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Dell No Longer Selling Systems w/o Microsoft OS

Some Sys Admin sent in an email that he got from Dell which basically says Microsoft will no longer allow Dell to sell PCs without an operating system. Please note that Microsoft is not a monopoly, and does not use their monopoly power to squish competition in the market place. The message itself is attached below, and is worth a read, especially the last bit.

UPDATES

1. Effective 8/26 - New Microsoft contract rules stipulate that we can no longer offer the "NO OS" option to our customers beyond September 1st. As such all customers currently purchasing a "NO OS" option on either OptiPlex, Precison or Latitude for the express purpose of loading a non-MS OS will have the following options:

1. Purchase a Microsoft OS with each OptiPlex, Precision or Latitude system.

2. For OptiPlex and Precision - purchase one of the new "nSeries" products (offered for GX260, WS340 & WS530 - details in the attached FAQ) that are being created to address a different OS support requirement other than a current standard Microsoft OS.

We must have all "No OS" orders shipped out of the factory by September 1st. The "No OS" legend code and SKUs will be I-coded on 8/19 and D-coded on August 26th to ensure shipment of orders prior to September 1st. FYI - this effects all of our competitors as well.

11 of 817 comments (clear)

  1. It's just a legal word-game by ajs · · Score: 5, Insightful

    What they mean is that they are going to go from offering "hardware A, available as model B, with option C" to "hardware A available as model D which is available only with option C"

    Bascially, the contract with MS says that they can't get the OEM price unless they sell the model in question with only MS products. So, they have to create another "model" which they ship without an OS. The obfuscation in the letter is designed to avoid outright saying that they're using the word of the contract against MS, so that MS can't say in court that Dell violated the contract in spirit (I'm not sure how defensible that would be, but if I were Dell, I'd avoid it too).

  2. the judge will not know by Lewis+Mettler,+Esq. · · Score: 5, Informative

    This announcement will not have any affect upon the current litigation. At least not the case by the States.

    The reason is that all testimony has already been taken.

    It is just like the stupid decision by the appellate court that Microsoft did not try to monopolize the browser market. That was clearly incorrect but the court is strapped with the evidence in the case as of the testimony. And as of years earlier, Microsoft only acheived about a 50% market share. And, with those facts before the appellate court, you are likely to get such an opinion.

    However, when the AOL case gets to the jury, facts will be completely different. Then 90-95% will be evidence. Very different indeed.

    That is a basic problem with the legal system and it is why Microsoft lawyers can lie in public the way they do. Microsoft lawyers lie to the press and to the public based upon old facts that are clearly no longer relevant. But, to the ignorant, it is a sale.

    Funny, however, that Microsoft again starts to lie about having a monopoly.

    But, they are just a bunch of cheap liars anyway. They have proven that numerous times.

    Remember the idiot under oath who told the judge that SUNs JVM was not included with XP because of the GPL?

    And, remember the idiot that told the judge that Microsoft will withdraw from the market if it does not like the judgment?

    And, remember the three stouges that each claimed they thought removing icons had something to do with commingled code.

    Microsoft's lies are not even credable and yet they spit them out to defraud consumers. And, the judges as it turns out.

    --
    NexuSys - Linux support by the best
  3. Re:It's a shame... by gilroy · · Score: 5, Insightful
    Blockquoth the poster:

    In the world of business, there is no right and wrong in the moral sense, only "right" as in following the law and making money

    No. In the world of business we've had people saying "there is no right and wrong". They've been saying it loudly. They've been saying it monotonously. They've been saying it for, oh, about forty years in strength.


    But they're wrong. Just saying something doesn't make it so. Simply denying the existence of something doesn't in fact make it cease to exist. And failing to recognize the ethics of a situations doesn't mean there aren't any. We'e beginning to see the fallout in the corporate world when the basic principles of ethics and fair play are systemically violated...

  4. EULA refund.. or not. by hklingon · · Score: 5, Insightful
    Okay, sure, the EULA on Microsoft stuff has a specific clause:
    If you do not agree to the terms of this EULA, PC Manufacturer and Microsoft are unwilling to license the SOFTWARE PRODUCT to you. In such event, you may not use or copy the SOFTWARE PRODUCT, and you should promptly contact PC Manufacturer for instructions on return of the unused products(s) for a refund.
    Except that it seems to be difficult, if not impossible, to get a refund. Almost three years ago, I replaced a dead NT server (lightning, so, no, just a few parts won't do)with a white-box Win98 machine and sent Win98 away to be refunded. I was told to send it directly to M$, by M$. I'm still waiting! A lot ofother people seem to be, too. It seems to be damn near impossible to get a refund, in fact. And this the DoJ all heard before, as part of the anti-trust trial Also, it seems now that OEMS must "eat" the cost of returned copies of windows, this is no longer passed back to microsoft.

    Look, I'm not some fanatical Linux Zealot on the fringes of society. I'm a programmer, system administrator, IT manager, whatever you want to call it. I use Linux and other free OSs, and I really hate being treated like some psycho zealot on the fringe when I try to avoid doubly (and sometimes triply) licensing microsoft software for Clients' PCs. ("You want what? We don't do that? Whats a EULA?" HP, Compaq, Gateway and now Dell. its all the same.) I mean, honestly, where is my FTC? Where is my consumer protection? It goes beyond frustrating.

    Wendell
  5. Re:Monopoly by Sj0 · · Score: 5, Informative

    No it isn't. BeOS is(was) easy. Device drivers auto-detect on bootup(so you can literally remove a hard drive from one computer and place it in another and BeOS won't give two shits), so there's no need to manage anything at all. Installation requires hitting next once(or going through a Windows setup screen, depending on whether you bought it or not--it was free for download). Installing software is just a matter of unzipping it into the home directory(which for the most part, BeOS took care of for you) or using the included package manager(which meant simply clicking on a software package and hitting next). Changing the video mode is a matter of going to the preferences tab in the BeOS menu(which had everything you needed to change there in a standard way).

    BeOS was a very user freindly OS, but thanks to practices such as these ones, it never got into any OEM products(though the OEMS wanted them, but Microsoft sent their lawyers around to fix that)

    --
    It's been a long time.
  6. Re:Sounds like fraud to me? by dbrutus · · Score: 5, Insightful

    Actually MS fraud would be more like their statement that their OSDN kits contain the complete Win32 API and that there are no secret API calls reserved for MS developers. That's an actual material fraud made over the course of several years and has changed the course of computing.

    A lot of people believed in that promise and it gave MS the largest ISV community on the planet. And it was all built on a lie, one that MS now claims it never made.

    What completely blows me away is that all the anti-MS people can't get their act together enough to document it and bring a class-action lawsuit based on it.

  7. Re:Monopoly by freeweed · · Score: 5, Insightful

    Hm. Adding useful features to please the user *after* a monopoly is already established. How much sense does that make?

    It's called "maintaining a revenue stream". Microsoft has no choice but to continually enhance their product, competition or no, or else people will no longer buy upgrades every few years. No new revenue == pissed off shareholders.

    Of course, when they can't come up with any good ideas, they just break compatibility. Try using ANY Office document made with a new version on an older version. I'm sorry, but there's no technical reason at all why an Excel spreadsheet made under XP can't be opened in Office97. Just leave whatever miniscule new features that exist from being used. However, they don't do this. And as all new PCs come with OfficeXP, when you replace some of your office machines, guess what? You have to then go and upgrade ALL of your Office versions, at several hundred dollars a pop. For what benefit? I haven't seen any signifigant improvement in the Office suite since at least 4.2. I still word process the same way, and do spreadsheets the same way.

    Fact of the matter is, Microsoft uses their monopoly position to force you to buy new software every few years, unless you're in the unlikely position of being able to keep every single one of your old machines doing what you want them to do, forever. And for the most part, it has nothing to do with adding new features.

    --
    Endless arguments over trivial contradictions in books written by ignorant savages to explain thunder in the dark.
  8. Re:Con-men, Microsoft and pathetic liars by Lewis+Mettler,+Esq. · · Score: 5, Interesting

    Actually, the libertarian and conservative factions are based less upon anti-trust ideology than just "anti-government anything". This is particularly true with the Cato Institute. They do not defend Microsoft as against AOL but rather just think the government should stay out of it.

    As for fraud, you do need the deception or lie (and it only needs to deceive) but you also need the transaction where they get your money.

    Lying to consumers about the price of IE is one example. You can lie and claim the billion dollar development project has no affect upon the price of the product, but the law says otherwise. Economics say otherwise. Corporations simply do not spend billions in R&D for a product they do not think they will get a return on. They just do not do that. Looking at the price of the OS before and after IE is bundled is not the test. As a matter of law, each item in the box is attributed to have received some of that money. And, even Microsoft claimed to stockholders that some money they get is allocated to IE. Of course, they tell stockholders one thing (the returns) but lie to the public (free product). But, when as a matter of law it is not free (as was in fact decided by Judge Jackson and not overturned by the appellate court) then saying it is free is fraudulent. And, perhaps actionable fraud.

    The consumer class action suits against Microsoft are not over yet either. It will be interesting to see if some of that action is based upon fraud. Most likely it is but I have not read the complaints. There is about 100 of them. So, I am sure more than one made a claim for fraud in addition to the antitrust violations.

    The problem with the API claim is with the money aspect. When Microsoft claims that no APIs are hiddle and developers are duped, technically they are not buying the product. Rather they are developing and helping to support it. They have been conned just the same. But, for actionable fraud some money or property has to flow from the mark to the deceiving liar. And, I do not think the mark has to actually believe the lie and in fact rely upon it. I think in many jurisdictions it is enough that the claim is false and the false claim was made for the purpose of getting the money or property. Some "marks" may very well not believe a statement but go along anyway suffering as the result (out of their money).

    The FTC could be more instrumental here. Just as with PassPort, if claims are false, they should be held accountable. But, then as with PassPort, sometimes the "criminal" just agrees to stop while keeping tbe benefit of the false statements to date.

    That is why it is very important that the illegal gains made by Microsoft in the browser market be turned back. Antitrust law is supposed to be capable of undoing illegal gains. But, if IE is not placed into open source by the remedy or IE's share of the market is not restricted or returned to 20% or so, the antitrust laws failed. And, anyone looking at that will just assume they are of no value. That is what Gates said and thinks. And, that is why that idiot violates federal law so much.

    In the end, Gates may decide it was not worth it. But, if the AOL judgement is less that 10 billion or so, Gates will be conviced that illegal means are good business.

    --
    NexuSys - Linux support by the best
  9. Railroading by Burning*Cent · · Score: 5, Interesting

    I can't help but think about how MicroSoft is a monopoly-in-restraint-of-trade as bad as the American railroad ones of the 19th century.

    In the 19th century, railroad monopolies charged people fees for shipping on competing lines. The goal was that you only do business with one rail line. Microsoft's response to BeOS is much like this one. Microsoft, like the monopolistic rail lines, coerced its customers, the OEMs, not do business with a competitor. However, instead of charging imaginary fees as punishment, MS uses sealed OEM licenses to forbid them from installing dual boot OSes.

    However, I see why MicroSoft uses such tactics. If people got computers with Windows and BeOS dual boot or Windows and Mandrake Linux, people would actually realize that there's no reason to use only Windows.

    BTW, although not monopolistic or evil, MS's frequent changes to the Word format is like the railroad lines' stubbornness against choosing a standard gauge.

    On a personal not, this seems like it could have almost affected my situation. I recently bought a computer online from a NE Ohio computer company without an OS. I was planning on running GNU/Linux until I began studying at OSU, where I could get a legal copy of WinXP from a Microsoft club for $5. Of course, recent /. stories on EULA changes made me decide to use Win2k instead, and I bought a Like New copy through half.com. Unfortunately, Windows refuses to run because I have an "INACCESSIBLE_BOOT_DEVICE". I feel like using an illegal copy Windows if I can't get it to work.

  10. The first step to a 'trusted platform' ? by Liquor · · Score: 5, Interesting

    It's pretty easy to explain what this entails and why this is happening - I'll make a bet that the XP installs that Dell ships after the cutoff date won't need to be 'activated' through Microsoft, but will recognize the machine and bios as a 'licensed platform'. This effectively means that the OS license is built into the machine - so so Microsoft won't let them ship them without paying Microsoft.

    Ok, so maybe Dell will make a few machines ('n-series') that don't run Windows - but they're now a completely different machine. The previous court order stating that Microsoft cannot charge for every machine sold (regardless of OS) has now been circumvented.

    That's enough of a step backwards to behaviour already found to be illegal on it's own, but this seems to be the first step towards making manufacturers have to distinguish "Microsoft ready' machines from OS agnostic machines.

    A few more steps like this, differentiating Microsoft machines from the others, and it's a sure bet that the commodity hardware - 'Microsoft OS ready' machines - are going to be the much vaunted 'Trusted platform' - complete with a bios that will REFUSE to boot anything except a Microsoft OS.

    Yes, I'm paranoid about Microsoft's intentions. but I suspect that I'm not being paranoid enough.

    --

    Liquor
    Sanity is a highly overrated commodity.
  11. Re:Monopoly by sbaker · · Score: 5, Insightful

    > Hm. Adding useful features to please the user *after* a monopoly is already
    > established. How much sense does that make?

    Well, suppose you are a monopoly - and near-as-dammit 100% of computers have your
    software installed.

    How do you stay in business when 100% of your customer base already owns
    what you are selling them?

    1) You add features - make it easier to use - so people will pay to upgrade.
    2) You ban people from using the software they own on their next computer
    by writing things like WinXP that physically prevent that.
    3) You stop people from installing the software they already own on their
    next computer by preventing people like Dell from selling computers
    without another copy of the OS on them.

    Microsoft are doing all three of those things...Duh.

    Windoze version N *does* have competition - but that competition is
    Windoze version N-1 and that's not helping the monopoly situation.

    --
    www.sjbaker.org