Augustine
    14. Re:Amazing logic. by LMCBoy · · Score: 2

      "The average consumer thinks Windows is "included" with their PC purchase."

      The average computer /manufacturer/ thinks this as well. A friend of mine tried to get a Windows rebate from Dell. He was told it wasn't possible, because Windows came free with the computer (ha!).

      --
      Liberal (adj.): Free from bigotry; open to progress; tolerant of others.
    15. Re:Amazing logic. by jedidiah · · Score: 2

      Why do you Lemmings insist on using commandline tools for tasks that don't require the same under Unix? The lot of you whine about how things are so easy under WinDOS and so hard under Unix and then come up with gems like this.

      Where's WinKill?

      Why isn't the ForceKill option accessable in the menu context of the application?

      Why are captive-lemmings forced to hunt through the system?

      --
      A Pirate and a Puritan look the same on a balance sheet.
    16. Re:Amazing logic. by jedidiah · · Score: 2

      I dispute your claims.

      My mother-in-law stands as a stark counterexample against your claim that any idiot with a copy of XP will suddenly be able to start ripping CDs. She can't.

      She is fundementally technophobic and no amount of tweaks to the Microsoft UI will change that.

      XP is no more idiot proof than Linux is.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    17. Re:Amazing logic. by jheinen · · Score: 2

      Just because she can't do it on both is in no way an argument that XP is no more idiot proof than Linux.

      That would be like saying that if I can't lift a Volkswagen, and I can't lift a Mack Truck, then the truck is no heavier than the Volkswagen.

      All that's proven is that I'm too weak to lift either.

      --
      -Vercingetorix
      "Necessitas non habet legem." -St. Augustine
    18. Re:Amazing logic. by mpe · · Score: 2

      Anyways, PC's are a LUXURY, not a necessity. You can either afford the box or you can't. Plus, how much of that cost is actually Windows? No one knows, no one's talking

      If we are talking entirely about "home" machines then the luxury argument makes sense. Where they are being used for work purposes the luxury argument dosn't really make sense.

    19. Re:Amazing logic. by mpe · · Score: 2

      The idea is that microsoft's app division has, if they so desire, direct access to all sorts of internal things that no one outside microsoft has.

      This is a problem even if the rest of the planet will be given acess to this information at some time in the future. Since the apps division has a time advantage here. They can have a product ready to ship whilst any competitor is still at the development stage.

      If MS were split into two companies, then *all communication* between the apps and OS microsofts would have to be above-ground and visible to outside-microsoft entities.

      Assuming that you can ensure a complete split. Which may be tricky especially on things such as share ownership. You'd effectivly need something like a ban on any entity holding shares in both companies.

      You could of course say that the DOJ could just force MS to publicly document all interfaces, but MS has a quite clear history of basically spitting in the face of any legal judgements passed on them.

      Which in most cases would be cause for the judge to "throw the book at them". i.e. impose the most punitive judgment the law allows them too (and if needs be complain that the law needs ammending because it forced something inappropriatly lenient.)

      Ensuring and enforcing compliance with something like "MS, you must publicly document all interfaces to the OS" would be near impossible, especially since MS has made it clear they are very good at avoiding obeying legal judgements.

      Probably because the judgments had no effective "teeth" or enforcement. Proper "teeth" would be something like "by not documenting any API or file format. Microsoft shal have been demed to have placed any software which uses that file format (and any derived work) into the public domain". Proper enforcement might well look something like a BSA "raid".

    20. Re:Amazing logic. by mpe · · Score: 2

      Even simpler would be to mandate that every copy of every microsoft product shipped from Redmond carries the same price tag - wether its going to OEM, or retail.

      Or even simpler have no difference between an OEM and a retail copy. Only discount Even simpler would be to mandate that every copy of every microsoft product shipped from Redmond carries the same price tag - wether its going to OEM, or retail.

      Or even simply have Microsoft sell Windows. Which is the same thing regardless of if it is going to an OEM, an end user or a third party reseller. OEM's can also buy Windows direct from Microsoft, from a reseller or from another OEM...

      This would have the desired effect that OEMs will not 'bundle' anything.

      But it would be possible for retailers (the likes of Dell, Compaq, etc are also retailers) to bundle an OS with a machine, in the same way they sometimes bundle a scanner or printer, etc. The point here is that the customer can typically buy just the computer (or just the printer) if they want to anyway...

  5. ./, please post *more* idiotic ZDnet editorials by lukeduff · · Score: 5, Funny

    ZDnet's infalliable crystal ball has never lead us wrong.

  6. Yeah, but people can't afford office, either. by arcanis · · Score: 2, Redundant
    I'm a college student, and I know that I can't afford anything near the amount of money that Microsoft wants to charge for office.

    Even if they start giving away windows for free, people are eventually going to grow tired of spending another few hundred bucks for the next version of office with no worthwhile new features. Meanwhile, there are other products available that are catching up, like Star Office. Even if Sun's going to be charging for Star Office in the future, I don't think it'll be nearly as expensive as MS Office.

    1. Re:Yeah, but people can't afford office, either. by PoiBoy · · Score: 2, Interesting

      If you're a college student, chances are that you can get Microsoft products very inexpensively. I'm a grad student at the University of Michigan, and I bought a copy of Office 2k for $35 a few years ago. IIRC, the price hasn't risen, and a complete (i.e. not just an upgrade) version of WinXP Pro is $45. The first place to check with is your university's computer sales department or just check with the helpdesk and have them refer you to the right people. Even if your school doesn't have a deal with M$, there are some web sites that act as clearinghouses to sell students most popular software at the manufacturer's student prices.

      --
      Sig (appended to the end of comments you post, 120 chars)
    2. Re:Yeah, but people can't afford office, either. by sql*kitten · · Score: 3, Insightful

      I'm a college student, and I know that I can't afford anything near the amount of money that Microsoft wants to charge for office.

      You're modded as funny, but I'll answer anyway: isn't the Student Edition of MS Office something like $99? And even if it was too expensive, as a student, you are unlikely to need the full features of office anyway and could buy the much cheaper but still quite useful MS Works.

    3. Re:Yeah, but people can't afford office, either. by nomadic · · Score: 2, Informative

      Or just use Wordpad. Very few college students need anything more complicated than that.

    4. Re:Yeah, but people can't afford office, either. by rseuhs · · Score: 2
      ... could buy the much cheaper but still quite useful MS Works.

      Or the even cheaper and more useful (than MS Works) StarOffice/OpenOffice....

      Yeah, I know: Oh my god! It's not from Microsoft! THE HORROR!!!

      I think Sun should change their company name to "Master Sun" and start selling "MS StarOffice".

      People like sql*kitten would fall for it, I'm sure about that.

    5. Re:Yeah, but people can't afford office, either. by elefantstn · · Score: 2

      Not true, really. Anyone who needs to footnote a paper is past Wordpad's capability.

      Back to the original point, though -- the only real reasons to use Office over Star/OpenOffice are 1) document interchange or 2) very advanced features. Both of those only apply to the business world for the most part (SO/OO can easily handle paper-type things in .doc format).

      --
      If it ain't broke, you need more software.
    6. Re:Yeah, but people can't afford office, either. by elefantstn · · Score: 2

      Heathen!

      --
      If it ain't broke, you need more software.
    7. Re:Yeah, but people can't afford office, either. by Broccolist · · Score: 2

      Another alternative to office that is good for starving college students is LaTeX. It takes a bit of tech savvy to learn how to use it, so I wouldn't advocate it for Joe User, but it really isn't any more complicated than HTML. Very nice for CS students, because its support for mathematical symbols is far superior to office's, and you can use your favorite text editor to edit LaTeX files instead of suffering office's weak and crashy WYSIWYG editor.

    8. Re:Yeah, but people can't afford office, either. by j7953 · · Score: 2

      I don't know the specific license terms of MS Office, but a problem with many student licenses is that they don't allow commercial use. This means if you work as a self-employed [put computer job here], you cannot legally use the software for your business, which makes the purchase kind of senseless. Why would I spend $99 if it means I have to be careful with what I use the product for? Yeah, I could use it for my business anyway, but then, if I'm not going to care about the license anyway, I could just as well get an unlawful copy for $0.

      --
      Sig (appended to the end of comments I post, 54 chars)
  7. Price point is not the only factor. by 2Flower · · Score: 5, Interesting

    Okay, so the idea here is that once PCs drop to a certain level of cost, the idea of paying Microsoft a huge sum goes out the window. Two problems. One, which has already been noted here, is that Microsoft can just lower their own prices.

    But two, and most importantly: What ELSE are you going to install on that computer if not Windows? Linux? Then we get into the 'is Linux ready for the desktop' thing. It doesn't matter if Microsoft charges your first born son, if they're the only viable, usable OS available for Joe Q. User to check their e-mail and read the web with, they'll still get payment even with ultra-cheap computers.

    Of course, if some OS steps up to the plate to replace them for free/cheap AND the PCs drop in cost, then we've got something. Perhaps OEMs will start developing their own user-friendly, stripped down blends of Linux to ship with new PCs?

    1. Re:Price point is not the only factor. by JordoCrouse · · Score: 2

      Two problems. One, which has already been noted here, is that Microsoft can just lower their own prices.

      But two, and most importantly: What ELSE are you going to install on that computer if not Windows? Linux?


      Of course not. Linux is not ready for the desktop. In fact, if we hit the mainstream, we would probably crash and burn horribly. Then Microsoft would triumpantly return, and we would be relegated to eternal obscurity.

      We need Microsoft to continue dominating the desktop right now, so we can quitely finish the revolution without getting egg on our face in the process. Its like a magician - we keep Microsoft and the media focusing on our inability to get on the desktop, and in the meantime, we will quietly replace them on all the other processors that really matter (servers, PDAs, game consoles etc...)

      Keeping Microsoft fat, dumb and happy is the only way to kill the dragon.

      --
      Do you have Linux and a DotPal? Click here now!
    2. Re:Price point is not the only factor. by BitwizeGHC · · Score: 2

      Game consoles will never appreciably see a trong Linux contingent for exactly the same reasons that the desktop won't: there's too much money to be made continuing with the same old proprietary business model.

      Linux successfully invaded the server space precisely because nobody saw any money in turning commodity x86 boxen into production-quality servers at first.

      --
      N4st0r, trixx0r h0bb1tz0rz! Th3y st0l3 0ur pr3c10uzz!
    3. Re:Price point is not the only factor. by blang · · Score: 2

      MS can lower their consumer prices, however, they're still happy to charge up the wazoo for business licenses ans server stuff.

      For once, I think the megacorps may do something good for linux. CFO says to CEO "We spent 150 million in MS licenses last year, can you believe that?"

      CTO then says: Give me 10 % of that money, and I can put together a large team of linux developers and testers. There are plenty of projects we can put them on to oust MS from the desktop.

      In 3 years, MS license cost will be less than $10 mill. And I can also save you 50% of your PC hardware budget by running more frugal software.

      Conservatively, your investment will pay back in less than 1 year, and over the next 5 years, your ROI will be 4500%. How about it, boss?

      --
      -- Another senseless waste of fine bytes.
    4. Re:Price point is not the only factor. by dillon_rinker · · Score: 2

      Yeah, I guess that whole Windows NT thing just appeared out of thin air. Or maybe it was in response to Linux 0.01...

    5. Re:Price point is not the only factor. by rseuhs · · Score: 2
      One, which has already been noted here, is that Microsoft can just lower their own prices.

      Can they?

      Well, they could. But what most people forget is:

      Microsoft is lead by the big stockholders.

      So Bill Gates has 2 options:

      1) Continue selling stock (he sold more than half of his already) and keep rising prices and revenues short-term.

      2) Save Windows-long term, but ruin the next income statements and transferring HIS OWN STOCK into worthless piece of paper.

      For the last 5 years, Bill Gates has done strategy 1) and there is no sign he'll change his mind until he has sold the rest he is still holding. (Hell, can't anybody do some research?)

      But two, and most importantly: What ELSE are you going to install on that computer if not Windows? Linux? Then we get into the 'is Linux ready for the desktop' thing. It doesn't matter if Microsoft charges your first born son, if they're the only viable, usable OS available for Joe Q. User to check their e-mail and read the web with, they'll still get payment even with ultra-cheap computers.

      I know this is heard so often that most people think it's true. But it's not.

      MS DOS replaced Apple Macintosh, remember?

      Because it was easier to use? I don't think so.

      User-friendliness isn't as important as people think, but it's an useless debate anyway, because SuSE which has all OS-configuartion nicely integrated in KDE is more easily usable than Windows TODAY.

      And with KDE3 coming out next month...

    6. Re:Price point is not the only factor. by Technician · · Score: 2

      User to check their e-mail and read the web with, they'll still get payment even with ultra-cheap computers.
      Alternate OS'es do email and web just fine. That is not the problem. The problem is alternate OS'es will not run most of the other software on the store shelf. Office applications are not the problem. I bought Star Office off a retail shelf and it does run on Linux and Windows. It was right next to Word Perfect for Linux. Most other desktop applications require MS Windows to run. Don't believe me? Fine, go get this years Turbo Tax and install it on your Linux system. I have not seen the Linux version on any store shelf. Until this changes, we will be stuck with the Windows Monopoly. We are stuck with the Windows monopoly because that is the base that almost all desktop applications run on top of.

      --
      The truth shall set you free!
    7. Re:Price point is not the only factor. by Ayende+Rahien · · Score: 2

      Well, he might just decide to drop the price of the share short-term, for the long term profits, and in the mean time, buy some more shares himself, at the lower price.

      --

      --
      Two witches watched two watches.
      Which witch watched which watch?
    8. Re:Price point is not the only factor. by rseuhs · · Score: 2
      ... I didn't even start to talk about what that would mean to the employee's moral.

      If Bill Gates does that (destroying MSFT stock price short term) a lot of employees would quit.

      I don't say it's impossible that Microsoft significantly lowers the prices, but very unlikely.

    9. Re:Price point is not the only factor. by WNight · · Score: 2

      Actually I think the one place that Linux is ready for the mainstream is in cheap net-ready computers.

      If you buy an office computer you want something that could run MS Office, or something close to it, likely.

      If you buy a $300 computer at Wal-Mart for using the inner-net to talk to relatives, likely you don't care what it comes with as long as it does what's needed.

      All it would have to do is have a browser, email client, few games, and a basic office suite (not a lot, just enough for balancing a home budget or writing a letter to the relatives), work with standard printers, and be able to save to floppies or CDRW.

      The hardest part of that is the printers, many of which are becoming windows-only.

      If I was setting up a relative with a cheap computer and I didn't want calls for support I'd put on Linux, run ext3 (keep it from dying if they unplug it), and set it to boot into X without a password where I'd have removed the icons for everything except the apps I mentioned.

      Ideally I'd compile the kernel with the kernel-print messages disable, or use one of the boot-picture mods to hide them. That way they don't see anything confusing.

      It's only if you have more sophisticated users who've used a computer (with Windows) and want exactly the same thing, where Linux has a hard time substituting. Linux may not be as friendly as WinXP but it's certainly better than Win95 and I know relatives who still use that. (Well, and 3.1, but they're really backwards.)

    10. Re:Price point is not the only factor. by NumberSyx · · Score: 2

      User-friendliness isn't as important as people think, but it's an useless debate anyway, because SuSE which has all OS-configuartion nicely integrated in KDE is more easily usable than Windows TODAY.

      I don't know who said it, but they said it well.

      Usability is not everything. If usability engineers designed a nightclub, it would be clean, quiet, brightly lit, with lots of places to sit down, plenty of bartenders, menus written in 18-point sans-serif, and easy-to-find bathrooms. But nobody would be there. They would all be down the street at Coyote Ugly pouring beer on each other.

      --

      "Our products just aren't engineered for security,"
      -Brian Valentine,VP in charge of MS Windows Development

    11. Re:Price point is not the only factor. by j7953 · · Score: 2
      One, which has already been noted here, is that Microsoft can just lower their own prices.

      But isn't that the point? Currently, Microsoft can charge insanely high prices for Windows. If the PC prices continue to drop, they might have to have to adopt their prices to the actual market situation. In other words, they cannot operate with monopoly pricing any longer.

      Of course Microsoft can and will continue to sell Windows for quite some time. The question is, can they continue to sell it at whatever price they demand?

      --
      Sig (appended to the end of comments I post, 54 chars)
    12. Re:Price point is not the only factor. by atta1 · · Score: 2, Interesting

      One more thing most people will want it to run that a lot of people are forgetting... AOL. That and Yahoo messenger, MSN Messenger (I doubt we'll be seeing MSN Messenger for Linux anytime soon) or some other widely used chat client. Until those apps run under Linux, Windows will rule the consumer market.

      --
      "The avalanche has already started. It is too late for the pebbles to vote" -- Kosh
    13. Re:Price point is not the only factor. by WNight · · Score: 3, Interesting

      You can already use MSN under Linux. There are multi-network chat clients (like Trillian for Windows) that do it.

      And yeah, AOL's software would be handy to run.

      I think AOL should port their software to Linux, perhaps putting the OS on the disk as well, so that people can buy a bare PC, stick the AOL disk in, and go.

    14. Re:Price point is not the only factor. by Ayende+Rahien · · Score: 2

      Raise the pay checks, then, god knows that they can afford it. Never mind the fact that stock options doesn't matter that much today.
      MSFT stock did a dive when dot com busted, went from ~120$ to about third that much in a couple of months, no it keep floating on the verge 60$ for quite some time.

      http://quotes.nasdaq.com/quote.dll?page=charting &m ode=basics&symbol=MSFT%60&selected=MSFT%60&chart=5 &elem=0

      I didn't heard about a lot of employees quiting then, and they would certainly won't quit now.

      --

      --
      Two witches watched two watches.
      Which witch watched which watch?
    15. Re:Price point is not the only factor. by daviddennis · · Score: 2

      This is already being tried. I saw something suspiciously like this at Fry's - a Linux system with all major applications (WordPerfect, KDE email, Mozilla) for sale for something like $50 less than the cheapest alternative.

      It was wierd, though - it seemed like it was deliberately set up to prevent people from using more than one application at a time - this is really weird considering that multitasking is a core strength of Linux. They used an odd graphical menuing system that would reappear every time you existed a program, sort of like DOS or the first versions of the Mac.

      Strange. But a promising idea if someone does it right.

      D

    16. Re:Price point is not the only factor. by mpe · · Score: 2

      Windows is a poster child for the sacrifice of style in the name of usability

      In many ways it isn't an especially good example of "usability" anyway.

    17. Re:Price point is not the only factor. by mpe · · Score: 2

      The problem is alternate OS'es will not run most of the other software on the store shelf.

      It isn't a matter of if the software is on the store shelf it's a matter of if the software is what is needed...

      Until this changes, we will be stuck with the Windows Monopoly. We are stuck with the Windows monopoly because that is the base that almost all desktop applications run on top of.

      This is a classic "chicken and egg" issue...

    18. Re:Price point is not the only factor. by Technician · · Score: 2

      This is a classic "chicken and egg" issue...
      True! What makes it worse is Microsoft is trying to tie into both the chicikens and eggs. Chickens = Windows on every PC shipped, Eggs = enticing application developers to use MS standards. Many applications will not run without MS Internet Explorer installed, even though they have nothing to do with the internet. (I have a Windows 95 box with the first version of 95 that came without IE.)
      The good news is MS hasn't figured out how to exterminate the free chickens (Linux) and eggs (Word Perfect, Starr Office, Gimp, Mozella, etc.) which are considered weeds that threaten his crop.

      --
      The truth shall set you free!
    19. Re:Price point is not the only factor. by WNight · · Score: 2

      I did a quick search on Google and came up with two names of clients that (I think) support MSN. GAIM and EveryBuddy.

      No idea on the details.

      You could always get your girlfriend using Trillian in Windows, then she could be on multiple networks at once and you could use ICQ to talk to her...

      You might want to suggest that she use Trillian regardless, it's a pretty cool client and it doesn't have ads or anything. Not only does it let you be on multiple networks at once, but it lets you be signed onto each network multiple times and you pick which name to use when you open a chat window. (Lets me talk to people using either my gaming ID, or my real-name work ID.)

  8. Industry Strategy by 1/137 · · Score: 2, Interesting

    But he has not taken into effect the combined microsoft plus PC industry strategy, which goes like:

    (1) Build a fast expensive computer

    (2) Write an operating system that uses all the resources of (1) just to run a word processor.

    (3) Go back to (1)

    That can keep the price of both inflated indefinitely. Hopefully someday people will think "Gee do I really a 1 GBit Quantum computer just for the latest version of Word?".

    --
    My handle breaks slashcode, what does your handle do?
    1. Re:Industry Strategy by unformed · · Score: 2

      Actually, yes you do?

      Why, might you ask.

      Ahh, naive child; you need the Latest and Greatest Intex Thinking Machine(R) to run the Latest and Greatest Virus(R). What kind of a product would Word be anyways in ten years, if it can't propagate a Reach, Extend, Embrace, and Conquer(R) virus through the Office Assitant(R) life-size android.

    2. Re:Industry Strategy by nomadic · · Score: 2

      Let's be honest here; even though computers these days are a few hundred times as fast as they were 10 years ago, Linux really isn't that much faster.

      All OSes bloat to fill up the available CPU usage.

  9. Old News by mosch · · Score: 5, Funny

    Wow, this is shocking. First ESR claims that Microsoft is doomed. What's next, RMS claiming that the GPL is the One True License, or JWZ saying that Netscape sucks now?

  10. You mean, just like MSIE "died" ?? by walterbyrd · · Score: 3, Interesting

    Just because an MS product is not profitable does not mean it will "die" as in go away.

    If MS has to give away windows for free, that will just cause windows to proliferate even more. Which means that MS will have an even tighter grip on the industry.

  11. ESR will still be able to afford Windows by gowen · · Score: 2, Funny

    ... because his VA Linux stock has made him fabulously wealthy. Do we need anymore reasons why we shouldn't take the latest ramblings of this pillock seriously?

    --
    Athletic Scholarships to universities make as much sense as academic scholarships to sports teams.
  12. Windows won't die for a long time by genkael · · Score: 2, Interesting

    I think Eric is misreading the situation. If a PC goes below 350 bucks, people will be willing to spend much more for the OS. The reason for this is simple, 350 bucks is nothing relative to today's cost of a PC, thus $350 + OS

    People won't move away from Windows for 1 of 2 simple reasons, "I don't have time to learn something new" or "I can't transfer my MS Office documents to ". While there are falacies in both arguments, end users are a stubborn ignorant bunch for the most part.

    Linux will have a heck of a time breaking in on the desktop due to the illusion that there are no apps and that it's difficult to install. All slashdoters know this isn't true.

    --
    GeneralKael -- Slacker Extraordinaire
    1. Re:Windows won't die for a long time by rseuhs · · Score: 2
      I think Eric is misreading the situation. If a PC goes below 350 bucks, people will be willing to spend much more for the OS. The reason for this is simple, 350 bucks is nothing relative to today's cost of a PC, thus $350 + OS

      Wrong, first PC-makers will stop force-bundling Windows

      Because sending more than 10% of their revenue directly to Microsoft isn't that cool.

      People won't move away from Windows for 1 of 2 simple reasons, "I don't have time to learn something new" or "I can't transfer my MS Office documents to ". While there are falacies in both arguments, end users are a stubborn ignorant bunch for the most part.

      But most people stop being ignorant subborn bastards as soon as it saves them money.

      If they bought a PC without Windows (see above), Windows @ 200$ suddently doesn't sound that attractive.

  13. It's happened already! by Lxy · · Score: 4, Informative


    Apparently the /. editors don't consider this newsworthy. I've submitted it several times to get it rejected, I suppose if ESR had submitted it they would've posted it.

    Walmart.com is selling PCs without Windows. In a Cnet article (sorry, don't have the link) Walmart announced this because the cost of Windows is offsetting the cost of cheap hardware and Windows is making the computer too expensive.

    --

    There is no reasonable defense against an idiot with an agenda
    :wq
    1. Re:It's happened already! by jimand · · Score: 3, Informative

      CNET link to this story is http://news.com.com/2100-1017-842375.html

    2. Re:It's happened already! by ch-chuck · · Score: 2

      That is interesting - I wonder if Msft is pestering WalMart for the customer list?? Because we just KNOW those are used with pirated OS's because EVERYONE uses Windows. There was an article once about that, but I think it was Msft license shops getting strongarmed to snitch on what companies are making large purchases of "PC's Without Windows".

      --
      try { do() || do_not(); } catch (JediException err) { yoda(err); }
    3. Re:It's happened already! by teamhasnoi · · Score: 2, Interesting
      Tom's Hardware Guide has a little write up about this too. And Applelinks and The Register and Gamespy and Geek.com. Whew! I submitted this and was cruelly rejected as well.

      Google is your friend!

    4. Re:It's happened already! by Spoing · · Score: 2
      Unfortunately, the PCs Wallmart is selling without an OS don't have the same hardware as those they are selling with an OS. One example: All machines that are bundled with an OS get a monitor as well. There are other per-machine differences that make a comparison difficult at best.

      Because of that, you can't figure out if the machines actually sell for less if no OS is bundled with them. Very annoying. (If anyone has figured it out, post a followup.)

      Either way, it is promising that such a large retailer did start offering these blank systems.

      --
      A firewall can not protect you from yourself. Turn off what you do not need. Do not use the firewall to do your work.
    5. Re:It's happened already! by BlowCat · · Score: 2
      Because we just KNOW those are used with pirated OS's because EVERYONE uses Windows.
      Oh, yes, we just KNOW those computers are used with stolen monitors, because EVERYONE uses monitors.

      Seriously, if you are using Windows, don't assume that all other people use it. And if you are "pirating" software, don't assume that all other people do the same.

    6. Re:It's happened already! by Spoing · · Score: 2
      You're right. Those two look to be the same except that one doesn't have an OS. $99 difference.

      Unfortunately, there's no way to absolutely confirm it without poping open the case.

      --
      A firewall can not protect you from yourself. Turn off what you do not need. Do not use the firewall to do your work.
    7. Re:It's happened already! by Alsee · · Score: 2

      Unfortunately, there's no way to absolutely confirm it without poping open the case.

      Perhaps someone can get them on the phone and say they are doing some reasearch regarding a Slashdot News article, and would like to know if the hardware really is *identical*. Sounds like a good social enginering project. If you plan on submitting an article to slashdot you could legitimately claim to be a freelance reporter :)

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
  14. considering by Ender+Ryan · · Score: 2
    Considering that WindowsTM can cost as much as a cheap PC these days, not to mention OfficeTM, this truly might be the case.

    Whatever happens, SOMETHING is going to have to give, either the pricing of WindowsTM and OfficeTM or the software people use.

    Microsoft is going to have to drastically cut prices, or lose a huge segment of the market in the near future. This must be why they are trying so hard to go with a "renting" scheme, but I don't think that's going to be workable anytime soon.

    So no matter how things work out, Microsoft's profits are probably going to drop sometime soon, they can either cut prices to hold onto the market, or lose a large part of the market.

    That's how I see it anyway. Anyone see why that's not the case?

    --
    Sticking feathers up your butt does not make you a chicken - Tyler Durden
  15. CmdrTaco by Spankophile · · Score: 2, Troll

    Wow.. professional journalism at its best.

    Taco would like you to believe that MS only controls the Office market because of Windows. I guess that's why it's the most popular office suite for Macs too?

    Windows lets MS control the server market? Ummm, how about (cross platform) Apache? Aren't you the one that posts surveys every two months about how Apache dominates? Maybe you mean that since MS only needs to write for one OS, they can focus their energy on things other than porting?

    I of course can't really argue the "zillion other markets." I guess he means hardware, and games, and a zillion minus 2 other things.

    God forbid they control those by making excellent products (mouse wheel, optical mouse), and excellent libraries (DirectX). Don't forget, Windows didn't always rule the gamers world.

    1. Re:CmdrTaco by makapuf · · Score: 2, Informative
      Taco would like you to believe that MS only controls the Office market because of Windows. I guess that's why it's the most popular office suite for Macs too?


      Ahem, YES. Because if 90% of desktops are PCs, when you're on a mac doing anything, you generally want to be able to open a word document.

      So, windows monopoly -> word monopoly -> even on macs makes perfect sense for me.
  16. Open Letter to Linus Torvaldez by Anonymous Coward · · Score: 5, Funny
    This is an open letter to Spanish Linux creator Linus Torvaldez. I really hope that these few criticisms are addressed soon.

    Dear Linus,

    I have always felt that Linux is a nice operating system (for hobbyists and geeks), but there are some areas where it is seriously lacking, especially when compared to its main competitor, Microsoft Windows.

    • File sharing. Windows has long been superior when it comes to making large amounts of files available to third parties. Even early versions of Windows automatically detected and made available all directories thanks to the built in NetBIOS-powered file sharing support. But Microsoft has realized that this technology is inherently limited and has added even better file sharing support to its Windows XP operating system. "Universal Plug an Play" will make it possible to literally access any file, from any device! I think universal file sharing support needs to be built into the Linux kernel soon.
    • Intelligent agents. With innovations like Clippy, the talking paperclip and Microsoft Bob, Microsoft has always tried to make life easier for its customers. With Outlook and Outlook Express, Microsoft has built a framework for developers to create even smarter agents. Especially popular agents include "Sircam", which automatically asks the users' friends for advice on files he is working on and the "Hybris" agent, which is a self-replicating copy of a humorous take on "Snow-White and the Seven Dwarves" (the real story!). Microsoft is working on expanding this P2P technology to its web servers. This project is still in the beta stage, thus the name "Code Red". The next versions will be called "Code Yellow" and "Code Green".
    • Version numbers. Linux has real naming problems. What's the difference between a 2.4.19 and a 2.2.17 kernel anyway? And what's with those odd and even numbers? Microsoft has always had clear and sophisticated naming/versioning policies. For example, Windows 95 was named Windows 95 because it was released in 1995. Windows 98 was released three years later, and so on. Windows XP brought a whole new "experience" to the user, therefore the name. I suggest that the next Linux kernel releases be called Linux 03, Linux 04, Linux 04.5 (OSR1), Linux 04.7B (OSR2 SP4 OEM), Linux 2005 and Linux VD (Valentine's Day edition). Furthermore, remember how Microsoft named every upcoming version of Windows after some Egyptian city? Cairo, Chicago and so on. I think that the development kernels should be named after Spanish cities to celebrate Linux' Spanish origins. Linux Milano or Linux Rome anyone?
    • Multi-User Support. This has always been one of Microsoft's strong sides, especially in the Windows 95/98 variants, where passwords were completely unnecessary. Microsoft has made the right decision by not bothering the user with a distinction between "normal" and "root" users too much -- practice has shown that average users can be trusted to act responsibly and in full awareness of the potential consequences of their actions. After all, if your operating system doesn't trust you, why should you trust it? (To be fair, Linux is making some progress here with the Lindows distribution, where users are always running as root.)

      With Windows XP, Microsoft has again improved multi-user support. Not only does Windows XP come with a large library of user pictures that are displayed on the login screen, such as a guitar and a flower, it also has "quick user change". This makes it possible to login as a different user with a simple keyboard shortcut, and the good news is: programs from the old user keep running in the background! Beat that, Linux!

    • Programmability. Microsoft has always been known for making computer machine power accessible to end users. The operating system comes with many helpful tools such as VBScript, a programming language especially useful for developing intelligent agents as mentioned above, and QBASIC, a truly innovative "hacker" tool that makes it possible to develop even sophisticated applications without much foreknowledge. Scripts can even be embedded into documents such as Word files. This together with the mind-blowing Windows XP shell, which now also has amazing features like "autocompletion" (you no longer have to type all those long paths) and a scrollback buffer, makes Windows XP the "hacker's choice". Linux should stop "dumbing down" users with pretty pictures such as in KDE or GNOME. Also, I think that a BASIC interpreter should be an unremovable component of the Linux kernel.

    I also find it disappointing that Linux has not embraced new technologies such as Digital Rights Management which will finally make it profitable for artists to sell their intellectual property on the web. The content industry has calculated that it loses about 450 trillion dollars per day to piracy. If this continues, the economic effects will be devastating. Richard Stallman has supported DRM for years and made it a fixed part of his GNU/Hurd operating system -- Linux should not hold back progress in this important area. DRM should be made part of the Linux Standard Base (LSB), and Linux distributors should put "DMCA-Compliant" buttons on their websites. We all know that Linux would never have been created without strong intellectual property protection as enforced by the FSF, so let's not be hypocritical.

    On the plus side, I have found Linux an absolutely superior operating system for viewing pornography. Porn is loading much faster than on Windows, especially with the Cox and Love kernel patches and powerful porn browsers such as Pornzilla. This is truly an operating system written by geeks, for geeks!

    Sincerely,

    Bruce.

    1. Re:Open Letter to Linus Torvaldez by sharkey · · Score: 2

      "Linus Torvaldez"
      Like Exxon Valdez, but without harming the environment.

      --

      --
      "Outlook not so good." That magic 8-ball knows everything! I'll ask about Exchange Server next.
  17. But wait, I thought NT 5.0 was supposed to be DOA? by max+cohen · · Score: 5, Insightful

    Didn't he also say NT 5.0 would be DOA because of it's bloat and tardiness? I really wish ESR would stop making so many "predictions." It'd be a good move for his reputation and everyone else in the OSS community that feels the effects of the blanket associations with his comments.

  18. ESR also seems to forget... by Raptor+CK · · Score: 2

    ...that the ideal computer always costs $5000.

    --
    Raptor
    "Procrastination is great. It gives me a lot more time to do things that I'm never going to do."
    1. Re:ESR also seems to forget... by Raptor+CK · · Score: 2

      No, *we* can't... but you're more than welcome to point that out.

      I wasn't aware that Dvorak had said it first, or that he had said it at all. Mainly because *I've* been complaining about that for at least 15 years. It's entirely possible for two people to make the same obvious observation. It's not like I invented anything groundbreaking, just that I can't spec a computer for less than that without compromising somewhere along the line.

      --
      Raptor
      "Procrastination is great. It gives me a lot more time to do things that I'm never going to do."
  19. Good point.....but theres a flaw in the logic by CDWert · · Score: 5, Insightful

    This is a good point, I must admit I never though directly about this as a consequence of the reduction in PC costs, BUT theres a flaw in the Logic, software has ALWAYS cost more (since the late 70's) than the hardware itself, it may cause a shift, but certainly not the demise of MS.

    MS would sell..hell give copies of Windows away if it meant they could continue their other markets, Less than 1/3 of MS income comes from desktop operating systems. Now that said they dont want to loose it but certainly it wont kill them.

    --
    Sig went tro...aahemmm.....fishing........
    1. Re:Good point.....but theres a flaw in the logic by Zathrus · · Score: 3, Insightful

      Less than 1/3 of MS income comes from desktop operating systems

      From the 10-Q filed on Feb 8, for the 3 months ending Dec 31, 2001, in millions:
      Desktop Platforms: 2,678
      Desktop and Enterprise Software and Services Revenue: 6,435

      Which makes desktop platforms 41% of the revenue of that division.

      Consolidated earnings from all divisions were $7,741 million. Which makes desktop OS's 35% of their total revenue.

      So, you were pretty close on the 1/3 bit, but it is MORE than one third of their revenue, not less than. And, more importantly, you go tell any business person on this planet that they are going to lose one third of their REVENUE and see what kind of reaction you'll get. I'm not talking profit. I'm talking base revenue.

      I agree that what ESR predicts is, well, utterly wrong, since MS isn't stupid, but to say that they could give Windows away for free or nearly free and not notice it just shows that someone needs to go read a financial statement or two beforehand.

    2. Re:Good point.....but theres a flaw in the logic by rseuhs · · Score: 2
      So, you were pretty close on the 1/3 bit, but it is MORE than one third of their revenue, not less than. And, more importantly, you go tell any business person on this planet that they are going to lose one third of their REVENUE and see what kind of reaction you'll get. I'm not talking profit. I'm talking base revenue.

      Exactly. Microsoft's net profits has declined from about 40% to 30% (probably because of XBox)

      Losing 35% of revenue would mean losses for Microsoft.

  20. $350 PC's by asv108 · · Score: 3, Insightful

    Ok lets just go along with this for a second and assume MS has no business sense whatsoever and would not adjust the OS price accordingly, will $350 pc's really be the norm? Even as PC prices continue to fall, it seems that most people are continuing to pay around $1500 or so for a computer because that is what they expect to pay for a computer. Systems that are really cheap have a negative stigma amongst consumers because they assume the computer is obsolete and will not meet their future needs. People are gobbling up multi GHZ machines even though a pIII would work for must people's needs.

    1. Re:$350 PC's by richardbowers · · Score: 2
      It depends on who's doing the buying. Right now, the people with money to spend on PCs are largely the small to mid-size businesses, and they aren't spending $1500. Power gamers and 3d editors aren't the ones that will keep Windows going -- if they were enough, Apple would have been/stayed on top from the late 80s onwards.

      Microsoft's dominance has never come from the big spenders, but from the rank and file, and the assertion of the article is that they may lose those people -- even if they keep the niche of the big spenders.

      --
      Law is whatever is boldly asserted and plausibly maintained. -- Aaron Burr
    2. Re:$350 PC's by mbrubeck · · Score: 2
      Even as PC prices continue to fall, it seems that most people are continuing to pay around $1500 or so for a computer because that is what they expect to pay for a computer.

      If this story were published eight years ago you would saying, "People are continuing to pay around $2500 for a computer because that is what they expect to pay..." Today's $1500 price for a mid-range computer is ridiculously cheap from the perspective of the preceding decade. Sure, there's a lag between actual hardware costs and consumer expectations, but we're already seeing the norm pushed below a thousand dollars, and in another five years I doubt that many people will expect to pay more than a few hundred.

    3. Re:$350 PC's by BoneFlower · · Score: 2

      Keep in mind that many people use their computing needs as a baseline, that they will not purchase anything less than that. Whenever I look at a new system or an upgrade, I buy the best I can possibly afford- If I pay 50% more than I need to, for something I can keep using twice as long, in the end I save money and trouble by not replacing/upgrading as often. Thats how everyone in my family buys PCs, thats why my mom has lasted three years and with some heavy cleanup of the HD could last probably another 6 months to a year easily...

      I purchased a 1.6Ghz PIV box yesterday? Do I need it? Not by a longshot. Right now I could never hope to come close to maxing out my capabilities. But three years from now, I will need something like this. If I had bought a 500Mhz system(around what I consider my bare minimum) yesterday instead, I'd spend less than half what I spent on this... but I guarantee you in 6 months I'd be upgrading. THen after a minimal upgrade, 6 months more I'd upgrade again, within a year I'd probably have spent more than the 840 I spent on this one.

      I look to the future- I buy the best I can afford, it saves money in the long run.

  21. He doesn't read Slashdot, apparently by mblase · · Score: 2

    Software like Linux also inherently has more appeal to many non-English speaking countries than software generated and controlled by big American firms, Raymond pointed out, which is becoming a significant issue as PC growth outside the US becomes the industry's main driver. "Countries like South Korea are finding that open source is a precondition to their economic and cultural autonomy," he said.

    I thought we'd already seen that countries like South Korea find open source to be a convenient excuse for serving as a spam gateway. Win some, lose some, I guess....

  22. Different Versions by mlknowle · · Score: 2

    What a stupid article!

    Sure, MS will keep the prices marching up - but it won't be that big a problem because:

    1. People WILL pay it

    2. Most people could never know where / how to by a PC without windows.

    3. Microsoft will sell different versions ("home" m "Office," "Pro," "God-like," etc, each priced appropriatly - so people like my poss can waste money buying "Pro," because they think that they are important enough to need it - for word processing...

    4. Honestly - do you REALLY think that if MS started to see a major slip in marketshare they woldn't cut prices very quickly? Hello - they may be EVIL but they damn well arn't STUPID!

  23. Here's to the end of proprietary interfaces! by anomaly · · Score: 2, Interesting

    I can remember a time when all of our applications and data were locked into proprietary hardware and software solutions. (Wang word processors, among others.) The next step was to break our dependence on one vendor to supply the limited set of choices.

    Today our data can be stored on many different manufacturers' hardware, but we are largely locked in to one vendor's OS because of proprietary file formats. (And the same architecture, to boot.)

    Long term I hope that our data is freed from that prison. We continually re-engineer systems to perform the same functions on different platforms because of the mindset imposed by the prison. However, we are a little closer today. Things like SQL allow us to migrate data reliably from one database to another. I can foresee a time when application vendors allow reliable interoperability, but it will be a while.

    It also occurs to me that MS is in a bit of a pickle. There was a time when new applications provided greater functionality, and people migrated to them because they were superior, or at least people perceived that the new features were useful enough to justify the change.

    Eventually the functionality of the applications on the market increased to the point where they were functionally very similar, and most consumers didn't need much more in the way of application functions.

    Outside of a major paradigm shift, I don't think that many people competing with MS need to do much besides catch up. They are getting closer each year. You can't continually embrace and extend because at a certain point, it's just too much trouble. As an example, my MS desktop here at the house has 93 different typefaces. I use about 10. If you gave me 500, I would still use about 10. I just looked at my Linux system, and it has 2200 typefaces installed! I still use about 10.

    Even if MS makes their OS and apps do 5000 new and snazzy things, most people simply won't use them. Look at the Outlook-based emails that are sent in Arial or Tahoma, and the documents that are printed in Times New Roman. People stick with the deafult because it's too much to think about to do otherwise. My hope is that we break free from the prison imposed by proprietary interfaces and formats.

    Regards,
    Anomaly

    Ps - God loves you and longs for relationship with you. If you would like to know more about this, please contact me at tom_cooper at bigfoot dot com

    --
    But Herr Heisenberg, how does the electron know when I'm looking?
    1. Re:Here's to the end of proprietary interfaces! by Null_Packet · · Score: 2

      You might be a troll, but I just can't resist the last comment about people's use of Fonts in Outlook. I personally would love to whack the kneecaps of everyone who uses weird-ass colors in Outlook and lame fonts.

      Or I might be a Troll :)

    2. Re:Here's to the end of proprietary interfaces! by anomaly · · Score: 2

      There's no need to resort to profanity.

      I'm no great student of his, but if I'm not mistaken, Neitzche's point was that our philosphical approach had rendered a transcendent God irrelevant. With all due respect, I beg to differ with him.

      Taking score right this minute - Nietzche is dead, God is alive.

      And does existentialism make your life more enriched? Is it a world view that works? Are you satisfied with it? Does it fit with the evidence that surrounds you of intelligent design?

      Finally, why does my philosophical outlook with respect to God's relevence invalidate my logic?

      Surely it may color your opinion of my perspective and my writings, but does it make my logic flawed?

      --
      But Herr Heisenberg, how does the electron know when I'm looking?
    3. Re:Here's to the end of proprietary interfaces! by anomaly · · Score: 2

      I'm sorry that you had an experience related to Christianity that causes you to consider yourself a recovering Christian. Much of what calls itself Christian today bears little resemblance to the movement that overturned the Roman world with no weapons, and shaped the course of history even to this day.

      What evidence? Fair question.

      How about this:
      1. The Bible is more well documented than any other work of antiquity. I'll have to look it up to be sure, but it has at least one, possibly two orders of magnitude more copies than ANY other work. This documents that the consistency of the contents has been maintained over time. We have a VERY high degree of certainty that what we have today is EXTREMELY close to what the original writings contained. This puts to rest many of the theories which claim that the miraculous stories were made up generations after Christ's death.

      2. Archaeological evidence is consistently in concert with the writings in the old and new testaments. Again, lending credibility to the overall story told by the biblical writers.

      3. Christ's resurrection is so well documented that it can be considered a documented fact - a better documented 'fact' than the lives of any other figure from ancient history.

      "Dr. Simon Greenleaf, the greatest authority on legal evidences in the 19th century, came to this very conclusion after a thorough examination of the historical record. The essence of his verdict, as the famous Royall professor of law at Harvard, was that any unbiased jury openly examining the evidence would inevitably come to the conclusion that Christ had risen from the dead. Greenleaf suggested that any cross-examination of the eyewitness testimonies recorded in Scripture would result in an undoubting conviction of their integrity, ability, and truth." (quote from article at www.equip.org)

      The Bible is a unique book - unlike any other - which contains the story of a God who loved mankind enough to become a person, live among us, and be wrongfully put to death. This God conquered death, and through that act, opened the door for restored relationship between a Holy God and unholy mankind.

      There is *so* much more that can be said, and I'd be happy to offer more evidence and information if you are interested. We could talk about manuscript evidence, eyewitness evidence, internal and external consistency tests for reliability, prophetic evidence, statistical probability as it relates to the accumulated evidence, and much more.

      Respectfully,
      Anomaly

      --
      But Herr Heisenberg, how does the electron know when I'm looking?
  24. ESR, new show on CBS by Microsift · · Score: 2, Informative

    Everybody Slams Raymond

    --
    My other sig is extremely clever...
  25. Re:But wait, I thought NT 5.0 was supposed to be D by DodgyGeezer · · Score: 2, Insightful

    Exactly! In fact, NT5 turned out to be the best OS release from MSFT ever. I haven't reinstalled it in the 2 years that I've had it installed, which is exceptional for a MSFT OS. The thing is pretty damn stable.

  26. ESR (rolls eyes) by Pope+Slackman · · Score: 2

    Does anyone even listen to this guy anymore?

    I know I stopped shortly after he got his "Hey! Look at me I'm filthy rich!"[1] article on the front page.

    C-X C-S
    [1] Believe me, "Sex tips for Geeks" didn't help his case, either.

  27. Why must hardware cost more than software? by Ars-Fartsica · · Score: 2
    ESR is predicating his argument on the notion that hardware must necessarily cost more than the software that runs on it. He's obviously never negotiated a contract for a site license for Oracle.

    ESR has made predictions of MS dying before - every time they are usually followed by growth in MSFT as they move into new markets and drive Windows further into the economy.

  28. Hmm. Itanium & MS Gang up on everyone by OS24Ever · · Score: 2

    What if to get the next version of Windows .net or whatever you ahve to buy the 64Bit CPU.

    It only runs on Itanium, and Itanium systems cost (theoretically) more than a loaded G4 Power Mac. The Windows Faithful would have to spend $4000 a machine for hardware, what's another $300 for the OS?

    I mean the way they are acting towards the 9 dissenting states, this seems like something they'd do without even blinking. Though I don't know how Intel would take it.

    --

    As a rock-in-roll Physicist once said, No matter where you go, there you are.

  29. Re:They'll think of something by ergo98 · · Score: 2

    Hrm, not like anyone working for Microsoft reads Slashdot, if they did, they probably wouldn't work there for long...

    Huh? Villainize Microsoft as much as you want, but as far as tech employers go Microsoft is by far among the best (I don't work for them, but by what I've heard. This great treatment of employees is one of the primary reasons why MS is where it is today). Because of that I'm often baffled by so many in the industry, working for companies that stuff you in tiny cubes and treat you as chub meat, go out with fangs out against Microsoft.

    Plenty of people from Microsoft read Slashdot (and I doubt as sinister "covert operatives" either. It's (sometimes) interesting stuff whether you run Linux or not. I have FreeBSD on a firewall, but apart from that it's all Windows baby, yet I read Slashdot), provable if you've had a link on here and you see the hits come it from Redmond.

  30. Does anyone know? by jejones · · Score: 2
    I expect that shortly Windows will be one of the most expensive components of computers...but that's just a guess; does anyone know the the terms of MS's deals with OEMs?

    That's one of the reasons MS is trying to move its vic^H^H^Hcustomers to Danegeldware; just as you don't realize how much of your money the government seizes when they do it a bit at a time, you won't notice how much you're paying MS if you do it a bit at a time, and they can play the Polaroid game (sell the cameras cheap, charge mucho $$$ for the film).

  31. He's got a great track record.... by JohnTheFisherman · · Score: 5, Interesting

    Like this little gem. Conspicuously absent link from the story, don't you think? ESR prediction story on /., clearly topical.

    1. Re:He's got a great track record.... by bribecka · · Score: 2

      What year was that posted ?

      December 2000. The interview was apparently done at a conference in Fall 2000.

      What is up with this guy (ESR)? How can someone make such sweeping yet totally incorrect predictions all the time? I've decided not to listen to anyone who goes by their 3 initials...they usually turn out to be friggin idiots.

      --

      Where are we going and why am I in this handbasket?

    2. Re:He's got a great track record.... by smagruder · · Score: 5, Insightful
      Hint to the slash maintainers. How about including years in article dates.


      Yup. This is a no-brainer bug that has gone unfixed for years now. I even reported this as a bug and it was closed for no apparent reason.

      What's with not including years in article dates???

      --
      Steve Magruder, Metro Foodist
    3. Re:He's got a great track record.... by I+Want+GNU! · · Score: 2
      What year was that Slashdot story [slashdot.org] from?
      Read the url again: http://slashdot.org/articles/00/12/13/216237_F.sht ml

      Right where it says 00, that's the year. So, with Microsoft collapsing six months from 12/13/00, I guess it will collapse by June 2001! Great!
  32. Except for one thing by rfc1394 · · Score: 2, Interesting
    Sure, Price is a factor in PC sales but... OS ultimatly comes down to what they're familiar with. My mother would love to go out and purchase a new PC for 350$ but if it doesn't have a copy of Windows with it, she'll simply go out and buy one.
    If you bought a car for $3500 (or $35000) and discover that you have to spend another $1850 ($18500) for the engine you are going to be very angry or if you discover this ahead of time you will probably not buy it. If a PC sells for $350 it's going to be a hard sell to get someone to also then spend an additional $185 for the full version of Microsoft Windows 2004 (list price for a copy when you do not own a prior operating system). Even if it's $85 or so it's still a bit expensive for the home buyer. The only way they will get that much money for a copy is if they do what they've done with XP; impose anti-copying controls so strict that they virtually cannot be evaded. Which will encourage even more pirates to try to break it and may start another cycle of trying to implement even more draconian licensing systems.

    In essence, they will not be able to charge the kind of prices they have before and they will either have to cut prices (almost a certainty) or see people stick with older and cheaper versions or perhaps used copies or bootlegs. (very likely)

    I suspect that this may eventually trigger a copyright lawsuit that gets lost by them if they (or the SPA) really try to enforce their no transfer rule on bundled software, a restriction the Supreme Court has ruled was not permissible back in the Bobbs-Merrill case back near the turn of the (19th) Century; despite what the software companies claim, their mass-market software is sold, not licensed and is subject to the "first sale" rule.

    Inexpensive computers are going to be real trouble for Microsoft's bottom line.

    Paul Robinson <Postmaster@paul.washington.dc.us>
    http://paul.washington.dc.us

    --
    The lessons of history teach us - if they teach us anything - that nobody learns the lessons that history teaches us.
  33. So Microsoft is not a monpoly, then, ESR? by clearcache · · Score: 4, Insightful

    Exactly. In fact, by making the claim that Microsoft can not lower their prices and survive, ESR is making the argument that Microsoft is not a monopoly.

    The classic definition of monopoly power is that a company has the power to price above marginal cost - or the cost of producing an additional unit. While we know that real life is a little more complex than this classic definiton, by making the argument that M$ will crumble if forced to lower their prices, ESR is actually saying that Microsoft is not a monopoly...that the current pricing scheme used by M$ is driven by the market.

    In one statement, ESR just poked a hole in his own argument without even realizing it. Nice job!

    1. Re:So Microsoft is not a monpoly, then, ESR? by rseuhs · · Score: 2
      ESR is no monopoly-whiner, which I find very refreshing.

      In one statement, ESR just poked a hole in his own argument without even realizing it.

      Wrong, he sais that Microsoft can't sustain it, not that it doesn't exist.

      And if you ask me, I always said that Microsoft had market-domination and not monopoly.

      They lost their domination on servers already - desktops are next.

    2. Re:So Microsoft is not a monpoly, then, ESR? by BeBoxer · · Score: 3, Insightful

      by making the argument that M$ will crumble if forced to lower their prices, ESR is actually saying that Microsoft is not a monopoly...that the current pricing scheme used by M$ is driven by the market.

      Actually, I think he means that Microsoft is currently using monopoly pricing, and has in the past. But when PC prices were higher, the market simply absorbed the monopoly prices and accepted them. Now that the market is changing due to the plummeting cost of every other component of the PC, Microsoft may no longer be able to maintain their pricing. Since the current structure of the company is based upon massive profit margins, the company could be in real danger if they have to give up their monopoly pricing and adapt to the market. Just because Microsoft may not be able to maintain monopoly prices in the future does not mean that they don't get those prices today. Or that they haven't in the past.

      Monopolies come and go. Just because M$ may not have a monopoly next year doesn't mean that they didn't have one last year. By your logic, AT&T was never a monopoly since they aren't one today. All ESR is really arguing is that he thinks the market is changing to where M$ will not be able to keep their monopoly, and that they will not be able to adjust to that change. While you can argue about whether the market is actually changing to a point where M$ might have to actually lower prices, it's not really much of a stretch to believe that M$ would collapse if they had to go from their ~40% profit margins down to single digit margins like a lot of companies in the PC business.

    3. Re:So Microsoft is not a monpoly, then, ESR? by nomadic · · Score: 3, Insightful

      ESR is no monopoly-whiner, which I find very refreshing...And if you ask me, I always said that Microsoft had market-domination and not monopoly.

      You're both wrong. Microsoft is a perfect example of a monopoly.

      I'm not sure what your rationale is, but ESR apparently doesn't believe in monopolies, because their existence pokes too many holes in his libertarian beliefs.

      If a company has overwhelming market dominance, and uses that dominance to actively prevent others' entry into the market, that's a monopoly. I'm not sure which definition of the word you subscribe to.

    4. Re:So Microsoft is not a monpoly, then, ESR? by clearcache · · Score: 3, Interesting

      No - he's not a monopoly whiner...but he has said that MS is a monoply and that they have used that power to maintain and extend their position in the industry.

      http://www.tuxedo.org/~esr/writings/libgates.html
      http://www.linuxjournal.com/article.php?sid=5007

      I DEFINITELY agree that he's not as strong a monopoly whiner as some others, but he does appear to rely on the monopoly power argument in some of his writings.

      The way I read it, ESR's so-called "Microsoft Tax" is monopoly power...he can call it whatever he wants, but it is specifically in that "tax" that they price above marginal cost...and that "tax" can (and probably will) be lowered.

      And yes, you are correct - they have market saturation. In my opinion, that's the result of them producing strongly competitive complementary goods (Office suite, IE) for their OS. Some of that is the result of predatory market practices, probably...but some of that is also the result of good marketing and good business sense...both of which have resulted in their capability to price above cost.

    5. Re:So Microsoft is not a monpoly, then, ESR? by clearcache · · Score: 2

      My logic has nothing to do whatsoever with the passage of time. AT&T certainly was a monopoly - as was US Steel. The primary test of a monopoly is whether or not you can price above the actual cost of your product.

      I think you lack an understanidng of anti-trust theory. You state that MS needs 40% profit margins to survive...to cover their costs? If so, then that 40% is not really profit, is it?

      Furthermore, MS is not going to lose the ability to price above cost just because prices are dropping. Their licenses and market saturation absolutely ensure that. What they will lose is some of that margin between actual cost and the cost the consumer bears. The only thing that would result in MS losing monopoly power would be a drastic change in their licensing practices.

    6. Re:So Microsoft is not a monpoly, then, ESR? by clearcache · · Score: 2

      I agree that MS is a perfect example of a monopoly. I was simply stating that if what ESR describes were true, then MS couldn't be a monopoly because, according to traditional anti-trust theory, monopoly status has everything to do with price and marginal cost. Sorry I wasn't clear.

    7. Re:So Microsoft is not a monpoly, then, ESR? by clearcache · · Score: 2

      Right..."Microsoft Tax" == Monopoly power. It doesn't matter what you call it...

    8. Re:So Microsoft is not a monpoly, then, ESR? by clearcache · · Score: 2

      ...ah yes - the issue that has plagued Neo-classical economists for years...in the "Perfect Competition" model (which we are NOT an example of, but we often strive to be as close to that as possible), we should observe a "zero-profit-equilibria" (related to the concept of "Natural Price"). There are some implicit costs included in the cost of production (opportunity cost, overhead, etc) that the company also applies to their product's pricing scheme that result a positive cash flow.BR>

      Now, you and I both know that real world markets are far more complicated than neo-classical economic theory. So, my (regretfully abbreviated) explanation above probably doesn't completely jibe with you. That's fine. Market fluctuations, short-run vs. long-run industry adaptions to the business cycle, geographic differences in demand, etc etc etc all have an impact on pricing and profit...it's far more complicated than what I describe. Far more complicated than I have the time to get into right now. But - when anti-trust theory is concerned - we always revert back to that basic question of "Are they pricing above marginal cost?" One of the real tricky parts in answering that question is coming up with an accurate way of assigning cost.

    9. Re:So Microsoft is not a monpoly, then, ESR? by rseuhs · · Score: 2
      If a company has overwhelming market dominance, and uses that dominance to actively prevent others' entry into the market, that's a monopoly.

      What you do is a redefinition of the word.

      Microsoft *had* a monopoly on x86 about 15 years ago, but today, I'd call it market domination.

    10. Re:So Microsoft is not a monpoly, then, ESR? by BeBoxer · · Score: 2

      The primary test of a monopoly is whether or not you can price above the actual cost of your product.

      Which Microsoft does. To the point that they have cash just piling which they don't know what to do with. To the point where a good argument can be made that they are defrauding stockholders by not paying dividends.

      You state that MS needs 40% profit margins to survive...to cover their costs? If so, then that 40% is not really profit, is it?

      Um, profits are not the money used to cover your costs. It's the money left over. You know that and I know that. I never stated that M$ needed a 40% profit margin to cover their costs because, duh, then it wouldn't be a "profit" margin would it?

      I also know, and I'll bet you also know, that the long term survival of a large publicly traded company is due in large part to the value of their stock. Losing money is OK as long as wall street is happy with the way things are going and keeps the capital flowing. Making money is not enough if wall street doesnt like the way things are going, and your stock crashes. Wall street expects companies to keep performing at least as well as they have in the past. If Microsoft's profits plummet due to changing market conditions, the company could be in serious jeprody even though revenues might be sufficient to cover the real costs of developement, production, and support.

      The only thing that would result in MS losing monopoly power would be a drastic change in their licensing practices.

      By this logic, as long as Microsoft never changes their licensing practices, they will never loose their monopoly. Even if everybody stopped buying their product, they would have a monopoly as long as the license was the same? You don't even believe that.

      You may have a doctorate in anti trust law for all I know. But it appears you skipped Logic 101 during collage.

    11. Re:So Microsoft is not a monpoly, then, ESR? by clearcache · · Score: 2

      Absolutely, I agree - their stock price would drop if their profit margin dropped from 40%. Can we say for sure whether or not the company would fold if their profits dropped? No.

      Of course you are correct that it would have a severe effect on their stock price if their 40% profict margin approached the more common 11-15% range. If any company could weather that type of storm, however, it would be Microsoft. They have proven time and time again that they can be a very flexible entity. I have confidence that they would adapt to fit the needs of the market.

      We can all envision a future that does not have Microsoft in its current dominant position in the market, but my point is that it is not realistic to assume that this will happen in the near future (when ESR's magical $350 PC cost is reached) solely as the result of a change in pricing. It's going to take a lot more to dethrone Microsoft. Even if Microsoft were pricing and profiting more in line with their competitors, they still have the advantage because everybody uses their products. And that's not going to go away. For many companies, the thought of a migration away from Microsoft products is unthinkable. Regardless of pricing practices and competitive goods, companies aren't going to do this overnight. Rome may have fallen in a day, but Microsoft will not.

      And, yes, you are right - I should have qualified that last statement a little more so that what I wrote was more precisely in line with what I was thinking. ;) Of course it's not the only thing that could result in MS losing their monopoly power. I do not believe that. However, everybody is not going to stop buying their product. You don't believe that, either.
      What I should have said was: all other things held constant,licensing changes would have a stronger negative effect on their monopoly power than pricing changes would.

    12. Re:So Microsoft is not a monpoly, then, ESR? by clearcache · · Score: 2

      Yeah, he did. But hey, we're all a little illogical sometimes. He just called me on it... ;)

    13. Re:So Microsoft is not a monpoly, then, ESR? by jedidiah · · Score: 2

      This is a rather disengenuous argument.

      ESR is claiming that the ENTIRE MARKET that Microsoft now owns will go away. That doesn't get Microsoft off the hook for being a Monopolist. That merely means that they will eventually end up being the victim of historical change.

      Infact, Microsoft has done more to eliminate the market for microcomputer operating systems and applications than Linux or falling hardware prices ever will.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    14. Re:So Microsoft is not a monpoly, then, ESR? by BeBoxer · · Score: 2

      I'll take the definition behind door number three Monty: "foolish or careless" ;-)>

    15. Re:So Microsoft is not a monpoly, then, ESR? by BeBoxer · · Score: 3, Interesting

      They have proven time and time again that they can be a very flexible entity. I have confidence that they would adapt to fit the needs of the market.

      You are probably right. I think Microsoft's future will most likely be a lot like IBM. At one point IBM was the undisputed king of computers, and was in fact investigated for anti-trust violations. Now, years later, they are not really leading the industry per se, but they are definitely still a strong company. But I can still haveBut I can still have my d my dreams of Microsofts imminent Enron-style implosion, can't I?

      However, everybody is not going to stop buying their product. You don't believe that, either.

      No, not everybody. But a lot of people are starting to grumble. Especially overseas, and that's where I think a lot of the change will come from. American's don't mind being beholden to an American corporation so much. Especially one that is often portrayed as an example of everything that is "right" with the American economy. Other countries don't necessarily think it's such a good idea to be under the thumb of an American monopoly. Witness recent stories about movements towards open source in the German, Chinese, and Korean governements. Really, for what a single good sized govt pays out to Microsoft every year, they could probably keep development moving pretty rapidly on needed office software products.

    16. Re:So Microsoft is not a monpoly, then, ESR? by Alex+Belits · · Score: 2

      Wrong. Market has absolutely nothing to do with cost of operations -- if it was the case, no branch of industry or technology will be extinct by now, and you would be able to buy stone axes and bone fish hooks.

      Monopoly can charge unreasonable price and still spend all those money on continuing "operations" that include unreasonable luxury, rampant investment around, buying the competition and other spendings that would be unnecessary to produce the product but are necessary to make monopoly maintenance worthwhile.

      --
      Contrary to the popular belief, there indeed is no God.
    17. Re:So Microsoft is not a monpoly, then, ESR? by mpe · · Score: 2

      You are probably right. I think Microsoft's future will most likely be a lot like IBM. At one point IBM was the undisputed king of computers, and was in fact investigated for anti-trust violations. Now, years later, they are not really leading the industry per se, but they are definitely still a strong company.

      But did IBM ever have such a narrow product line as Microsoft has?

  34. Non sequitur by FallLine · · Score: 3, Interesting
    "When the price of a PC falls below $350, Microsoft will no longer be viable," Raymond said in an interview with ZDNet UK. "The reason is that if you sell something below that price, you can't afford to pay the Microsoft tax and still make money." He said the best illustration of this is the handheld PC market, where Microsoft software powers relatively expensive devices, but has no presence in the lower-end market.
    I am sorry, but this reasoning simply does not follow. Even if the hardware were free, it, in and of itself, has no effect on the affordability of the software itself. The customer, if anything, has MORE money to spend on the OS (remember, an OS can save or cost you time and effort). The only way I can possibly see his argument, ignoring his logic or lack thereof, is if the cheapness of PC hardware allows for a fundamental shift in attitudes to PCs and the price of the software (and hence the total price of the system, not the RELATIVE cost) is significant enough to influence this. But this is a stretch and it depends on MS keeping the price static [MS' sales far exceeds their development costs, so MS could slash the prices considerally and they could makeup for a lot of it with the increased sales.]

    As for his whole palm vs PC argument, his premise is wrong. Palm and PocketPC have two very different approaches to the market. Palm knows its market is the PDA market, i.e., handling contacts, appointments, and other daily tasks, whereas PocketPC is about being a mini-laptop (which largely attracts the techies and trendy types). Well both the PocketPC OS and the tasks themselves demand a lot more expensive hardware. PocketPC also eats batteries for its intended uses like none other. I'd also argue that Microsoft's vision for PocketPC is fundamentally flawed given the battery limitations, the hardware for the next couple years, and the problems with data entry/input methods and screen size on anything the size of a PDA. The point being is that we have a lot of good reasons to believe the difference in sales has a lot more to do with other issues than just the licensing price difference between the two OSes. For instance, completely ignoring the price of the total costs of either units, I would not want PocketPC if I all I want to do is use the PDA as a PDA (the battery life and other issues are too significant to me).
    1. Re:Non sequitur by FallLine · · Score: 2

      This is a silly argument. The software costs the same AND the choices are the same no matter which PC you choose. The same elements that swayed you to buy Windows last time are still going to affect your decision. Now with a car, you might say your car affects the quantity and kind of fuel that you need to purchase, but this is just not the case here. Anyways, the software is not a recurring cost, at least not today.

  35. That's not how PC are going to get cheaper... by josquint · · Score: 2

    PCs are going to get cheaper because they use cheaper hardware... that's what they've always done.

    I've got entry level boxes from several companies, from sever different 'eras'. The ones that are still working are the older ones. Its AMAZING the hard drive failure rate on new cheap machines! I'm just starting to replace hard drives from 4-5 years back, but i've already replaced 25% of the drives from machines made 2-3 years ago!

    Manufacturers cut corners were they can be cut. Were they have control, which is the hardware. That, and they're gettin a SWEET deal from software companies anyway!(at least the major companies)

    Which begs the question: Do you really WANT them cheaper? I've seen a trend in our sales from the entry/home-use boxes to mid-line/commercial boxes. We now deal strictly in commercial lines (cpq evo over the presario, hp vectra over the pavilion, etc)just because of the better reliability track record and longer warranty. Although they are $60 to $100 more than the 'equivilant' home-line box.
    .

    1. Re:That's not how PC are going to get cheaper... by BoneFlower · · Score: 2

      Good points- The general advice shouldn't be buy the PC that best suits your needs, but to buy the absolute best machine you can afford. You get a better, more reliable machine and you won't have to have it repaired/upgraded anywhere near as soon as you will a bargain bin PC. If all you can afford is bargain bin, thats one thing. But if you have the 1000-1500 to spend on a PC, SPEND IT. You won't be sorry. Dont ignore a PCs cost... but don't look only at that. And only buy from big names unless you know what you are doing or have the advice of someone who does, smaller companies can have great deals and solid systems, but they don't have the same risks as big companies do if they flood the market with cheapo components.

  36. It's about profit margins by Ms.Taken · · Score: 2, Interesting
    Let's assume that an OEM can have a 25% markup on it's machines and still remain competitive, and that assembly, support, advertising, etc. costs an average of $50/machine, and a Windows liscense costs $50. Now if the OEM is selling machines for $1,000, it's grossing $200. Subtract $100 for expenses, and they've still got $100 profit. If the price drops to $350, they're making only $70 per machine, which means they can't turn a profit if Windows is included.

    Unfortunately, this doesn't mean that OEMs will all stop including Windows, or even that MS will have to drop the price. All they have to do is move the expense out of the initial purchase. They could give the OS away free to the OEMs with a three-month subscription. That way the OEMs could offer a machine that works out of the box, and three months later, the consumer starts paying Microsoft

  37. OS die? Only be stronger! by teamhasnoi · · Score: 2, Interesting
    Good point. If I might talk out of my a$$ for a moment:

    Window$(TM)® will become 'free' as soon as .net is in a usable state. I believe they will go to a subscription service. There is nothing that Bill would like more than having Window$(TM)® used like electricity, water, cable, satellite, isp or (ha) garbage services. You'll get a bill every month; don't pay the bill, and no Window$(TM)® for you (and no computer). He is hoping that people will suck this up, 'cause hell! everything else is subscription based...may include features of PVR. Most likely off-site storage would be favored, since control of content would be with MS. Hardware copy protection would be moot, since everything would be installed though MS. (No way to install anything on site)

    These suppositions assume that broadband will be widely available, and probably bundled w/ Window$(TM)® (MSN) MS will market this as easy to use! (MS will remotely repair and admin installs) and use passport for security (whoohoohaha....snif.) The more MS can push the death of the 'PC' as it stands now the better off they are.

    The return of the network appliance?

    Let me wake up from these nightmare visions! Ahhh! Ahhhh!

  38. People pay for the software... by Console · · Score: 2, Insightful

    not the hardware.
    The situation is like with DVD's. The medium (hardware) costs maybe $1, but the #&%/s can still charge $20 for a movie (software).

    Suppose Dell could make a PC for $10. If Microsoft charges them $350 for windows, the end customer will have to pay $361 (at least) for a Dell w/ windows.

    This won't change until Linux or another OS can challenge MS on the desktop. I'd pay for MacOS X if only they'd port it to x86...

  39. what happens when people can't afford software by mr_gerbik · · Score: 2

    They don't stop using the software and turning to cheaper alternatives... they start pirating it. Why do you think the piracy rates in China and Korea are higher than 90%? (Yes, higher than 90%!) Its because the people can't afford to shell out $150 bucks for the latest software, and at the same time, they don't want to fall behind the rest of us.

    ESR is an idiot, and his rediculous predictions have done nothing more than make me laugh at his stupidity. Its pure nonsense.

    -Ryan

  40. Maybe not a good idea. by clark625 · · Score: 2

    I love to order new computers without an operating system. I used to build them from components, but now I've found that for about the same cost (plus a lot less time) I can have a brand new computer sent to my door via my favorite on-line retailer. And since I don't want an operating system installed, I'm not going to be forced into buying it. And that's all well and good since I generally nuke the hard drive as my first order of business anyway.

    Most consumers, on the other hand, are morons. I know this. If I get one more phone call at 1:00am because of some jack#$$ tried to upgrade to WinXP and somehow lost all of his data, I'm going to scream. I don't even like Windows.

    Back a few years ago (it's been a while), Microsoft sent out a memo to all its OEM vendors about how it's bad for the customer to receive a computer without an operating system. The basic reason for this was Microsoft's fear of piracy, which I believe is legitimate. Far too many people who will purchase this type of computer from Wal-Mart will either pirate a copy of Windows or will buy a copy and then have a very difficult time getting it installed. All the various questions it asks always has people calling me at all hours.

    So, give the thing an operating system. Bundle RedHat, Suse, Mandrake, etc into the thing without any cost--and give the end-user a "coupon" to use if they want to activate RedHat's (or whomever's) support. Sure, that will be for extra money--but the end user might be happy to pay for that support if it's needed. And it keeps him/her from having to run back to the store for a copy of XP.

    Nothing annoys a non-computer person more than when they turn a brand-new computer on and all it says is "Not Bootable Devices Found" or whatever. At least give them a Linux distro with all of X's prettiness. Besides--they might actually like it.

    That's just my $0.02


    --
    Long, cute, or funny Sigs are just another form of over compensation, used by geeks, nerdz, etc.
    1. Re:Maybe not a good idea. by clark625 · · Score: 2

      I can't think of a list off hand--but as another poster pointed out, a great place to start is pricewatch. I have purchased my OS-free computers from IBuyPower.com and I have to say that I am very impressed with the hardware. They do excellent work--and no, I don't get a discount or anything.

      --
      Long, cute, or funny Sigs are just another form of over compensation, used by geeks, nerdz, etc.
  41. A possibility, BUT... by Maul · · Score: 3, Insightful

    ESR is being an optomist. While I agree that this is a possibility, I don't see it happening soon. There
    are a few reasons why.

    1) These PCs must be everywhere. There are cheap PCsnow that you can get. Someone mentioned that you can get cheap PCs w/o Windows at WalMart. That is all and good, but these types of boxes must be available everywhere, from every manufacturer. I doubt we'll see Dell advertise a $350 box without Windows anytime soon.

    2) There has to be an operating system to replace
    Windows on these boxes that is cheap. Linux is
    not it. This probably would be a great place for
    BeOS to have stepped in. I always envisioned
    BeOS as being the ideal non-MS OS for the average
    user. Unfortunately, they no longer exist.
    Another unfortunate aspect is that there needs
    to be an OS that essentially will need to have
    a monopoly on these boxes.
    Of course, it could be an Open Source OS.

    3) The said operating system needs to have a few
    good applications for it. One would be a fully
    standard compliant web browser. Another would be
    a word processing program with features roughly
    equivalent to MS Word. There are some other
    necessary apps, like perhaps a simple image
    editing program, email client, media player, etc.
    Basically, programs to cover all the bases.

    4) There will always be people who still buy
    computers that price in the thousands. These are
    people who need and want more powerful PCs.
    I doubt most gamers would care for the $350 PC.
    I think that the number of people willing to pay
    thousands for a superior PC is still high enough.
    If the economy gets worse, however, this might change.

    --

    "You spoony bard!" -Tellah

  42. If Linux advocates get cheaper, ESR will die! by erat · · Score: 2

    There's such a thing as quitting while you're on top. I guess ESR hasn't realized this yet.

    He was a good spokesperson (if not self appointed; I don't recall voting for him), but nowadays he's just spouting off whatever stream of thought he has re: Linux and open source software.

    Newsflash, ESR, in case you haven't read the other 100 or so posts of this ilk: when PCs get cheaper, so will Windows. MS will do whatever it takes to get Windows on PCs, even if it needs to make Windows into a loss leader. You don't become a multi-billion dollar corporation with $0 (yes, **$0**) of debt by not adapting to markets. If any OS is not adapting quick enough, it's Linux, not Windows. (Yes, I'm a Linux/*BSD advocate, but I'm realistic, unlike Mr. Raymond.)

    Someone put ESR to bed... Quickly... Maybe he can tweak his geek sex howto or one of his other myriad unwarranted-but-written-nonetheless documents. Regardless, I no longer consider his rantings to be benefitial to open source development or Linux. Just my personal opinion.

    Flame away.

    E.

  43. NC Alternatives to PC's by Martin+S. · · Score: 2


    There are also increasingly numbers of alternatives channels, many more suitable for Home use.

    Consider this service (www.kitv.co.uk) that I work on, Broadband Internet Access, via a TV, STB and no Windows in sight. Perfectly suitable for Joe Public's (none Geeky requirements).

    The PS3 look's set to be completely broadband enabled and no Windows in sight.

    There are a host of other alternatives, Convergent Devices, Wireless networked Web Pads, 3G Phones, and again no Windows in sight.

  44. What's wrong with his logic.... by scharkalvin · · Score: 2, Insightful

    The business world will never abandon Windows because they won't change the way they use computers. The cost of the computers used in business is viewed as an entire system, and software costs with support contracts are already a huge part of the total system cost. Even if the hardware got much cheaper it wouldn't budge the bottom line enough to make a difference.

    The home computer market might be affected by this, but anyone who uses a computer at work will probably still want the same OS and software at home. MS already sells different levels of software between their home and enterprise users so they are aware of the price sensitivity.

    If school boards can look beyond MS's bullshit fud they might consider open source to save money, but the reality is that they MUST teach what is used in the business world with real world hardware and software.

    Walmart's experiment in selling computers without an OS will probably fail, though I hope they can make this program work for customers who know what they are buying.

  45. Commoditization of the OS by MopOfJustice · · Score: 2, Insightful

    For many people, the value of a product has more to do with the price than what the product can actaully do. By inflating the OS price, Microsoft marketing is trying to make consumers think it's worth more than it is. In the past they would inflate a price to increase desire, then slash the price to make the product ubiquitous, then slowly raise the price again. Why should they change a strategy that has worked so well thus far?

    As PC hardware becomes cheaper, the OS will become cheaper, especially whenever a competing product comes on the scene. Microsoft is big and can afford to forgo profits much longer than potential competitors, thereby forcing them out of buisiness. Kind of like OS2.

    --
    ----------- Sig what?
  46. try this: by Lord+Omlette · · Score: 4, Funny

    Next time you find something that's News for Nerds, and it hasn't been posted to slashdot, submit the story as you normally would, but include comments from some Open Source luminary who ISN'T quoted anywhere in the story or even remotely related to it. Guaranteed front page post.

    --
    [o]_O
  47. Linus? by Shade,+The · · Score: 2, Insightful

    I'd certainly be happy to say he speaks for me, at least in a general, Linux community kinda way. I might disagree sometimes, but most of the time he's on the ball.

  48. Maybe Linux doesn't need a spokes person by JohnDenver · · Score: 5, Insightful

    The whole problem with ESR and RMS is they're preaching a religion when all we want are tools and options to get our jobs done. People don't liked to be preached too, they just want thier options. It doesn't matter if you're right and you have the insight of King Solomon, people still don't want to hear you preach.

    Now, If you can explain the *REAL* benefits of a *SPECIFIC* Open Source tool, or *SPECIFICALLY* how the open source model may benefit those involved (Benefitting usually implies the bottom line somewhere), THEN you will get people listening to you.

    Look at the evidence:

    The IBM PC clone didn't need a spokesperson, it's value being a commodity tool available from hundred and thousands of manfacturers spoke for itself.

    As did the birth of Internet's commercialization (Not the .COM bubble. (1993-1997)): Cheap communications medium offered by vast range of carriers (ISPs)

    These products worked because:
    1. They were cheap
    2. They were valuable
    3. They provided business opportunities for people to sell cheap and valuable products.

    If you want Open Source to really take off, forget about a spokes person. Meet these three criteria, and Open Source will speak for itself.

    --
    "Communism is like having one [local] phone company " - Lenny Bruce
    1. Re:Maybe Linux doesn't need a spokes person by gfxguy · · Score: 2, Informative
      He thinks it's unethical to charge money for software, so takes action to provide an alternative.

      No, he doesn't. He thinks it's unethical to sell (or even give) software without the source code, the full rights to modify the source code to suit your needs or fix bugs, and the full rights to redistribute the code (giving credit where credit is due).

      He has no problem charging for software, it just doesn't make sense in his plan, since the code can then be given away to someone else.

      On the other hand, he did say it was unethical for companies to sell you hardware and then require you to license proprietary tools (often with heavy restrictions) in order to work on that platform. Compilers are a great example - way back when, many companies actually required royalties if you developed a commercial application with their compiler. GCC was a way around this - build GCC with their compiler. Then rebuild it with itself. That was usually enough to get around those pesky licenses.

      Kudos to RMS. I think he's horribly unappreciated.
      --
      Stupid sexy Flanders.
    2. Re:Maybe Linux doesn't need a spokes person by Radical+Rad · · Score: 2
      If you want Open Source to really take off, forget about a spokes person. Meet these three criteria, and Open Source will speak for itself.

      And it is speaking for itself. The change that ESR is talking about is taking place. It is starting overseas but the effects will ripple back to the US and eventually turn the tide here.

      I disagree with ESR about the MS tax killing their monopoly. Low cost/no cost PC's were tried and failed. Margins have gone back up for the vendors that didn't go out of business in the price wars. When a vendors margin is razor thin, then MS's ability to adjust pricing gives them even more control over that vendor not less. Of course the vendor could try to opt out of the situation by encouraging linux but then MS could use their competitors to effectively kill them before a linux PC took off. And soon they won't even need to use Dell for the dirty work because they will have their own PC line called Xbox.

    3. Re:Maybe Linux doesn't need a spokes person by jedidiah · · Score: 2

      The PC kludge-klone and the internet didn't have to deal with heavily entrenched monopolies. Moving from the likes of Compuserve or AOL to the internet was remarkably easier than moving from a $500 office suite to a FREE office suite.

      You are comparing remarkably different situations.

      Once a "standard du jour" has been established, it's very hard to get people to try something new. This is true even if the new thing is dramatically cheaper, dramatically easier AND has generally more useful features.

      BTW, early PC's were only "cheap" if you had blinders on.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    4. Re:Maybe Linux doesn't need a spokes person by JohnDenver · · Score: 2

      The PC kludge-klone and the internet didn't have to deal with heavily entrenched monopolies.

      The PC kludge-klone dealt with IBM, a very heavily entrenched monopoly that dealt in both hardware and software. (Remember thier anti-trust problems?) The Internet competed with AOL, CompuServe and Prodigy. They weren't monopolies, but they were competition. The whole reason PC's and the Internet competed so well was because they were able to severely undercut thier competition, which is what Open Source aims to do and can do.

      But in addition to undercutting, they also had to add value to make it worth people's while. People didn't migrate to PC's and then Internet because they were the moral thing, they did it because it was the better option, or it provided them with an opportunity.

      Once a "standard du jour" has been established, it's very hard to get people to try something new. This is true even if the new thing is dramatically cheaper, dramatically easier AND has generally more useful features.

      There have been many "standard du jours" which have been replaced with another layer, hence the term "standard du jour".

      Lloyd: What's the Soup du Jour?
      Waitress: Soup of the Day...
      Lloyd: Mmm... That sounds good... I'll have that...

      The truth is that when you do establish a standard, it stays around a long time, but not forever. New ideas based are usually implementing a layer on top of the standard, making the original standard less relevant to the end solution. (Standard du Jour) However, Technology is very stupid they it evolves. The logic and paradigms change very quickly like culture, and most paradigms are incomplete and flawed because most engineers aren't capable of designing coherant paradigms. Things get layered on top of another because nobody wants to get to the root of the problem. Eventually, there's an opportunity to get to the root and change the stupid standard. It usually takes a while to get to this point, but it does happen.

      I guess what I'm suggesting is that the Open Source should focus more on giving people what they want and need, rather than trying to shove an economic paradigm, technology paradigm, and tools nobody knows what to do with...

      The truth is: Most of us are pushing for the ideals. We just don't agree how to get there, so while one is talking morals (I'm not knocking morals), the other wants to hear results. If you're still not talking results, then people won't want to listen to you and you'll be labeled a crackpot, even though you were right.

      --
      "Communism is like having one [local] phone company " - Lenny Bruce
    5. Re:Maybe Linux doesn't need a spokes person by PhotoGuy · · Score: 2
      The whole problem with ESR and RMS is they're preaching a religion when all we want are tools and options to get our jobs done. People don't liked to be preached too, they just want thier options. It doesn't matter if you're right and you have the insight of King Solomon, people still don't want to hear you preach.
      Boy, you hit the nail on the head there. I coudn't agree more.

      People like Linus, Alan Cox, and many, many others provide leadership, results, and useful progress to Microsoft alternatives, without preaching a religion. It's much more useful, IMO, than the extreme Stallman aapproach.

      -me
      --
      Love many, trust a few, do harm to none.
    6. Re:Maybe Linux doesn't need a spokes person by mpe · · Score: 2

      If there's any 'religion' involved here, it's the current USA 'religion' of free markets, and the belief that competition is inherently good.

      Problem is that in many cases you have the exact opposite of a free market and competition anyway. Either an actual monopoly (as with Microsoft) or a few large companies which appear to operate more as a co-operative cartel than being in competition with each other. The latter describes the record, movie and broadcast industries...

  49. PCs not getting cheaper by Pussy+Is+Money · · Score: 2, Insightful
    This argument has been made in the past but it died. Now ESR is regurgitating this -- why?

    The PC pricewars came and went years ago. It was the age of the sub-$1000 PC, E-machines, Ellison's network computer, and all that. None of it happened of course. The market has stabilized since then. Computers are not getting that much cheaper anymore. You get a lot more value for your money each year: but in dollar figures the prices aren't dropping that fast anymore, if at all.

    --
    Pushin' 'n dealin', shovin' 'n stealin'
  50. Re: Please post this to the kernel list by Slashamatic · · Score: 2, Funny

    The above letter makes some very interesting points. It should be posted to the Linux Kernel list. For best reception in two months and a day's time.

  51. diversify by f00zbll · · Score: 2, Insightful

    hasn't ESR noticed MS is diversifying it's business into games, tv and enterprise services? windows sales might become less important, but it's far from going away. get real.

  52. MS Gives away software if need be... by Junta · · Score: 3, Insightful

    For example, the studentdev.org thing they set up. Part of those programs was that students would get free copies of Visual Studio and Operating systems, to keep the students interested in developing for MS.

    Lately, I haven't seen this so much, but I have seen the MSDN Academic Alliance, where they sell a massive license to a school for relatively cheap, and then allow all students in that school/deparetment to download all kinds of software for free legally. Included is stuff like Win2k Advanced server (which has a sticker price of nearly 4,000 dollars), and tons of applications. They will put the prices on the OS and development tools as low as they have to, just to keep corporations buying into their products.

    --
    XML is like violence. If it doesn't solve the problem, use more.
  53. Re:From the antitrust trial... by markmoss · · Score: 2

    Umm... From what I see, the only reason that corporations tolerate MS's bullcrap (daily crashes, frequent upgrades forced by file incompatibilities, etc.) is that "everyone knows how to use Windows." Lose the low end, and the only way they could hang onto the high end would be to actually _be_ better. And we all damned well know that there are several better options for a server OS under $800, and it would be mighty hard to justify paying $1300 for Windows + Office on the desktops...

    I think that in the long run, Windows is going to get pushed out because of excessive costs -- but it's not the direct sale price of the product that will do this. As soon as MS sees itself losing ground at the bottom end, they will spin off a low-priced, slightly crippled Windows to keep their hold on that market. The real excess costs of Windows occur AFTER you buy it: Everyone loses hours a week to crashes, and to having to reboot the server after every security patch. You also buy Office. You get locked into Office because of incompatible files. You get forced to buy Office again every 3 years because of incompatible files -- and if you manage to finally freeze things at XP, someday MS will shut off the product activation service for this, so when your HD crashes, you'll HAVE to buy the new version. You have to buy expensive virus filters and subscribe to update services just to slow down the Outlook viruses. Viruses e-mail company trade secrets to China. People lose more hours cleaning up after viruses. Your virus filters strip off attachments that people needed to get their jobs done...

  54. Interesting... by gamgee5273 · · Score: 2
    A few months ago I found out that my university was in the midst of renegotiating the campus site licenses with MS. It seems MS wants to pull the OS upgrades out of the agreements - and they want us to roll all of the upgraded OSs back to their pre-upgraded status (basically the campus would be moved back to 98 and NT 4). Of course, they're willing to cut us a deal on XP Professional licensing...

    Raymond's conclusions are on track. For numerous years the theory has been that MS really didn't care about the OS - they were more focused on productivity software. I would argue that .Net and the Xbox both point in the direction that MS really isn't in this for the OS - they want to have a more insidious avenue into the household via your entertainment center (Xbox), your e-commerce (.Net), your mobile communications (PocketPC). Ballmer and Gates both have said that MS is becoming this (fuzzy) "services company." When you consider the way they've backed bids with the DirecTV and AT&T Broadband buyouts and you can see that MS is only using the OS as a means to an end, not the end itself.

    Of course WIndows will become obsolete, because there will come a point where MS won't care about your PC any longer because MS will OwN j00!

    1. Re:Interesting... by gamgee5273 · · Score: 2

      Oh, I should add to that that we don't have to roll the OS upgrades back, but for a while MS was making noises about that...

  55. Not if you bought a winmodem by yerricde · · Score: 2

    I'd say that those tasks [reading Internet e-mail and browsing the World Wide Web] are exactly where Linux is perfectly able to replace and outperform Windows most completely.

    Not necessarily. Those tasks require a connection to the Internet, and most users still connect to the Internet by using a modem to dial-up to an ISP. In general, name-brand PCs under $1000 tend to come with modems that do not emulate a Hayes modem connected to a 16x50 UART. Instead, they offer a proprietary interface to either a DSP or a mere DAC. These "winmodems" come with software that lets Microsoft Windows treat them as a Hayes on a UART, but most do not have driver support under any OS other than Windows. A few chipset vendors have released proprietary Linux drivers, but this doesn't help users of BeOS, Solaris operating environment, or *BSD systems (which are not dying).

    --
    Will I retire or break 10K?
  56. Re:But wait, I thought NT 5.0 was supposed to be D by dillon_rinker · · Score: 2

    Two words:

    CODE RED. Kills default Windows 2000 installs.

    I'll grant, though, that being born with a fatal disease is not the same as being DOA.

  57. Knowing WalMart... by isaac · · Score: 2
    > That is interesting - I wonder if Msft is pestering WalMart for the customer list?

    Considering Walmart's ruthlessly efficient business practices, I wouldn't be surprised if Walmart were selling this information to Microsoft. Not many people pay cash for any $400 purchase, so they probably have good data.

    -Isaac

    --
    I am not a lawyer, and this is not legal advice. For Entertainment Purposes Only.
  58. Nah, you both missed it. by Erris · · Score: 2
    What Raymond said is that the M$ model of revenue generation fails when the price of PCs hit $350. That's because their model cost too much for the vendor to pay, so the vendor will switch to more affordable alternatives. Tiger Direct is selling PC's for less than $500. My company is offering employees PC's (500MHz PIIIs with 128MB RAM 10GB Hard Disks) for $400. In an environment like that, M$ will have a hard time sqeezing money from vendors. Their cut will have to rise to an unviable percentage of the retail price for them to keep their revenue stream up. It's not like they are able to sell many $1000 SDKs these days, ha ha ha.

    People who build their own PCs have seen how large the M$ tax is for a while. Dell, Gateway, whatnot, who are essential for the M$ monopoly can not sell a PC for much less than $1000. I can build one that spanks them all for less than $400.

    They are an absolute necessity for the corporate environment because without them, larger companies cannot move the information in sufficient quantity or speed, nor can the process the inforamtion fast enough to remain competitive in today's environment.

    What makes you think Microsoft has anything to do with that? Moving information quickly and easily conflicts with several Microsoft goals which are a direct result of their distribution and marketing model. Companies that rely on M$ in the future will be at a huge disadvantage as their competitors gain softare that costs less and works better. All this stuff should be as taken for granted as manilla folders and file cabinets.

    The real problem is that hardware is progressing much faster than software, and this leads to a couple of very bad scenarios for Dell, Compaq, HP, etc. and also by extension Microsoft. If hardware is more powerful than necessary, it stays around a bit longer.

    That's no much of a problem, except to M$. The software I use (Debian) is acutally using fewer resources as time goes on, not more. I'm also seeing real new features in user interface, programs available and software concepts in general. M$ blows and they will suffer for it, so will Dell and Gateway as their cusotmers are constantly dissapointed by stuff that looks the same as it did ten years ago while working no faster or better.

    The one and only thing that can save M$ from collapse is Digital Rights Denial Legislation. They have many other failing giant industries to back them up on that: Telcos, Holywood and traditional publishers who will fail in the real internet world. Proping these companies up by denying constitutional rights is completely unamerican. The time to fight the stupids is now.

    --
    DMCA, Hollings, Palladium. What might have sounded like paranoia is now common sense.
  59. Ray is correct... by Lewis+Mettler,+Esq. · · Score: 2, Insightful

    Eric Raymond is essentially correct on his assessment.

    I am not sure if the $350 price point is the magic number but it could be that it is. Keep in mind that Wal-Mart now sells a 1 gig, 128 MB PC for $399 sans OS and monitor. PCs have been quoted sans monitor since the beginning of time. And, with the wide availability of free copies of linux in books and via download plus a lot of old copies of windows laying around, PCs sans the OS are marketable. Wal-mart thinks so. The white box boys know so. So too do the vendors that sell motherboards, chips and other parts as ordered by the most qualified of all buyers.

    The interesting observation is the great sensitivity to this cheap PC issue during the DOJ antitrust trial. Microsoft tried very hard to convince the judge and the world that a typical PC costs $2000. The only reason for that is to downplay the impact of a $200-250 OS price from Microsoft. If PCs cost $2000, then the OS from the monopolist is only 10% or so of the total price. However, as Raymond points out, if the price is $350 or so, the OS from Microsoft could be 57% of the price. All of sudden, PCs sans OS are a lot cheaper. And, pricing PCs without monitors was engaged in as a practice to attract potential customers to the store. (Clearly no OEM thought a PC could be used without a monitor. And, few potential customers have spare monitors in their closet they want to use.)

    The whole issue puts an interesting spin on the remedy proposed by the litigating states. Selling a bare bones OS may save Microsoft. It certainly reduces the burn of a $200-250 package included as part of a minimum purchase. This high minimum price also explains why the advertising from Microsoft often suggests that every single PC must have a browser, media player and any other gizmo software package that Gates thinks is neat. Gates can not be so stupid to think that all PCs do the same thing. Clearly he has more intelligence than that. It is simply a campaign to convince all consumers to not object to being forced to buy a whole pile of Microsoft branded applications before a competitor can make an impact on the market. Forcing the sale of the Microsoft branded media player is the next big push or force being applied to consumers. And, they are being forced to buy it if Microsoft and the DOJ can possibly do it.

    The problem is (as Raymond points out) that all consumers are harmed by the process. Business computers may have no need for a media player. And, they certainly would prefer not to be forced to buy it for all employees. A media player is not going to increase the productivity of employees except in certain limited circumstances. And, if any customer has those circumstances, clearly they would prefer to pick and choose just which technology is best for their needs. Of course, the Microsoft plan is to prevent all customers from having that choice. The DOJ plan is likewise. The DOJ is now seeking to preclude all consumers from being to avoid buying a whole range of Microsoft branded products.

    It is going to take more than just the while box boys and Wal-Mart. It will require IBM, HP, Compaq, Dell and others to sell PCs sans the OS (or PCs with a bare bones windows). Strange as it may seem, the litigating States may help save Microsoft from oblivian. Actually, Microsoft may figure this out on its own, although it may be too late by then.

    --
    NexuSys - Linux support by the best
  60. And below $200, can't afford a CPU! by GCP · · Score: 2

    And below $100, won't be able to afford a power cord!

    Silly claims. Windows is just one of the components. You can't use the argument that the difference between some price and the cost of components won't enable the purchase of Windows. You could easily make the same argument for a CPU or a keyboard or a mouse by leaving in the Windows but removing that other component from the cost calculation.

    If Windows could be replaced by Linux, PC makers would do it and pocket the extra margin. Doing so makes the PCs unsellable, though. It's been tried.

    So then if Windows and a CPU and keyboard, mouse, RAM etc. are mandatory, the price won't fall below the cost of the mandatory components -- at least not below the cost for the biggest players, and not for longer than needed to drive out smaller players and raise prices again.

    --
    "Those who have never entered upon scientific pursuits know not a tithe of the poetry by which they are surrounded."
  61. Sex Tips for Geeks: Behind the Scenes by update() · · Score: 2
    I bit on this fake link yesterday and wound up laughing my ass off. Certainly more entertaining than the HOWTO I thought I was going to.

    Hey, you've got to lose karma to get karma back, right? And it is on topic.

  62. MS Office Student license. by No+Such+Agency · · Score: 2

    I bought Office 97 with a student license a few years ago, for $99 CDN. It came with *no* documentation, only a CD and an MS "certificate of authenticity". If it had not been available for that price, I simply would have sought it illegally, because on a grad student's stipend, $399 is not an option, period. Sadly, the student licenses mysteriously disappeared shortly thereafter - the campus IT store said "MS stopped offering them, it was a marketing trial".

    Wordpad, while functional for ordinary student reports, really isn't up to the task of producing a professional quality M.Sc. thesis, with tables and figures. MS Works should be the basis of a false advertising suit, because it doesn't :-) Well, ok, it works, but in my limited experience it's surprisingly incompatible with Office (which was used in my lab)!

    --
    Freedom: "I won't!"
    1. Re:MS Office Student license. by Kope · · Score: 2

      Actually, no product Microsoft offers is up to the task of producing a thesis. The bibliographical tools just aren't there.

      Now, if you go with some good 3rd party add-on software (for around $500 or so) you can get the ability to do proper bibliographies. However, you still can't properly typeset the thing, and will end up with references not properly placed at the very least. If your school's thesis standards have strict requirements for typesetting you'll almost certainly have to either have it printed by a professional printing service or use TeX or LaTeX.

    2. Re:MS Office Student license. by sethg · · Score: 2
      My wife wrote an 800-page Ph.D. dissertation with Microsoft Word. By the time she realized what a mistake this was, converting the whole thing to LaTeX would have been just as painful as finishing it in Word, so she pressed on with it, but the experience convinced her to ditch Word in favor of Linux.

      Unfortunately, her experience with StarOffice convinced her to ditch Linux and get a new Windows machine.

      --
      send all spam to theotherwhitemeat@ropine.com
    3. Re:MS Office Student license. by No+Such+Agency · · Score: 2

      The thesis has been done for over a year. Since it was a M.Sc. thesis I used science journal style references (Smith et al., 1999) and an alphabetically-by-author listed literature cited section. Not a challenge, really. The worst thing about Word was its insistence on "autoformatting" my section headings, invariably the wrong way.

      BTW, I don't know what print nazi school you were thinking of, but at mine nobody needed a "professional printing service" to produce a properly formatted thesis. That's why we have "desktop publishing", anybody with a computer more advanced than a Mac Classic can produce a thesis that's perfectly acceptable at Queen's. Good thing too, with tuition there, that's about all you can afford ;-)

      --
      Freedom: "I won't!"
  63. It's a symbiotic relationship, that's why. by FallLine · · Score: 2
    To be honest I have never understood this logic-- the breakup plans were very bad from a marketplace perspective. Why should we breake one predatory company with two monopolies into two predatory companies with one monopoly each? IMO, this could have drastically harmed Linux and all competitors and created a baby-bell situation (referring to local service, not long-distance). Furthermore, two predatory companies are far more agile than one, and so I would FAR prefer to see Microsoft deemed guilty and only slapped on the wrist than broken up. (That way, further predatory activity could be handled by civil suits which even when unsuccessful have been shown to be effective in most circumstances, as per IBM.) Basically, I feel that we are dealing with the IBM of the early PC market here, not Standard Oil.
    The reason why we should breakup the two monopolies into two seperate companies, i.e., applications and OS, is because their relationship is symbiotic. Each goes a long way to strengthen the other monopoly, but provides little to no benefit to the consumers by being one unit. In other words, Windows uses the applications monopoly to bolster its strength and vice versa.

    Even completely ignoring the other duanting issues that an alternative OS has in facing MS' dominance on the desktop, MS' powerful applications can effectively stop the OS dead in its tracks. Let's say if Macintosh were to start encroaching on Windows' market share with MacOSX. You can be pretty safe in the assumption that Microsoft's Office package for Mac [not to mention IE] would not be encouraging this. In fact, today's MS would have lot of incentive to ensure that Mac Office is generally inferior. So not only would Macintosh (or some other mythical company) have to develop a competetive alternative (not just a "competitor") or else Macintosh would be competing with a substantial disadvantage. This is a non-trivial problem in this day and age. As mediocre as Office may be when you consider its market share, you're going to have to spend millions of dollars to make it anywhere near as good. And even then, you're going to have to worry about file compatibility with MS Office and the users are going to have to get training to respond to the difference.

    Now if MS were split up, it may well be a very different scenario. The Office company would have an incentive to develop an equivalent Office suite (certainly > 5% of such a large market is enough to justify the full porting costs and then some) since they could further expand their marketshare or at least sell NEW Macintosh copies of their software. This, in turn, would at least allow the competition OS(s) to compete in more equal footing.

    The situation is not terribly different with Internet Explorer (or Office) on Windows, where application growth is the objective. But I really don't feel like hashing this whole argument out here, just use your head.

    The result at the end of the day is that Windows and Office are just good enough to retain their market share. Neither has sufficiently serious competition in their market to spur any real effort into improving the products, despite the fact that they're selling billions of dollars worth of product, more than enough to make vast improvements. Now I don't think there is necessarily room in the market to have any large splits within the OS market, and maybe even applications (e.g., 30/70 split), but I do believe that having credible competitors competing for financially viable portions of the market (say, 10% +) is both feasible and highly desirable in that it would cause MS to be much more responsive to the customers needs. When you combine this fact with the minimal or non-existant downside (I mean what benefit does the unified MS _really_ offer us?), I totally support it.
  64. I bet I could write for ZD net... by NanoGator · · Score: 2

    I bet I could!! The first thing I'd haveta do is label myself a guru, afterall gurus are smarter than non-gurus. Legally changing my last name to guru might have the same effect.

    Then I make an obvious generalization like "PC's are getting cheaper." Other ones that work are "People don't want to pay for stuff.", "Linux will eventually be something people at home will care about.", and "PCs are getting faster." This makes me look like I'm experienced in the market and that I've seen trends before. This makes me look like I'm providing credible indsight into my topic. As long as I point out that things change, then any case I make is possible.

    Then I employ a scientific process called "Although my observation proves that things change over time, the entity I'm trying to debunk will do the exact same thing forever and ever.", where my observation will eventually kill my target. Using the "PC's are getting cheaper" observation, I'd then say "But the price of Windows right now is $350, so I'm going to assume it will stay that way forever." Now I have some solid evidence to back my claim. Most people don't break things down into individual costs with every little thing they're interested in, so when I pass off logic like 'the OS will make up most of the price', people will assume that the OS is the bottleneck to preventing their PC from being free. It'll never occur to them that the reason they buy computers is to run software, so it also won't occur to them that the company getting money is the company providing service. They have dollar signs in their eyes, so I don't need to write much more here.

    Here I look for some obvious details that don't readily bob up into people's minds, and I pass that off like my target has never thought of that. "Microsoft needs to realize that computers will eventually be cheaper than the OS!" I've found that most people will say 'really?' and will process that bit of information. Since they are busy people, they aren't likely to put too much thought into it. They'll file that bit of logic away, think I have a point, and then I maintain my guru status.

    From that, I can draw my conclusion. "One day, computers will cost only a dollar, and the rest of the cost of the machine will be for Windows. Microsoft is doomed." And then I find a buzzword that makes it really sound like there's something new on the horizon who's hype will obliterate it. "Open Source software will make Windows obselete!", but I don't need to explain why. The hype makes everybody understand it. There's no point wasting my time bringing an interesting perspective here. Thank god for hype, it means I can write less and still get paid.

    As you can see, the formula for writing for ZD-Net is very simple, and requires very little effort! Just remember to change your name to guru, that's the hardest part.

    --
    "Derp de derp."
  65. windows cost by geekoid · · Score: 2

    It seems that ESR doesn't know that window charges about 20 bucks for OEM versions. This might be an impact when you can get a new PC for 100 bucks.
    OR ms will drop is OS to free, the make money from OFFICE.
    Of course if you can only sell OSs with DRM, MS will have a Monopoply and be able to charge what they want because the government makes them and there be no legal alternative.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  66. Re:From the antitrust trial... by nomadic · · Score: 2

    From what I see, the only reason that corporations tolerate MS's bullcrap (daily crashes, frequent upgrades forced by file incompatibilities, etc.) is that "everyone knows how to use Windows."

    Plus, everyone knows how to cope with MS problems from frequent use.

    An example:
    "Hey, Bob, netscape froze."
    "Hit control-alternate-delete, click on netscape, then close the program."

    After Bob installs Linux on everyone's desktop:
    "Hey, Bob, netscape froze."
    "Ok, open a terminal window, type "ps auxwww", then a vertical bar character, then "grep netscape", then find a netscape process with a high CPU usage, mark down the process id number, then type "kill thatnumber". If it doesn't work, do "kill" then dash 9, then the process number."

    Windows also, to be honest, has a slightly easier way to do certain things.
    Installing a new program:
    "Bob, how do I install this program?"
    "Double click on the installation program, then follow the directions on the screen."

    Post-Linux:
    "Bob, how do I install this program?"
    "It's an RPM, so you have to do rpm -i then the filename."
    "Ok, that's easy. Thought I'd have to compile it or something."
    "Haha, no,you don't have to untar and compile it. All you have to do is use RPM."
    "Hey, it won't run."
    "Well, RPM just installed the source, so you have to compile it now."
    "But you just said I wouldn't have to!"
    "I don't remember saying that."

  67. Re:But wait, I thought NT 5.0 was supposed to be D by Dahan · · Score: 2
    CODE RED. Kills default Windows 2000 installs.

    One sound effect:

    BZZZZT!

    Only server versions of Windows 2000 default to installing IIS. The vast majority of Windows 2000 systems are running Win2K Pro, and are not vulnerable to Code Red by default.

  68. Windows costs about $50 by GCP · · Score: 3, Insightful

    The cost of Windows to small OEMs is about $50, less at high volumes.

    It's a mandatory component, just like a CPU or RAM or a keyboard. You don't say that when the price falls below X, you can no longer afford a CPU. The cost is whatever the cost is when you include all the components. The big players will use their purchasing muscle to get lower component costs and price so as to drive smaller players out of business, but nobody is going to price in a way that is independent of the cost of a mandatory component.

    On the other hand, MS wants a broader consumer presence, so they may choose to create a separate "lite" version that they sell for less in order to make $350 computers possible. They could go all the way down to free for lite versions built around access portals to MS online services.

    ESR's open source experience has apparently been more about politics than economics.

    --
    "Those who have never entered upon scientific pursuits know not a tithe of the poetry by which they are surrounded."
    1. Re:Windows costs about $50 by Jason+Earl · · Score: 2

      The problem with this is that the OS is not a mandatory component. Take away the processor or the memory and the computer won't work. Take away Windows, and the computer will probably work better.

      The fact of the matter is that some folks are already advertising computers without an operating system. In fact, you can now purchase computers sans operating system from Wal-Mart, and at the lower end of the spectrum this phenomenon is likely to increase.

      Eventually OEMs that always ship with Windows will find themselves at a price disadvantage. No matter how big a discount Dell gets on the price of Windows, Wal-Mart can sell machines for less. And Wal-Mart doesn't have to worry about staffing up to do software support on their OS-less PCs. Currently Microsoft forces the OEM to support Windows. That means that Dell has thousands of employees whose entire job is to support Windows. By selling the computer without an operating system Wal-Mart neatly sidesteps this responsibility.

      There is no question that ESR has mixed in a liberal dose of politics with his economics, but the basic premise is sound. The lower the price of the average computer gets, the more incentive the hardware OEMs are going to have to get rid of the Microsoft tax.

    2. Re:Windows costs about $50 by mpe · · Score: 2

      The cost of Windows to small OEMs is about $50, less at high volumes.
      It's a mandatory component, just like a CPU or RAM or a keyboard.


      Windows is not a mandatory component, even though Microsoft have tried hard to convince people it is. In many cases, especially in the corporate world, the requirement is to run something other than the OEM supplied version of Windows. Sometimes it'e even another version of MS Windows (with licences bought elsewhere), sometimes a completly different OS.
      For that matter keyboards, mice and monitors arn't mandatory components. Computers can be uses either "headless" or connected to a KVM switch.

  69. DRM is there already! by scorcherer · · Score: 2
    $ grep DRM /usr/src/linux/.config
    CONFIG_DRM=y

    --

    --
    The Cap is nigh. Time to get a fresh new account.

  70. Correction: by elefantstn · · Score: 2

    I should have said the only real reason to buy Office, not use it. If you have it, came with your computer, got it for free, etc., you have plenty of reason to use it over SO/OO if you prefer it.

    --
    If it ain't broke, you need more software.
  71. Re:The worst part is.... by Melantha_Bacchae · · Score: 2

    OverDrive33 wrote:

    > People would buy it and use it for five bucks.

    Don't be too sure. The top selling computer (iMac 2) on Amazon for all time doesn't run Windows. 10 (Macs) of the 25 top selling computers on Amazon don't run Windows. The Windows PC market is in the dumpster right now. The higher priced Macs running OS X are selling just fine. ;)

    Don't worry Linux, OS X is ready for the desktop *now* and has joined the fray. You little penguins have time to get your act together.

    "Heart can reach where hand cannot. Climb over any wall..." Mothra (via Moll) "Mothra 3: King Ghidora Attacks"

  72. Faulty assumption by Syberghost · · Score: 2

    Eric, I usually agree with you buddy, but you're making a crucial mistake here.

    You're assuming this is inevitable because PCs will drop below $350.

    If that's the magic point at which one can make money, then guess what; PCs won't drop below that point, unless and until there is a VIABLE ALTERNATIVE for the home user.

    There isn't. I'm typing this on Linux, and it's perfect for me, but it's nowhere near ready for Joe Sixpack, and some of the things that have to happen for it to get there are totally contrary to the aims of the community.

    It's going to be a long time until the day comes that Linux is ready to out-home Microsoft, and by that time, Microsoft may very well have sold people on the idea of paying $300 for a computer plus $19.95 a month for the OS with free Internet access or somesuch nonsense.

    Sounds laughable to you and me, but we aren't normal.

    As for the PC makers, they recognize that when Joe Sixpack sees a PC he can use for $350 and a PC he can't use for $200, he's either going to pay the extra bucks for one he thinks he can use, or buy the $200 PC, get it home, get frustrated, and take it back, thereby costing the manufacturer and/or reseller a lot of money for a non-sale.

    If you think people won't put usability over cost, compare sales of the Jeep Cherokee and the Ford Focus.

  73. Economist: there's no conflict by hawk · · Score: 2
    They have a monopoly in the OS, and can successfully keep others out. That does *not* mean that people will necessarily continue to find the good useful, or that there are not substitutes for that good--think of what a monopoly on buggy-whips would be worth today.


    It is entirely possible that Microsoft holds onto its monopoly in operating systems as the market for them gets smaller and smaller, while something else replaces it--it's just that what replaces it will not face windows head-on, and will probably make minimal inroads on the type of system which uses windows.


    hawk

    1. Re:Economist: there's no conflict by clearcache · · Score: 2

      I think there is a conflict, though. We can't equate the usefulness of Windows 1 year, 2 years down the road with the current usefulness of buggy-whips. The assumption I'm making - and I think it's a safe one - is that (given current market saturation) MS Windows will continue to have the same (or greater) usefulness in the very near future - as the price of PC's approach ESR's magical $350 figure. Since ESR's argument in the article seems to be based entirely upon pricing (and therefore cost, although he doesn't directly suggest it), I *do* see a conflict there. He is suggesting that MS's OS operations could not continue if they were forced to lower their price. If that were true, then MS would not have a monopoly on their OS at this moment in time (or in the near future). The reality is that they can lower their price on their OS licensing and maintain their (monopoly) position in the market as the cost of PC's drops.

      I agree with you completely, however, that Windows will always be threatened by replacement goods, and I agree with you that the most likely successors will make minimal inroads on the sides and not head-on. MS seems to realize this and has embraced it with their .NET strategy. My largest concern, however, is that they'll always be pulling the strings...regardless of their pricing scheme. It's their licensing scheme that is the real issue.

    2. Re:Economist: there's no conflict by hawk · · Score: 2
      Buggy whips are much further removed than anything for windows in the ear term, yes. That, and there never was a monopoly in them :).


      ESR is actually kind of late to the dance on this one. We've already seen machines doing this: the $400 machines with a browser, email, and text editor. These machines won't make much inroad into the windows dominated office (though somethign else might), and don't tend to be set up with an OS that could replace windows (although you could use a bsd or maybe linux to do that).


      We're looking at a bifurcation of the product "PC". We will (or at least could) see the cheaper version toss windows, while the office class machines don't.


      hawk

    3. Re:Economist: there's no conflict by jedidiah · · Score: 3, Insightful

      There's also another issue. The rise of the $350 is only ONE of Microsoft's problems. "Real PCs" are now getting to the point where they don't need to be upgraded as often. Hardware prices have managed to sufficiently outpace bloat growth for the time being. "Real PCs" continually get cheaper while continuing to add features that many "consumer" PC users don't fully utilize.

      In general, consumers in general are bound to come to the realization that they really don't need a new PC, they really don't need a new OS, a new OS may not be any better than the old OS, or that they don't need a new version of MSoffice.

      Once this occurs, and once consumers at large begin to revolt against the costs associated with the upgrade treadmill, Microsoft is going to be in deep doo-doo.

      Mundane consumers may not give a damn about product quality, but they do tend to care about cost.

      --
      A Pirate and a Puritan look the same on a balance sheet.
  74. there's a limit to how much MS can cut its prices by sethg · · Score: 3, Interesting
    • In order to keep satisfying its investors, and to keep using its stock options as currency, the price of MS stock has to keep increasing.
    • In order for that price to go up, investors have to believe that MS profits will continue to grow.
    • In order to keep growing its profits, MS must have lots of current profits that can be reinvested in developing future products (or future versions of current products).
    If pressure from low hardware prices makes MS profits go down -- because MS cuts its prices or because more consumers buy cheap OS-free computers -- then this cause-and-effect chain runs in the other direction.
    --
    send all spam to theotherwhitemeat@ropine.com
  75. Computers for Joe Sixpack by Ogerman · · Score: 2

    Which would he buy?

    Computer A..
    - Includes Windows, MS Word, some cheezy games
    - Has all sorts of obnoxious copy controls

    Computer B..
    - Includes Linux, StarOffice, Gaim/Licq, CD writer software, XMMS, Gnutella/Fastrack/OpenNap clients, and everything else he could possibly ever need--all pre-installed and with seperate /home so that the 'recovery CD' will not cause loss of his data should he screw up his machine somehow. Oh yeah.. probably has some cheezy games too.. except they might actually be fun.
    - No copy controls whatsoever

  76. Re:From the antitrust trial... by markmoss · · Score: 2

    I'm no Linux expert, but it seems likely to me that these issues are not a problem with Linux so much as with the Linux "experts." They'll tell you a ridiculously overcomplicated way of doing something from the command line whether or not there is a point and click equivalent, just because they disdain using the GUI. First, if having to kill a process that froze is a common experience, this sort of implies that either that application or the OS has some bugs that ought to be looked into. (Like Windows!) Second, if it is something the average user should know, there should be, and usually is, an open source utility that does it from KDE and Gnome; this ought to be in the standard distros, and the gurus ought to teach that first...

    As for the second example, assuming there is a reason to require compilation to install the application at all, couldn't the software be distributed with a script to do both the RPM and install?

    The basic issue here is that user-friendly Linux distros don't exist because users aren't running Linux. Let MS fumble so as to make Windows non-viable on the $350 machine they are trying to sell to your Aunt Minnie, and someone would work out the details of how to make a Linux pre-loaded machine suitable for her real fast. But no one's going to bother if Windows Lite is going at an OEM cost of maybe $35.

  77. Re: PCs as a luxury by King_TJ · · Score: 2

    IMO, it's already untrue. Sure, you can build a "luxury" PC for several thousand dollars, with a GeForce 4 video card and latest P4 processor.

    Those types of things are obviously unnecessary for the average user - and serve more as a status-symbol than anything practical. (Show me *one* home user who really has problems because an application they use every day just won't run on anything less than a 2Ghz P4.)

    On the other hand though, most people have a real need to type letters and documents, on occasion. Today's budget-priced PC replaces the typewriter for that job, making it much more of a commodity item than a luxury item.

    Furthermore, as an educational tool - a PC of some sort is becoming just as important as having the textbook used in a course.

  78. Re:Here's to the end of mindlessness by anomaly · · Score: 2

    I'm not angry with you at all.
    Defensive? No, just asking why you're so upset.

    Engage my brain? Give me something to think about instead of merely lobbing character critisms my way.

    You don't even know me - so you really can't say that I'm a jerk, can you? If all Christians are by definition jerks, then which of us is intolerant and bigoted?

    Besides, I'm not so keen on religion as I am on a personal relationship with Jesus Christ.

    My relationship with God *is* relevent because it's a part of my world view to go into all the world making disciples of Jesus Christ.

    If you had the cure for cancer, would you tell anyone, or fear that they might be offended or consider it off topic? What I have been given is far greater than the cure for cancer, and I can offer that for no charge to others. So I do.

    --
    But Herr Heisenberg, how does the electron know when I'm looking?
  79. Re:The cost of the OS is minimal by Chris+Johnson · · Score: 2

    Heh. I've worked in computer repair and maintenance. Have you seen non-technical users try to maintain Windows? Believe me, it's not pretty- and there is no grounds for claiming that it's better than Linux. 0 = 0... the real question is, are there people out there who can be paid to fix up busted software? In both cases, the answer is yes- although SO FAR, the Linux repair contingent is both smaller and MORE likely to be useful. The Windows repair contingent is large but often useless..

  80. Re:Windows doesn't cost "Hundreds of Dollars!!" by NutscrapeSucks · · Score: 2

    I don't think it's absurd to think that Dell is paying $20 or $25 dollars for Windows when they buy 10,000 copies.

    If anyone here recalls Obi-Wan Raymond and the Windows Refund Day hullabaloo, they might recall this story: Emachines give $26 refund for Windows Return

    --
    Whenever I hear the word 'Innovation', I reach for my pistol.
  81. Capitalism, Open Source, What's the difference? by JohnDenver · · Score: 2

    Firstly, I don't want to turn this into a political debate, and I'm neither adovocating capitalism, communism, corporate anarchy, or socialism.

    What I am suggesting is that all of these things, including the Free Software Movement, and Open Source movement's, and even Microsoft's goal is to create tools, wealth, and knowledge for the purpose of increasing our quality of life.

    What RMS and ESR are greating wealth when they are writing software, because software is usually a tool and as we all know, tools have value.

    Unlike physically tangible tools, these tools can be replicated and distributed it zero cost. It's a shame that food can't be replicated and distributed like this. This is what captivated me and I'm sure many other programmers about software. The fact that we have the ability to craft a tool for connecting people, storing and organizing our ideas to be shared is amazing. If one of us creates a truely novel and amazing tool, it can be distributed to millions at no cost. If that software saves people a significant amount of time or money, you just created an incalculable amount of wealth.

    Of course, wealth is nothing if it doesn't increase they quality of life.

    While I'm on a rant: We need to stop nit picking whether capitalism or socialism is better and worry about corporate anarchy instead.

    --
    "Communism is like having one [local] phone company " - Lenny Bruce
    1. Re:Capitalism, Open Source, What's the difference? by JohnDenver · · Score: 2

      This is why I take exception to the notion that software is supposed to be free, you aren't considering the costs of the programmer.

      Thanks for your plug on capitalism... Didn't you read my post? Did you read the part where I said I'm not advocating any particular system. (Actually I like it when different systems co-exists) I'm a programmer, and I believe I should have the privledge to copyright my work for a limited of time to recoup my costs and even make a profit. After that limited time, I believe my work belongs to the public domain.

      What would be the point in me doing something if it won't improve the quality of my life?

      For some people, charity is a way of life. Some people honestly dedicate ALL of thier time for the benefit of others while asking for little or nothing in return, while others ask for help with basic living expenses. (Most of the time, basic living arrangments are taking care of without asking...)

      Other people try to contribute by building businesses. They want to solve problems and help people with an enterprise. By creating wealth, they employ and support families, education, and charities. This is how they make thier contribution.

      Then there are some people who don't care and just want to help themselves (often they end up hurting themselves and others).

      IMO, Free Software and Open Source software are charitable contributions, who's purpose is for the benefit of society. Personally, I view charities as sort of a voluntary socialism. I know the comparison doesn't entirely match up, but I'm more suggesting that the spirit of charity and socialism are the same.

      While there may be SOME people who think all software should be Free or Open Source software, I disagree. I think each type compliments to other well and keeps the other in check. (Like checks and balances)

      Let's face the facts, socialism has been proven to be the greatest failure of the 20th century.

      How can you be sure? The fact the USSR and China had become super powers doesn't suggested communism failed. To suggest that communism actually built both of these superpowers and destroyed one of them it seems pretty counter-intuitive to your conclusion, especially if you consider the fact they were in a cold war with us. Don't you think the fact that communist societies were at war with capitalists societies played any role? There were many factors involved, so why are you singling out just one factor?

      If you're so hard up on making me wrong, I might as well tell you that I think capitalism has proven itself to be effective. I'll also tell you that capitalism-socialist hydrids like Isreal and Sweden have proven themselves too, because I believe a good economy is built on freedom of ownership and equal opportunity (No special government favors for specific companies)

      The point is to seize the power from the multinational corporates and the global organizations that reduce innovation by their centralised planning strategies.

      It's worse than that... There are many killer technologies and ideas which could dramatically change the landscape of society. Wonder why they aren't? Look to the patent system and the large industries who would be hurt by these killer technologies.

      If you were a large company who's primary source of revenue was from selling an expensive technology, and you found a very inexpensive alternative that would ruin that revenue stream, wouldn't you patent to prevent some little guy from getting his hands on it to undercut your business?

      The truth is: Large industries benefit from a flawed patent system more than small companies because they have the capital and cash to research, patent the research, and sue the crap out of you if you fsck with them. The problem isn't the corporations, it's the unlevel playing field.

      "do you want to find microsoft has a monopoly on distributed operating systems in ten years ? or do you want to have a diverse selection of systems that can run on your computer ?

      What do you think?

      --
      "Communism is like having one [local] phone company " - Lenny Bruce
  82. I'm sorry I forget to grammer check... by JohnDenver · · Score: 2

    My point is: All of our goals are for the same end:

    * creating wealth
    * increasing quality of life

    We will probably disagree how to go about it. My outlook is that a number of different systems should be employed for different circumstances. The goal is to make great tools and to get them into the hands of people.

    Hence, My original point: If the tools are great and the system works well, then people will take to it. Otherwise, you either need to makes some tweaks or complete overhauls.

    AKA: The shut up or put up argument

    --
    "Communism is like having one [local] phone company " - Lenny Bruce
  83. Re:MS-DOS replaced Apple Macintosh by Surak · · Score: 2

    MS DOS replaced Apple Macintosh, remember?

    Um, no. Please put down the crack pipe.

    First of all, Apple Macintoshes are still produced, sold, and bought and used by millions of people. They never got replaced by anything, really. Secondly, MS-DOS came first. It was introduced three years prior to--and was in common use by--the time the Apple Macintosh was introduced. It couldn't have 'replaced' the Macintosh.

    Nothing has replaced the Macintosh. The only thing you can say about the Macintosh is that it's popularity has waned since the introduction Windows 9x...even then, popularity of the Macintosh has grown back to some degree since then.

  84. Re:Er by nickynicky9doors · · Score: 2

    Yabut... were I MS, I would, as ESR suggests, look to ways to separate the OS/apps from the box, such as thin client architecture and software as an online utility. If the box comes without an OS and apps but recommending MS and boots online to download/install the most uptodate, "ultimately configured" MS software then the customer might mindlessly separate the two and see the OS/apps as a licensed utility. The economics of doing away with the most part of manufacturing and distributing shelved software will give MS alot more margin to play with. Still, over the near term, as the need for standards and, independent bodies to maintain and further standards grows, the gap will close as standards will provide a platform for the Open Source/FSF communities to close said gap. What ESR said will prevail in that a large body of independent coders have and will come together to produce a competitive mass market product.

    Excuse my morning rant, the nimbling of my fingers and the impact of the first brimming mug of coffee.

    cheers
    --

    heuristic algorithm seeks stochastic relationship
  85. Re:MS-DOS replaced Apple Macintosh by rseuhs · · Score: 2
    Um, no. Please put down the crack pipe. [..] Nothing has replaced the Macintosh.

    No comment.

  86. MOD HIM UP - MOD THIS DOWN by JohnDenver · · Score: 2

    The truth is: I'm trying to reform myself as a zealot by attacking zealotry with immense zeal.

    ...and I didn't see the irony...

    Usually I try to subdue the zealotry by posting somewhat rhetorical questions rather than assertions, but not today... Oh no... I have to be a big guy today and say things like, "You shoulda listened to me in the first place boy!"

    Fuck it! I can't run... I can't get out of the proverbial bear trap... You can club me like a baby seal now...

    I wish someone would mod you up as Funny, only then would I be truely attacking zealtry.

    --
    "Communism is like having one [local] phone company " - Lenny Bruce
  87. backwards logic by markj02 · · Score: 2
    If 50% of the US population buy PCs at their current price level and the hardware costs fall, it follows that Microsoft can charge more for the OS, not less.

    In any case, it doesn't matter. Microsoft can adjust their cost structure so that they can give away consumer-Windows and still be hugely profitable.

  88. Free OS? by SkewlD00d · · Score: 2

    Maybe OSes will be given away the same way as web-browsers, complete w/ banner ads, user tracking and spyware.

    --
    The biggest trick the devil pulled was letting lawyers become politicians so they can write the laws.
  89. Wrong! by Erris · · Score: 2
    My post, AC did not mention the cost of Winzoze to the big looser PC companies.

    A $350 computer more than likely cost the retailer about half that. $26 is a large percentage of $175. Viewed from that perspective, ESR's argument looks right. Dell and Gateway can not survive selling $500 computers as it is. Their costs are too great. One of their costs is the $26 bucks or so they have to pay for EACH computer they build and sell, regardless of OS installed. Costs like that will break them and Microsoft as smaller outlets start offering cheaper PCs that do what people want. Remember that Dell got started in a dorm room. Someone else will eat their lunch soon.

    --
    DMCA, Hollings, Palladium. What might have sounded like paranoia is now common sense.
  90. Re:It's not about innovation. by jedidiah · · Score: 2

    Joey Q can't grasp the notion that a CDR needs to be mastered. Even the XP CDR tools confound them.

    Linux is not more confusing to this kind of user. Once you've gone over Joey Q's head, it doesn't matter if it's by a meter or a light year.

    OTOH, Linux can be adapted by individual VARs in ways that Windows can't. WinDOS is going to continue to be jack of all trades and master of none while becoming a burden on profit.

    --
    A Pirate and a Puritan look the same on a balance sheet.
  91. Bullshit. by BoneFlower · · Score: 3, Insightful

    As PCs get cheaper, if Microsofts high price becomes an obstacle to market domination then they will lower it. They only charge that much because they can. Bill Gates will do what he must to stay on top, if that means lowering the Windows price, he will. Then, he gets legions of sheep buying computers for the first time because the most important man in the world was nice enough to lower prices for them.

    ESR is a smart man, I'm sure. But Bill Gates- I honestly do not believe he is after money. He just wants his software running everything in the world. I don't think he actually wants domination, but he wants a piece of every pie just to have it. If it got to the point where to keep the windows dominance he had to subsidize Windows out of pocket for a while, I am convinced he would do so.

  92. IF this were true, it would have already happened by Reziac · · Score: 2

    I have news for ESR. The start point for complete midrange P2 and low- to midrange P3 systems is already down around $200, and has been under $350 for somewhat over a year. Yeah, name-brand machines still cost more, but clones don't. (Your locale may vary, but this is Los Angeles, a HUGE market for PCs of every species. Or check out compgeeks.com, where just-add-hard-disk systems start at $169.)

    Second, the consumer appliance marketplace is already accustomed to getting the hardware for cheap or free, and paying for a service (operating systems are roughly parallel). Frex, buy X-months of service, get your cell phone free.

    Personally I think the effect will be the opposite, and will *help* M$ consolidate a chokehold on the PC-as-consumer-appliance market, where the PC hardware is very cheap or even free, and the user pays a monthly or annual fee for "service" (which includes the OS).

    --
    ~REZ~ #43301. Who'd fake being me anyway?
  93. Re:Excellent Post. by Alsee · · Score: 2

    Ballmer especially is a real raver.
    Remember the Monkey Boy video.


    Heay! Don't go saying nasty shit about ravers! I love Techno and Rave music!

    On the other hand you have my blessing to insult country music all you want...
    Ballmer especially is a real redneck.
    Remember the Monkey Boy video.

    :)

    -

    --
    - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
  94. Re:Not quite by mpe · · Score: 2

    I think you are both right and wrong. Microsoft does not have to generate increasing revenue through its traditional channels. Their war chest is so loaded that they can buy revenue, at least for a while.

    But only for a limited time, otherwise they will "Enron".

  95. Re:Here's to the end of boorishness by anomaly · · Score: 2

    With all due respect, I invested a good bit of time in the process of commenting thoughtfully on the problem that MS is currently facing - a topic that directly reated to the issue at hand.

    At the end of my posting, I attached one line inviting people to find out more about my faith. The S/N ratio of my posting was very high.

    As far as making sure that everyone could find it is concerned, The Bible calls for me to live out my faith. To make it an integral part of my life - to have it affect everything that I do. I'm called to tell others about what God has done for me, and to be prepared to discuss with them the reason for the hope that I have. I strongly believe that inviting people to contact me to learn more about Christianity is a part of my responsibility to follow the teachings of Jesus Christ. I tell people about Jesus Christ in every part of my life. Since Slashdot posting is a part of my life, I invite people there to contact me to find out more.

    WRT being seen by men - I never asserted that I am holy or righteous. In fact, my heart is deceitful and desperately wicked (Jer 17:9) just like every one else's. My only hope of being found acceptable by a perfect and Holy God is based on my faith in Jesus' perfect life and sacrifice.

    I hope that you find the peace that you are seeking.

    Respectfully,
    Tom Cooper

    --
    But Herr Heisenberg, how does the electron know when I'm looking?