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Sun Says Hardware Will Be Free

ron_ivi writes "Reuters reports that Sun's President and COO thinks hardware will be free and that people will pay for software subscriptions instead. Reuters quotes Schwartz: 'In our world, you will subscribe to the software and the hardware is free.' 'Directionally, our expectation is that in fiscal 2005 you're going to see a rapid departure from selling hardware, software and services apart.' 'Bill Gates and I agree that within four to five years hardware will be free.' We've recently read here on /. how Gates thinks hardware will be free."

33 of 895 comments (clear)

  1. A return to appliances? by tepples · · Score: 5, Insightful

    First off, notice the apparent lack of any mention of the free software community in the article. Also, remember the difference between gratis hardware (subsidized by publishers of proprietary software as part of the license fees) and Free hardware (the more general purpose, the more Free).

    It appears that like video game console hardware subsidized by licensed game sales, the gratis hardware will probably be locked to the particular applications, turning them into the equivalent of appliances. As publishers of proprietary software shift their business model from running on customer-owned hardware to running on hardware rented from the publisher, does this coming "appliance era" spell the end of affordable general-purpose PC hardware for residential use?

    1. Re:A return to appliances? by rsmith-mac · · Score: 5, Insightful

      And more importantly, how will consumers of such a system be treated? Is it going to be like the console system you describe, or is it going to be something akin to the cell phone market, where you're locked in to multi-year contracts, and locked to specific vendors through the life of the product?

    2. Re:A return to appliances? by JudgeFurious · · Score: 5, Insightful

      I believe it does mean that very thing. "Free" is not going to be a good thing in this particular instance. Free is just going to be a euphamism for "trapped".

      I want no part of this.

      --
      Appended to the end of comments you post. 120 chars.
    3. Re:A return to appliances? by ahfoo · · Score: 4, Insightful

      The very big problem with these theories is that they overlook the source of the hardware. They're operating on the illusion that it is possible to control the products coming predominantly out of Japan, Korea, Taiwan, Singapore and Mainland China. That belief is not well grounded and it is a huge oversight.
      First of all, these nations of origin are themselves not even close to being a homogenous entity. It's not as though East Asia even has a single currency or is even moving in that direction. This is a fiercely independent part of the world that is wrapped up in political details that most westerners don't even care to know the details about. Taiwan and China are the best example, but the troubled relationship between Japan and the rest of Asia is no less prominent for people in the region. We could go on and on.
      Even within Taiwan, it would be absurd to pretend that there is cohesion among the players in just the motherboard market. Give that reality, these specualtions are little more than wishful thinking on the part of washed up software companies.
      Sure, hardware will be so cheap it will be as-if it were free. But it will be running free software as well. I'm sure of that.

    4. Re:A return to appliances? by D-Cypell · · Score: 4, Insightful

      Exactly!

      When you can contact Microsoft or Sun sales and tell them that you want to take advantage of their free hardware offer but would prefer to leave the 'paid for' software without having the salesperson either immediately hang up or laugh uncontrollably, THEN they can call it 'free'.

      Until then its just the 2 for 1 pizza offer that, strangely, is twice the price of a single pizza in the place two doors down.

    5. Re:A return to appliances? by h4rm0ny · · Score: 4, Insightful

      Don't fret too much

      But in order to make this 'marketing trick' viable, the software provider must ensure that it is not possible to replace their software with an alternative. To do this requires Trusted (as in supervised) Computing - a DRM'd BIOS that is out of the user's control for example.

      Excuse me, I have to go and fret now...

      --

      Aide-toi, le Ciel t'aidera - Jeanne D'Arc.
    6. Re:A return to appliances? by tambo · · Score: 5, Insightful
      A return to appliances?

      An excellent point, tepples. Yes, this does appear to be a sea change toward the Apple model - or, even worse, the Commodore 64 - where the hardware is locked to an OS. Even worse: it may be locked to a particular OS version or class of versions - e.g., Pentium IV for Win2k/WinXP. No better way to push a hardware upgrade than to make it compulsory!

      I consider this the "consolization" of the PC.

      Interestingly, this happens at a time when game consoles are becoming more diverse. The PS2 was the first console to be natively compatible with another console (the PS1.) More importantly, most software is released on multiple platforms (Soul Calibur II was simultaneously released for all three major platforms!)

      But even more insidious than the OS lock-in is the software rental model. Goddamnit, if I pay $200 for Office 2000, I expect the right to use that shit whenever I want. I will not tolerate a $10-a-month utility plan on my software applications.

      America faces this creeping threat of having an increasing share of its goods offered only on a rental plan. The concept of consumer ownership is eroding. So you'll pay less now... but much more in the long run. And at the end of your lifetime, you will still own nothing.

      This is corporate greed combined with corporate laziness - yet another tactic to extract more value out of the market for providing the same basic services. Excellent for the Great White Males who are shareholders/CEOs; bad for the rest of us. America looks more like a caste system every day. The only check on it is the hope of government regulation to say, these things are "goods" and these things are "services"... but sadly, our current federal government is a shameful example of "regulatory capture." - David Stein

      --
      Computer over. Virus = very yes.
    7. Re:A return to appliances? by h4rm0ny · · Score: 4, Insightful

      Sure, hardware will be so cheap it will be as-if it were free. But it will be running free software as well. I'm sure of that.

      It will be. I'll fight tooth and nail to make sure of that with everyone I know.

      BUT, I don't think the solution is as simple as you make out. The fact that, as you point out, there is no monopoly in hardware manufacturering means that hardware will be available independantly of the software. This I agree with. I also agree that open source software will be much cheaper (because it is free). However, you may find that 'untainted' hardware costs rise because the hardware you get "free" with the proprietary software is subsidised by the software company.

      Think of it like buying a locked in cell phone that costs very little. I'm not sure if this happens in the US. I'm based in the UK at present. These phones are cheap because the network provider (e.g. T-Mobile, Vodaphone, etc) knows that you will be locked into their service for evermore with that phone. Conversely, a non-subsidized phone will cost you much more.

      With so many special offers, with the OS merging with the hardware in the mind of the purchaser, you are dependent on the foresight of the customer.

      "Sure," the buyer will say, "I could buy a more expensive computer so I could put Linux on it, but I can get this nifty 10GHz machine for half the price."

      It's not whether there is a monopoly amongst the hardware manufacturers that will stop this, but how much in bed the big hardware sellers such as Dell are with the big software manufacturers.

      Ooops. Looks like Linux has to get as big a market share as possible before this takes off because the hill is about to get steeper.

      --

      Aide-toi, le Ciel t'aidera - Jeanne D'Arc.
  2. Free Market by Karamchand · · Score: 4, Insightful

    I don't think the free market, specially normal consumers, will like subscription based goods. They want to pay once and then own the thing they paid for, not pay all the time they use it. Even if you have to "buy it once again" every few years.

    1. Re:Free Market by general_re · · Score: 5, Insightful
      I don't think the free market, specially normal consumers, will like subscription based goods. They want to pay once and then own the thing they paid for, not pay all the time they use it.

      I'm constantly amazed by how popular auto leasing is in this country, and how many people are thereby effectively carrying car payments in perpetuity. With that in mind, I think your prognosis is iffy at best.

      --
      ABSURDITY, n.: A statement or belief manifestly inconsistent with one's own opinion.
    2. Re:Free Market by DrEldarion · · Score: 5, Insightful

      Really? Tell that to the people who live in their rented apartments and drive to work in their leased cars while talking on their cell phones that they got for free with a 2-year contract.

    3. Re:Free Market by wankledot · · Score: 5, Insightful

      But see the difference between cars and computers is that cars lose their value very fast... oh... wait.

      --
      My sig is blank, I typed this by hand.
    4. Re:Free Market by Short+Circuit · · Score: 4, Insightful

      I'm sure people who are interested in "new" computers wouldn't mind leasing them. And people who like to hack their hardware wouldn't mind buying them.

      Without Microsoft interfering, I'd wager that people would lease hardware and software as a unit. However, I suspect Microsoft is going to want to charge their own subcription fees.

      If you think about it, we have subcription fees already. You periodically pay for the upgrade to the next version of Windows, OSX or some distributions of Linux. The difference is we're currently free to continue using any of those products without being forced into upgrading using contract clauses.

    5. Re:Free Market by pubjames · · Score: 4, Insightful

      I don't think the free market, specially normal consumers, will like subscription based goods.

      What you have to bear in mind is that most people are bad at math.

      Most people, when they see "$30 a month" don't think "$360 a year" as you and I might, they just see $30 and think - hey that's not much.

      It's like those adverts you see that say "all this for just 50 cents a day!" - this is much more appealing to most people than saying $180 for the year, because most people aren't that good with numbers (otherwise nobody would ever play the lottery).

    6. Re:Free Market by Billly+Gates · · Score: 4, Insightful

      THey do so because they can not aford to pay for a house or car in cash.

      People and businesses can pay for a newer computer or server in cash.

      Those that dont pay monthly plans anyway.

      Its outrageous that MS office and Windows costs more then A WHOLE COMPUTER!

      I remember when software cost only $60 and the pc was $1500. What the hell is happening?

      If leasing were cheaper businesses would be opting for it and SUN would be opposed to it.

      Why does SUN and MS want subscriptions? Because they can take more money.

      I will stick with owning my own hardware with Linux/FreeBSD and Openoffice thank you.

    7. Re:Free Market by JamesKPolk · · Score: 5, Insightful

      That's why Microsoft, Sun, and others support laws that make ownership impossible. They want their customers to be licensees, not owners.

  3. They got it backwards by tritone · · Score: 5, Insightful

    Software will be free and you'll pay for hardware.

  4. Just an excuse to force DRM adoption. by garcia · · Score: 5, Insightful

    Of course they want it to be free. Then they have full justification for a complete and utter lockdown of the hardware via DRM'd BIOS and OS with threats under the DMCA if we try to break it. No true ownership of the hardware by the user is exactly what they want.

    Are general computer users going to buy a computer that isn't DRM'd just to use free software? I don't think so. They are going to use what's given to them as part of their OS license fee.

    "Run our OS and never have to worry again! Just sign your name right here. The fine print doesn't say anything about selling your soul. Nope, not at all. Right there... That's riiiight."

    1. Re:Just an excuse to force DRM adoption. by Jackie_Chan_Fan · · Score: 5, Insightful

      This is so insightful it diserves to be on billboards across the country (and i'm talking about the ones on the highways) and not bbs's :)

      Frankly the DRM fight is already lost, and by lost i mean we've lost. The public is just too dumb when it comes to the subtle aspects of computers. That includes proper pc security, installing software, even knowing what a directory is. Hell half of the folks out there think they're called "folders" ;)

      And those folks dont know what to put in those folders.

      They have such a poor grasp of technology. The masses that is. They're not the geeks that we are. They didnt grow up with vic20s, apple 2es, c64s, atari computers, 12mhz 286s, or 486's running teleguard bbs's housing pirated warez. They never had to learn what an IRQ is, or what autoexec.bat does...

      They never had to learn HAYES modem commands to reset their models, or init them.

      These are the same folks that use PC's like toasters, and how many Americans do you know that can explain how their toaster works?

      Point made i think.

      We've lost the fight because the industry will do as it pleases, and the public will accept whatever marketing they throw at them. And the marketing will not mention a dam thing. If SUN has its way... it would go somethign like this....

      "Pick up your FREE COMPUTER at BESTBUY when you buy a copy of our OS"

      It wont mention a dam thing about the DRM restrictions. People will flock to the new marketing idea. "WOW A FREE FUCKING PC?!... I'm so there dude"

      Its a lost cause... DRM is going to succeed because we dont have an educated civilization that understands the finer points of technology, or even the basics of the constitution.

      If in the near future, you can buy longhorn and get a free top of the line pc... forget it. War over. The masses will flock to it faster than flies to shit.

      Its still worth fighting for though. I'm glad folks are still up for the task... because its a mountain bigger than any other.

      We're already in the hole because of this very fact. Look at the EULA situation You agree that you're liscensing, and not OWNING your copy of windows. Frankly this is just bullshit, and the public simply doesnt understand, or care about it at all. They dont even read the EULA, and yet they're forced to agree to it.

      Consumers arent that smart, and that is why capitalism has become pretty perverse from the top down.

      Its the publics responsibility to insure that they are not taken advantage of. The problem is the public simply does not have the education to recognize every specific detail reguarding every unique buying situation, no matter what the product or item.

      How many here are car experts? Computer experts, Biologists, etc.. How many know the finer points of HDTV, or a washing machine?... How about law, or how your plumbing works?... How many of us... KNOW IT ALL?

      None of us know enough to protect ourselves as consumers in every situation especially those outside the fields of geek like interest (and that could be cars, computers whatever you're geeky about)

      The public barely understands computers. They teach flash in highschool these days... and 1 out of 30+ kids in the class can actually do anything with flash.

      Its amazing that they teach flash, when they should be teaching programming, or computer manufacturing... how to configure your pc for security, what irq's are... etc I mean theres so much more that needs to be taught before people jump into Flash, or AOL :)

      Its just too dam risky for folks to be that ignorant.

      And its that fact that DRM will be implemented whenever the software/hardware makers want. Because we're not big enough, loud enough to make a difference, and some of you even work for the suits that push DRM in the first place.

  5. Free? by FuzzyDaddy · · Score: 4, Insightful
    I don't think that they really mean hardware will be free - only that it will be a loss leader.

    It's funny that the same people who decry free software as killing the economic incentive for software development don't feel the same thing applies to hardware.

    --
    It's not wasting time, I'm educating myself.
  6. Sounds familiar... by spikev · · Score: 4, Insightful

    Didn't we hear this from Sun about 10 years back when they were pushing client-server computing. Look where that got them. Now that serious client-server computing could become a reality, they're going pushing free hardware with another spin on it.

  7. Free, for a fee by 1010011010 · · Score: 5, Insightful

    I'm sure Microsoft and Sun won't give me a new Netra or XBox if I call them up.

    What Schwartz ("Use the schwartz!") and Gates really mean is, "your software fee will include the hardware fee, and you won't really have a choice about that. Plus, we will add restrictions to the hardware, such as DRM. Thank you, come again!"

    --
    Napster-to-go says "Fill and refill your compatible MP3 player", which is a lie. It's not MP3. It's WMA with DRM.
  8. Counter-Intuitive by philovivero · · Score: 5, Insightful

    Those guys are geniuses. Hardware will be free. Software will cost money.

    Because making hardware is as simple as typing "cp SunE450 SunE450.2" and making new software requires factories, tooling up, shipping, and maintenance.

    I disagree. I think both Microsoft and Sun will become obsolete and useless as they continue to try to trap people into their DRM and obsolete-by-design software while manufacturers of good hardware will continue to make some money, and software will become more and more Libre ("free").

    I think that the only money that will come in from software will be from developers and coders that maintain existing Open Source software, and create novel new Open Source software for contract (hourly wages).

    But I'm just a lowly DBA, not a forward-thinking visionary overpaid stuffed-shirt like these guys, so by all means, bank your future on their brilliance.

  9. Wrong by Bertie · · Score: 5, Insightful

    For one simple reason. Hardware's tangible, software isn't. No matter what these guys do, people will always struggle to get their heads round the idea of paying for software, because it doesn't take up space in their room and can be reproduced ad infinitum. Same goes for music, films, etc., and I'd say it always will. If the Suns and Microsofts of the world don't start accepting this and going with the flow, they're sunk.

    I mean, here I am working on my PC (which I bought and put together myself) running Gentoo (which I downloaded and didn't pay a brass farthing for). Microsoft sell as many copies of Windows as they do because they bundle them with new hardware. Who do you know who's ever bought a copy of Windows off the shelf? If the PC came out of the factory with no OS and I wanted to put Windows on it, I'd ask around till I found a friend with a pirate copy - there's just no way I'd haul myself to a shop to buy one. Yeah, yeah, I know it's not right, but that's the way it is, and these guys should embrace it instead of fighting it.

  10. It's not even gratis. by Arker · · Score: 5, Insightful

    They're completely twisting the language here, which is nothing new. They don't mean free as in speech, or free as in beer (gratis) what they mean is the price will be hidden in the software price. You'll be paying as much or more, they just won't itemise it or offer the hardware for honest sale.

    So you'll get a software 'subscription' and the hardware to run it on in a single package, totally locked in.

    No one in their right mind would sign up for this without huge, unsustainable bribes and/or being taken in by confusing double-talk and deception. I expect they'll be trying to use both in spades to get a stranglehold on the market, then make it back in rent once they have that. But it seems unlikely they'll succeed, thankfully. One more desperate attempt to try and lock competition out of the market.

    --
    =-=-=-=-=-=-=-=-=-=-=-=-=-=-
    Friends don't let friends enable ecmascript.
    1. Re:It's not even gratis. by timeOday · · Score: 4, Insightful
      Mod parent up!

      The hardware will be "free" in the same way as the "free" cell phone you get with a three-year lock-in service contract obliging you to pay hundreds of dollars to "get out" early.

      In other words, not free at all.

  11. Rented life by GrouchoMarx · · Score: 5, Insightful

    We went through this once before with Ma Bell. You didn't own your phone, you rented it from the phone company, who could futz with it whenever and however they wanted. They also had no incentive to ever upgrade it. My parents still have an ancient phone in their kitchen that is owned by the phone company, even though legally they are required to let you connect your own phone.

    Now, these companies want to do the same with computers. You don't own anything, you merely rent it as part of a service contract. Car companies want you to lease a car, rent an apartment...

    HELL NO! When possible, you always want to own your stuff instead of leasing it. For one thing, its financially more advantageous. (Take good care of it, and the cost over its lifetime is lower.) For another, it gives you equity for loans and other transactions. For another, it frees you of the control of the leasing party.

    Me: You know, I want to try some different software that MS doesn't offer in their archive.
    MS: OK, fine, give us your computer back.
    Me: What? No way, dude, all of my personal files are on here.
    MS: Gee, sucks to be you. Guess you're stuck giving us money just to read your own data. Neener neener!

    And that's just one example. The only compromise point I could see would be the way mobile phone companies subsidize the cost of a mobile phone with a service agreement, but that's a "lease to buy" arrangement at best. When it's over, that is YOUR phone by law, and even before that it's still your phone, you just have to pay an early termination fee and the phone is still yours. MSN used to do that with low-end PCs before they realized that no one wanted it.

    Live Free. Own your life. Own yourself.

    --

    --GrouchoMarx
    Card-carrying member of the EFF, FSF, and ACLU. Are you?

  12. Schwartz is confused, Sun is doomed. by twitter · · Score: 4, Insightful
    The article claims that Schwartz thinks, - the hardware, software, storage and its interlinks - is fast becoming a commodity.

    He's very confused, evil or misquoted. Hardware already is a commodity but commodities still cost money, just like corn, wheat and other honest stuff. It's shocking that someone at such a high level of a firm that excels in hardware design would have failed to notice that. Once can only conclude that Schwartz has decided to collude with Microsoft in their mad attempt to eliminate free software.

    Sun is doomed. The traditional commercial software development process ran out of steam twenty years ago. Proprietary software can not compete with free software and those who cling to it will be swept away. Schwartz is going to run Sun into the ground. I really hope Schwartz was misquoted, but that does not seem to be the case.

    --

    Friends don't help friends install M$ junk.

  13. Cars are free too!!! by Zapdos · · Score: 4, Insightful

    Pay me $30,000 U.S. dollars a year for 4 tires, and I will throw in a free Dodge Neon every year.

    Some restrictions apply.

  14. This is backwards. by rice_burners_suck · · Score: 4, Insightful
    What kind of a retard thinks this kind of business model will work? Software is easy to copy. Punch in one command and it's done. But hardware is somewhat more difficult to copy. There ain't no command you can punch into DOS that will make a copy of your monitor.

    I think there is an agenda behind this to wipe free software off the face of the Earth. They'll argue to Congress that free software allows people to pirate free hardware to the detriment of these companies, as if they have some God-given right to eternal perpetually increasing profits, and as if the government has some duty to protect that.

    No. I have a very strong feeling that software will be free, NOT hardware, because software is information, which by its nature will spread, while hardware is made of physical tangible materials, which by their nature do not multiply. (I think there is some law of physics that prevents that from happening.) Gill Bates has it all back-ass-wards. (And his billions of dollars are a testament to that, by the way.)

  15. Re:A return to the old phone company by CrimsonAvenger · · Score: 4, Insightful

    I seem to recall a time where you didn't own the telephone in your house either, but the phone company gave you one with your subscription. Anyone know how&why that model changed?

    Antitrust action against AT&T

    --

    "I do not agree with what you say, but I will defend to the death your right to say it"
  16. Bundling's a right old gimmick. by mactari · · Score: 4, Insightful

    From the article, emphasis mine, of course...

    Already, Sun offers a mid-range server for free to software developers provided they subscribe to bundled software and services offerings.

    Schwartz isn't alone in saying that hardware will someday be "free," so long as customers sign up for multiyear software subscriptions and services contracts.


    If I'm selling you two things, call them A and B, and it cost me 50 units of resources to build them, guess what? The price of A+B > 50 units every time -- or I go out of business.

    A or B could be hardware, it could be subscription services, it could be maintenance, it could be anything. We could already say that Apple hardware is free, providing you're willing to pay a couple of thousand for the initial OS X install. It's all semantic gynastics. For heaven's sake folk, the hardware they speak of isn't free. Everyone knows that. No more free than the lenses I got with my glasses frames or the DVD of the Patriots I got with Sports Illustrated.

    And *of course* OS makers would prefer you ignored hardware -- and more importantly prefer hardware mfgs become even more beholden to OS makers for their dime. If you think HP/Dell/etc was in MS's pocket a few years ago... sheesh.

    So just remember, the price of A+B will always be greater than their combined cost to create. As long as someone bundles, what difference does it make? The profit the hardware makers used to derive directly from you would now come from MS or Sun for each unit sold. Wow. How inventive and out of the box. Let's sound like we're moving the company at light speed, helped by the fact that we're travelling in MS's wake now, and hope it helps people ignore that, "Since the dot-com and telecommunications bubbles burst, Sun has posted a string of quarterly losses and declining revenue as its core customer industries - telecommunications and financial services - suffered."

    And, of course, it's almost too obvious to bother pointing out that your "free hardware" will [typically] be bottom of the line jive. Upgrade to Office 2015? Well, it doesn't even pretend to run on your Office 2012 hardware. Want to play DOOM 5? Well, you're still shelling out -- that'll never run on the hardware you get bundled with Office today -- unless you sign up for a pretty danged shackling agreement. The more I learn about corporations' planned tomorrow, the safer I feel it to assume I'll be using Linux when I get there.

    --

    It's all 0s and 1s. Or it's not.
  17. Apple model? by SuperKendall · · Score: 4, Insightful

    You use the term "Apple model" seemingly without understanding what the "Apple model" really is.

    Let me describe it to you - the "Apple model" is a somewhat expensive but pleasant merry-go-round ride - if at any point you get tired of the opulance, you are free to return to the litter-strewn streets of reality.

    Example. The hardware is all standard. It has a PCI bus, uses pretty standard memory, uses standard USB/Firewire periphrials. If I tire of OS X for some reason, I can in fact leave anytime I like and run Linux on it. The box is not locked down that way at all - and I am not force to buy Apple hardware for expansion in any way. In a "Console model' which is what you were suggesting, everything is custom - like the non-standard USB ports on an XBox (interestingly the standard USB ports on the PS2 are one reason I chose that platform originally, so I could use a normal keyboard/mouse with it, so there can be exceptions).

    Second Example. Apple software. If you use iTunes, you can at any time burn any protected songs to CD (or in reality juust use HYMN to deprotect them) and step off the merry-go-round. If you use iPhoto it keeps all of your photos in real files in a subdirectory, not some custom database - super easy to stop using and move all the files elsewhere, even files from a user-defined category. If you use iMovie all of your clips are bog standard video files that anything else can use. In all cases if you tire of the convience offered or outgrow the system (as many serious photographers do with iPhoto), you are free to move on.

    We should all pray that the industry adopts the "Apple standard" as you put it, instead of ridiculing this very consumer-friendly approach. I think you were right about attempts to "consolize" the PC market though, it's just that you started out with an unnessicary and incorrect dig at Apple, who is trying to help you. When they do "consoleize" all other PC's with trusted BIOSes, you know where you can turn to...

    I also worry about the attempt to make everything you do work by rental. But I don't think customers will stand for it, so I think they can only take the thing so far before customers use non-rental alternatives instead. Look at how popular pay-as-you go cell phone plans are becoming, I know a number of people who have gone that way.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley