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Linux Spurs MS Price Cuts

jimb writes "Yahoo! reports: 'What's happening is that Microsoft sales reps have been instructed to be on the lookout for any businesses that are migrating some of their machines to the Lindows OS,' Yankee Group analyst Laura DiDio told NewsFactor. 'If [the sales reps] think there's a real threat of some pretty large numbers of defections to open source, they can request authorization from Microsoft higher-ups to offer steeply discounted pricing."' I wonder how many businesses will now start pondering aloud the possibility ... I'm sure OS X is on MS's mind as well.

8 of 479 comments (clear)

  1. a bad deal at any price by g4dget · · Score: 5, Insightful
    Those discounts are, of course, temporary: Microsoft hopes to kill open source competition (like they killed everybody else), and then they'll go back to charging more.

    The other issue is that free software is not about getting the software itself for free, it's about the freedom to inspect, use, and improve the software as you like. That lowers TCO and reduces business risks; even if MIcrosoft gives away Windows for free, they can't compete with that.

  2. My God...the consequences by Yo+Grark · · Score: 5, Insightful

    Can you imagine if companies started to discount their software when competitors were involved? What would our economy do? Wait....that would lead to COMPETITION and competition is bad, surely microsoft sales reps realize that their software is supreme and that ALL THE BASE BELONG TO THEM.

    Next thing you know, Office will be free to compete with OpenOffice and the like.

    I've said it before, and I'll say it again, Microsoft is heading back into a world of competition. The monopoly ride was good, but now they gotta get back to selling the shit on the grounds of quality and superiority in peoples mind, even if that means selling it for less.

    Yo Grark
    Canadian Bred with American Buttering.

    --
    Canadian Bred with American Buttering
  3. selective discounts lead to diminished stature by porky_pig_jr · · Score: 5, Insightful

    This reminds me the situation with IBM and their main-frame competitors, Amdahl and Fujitsu. The simplest thing to get a steep discount from IBM was to have a meeting with IBM salesperson while having either Amdahl or Fujitsu brochure on your desk. Worked like a charm! Yet with this practice widespread, it has slowly downed to all IBM customers that they pay too much in a first place, and may be they should look for mainframe alternatives. That was about 10-15 years ago. I hope the same will happen with Microsoft customers.

  4. Re:This is NO surprise. by rseuhs · · Score: 5, Insightful
    Actually I expect their MS Office revenue stream to dry up first.

    Nobody sees a reason to upgrade Office anymore and switching to OpenOffice is a lot easier than switching to Linux altogether.

  5. Microsoft promotes Open Source! by Melantha_Bacchae · · Score: 5, Insightful

    Did that get your attention? Good. We'll get to that (misleading) headline in a moment.

    There is no discount, people. ZDNet had the story under a similar headline (http://zdnet.com.com/2100-1104-975399.html) with the misleading headline of "Microsoft targets defectors with discounts". If you read that article, it becomes clear that Open Value is an extended payment plan for bad old Licensing 6. Aside from stretching your payments out (thereby "lowering" them), you pay the same money as Licensing 6 plus interest, and have all the wonderful disadvantages of Licensing 6. The only discount at all is a potential 0% financing you might get if you drag your feet and throw a screaming temper fit. Licensing 6 saves you money (only in Ballmer's head) while it costs you more (minimum 33% to 107%).

    The people they are targeting are the 66% of their customers smart enough not to fall for Licensing 6. Don't fall for this either, unless your only objection to Licensing 6 was the lack of a payment plan with an interest escape clause based on your temper throwing skills.

    As for Microsoft promoting Open Source, that was the subject of an article by Japan Today (http://www.japantoday.com/e/?content=news&cat=4&i d=240429) entitled "Microsoft to promote open-source software in Japan". This time, they are promoting their "Shared Source Initiative". Which we all know is *not* the same as open source.

    I don't know whether Microsoft is purposely sending out a lot of misleading press releases or we have had a really bad press day today, but that sure is a lot of misinformation being spread for just one day. Just goes to show, you can't believe everything you read, especially if it is based on an MS press release.

    Chief Tsujimori: "I won't let you get away. I will never let you escape."
    Godzilla elegantly lifts his tail skyward to give her the "finger", crashes it down on the water, and submerges.
    "Godzilla X Megagiras", 2000

  6. I know, I know! by twitter · · Score: 5, Insightful
    Does anyone know exactly how much a 3yr SA license for XP Home costs?

    Nothing new here. Bill Gates will take as much money as you are dumb enough to give him.
    Of course, you should give to Microsoft. It's kind of like a charity that benifits people in India with aids. Bill Gates and mother Therisa were good friends you know. Also benifited are the children of the USA! Previous previous licensing deals and last summer's anouncement to end accademic discounts tell the whole story of the gift that keeps giving.

    --

    Friends don't help friends install M$ junk.

  7. Lindows, what else is there? by twitter · · Score: 5, Insightful
    You said it yourself:

    I'm not willing to pay $99 for beta-open-source-software [especially considering the high quality of many other distros]

    M$ knew this would make a stir but did not want to advertise any of those other distros. How many people do you know who even know what a distro is, much less can name several. M$ is pointing toward what it gathers is the least attractive alternative as a making themselves look better. They would never point them toward Debian, Red Hat, Suse, Caldera, Mandrake, Net/Free/OpenBSD. What they are pointing them to is a "discount" distro sold at Walmart that's doing everything it can to look and act like windows.

    It does not matter. The cat's out of the bag and Microsoft is gonna get it. They really have pushed people too far and been, well, evil. They, not the government nor Slashdot nor the mass media, proved their nature with EULAs and pricing. Good riddiance M$.

    --

    Friends don't help friends install M$ junk.

  8. I want to see the schedule by r2ravens · · Score: 5, Insightful

    ...Microsoft shall charge each Covered OEM the applicable royalty for Windows Operating System Products as set forth on a schedule, to be established by Microsoft and published on a web site accessible to the Plaintiffs...

    The Plaintiffs were the USDOJ. I am a US citizen and they were acting on my behalf, therefore I am a plaintiff. I want to see the price schedule.

    Any lawyers out there looking for a challenge?

    --
    War is Peace. Freedom is Slavery. Ignorance is Strength. - George Orwell or George Bush?