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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."

56 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.
    8. Re:A return to appliances? by king-manic · · Score: 4, Interesting

      does this coming "appliance era" spell the end of affordable general-purpose PC hardware for residential use?

      No. Just the end to warez and code your own adventures. For the vast majority of people their vision for computer use would be more comforting. The human mind ussually isn't goot at more then 5 or 6 choices. When you have literally dozens of choices to be made, most people will not sign on no matte rhwo attractive you make all the choices. thus OSS and Free and in beer software won't be for consumers and never was. Right now, Windows XP pro costs more then the computer I install it on 60% of the time. Not a huge leap to make XP subscription and to giev away the computer.

      --
      "There are more things in heaven and earth, Horatio, than are dreamt of in your philosophy."
    9. Re:A return to appliances? by John+Miles · · Score: 4, Funny

      And at the end of your lifetime, you will still own nothing.

      Which is not necessarily a deal-breaker, seeing as how I'll be dead and all.

      --
      Dahlmann tightly grips the knife, which he may have no idea how to use, and steps out into the plain.
    10. Re:A return to appliances? by dgatwood · · Score: 4, Interesting
      But only for the people who don't know about the $2 generic cartridges on eBay and elsewhere. As consumers become more technically savvy, these sorts of schemes become harder and harder to maintain, hence we see the Lexmark suits in a desperate attempt to maintain control of an unmaintainable business model.

      No, I'd say this is just another sign that the dinosaurs of the computer age (Sun and Microsoft) just don't understand modern consumers or the trends that have plagued every other high tech industry as they gained popularity among the general public.

      Raise your hands.... How many people here rent their wired phones? How many buy the printer vendor's ink cartridges? How many people only get their computers serviced (and RAM added) at your "Authorized Reseller"? How many of you non-digital cable customers still rent your cable box? How many of you only use offical Kodak paper for printing photos or Xerox paper in your photocopier? Anyone? Anyone?

      Vendor lock-in (monopolies notwithstanding) only works when there is little to no competition in the market and when the technology is sufficiently new or advanced that it has not yet become a commodity item. For example, cell phone technology is still changing so rapidly that there is some degree of lock-in (though the phones are cheap enough that this doesn't prevent people from changing companies). Same goes for digital cable. Within five years, digital cable tuners will be built into most mid-range TV sets. I'm not still not sure how long the commoditization of cell phones will take.

      In any case, most people only put up with vendor lock-in for a certain period of time before they get sick of it. When they do, there are always alternatives waiting in the wings. No technology has ever gone from being a commodity to being a subscription service in my memory. I very much doubt that software will be the first---at least not successfully.

      What I expect to happen is that we will see progressively -less- incentive to directly use a computer for general tasks. Instead, more and more devices around our homes will become more advanced, and special-purpose computing devices will pop up (TiVo, for example), not with subscription software at all, but with embedded software (which may or may not ever get upgraded).

      The notion of software will become ever less important, and hardware will become an even greater driving force in the computer industry. There's no reason I couldn't have a word processor built into my TV set. Heck, there's no reason my cell phone couldn't take dictation.

      Admittedly, some of those specialized devices will have subscription models for things like ongoing data feeds (TiVo's channel guides, for example), but that's a far cry from subscribing to the software itself. Also, I don't expect stand-alone computers to go away. Rather, they will provide the central mechanism for coordinating all of those advanced devices. The alternative is too horrible to imagine---vendor lock-in on data storage.... :-)

      But that's just my opinion. I could be wrong.

      --

      Check out my sci-fi/humor trilogy at PatriotsBooks.

  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 Anne+Thwacks · · Score: 4, Informative

      I don't know which country that is, but here in the UK, leasing is popular, because the tax structure is massively rigged in its favour. If you have a car on a company lease, you effectively avoid taxes of 30%, and possibly considerably more.

      --
      Sent from my ASR33 using ASCII
    7. 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.

    8. 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.

    9. Re:Free Market by Paulrothrock · · Score: 4, Funny
      Like Kirby vacuums. Guy came to sell on to my mother-in-law for $1 per day. She said she can't afford it.

      "You can't afford $1 a day?" he said.

      "No," she said, "I can't afford $365 per year."

      So much for his commission on a $1,300 vacuum.

      --
      I'm in the hole of the broadband donut.
  3. They got it backwards by tritone · · Score: 5, Insightful

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

    1. Re:They got it backwards by nizo · · Score: 4, Funny

      Actually it is probably part of Sun's new exit strategy (err I mean market plan):
      1. Release free hardware with software subscription.
      2. People put Linux on it.
      3. File bankruptcy!

  4. Yeah, well by Anonymous Coward · · Score: 5, Funny

    As long as they're giving hardware away, I'll take a Cisco CRS-1 router and a Beowulf cluster of GeForce 6800s.

    I'll expect to take delivery of this equipment right after my Triphibian Atomicar rolls off the transporter from Swift Enterprises.

    Seriously... a couple of years ago, Sun was telling us we'd all be running on glorified VT100 terminals. At what point do these clowns lose all credibility?

    1. Re:Yeah, well by deacon · · Score: 4, Funny
      I *am* posting this from a VT100 terminal, connected to the serial port on my PC, you insensitive clod!

      I use the VT52 as a footstool.

  5. 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.

  6. Cars will be Free by Anonymous Coward · · Score: 5, Funny

    I think cars will be free too.

    We will just pay for gas and service.

    I think Sun stock will be "free" too, if you know what I mean.

  7. 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.
  8. 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.

  9. 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.
  10. 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.

  11. 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.

  12. Will Joe User go for it? by jdreed1024 · · Score: 4, Interesting
    This isn't a completely new idea. Look at cell phones. You can get the phone for free (a crap phone, but it works) and then you pay monthly for the service. Or the budding music/audiobook industry where you get a player (again, a crap player, but it works) for free if you subscribe for a year. (Examples are Napster and Audible, obviously Apple doesn't give a free player if you buy an iTMS account)

    I could easily see a future where if you subscribe to Microsoft products for a year, you get a free PC. PCs are dirt cheap anyway.

    The question is not whether or not it's possible or feasible. The question is whether Joe Consumer will go for it? There are already a fair number of things that a consumer licenses instead of owning (DRM music, etc). And it works largely because Joe Consumer is ignorant of the details and relies on the companies to tell him why what they're doing is a good idea.

    But once it starts leaving the high-tech market and hitting closer to home, there's more pushback. I'll cite everyone's favorite example of DivX (the players, not the codec). Buy a movie but you only get to watch it a set number of times? Yeah, that worked real well. I'm not convinced giving away the players would have fixed that. Disposable self-destructing DVDs crapped out for the same reason, and for environmental reasons. Why? Because people were used to buying DVDs (and, before that, VHS tapes) and owning them, and playing them as many times as they wanted until they broke or the dog ate them, or whatever. And when someone comes along and says "Sorry, you now need to pay to watch this", they say "Um, no."

    Consumers have been used to purchasing and owning computers and owning software (yeah, yeah, it's licensed, we know, but so are videotapes technically - 'Licensed for Private Home Viewing' - and we still talking about 'owning' them). So there might be a fair bit of pushback. However, consumers are equally pissed off at their hardware and software becoming obsolete so frequently. So they might just pull this off if it's plugged as the solution to constant upgrading. Time will tell.

    --
    There is no sig, there is only Zuul.
  13. 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.

    2. Re:It's not even gratis. by johkir · · Score: 4, Interesting
      I work in a hospital where much of our lab equipment comes as part of a package deal. The Heomdialysis Unit, for instance, has multiple types of machines, from various vendors. For about $20k a piece, we get a machine, and the software to run it. We get software upgrades and hardware upgrades *FREE* with our service contract. The nice thing about it is, no one at the hospital has to know how to program them, and when one breaks, a service rep comes out to fix it, with time, travel, and parts included. We even get new machines as models are upgraded. You could easliy market this as state of the art software, with free hardware to run it. The hardware is so specialized though, that we can't do much else with it, so it may as well be free.

      These are some of the things molecules will do....given a few billion years - Carl Sagen

      --
      These are some of the things molecules do...... given 4 billion years -Carl Sagan
    3. Re:It's not even gratis. by Grishnakh · · Score: 4, Interesting

      I don't know that buying your own phone+contract is cheaper.

      It's not. It's cheaper to just sign away your soul on the contract, take the free (or cheap since it's subsidized) phone, and live with the multi-year contract.

      I'm as much against being sucked into leases and subscription business models as the next Slashdotter, but I do have a cellphone with a two-year plan, and the reason was the cost. My options were: 1) buy my own phone and get a separate contract (too expensive), 2) get a contract with cheap phone, 3) get landline phone service, or 4) don't get a phone at all. #2 was the cheapest, and most convenient in every way. After long-distance charges, landline phone service is far more expensive than cellular service, plus the monopoly that runs it around here (Qwest) has the most horrible service and customer support of almost any company in recorded history. And, you have to be at home to use it... what a pain. #4 is just silly unless you have no friends, no family, and no life. And #1 was simply more expensive than #2, and not all that useful either since (in the USA) the phones are more-or-less tied to the provider since all the providers use different technologies and frequency bands (CDMA vs. GSM, etc.).

      The problem with comparing phone service to this ridiculous "the hardware will be free" concept that Sun and MS are now touting is that, with phones, there is no viable alternative to getting monthly phone service with some big company. You can't just become your own phone company, install your own phone lines across the country to your relatives, etc. If you want to get along in this society where having a phone of some type is basically mandatory (which isn't necessarily a bad thing; communication makes life a lot easier), you have to pick some company to get your service from.

      Not so in computing. The Free Software/OSS movement has been around for quite some time, and is continually picking up steam. If you want operating system software, you can purchase licenses from Sun or MS for $$$, or you can use Linux or *BSD for free (and buy support contracts if you choose, etc.). There's many options. If you're a corporation mindlessly locked into MS software and a 2-year upgrade cycle, this "free hardware" (leased hardware in reality) concept may make some sense, but if you'd rather own your own stuff, and would rather upgrade when you feel you need to instead of when some big company thinks you need to, this concept is useless. In the end, I think both models will survive.

      It's a little like leasing a car vs. buying one. I personally see no sense whatsoever in leasing a car, but a lot of people do it for some reason. Probably because the dealership salesmen managed to sucker them into it. For people like me who see no need to get rid of a car after 2 or 3 years, when it's barely broken-in, and would rather keep it 10-15 years and not make monthly payments forever, leasing is useless, and apparently there's enough people like me that leasing, while it exists, competes with buying and still doesn't constitute a majority of new-vehicle sales I believe.

  14. 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?

  15. No, it'll be this way by Marxist+Hacker+42 · · Score: 4, Funny

    Step 1: Sun gives out hardware for free with Microsoft and Sun proprietary software

    Step 2: Large numbers of businesses, who would pay for software anyway, get new free great DRM hardware.

    Step 3: These same large businesses now throw out all of their old, non-DRM, non-Compatible hardware.

    Step 4: Geeks like us go dumpster diving in a sea of free hardware.

    Step 5: Install OSS on free hardware.

    Step 6: ?

    Step 7: Profit!!!!!

    --
    SJW: a person who perceives an injustice, and while correcting it, commits a greater injustice.
  16. Two competing models by Quixote · · Score: 5, Interesting
    There are two competing models here.
    1. Hardware is "free", software costs money. Analogy would be the cable TV box. You get the box for free, but you pay for the software (programming).
    2. Hardware costs money, software is "free". Example would be broadcast media (broadcast TV, radio).

    Guess which one the conglomerates like? (hint: 1).

    Only time will tell which model succeeds.

    Unlike the TV/Radio industry, the content in the computer world can be created by anyone (hence the FLOSS movement). This would seem to tip the balance in favor of #2.

    Unless, of course, suitable laws can be passed... and seeing how apathetic the voters are ("look! over there!! shiny things!!!"), it is only a matter of time before writing software becomes encumbered with patents, licensing (i.e. software professionals will have to be "certified"), etc., thereby tipping the balance in favor of #1 above.

  17. Re:A return to the old phone company by ron_ivi · · Score: 4, Interesting
    "akin to the cell phone market"

    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?

  18. 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.

  19. A Preview of their defenition of "FREE" by the+MaD+HuNGaRIaN · · Score: 4, Interesting

    Check it out:

    http://developers.sun.com/offers/jedevpromo/

    You buy a 3 years subscription at 1500 per year, and they "give" you a "$7000" server.

    Excuse me, but for that same $4500, I would rather buy an XSERVE.

  20. Re:A return to the old phone company by Grishnakh · · Score: 4, Informative

    I was very young at that time, but I think consumers got fed up with the situation where they could only have one phone in the entire house, or had to pay hefty monthly fees for additional phones. I believe this spurred the government to change the law so that property owners owned the lines inside their houses (previously, Ma Bell owned the actual wiring, even though it was inside your walls!), and could purchase their own phones if they wanted.

  21. Re:A return to the old phone company by Anonymous Coward · · Score: 5, Informative
    The government mandated it with the breakup of the "Ma Bell" single phone company. Part of their monopoly was with service, so they split into the "Baby Bells" regionally, then had to allow competition later within those markets. The other part of the monopoly was in physical equipment. You weren't allowed to connect a non-Bell phone to your line. They had a proprietary connector, which they had to replace with the RJ45 jacks everyone has now. That standard jack allowed citizens (aka consumers - I hate that term!) to connect phones made by anyone.

  22. Danger of Free Hardware by midifarm · · Score: 4, Interesting
    There's an inherent danger in the proposal to free hardware.

    First and foremost condition would be that all computers would be the same configurations. While the idea of "appliancizing" computer hardware would be wonderful for the consumer in the long run it's counterproductive. Software is more complex than say a television broadcast. While the thematic content may vary amongst shows, the medium conforms to all TV sets nationwide. NTSC or PAL is the format and there's no straying. Enhancements are only allowed for audio, and now HD is becoming more commonplace; however, new hardware must be purchased to take advantage of the new innovations.

    Which brings me to my second point, the lack of true innovation. Software writes will become more or less problem solvers than true code writers where the sky's the limit. By problem solvers I'm referring to the need to find work arounds all the limitations of the hardware to perform whatever the desired task is. Computer configurations change and improve like the wind, but without innovations and improvements, not only in speed, but connectivity etc., we are forced to stagnate. By all theoretical laws we should've maxxed the computing potential power of silicon, yet we still see improvements.

    We need forward thinking companies to push the envelope. The elements of design and function are integral to progress of computing. Without invention, originality and breakthroughs we the consumers are doomed to stagnation and a one dimensional world. In turn, software creators are forced to live and operate in that one dimension, struggling to squeeze as much out of a box that they can.

    As we've seen many times, underfunded projects are destined to die off. If hardware becomes free and available to all there's no profit. And where there's no profit there's no innovation; therefore, we will create our own stone age.

    Peace

  23. 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.

  24. 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.)

  25. In other news by LPetrazickis · · Score: 4, Funny

    (Reuters)

    A leading bicycle manufacturer announced today that, in the future, bicycles will be free but people will have to pay for the oxygen they'd breathe while biking.

    Advertisement:
    [Kids, steal money from your parents and buy Nike brand oxygen. Only Nike oxygen delivers the charge you need to push the limit.]

    This announcement follows a call by several right-wing thinktanks for a transition from a manufacture-based to a service-based economy.

    A number of South American and African nations, who have finally developed a manufacturing sector of their own in spite of IMF loans going primarily to resource extraction are not expected to follow the advice in the near future.

    --
    Is this a sigs-optional kind of place? 'Cause I am totally down with that if you know what I mean.
  26. 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"
  27. 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.
  28. Count down to Asian Tea Party by properler · · Score: 5, Interesting
    So Scott and Bill got in bed together to lock computers with DRM. Kiss of death for Sun. News at eleven.

    But this schems works if everyone follows. Microsoft can try. XBox are not servers. MS easily can lock them, locked servers are next to useless.

    Problem with that DRM game is that China and India won't follow. China is starting boiling its own standards to avoid American patents. Smart ass analysts say "fragmenting the market is dangerous". Well, a potential market of 1.2 billions people with two main languages is not that fragmented. Someone should tell this guys from Big Apple that there is something south of the Statue of Liberty!

    Oh, and most of manufacturing is in Asia. America is working hard so that support and engineering will soon be there too. Europe will probably do the same. :(

    Now about content.
    Bill and Scott think the real value is software and content (music, movies). Problem is that Asia and easter Europe is starting to be good there to. Interesting that Tarentino movie blinks at asiatic movies. At least he is aware, that the strength of america is to be a melting pot. America can lock itself in DRM and get its culture even more inbred than it has recently become. Choice: Oprah or Jerry Springer?

    Now about software and service. IBM is using Open Source, Oracle is training ist workforce to Linux. Who needs Sun which tries to force on us its own stuff? Who want slowlaris anyway?

    Remember the Boston Tea Party. The asians can start their Asian Tea Party. any day know.

    Short of nuking them, America will have to rebuild know how, industries... Who knows? America becoming a poor country, some day some morons from Asia will think smart to oursource in America. And leadership will change again.

    A few years back, I was asking myself "will this end up with an asian Tea party". Now, I just ask myself when. I even hope that Europe will evneutally get smart. But we have just voted stupid patent laws for software. :( Empires come and goes. Europe should be smart not to stay the vassal of the states.

  29. 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
  30. Hard wired by zogger · · Score: 5, Interesting

    --the earliest phones I remember as a kid where hard wired, no jack at all, and they didn't have a dial. Heavy suckers. One of my grandmas had one of the old crank phones, where the mouth piece was on the phone on the wall, you grabbed the single earphone and held it up to your ear, and you cranked it to get the operators attention. We had a normal looking phone though, just no dial. You just picked up the phone, if someone was yakking on it (no one had a dedicated phone, they were all party lines with like 6 houses on each circuit) you asked when they would be done. You picked up a few minutes later, and the operator came on, you gave her-and it always was a her- a number, or just told her a name if it was local. Payphones had dials and cost a nickle. Hardly anyone had a TV yet(we were the first in the neighborhood to get one), but everyone had a big ole tube job radio in the living room and some sort of record player. Those radios threw more heat then the next 10 AMD boxes put together. Smokin! They'd pull the stations though, almost all of them had built in shortwave and commercial AM, there wasn't any FM yet. Not that I remember anyway. I LOVED them things. Had a big ole grundig was my gateway to the world at night, had wires all over my ceiling in my room.

    And movies were 25 cents and the only place that had air conditioning. Cokes were a nickle. A new .22 rifle was around 12$. A one speed old heavy bike was about 25$, had enough steel in it to build two harleys I think. Not sure on new car prices back then other than below one grand for a decent one. I know the first house we lived in cost my dad 100$ downpayment, and it was brand spanking new, 3 bedroom ranch with a nice yard in a nice neighborhood. He had a ten year mortgage (I asked him later to find out), which was very common then.

    1. Re:Hard wired by zogger · · Score: 5, Interesting

      Got my tech enthusiasm from my dad, who was a radio/radar tech in the navy in ww2, then went on to be a mr fixit guy for them things back in civvie life, then went on to work in mainframes. I got to see and help work (some, mostly astanding around getting in the way) on some really old full building sized monsters way back then. He's retired now, but is still a mad garage inventor/tinkerer. Heh, he used to be a "case modder". This is funny. All the old radios and tvs he worked on for people, he would throw a fan in there mounted inside a coffee can, they kept the machines cooler, the tubes went out less often=happier customers, more word of mouth business for him. Another time he built his own electric guitar and amp and had a small band he played in, mostly what is called rockabilly now styled music. My mom jammed on keyboards-a real piano. Heh. They also really encouraged me, were good parents, I learned to read at age 4, that certainly helped.

      I'm red-green deficient color blind unfortunately, so back then I really couldn't get into electronics much from color coded wires and resistors, etc, much to my regret to this day. I can tinker some with electronics now, but it's just strictly amatuer hour there. I'm a fair mechanic/carpenter and have had quite an amazing variety of jobs and experiences. To me, life is a great adventure, if you ain't having fun and learning, you'll just shrivel up and get sour. Ya gotta stay physically and mentally active. I always liked computers, but never afforded one until the early 90s when they finally got cheap enough for me to get good used ones. Now it's just a hobby and a great commo tool, an adjunct to radios. Hmm, another thing my old man made was really spiffy, back in the late 60's we had a big backyard pool, the last couple years I was living at home. He and I installed a home brew solar water heating system for that pool, we picked up two more months of good swimming with that thing (up in michigan where I grew up). He was always making stuff like that. Another one I remember he made a capacitive discharge ignition system for those old 59 chevy wagon he had. It was a bear to start in cold weather, he built this thing one weekened and poof, that car just CRANKED and ran no matter how cold it got.

      Lots of older folks are tech savvy, remember, all the tech we have today came from guys like my dad back then doing the ground work. 50 years from now you'll look back and go "man, that was some primitive stuff back then in 2004!" HAHAHA!

      ipods! We didn't have no steenking ipods! I had a crystal radio I made. The potential between the antenna and the ground wire made the juice to run it. The tuner was wire wrapped on a carboard tube, the ear phone was a rubber eraser with a needle in it and some bits of plastic crap. the whole thing was mounted in a cigar box. Wish I still had it.. hmm Dang if I could remember it better I'd describe it better, but that was most of it AFAIK. It actually worked, with a lot of fussing you could get a couple of stations. Nuthing like that grundig though, I STILL don't have a radio that could pull the stations that old analog monster could.

      some stuff was cooler back then, some stuff is cooler now, it's a fair trade off I guess. *Much* less crime, and your buck was worth a lot more, and wicked easy to find good work, and things you could get were mostly still cheap, and quality was excellent. Now you have a lot more variety of *things*, but they don't last as long. Stuff all costs too much, which they keep trying to fix by inflating the dollar, but it still hasn't worked. We got a lot more white collar businessmen/bosses/mamagers/ whatever per human than we used to. And the economy got worse. Politicians still suck. I think they always have sucked, because it's a sucky job probably. Corporations are even more bogus, but they bring us cool stuff, so we are stuck with them, that'll be the fight that lasts forever. We have much better information now, you can go find out about ANYTHING you want to sitting in your living room, this is WAY cool.

      Still, no cheap flying cars, and no hot babe amazon robots for your private army.... I'm HOLDING OUT!