Slashdot Mirror
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.
Isn't selective discounting against the MS antitrust settlement?
- mark
-----
I tried an internal modem, but it hurt when I walked.
Linux distributors announced today that prices for Linux would be 100% off, bringing the cost down from $0 to $0. "This is an amazing move in order to compete!" said one anonymous coward on Slashdot.org.
MS will do anything to maintain their monopoly on the desktop OS (as recent numbers have shown, it provides flexibility in OTHER markets), so you can be sure that they won't feel bad about cutting the price of Windows. In fact, as Linux becomes more attractive, there will be more pressure to drop the price to 0 (zero). Any other price and they stand to lose their monopoly, which is worth more than a few measly bucks per computer sold....
smd4985
Since I recently heard that microsoft could sell windows for around $45 and make a profit (I think that's right), if they really want to make sure linux doesn't take over, knock the price of windows down. More people would be willing to buy windows xp if it was $50 rather than $200. I know they want to make a big profit, but I think if they got more sales (by discounts on prices) they would have more volume. But what do I know, I'm not a marketing analyst.
I've already converted three business over to a stricly Linux platform on the backend. I converted, in total, 120 servers over to Linux from Windows NT, saving the companies thousands and thousands of dollars in the process.
No 20, 30, or even 50% discount could have changed the minds of the CTOs for whom I worked. Now, all the mail, Web, etc. servers are running Linux, and these companies are happier than ever.
If you celebrate Xmas, befriend me (538
that business use this tactic all the time. I'm sure we all wonder if all these foreign governments are seriously considering Linux, or just trying to negotiate better prices from Microsoft.
It's odd that Microsoft would admit to being willing to lower prices if someone happens to bring up the name, though. Maybe they're feeling bad about the "Licensing 6.0 won't raise the price you're paying" lie. Probably a lot of AP departments are now asking MS why they posted their biggest quarter ever once it was institued if it wasn't a net gain for MS.
Kind thoughts do not change the world
I wonder if this works if you threaten to pirate their software? Seriously... I need Visual Studio .Net... I can't find an open source alternative that meets my needs... but if I threaten to pirate, will they give me a discount???
---
Programming is like sex... Make one mistake and support it the rest of your life.
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.
I've been following the Lindows product since it's first annoucement, but I haven't used it at all (I'm not willing to pay $99 for beta-open-source-software [especially considering the high quality of many other distros]). It surprises me that Lindows rather than RedHat or Mandrake or even Lycoris is causing all the fuss. My impression has been it's a distro [or I should say a CEO named Robertson] that makes a lot of noise but isn't necessarily the best out there. Some might argue that making noise is enough. Perhaps it's enough to get MS and the press to notice, but if the product's crap, then the businesses and users who switch will be return to MS's camp quickly. Anyone using Lindows willing to point out how great it is or isn't? Does it really have a chance?
Who said Freedom was Fair?
... I'm sure OS X is on MS's mind as well.
:)
Yeah, but prolly not to anywhere near the same extent - proprietary hardware, remember? Added to which, Mac OS X isn't offering windows application interoperability.
On MS's mind, sure. In their sights...not nearly.
Triv
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
The headline says Linux, the article says Lindows all over. Is Lindows the only GNU/Linux distribution they care about?
Do you care about the security of your wireless mouse?
Just enter code, "thinkingaboutlinux" at the confirm order screen to show products at up to 50% off!
Read this article for more info.
p hp
http://www.lindows.com/lindows_michaelsminutes.
Karma: The shiznight, mostly because I am the Drizzle.
Do you think Bill will give me a discount on Windows XP Pro? $80 instead of $299 would be great!
(Laugh, it's funny :-)
B. Microsoft's provision of Windows Operating System Products to Covered OEMs shall be pursuant to uniform license agreements with uniform terms and conditions. Without limiting the foregoing, 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 and all Covered OEMs, that provides for uniform royalties for Windows Operating System Products, except that:
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.
Actually this is incorrect. The SEC filings are incredibly misleading. For example, Windows XP get's all of it's technology from the server team, so it therefore doesn't have to do a whole lot of R&D for the kernal and things like that. That's just one of many examples of how it's difficult to track profits within each MS department.
There is no longer anything that can be done with computers that is nontrivial and clearly legal. -- Paul Phillips
Cost cutting measures are abound at ms!
Can now only fund 3 world domination plans rather than 5.
Balmer can only use anti-persperent at a 1/3 of the conventions rather than 1/2 of them.
Ms can only afford to leak a document every other Halloween now.
Will be forced to change the name to 'Window'.
Last year MS sent me some happy-ass brouchure asking for info about what platforms we use so they could "better serve us". I replied that we use linux everywhere except the desktop and we're trying hard there too. Basically, told 'em to piss off and die, but politely. The very next day the sales rep called up and said they wanted to enforce the clause in our Office 2k site license that says they can audit us whenever they damn well please. Coincidence? Maybe. But I don't buy it. We're pretty good about keeping licenses up to date and all so it wasn't like the audit caught us with our pants down or anything, but it was a massive waste of time and effort. Lesson learned: when dealing with MS politely decline offers but don't mention why; do whatever is needed to avoid turning one's self into a target for the software cops. 'Tis far better to stay under their radar.
ehintz
The net impact on MS's bottom line from a few sites holding out for discounts will be negligible. The precident this sets _could_ be monumental. Hidden in the pricing of any product is the message that the product is worth the price. Any time the seller fiddles with a price, they erode the value of the product. If 1% of the population gets the product at 50% off, and everyone else knows it, most of the population will see the product as overpriced for its value.
/or employees, a ~40% fraction of their shareholders start dumping stock. All employees who don't dump fall back to the middle class. Big time employee dissatisfaction.
One of the hidden messages in the Linux Meme is that the retail price of world class operating systems, and office suites is $0/copy. Imagine the price erosion on cars if there were free ones available.
The existance of Linux/Lindows has pulled at a thread. MS's cash cows are OS's and Office Suites. (kinda funny how this is the area of recent attack by the Open Source Community:-).
If MS's margin of profit on these two areas falls, then all their business plans are threatened. If these areas are only marginally profitable, the natural condition in a competative market, then there is little cash left over to preditate other areas. If cash is tight, them MS can't afford the current level of post sales support. That will hurt in the long run. If their cash reserves are depleted in the fight, then their stock price could fall. If the stock price falls, then the options which they pay their employees becone worthless
Here's the Meme, the talking point: The fair market price of world class OS's, Office suites, web servers, Mail Servers, RDBMS;s etc is $0/copy.
Find a loose thread, pull it.
Did that get your attention? Good. We'll get to that (misleading) headline in a moment.
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.
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 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
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.
I've never come across such a definition of undercut.
The plain old dictionary (ie. the non-economic general definition) gives me:
In economic writing I've only ever heard the term undercut to mean, sell for less than your competitor is selling, nothing to do with cost.
Dumping is the term I've seen for selling below your cost (predatory dumping if you are doing so to remove competition, but usually because government subsidies make it worthwhile for you), and you use that further down.
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.
...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?
I have not (yet) been targeted by the BSA folks, but if/when they call, here is my response:
We have been quietly migrating most of our servers to Linux, and we are evaluating a Linux desktop as well. When our CFO gets wind of the cost of complying with your little "audit", he will hit the roof. When the friendly folks in the IT department offer OSS products and the CFO evaluates the savings, Microsoft in our company will be DOA. If you're serious about auditing us, do it quickly. Otherwise, there will be no M$ products to audit.
If threatening to switch is what triggers the new M$ discounts, I figure it would be a suitable prescription for the BSA headache as well.