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Microsoft's XO Laptop Strategy

gbulmash writes "Microsoft is spending a 'non-trivial' amount of money to get Windows XP working on the OLPC project's XO laptop. But why? Despite the conjecture that the Linux-based XO could convince millions of people in the developing world that they don't need Windows and build a huge base of developers for Linux, there still remains the question of how Microsoft would convince owners of XO laptops to buy and install Windows XP over the functional Linux-based OS already on it. It's doubtful that Microsoft could encourage or coerce Negroponte to put XP on the machine, so whose arms will they twist?"

21 of 242 comments (clear)

  1. Two Possible Reasons by eldavojohn · · Score: 5, Insightful

    Microsoft is spending a 'non-trivial' amount of money to get Windows XP working on the OLPC project's XO laptop. But why? I'm going to propose two reasons, both are quite laughable.

    The first is the driving force behind all of Microsoft's actions (and, in fact, almost everyone's): money.

    They are developing this so that people can pay an extra $20 to get XP on the OLPC. I assume they will have to drop the regular license price of $90 to something not one half the cost of the laptop. Well, for common sense reasons and also the fact that it destroys the idea of a cheap laptop for kids.

    The second idea is that they've finally caved. They finally recognized that releasing an XP shell for free (but not open source) will guaranty their survival because it will allow the poor, the desperate & the cheap to still run windows and possibly alleviate piracy. The idealists like us will still use open source but for practicality purposes many will go along with this. Vista will still cost you an arm and a leg but it will be shinier and flashier and souped up compared to this shell of XP. This will also ensure that the children will grow up accustomed to the broken model of Windows and any development they do will be Win32.

    So, I see this as in all likelihood a cross between the two above. They will release Windows XP trimmed down but it will only run if it recognizes the hardware as XO (to prevent you and I from using it to run an MMO only on Windows without the operating system or SVCHost process taking up 30% of my resources). So it's free on OLPCs but still costs fat cat Americans & Europeans moneys. They retain some profit and are seeding themselves into the minds of youths that will be responsible for saving their countries from third world status.

    It's the same strategy they used with their "Academic Alliance" software giving to universities & the not so strange donations that Gates oversees when a village in a third world nation receives computers and technical support worth thousands of USD.

    Microsoft's interests are their survival and money.

    Nicholas Negroponte should be thrilled that Microsoft is already recognizing his success and I wish to send him my gratitude and admiration as so far he has been the only person in this picture with purely good motives. Also all the unnamed developers that have made this possible whether they be employed to do it or not.

    Don't get me wrong, it's great that the world's largest software maker is fighting to give more options to people in need. I'm just afraid that they're going to try to maneuver putting their software on instead of the Linux kernel and we'll have to deal with Windows/Internet Explorer's horrible insecurities on a global level.
    --
    My work here is dung.
    1. Re:Two Possible Reasons by kebes · · Score: 5, Interesting

      They will release Windows XP trimmed down but it will only run if it recognizes the hardware as XO That would be interesting, since there are well-established solutions for emulating the XO in a virtual image (mostly for development purposes). These could probably be adapted to run this modified Windows XP. I imagine that a trimmed-down XP running in a virtual machine would be very useful. It would run quickly and could thus easily fill the gap of running a few Windows apps on an otherwise FLOSS machine.

      No doubt Microsoft would try to create license terms to prohibit such usage, but without cooperation from the hardware designers in the OLPC project, I'm not sure they will have any technical ability to lock-out their Windows XP version from being run in virtual machines.
    2. Re:Two Possible Reasons by ealar+dlanvuli · · Score: 3, Interesting

      No. The reason is very simple. Everywhere but the US, Microsoft exists in the market because of piracy. I doubt they expect to have a bunch of people buying XP. On the other hand, I bet they do expect a bunch of people pirate XP.

      Microsofts biggest fear is people will learn that computers don't have to be based on windows. Once that happens, they can't sell licenses to business and government, because the people won't only know windows so the businesses won't get it.

      Sean

      --
      I live in a giant bucket.
    3. Re:Two Possible Reasons by Abcd1234 · · Score: 4, Interesting

      The first is the driving force behind all of Microsoft's actions (and, in fact, almost everyone's): money.

      Absolutely. But I think both of your ideas are off the mark (though you start to get it a bit later). The goal, here, probably isn't to make money selling Windows to XO users. In fact, I'll bet dollars to donuts their plan is to give away their port for free. No, the goal is to get people familiarized with Windows products. Remember, the developing world today will be the markets of the future for MS. Having an entire generation of children exposed to Windows could be a very good thing for Microsoft when those economies begin to mature.

  2. I guess by Rik+Sweeney · · Score: 5, Insightful

    that Microsoft could give away XP and subsidise the price of the laptop.

    Sure they'd make a loss, but wouldn't it be worth it just to secure dominance?

  3. Finally MS has to fight an included OS by corsec67 · · Score: 4, Insightful

    Now MS will have to compete against a working, installed OS that is on the laptops, based on their own merit. Since Linux can be free, including Windows will increase the price, and might not be as usable.

    Finally we can see if windows success is due in a large part to it being included in most computer purchases.

    --
    If I have nothing to hide, don't search me
  4. Why would they sell Windows? by onion2k · · Score: 3, Insightful

    Despite the conjecture that the Linux-based XO could convince millions of people in the developing world that they don't need Windows and build a huge base of developers for Linux, there still remains the question of how Microsoft would convince owners of XO laptops to buy and install Windows XP over the functional Linux-based OS already on it.

    Buy and install? Why would these developing nations have to buy Windows? Microsoft could intend to give it to them for free. Because they're so fluffy and altruistic and gosh-darn-nice of course, there'd be no ulterior motive whatsoever.

    Honest.
  5. Crack Dealers by ShaolinMonk · · Score: 3, Insightful

    This is a very old and proven method of marketing. A good example of this is still in use today. Crack Dealers. Give your crack away to children, so they become dependant on it. Once they are completely addicted, you have created a demand. Which allows Microsoft to continue business with little fear of anyone thinking any differently then they want. Because no addicted customer is going to revolt against their crack dealer. But they will introduce their friends and family to crack, and continue the cycle.

  6. If I was Ballmer by saibot834 · · Score: 3, Insightful

    The most clever thing to do for Microsoft is hand out copies of Windows for free in the third world. If they don't give them for free (or at _very_ low cost), people won't use Windows and get used to GNU/Linux and other free alternatives to Windows. M$ has to decide what they want: No money now, a bigger market share of GNU/Linux and no money later - OR - no money now, Windows in the developing ([insert oblg. joke her]) world and perhaps much money later, when they can afford to buy Windows.
    I think a Microsoft employee has already said this about China: Installed pirated copies of Windows help Microsoft more than installed copies of GNU/Linux.

    It's the same in the drug business: you get the first cigaret gratis, and once you are addicted, you gotta pay...

  7. They did consider Vista....... by edwardpickman · · Score: 3, Funny

    The problem they ran into was translating "Not Allowed" into all those third world languages.

  8. Re:Windows *XP*? by Anonymous Coward · · Score: 4, Funny

    If they can get Vista running on the XO, I'll eat my shoe.

    sure it'll run Vista... you just have to duct-tape this $1000 laptop to it

  9. But think of the advantages by wsanders · · Score: 3, Funny

    When some African child gets a 419 scam he can just get a couple of his buddies together and walk down teh street to personally kick the guy's ass!

    --
    Give a man a fish and you have fed him for today. Teach a man to fish, and he'll say "WHERE'S MY FISH, YOU IDIOT?"
  10. Whose arm to twist? by Coryoth · · Score: 4, Insightful

    ...there still remains the question of how Microsoft would convince owners of XO laptops to buy and install Windows XP over the functional Linux-based OS already on it. It's doubtful that Microsoft could encourage or coerce Negroponte to put XP on the machine, so whose arms will they twist?" I expect Microsoft will be going after the governments that are buying the XO laptops and then distributing them. It makes for a juicy target as it allows Microsoft to have Windows on the laptops in an entire country. It also has the advantage that it gives Microsoft a good leverage point: they can take a two pronged approach to convincing governments that they should do a mass reinstall of all the laptops with Windows before distributing them.
    1. Microsoft can pitch the whole "Windows is the standard, and you need to prepare your children to compete on the global market", suggesting that anything but Windows is going to cripple the children once they use anything other than the laptops. The usual FUD.
    2. Microsoft can have side negotiations about bulk deals on Microsoft software for the government. Discounts won't cost MS that much, but they could represent a decent chunk of change to some of the countries that are looking to be involved in this program.
    That makes for an easy point of attack, and allow Microsoft to subvert the XO laptop scheme quite effectively. Essentially they just go straight to the middleman with a combination of FUD and bribes, with the result that many of the laptops end uyp training the kids in Windows.
  11. It's a backhanded vote of confidence. by hey! · · Score: 3, Interesting

    This is speculation on my part, but I'm guessing that in part this is flanking maneuver.

    Since there has been a computer industry, the most important place to keep an eye on is what I call "the high end of the low end". that's the place where computers are being stretched into new applications they didn't address before. First comes the killer application, then comes the figuring out how to steal application domains from the mid range.

    Any place that is going to have these devices already has all the conventional laptops and desktops it can support. These devices are creating a new class of low end devices, which leaves the machines currently running windows in the mid-range: the abode of dinosaurs.

    Some day Microsoft may face a government in a place that has millions of these devices in the hands of the populace, that may consider it a reasonable idea to migrate away from Windows because of that. Instead, Microsoft can make them a proposition: we'll cut you a deal on Windows for the OLPC so you can "upgrade" them to a real operating system. You will bring all those people on this toy operating system into parity with the rest of the world, which makes you a hero. And you get to do those major IT projects you are considering in Visual Studio 2010 instead of having to learn Python.

    The exact details of what they have in mind may be quite different; it may even be that they don't really have anything specific in mind. But Microsoft is a company that believe is technology; thus they take the possibility of OLPC's having a transformative effect on societies seriously. The possibility that OLPC can change the rules of the game. On the off chance it does, then the money spent to port Windows to the device will be a small price to pay to have a hand in the game. If it doesn't, they still take away knowledge about porting their platform to more resource constrained devices, so if anybody makes a splash in that area, they'll be prepared with an answer.

    --
    Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
  12. It's XP, but not as we know it, Jim by Peter+Simpson · · Score: 5, Insightful

    The software that MS will provide will, by necessity, be hardware-specific to the XO platform.
    You almost have to do that, as there's no hard drive (you'll need a flash file system instead)
    and minimal RAM, and a non-standard display. As a matter of fact, XO doesn't look anything like the
    platform MS is used to running on.

    The OS Microsoft finally provides may look like XP to the user,
    but I suspect it's going to be more like a highly modified WinCE inside.

    They'll give the OS away...after all, it will only run on the XO...and advertise how
    they're helping to educate the developing world's children -- the Microsoft way.

    And the reason they're going to all this effort?

    I think MS sees this as a strategic move. OLPC potentially delivers a pretty
    large number of young eyeballs. It would be a *very* Bad Thing for their
    first exposure to computers to involve a friendly penguin wearing the label "Linux".

    Much better for future MS sales that they see the Windows logo.

  13. Re:Oxymoron by SEMW · · Score: 3, Informative

    "I am honestly not sure where the Win2K misperception comes from, but Xbox runs a custom operating system built from the ground up."

    Source: XBox team official MSDN Blog.

    --
    What's purple and commutes? An Abelian grape.
  14. It's sorta like this by Moraelin · · Score: 5, Insightful

    More likely because a key factor in the Windows+Office+IE monopoly is its ubiquity. Remember: it's only a "de facto standard" or "industry standard" if, indeed, pretty much everyone and their grandma is inofficially accepting it as a standard, and when your program/format/whatever is subconsciously synonimous with the whole category.

    The way it works is like this: (very nearly) everyone uses product X (where X can be Excel, Word, whatever) with its proprietary format Y. At home, at work, etc. The effects are, in no particular order:

    1. That it's taken for granted that almost everyone already knows how to work with X, but you might need to train them to use the competitors' equivalent. This is a very big factor when corporations decide to standardize on something. And, at least subconsciously, it's then a factor in what people use at home. You've already used or seen X used at work, so there's no point in wasting your time learning something else instead.

    2. Because of 1, knowing how to use program X suddenly is a "skill" you might need at work. You know chances are overwhelming that, unless you're a linux admin or such, the PC at your next job will have X installed on it, and you'll be expected to know how to use it. It might even be an explicit requirement in the job ad. (Remember: training them is expensive, so you might as well hire those who already have the skills you want.)

    So the maths already becomes screwed up. If product X costs, say, 500$, it already paid for itself with interest if having that skill saves you even a month of looking for a new job. Or if it lets you move to a job that pays as little as 50$ a month more than your current one, it paid for itself in 10 months flat. "But some other equivalent is free" just lost a lot of appeal in that context.

    3. Because "everyone" has program X, thus they "all" can (and do) use its proprietary format Y. (See the recent linked story about even most OOo users saving in .doc or .xls format.) So it becomes the de-facto format of communication, and everyone is supposed to be able to read and write it flawlessly. If you're the guy who can't read format Y, you're as much an oddball as if you were the local luddite without a phone.

    And especially for a company, "we don't do Y files" is a big no-no. It doesn't take more than one contract lost with a big customer because you told him you don't want to install Word, to make a bigger loss than buying a retail copy of it for every computer.

    This is somewhat easier to get around, since nowadays OOo does a decent job of reading _most_ office files. But, still, the more it gets taken for granted, the more you're expected to be a 100% flawless emulation, down to the 65536 bug. And it gets pointed as a show-stopper if one guy's spreadsheet uses some obscure old function or macro that you don't emulate 100% accurately.

    4. Even more importantly, well, you can't have a monopoly on interchangeable separate pieces. That kind of a market can be attacked one product at a time. You want every product to depend on every other product. You want people to say, "yeah, Linux is nice, but does it run the latest version of Word?" and the like.

    But to cut this long rant shorter, again, it all boils down to ubiquity. It boils down to the next manager doing any purchasing thinking "naah, _everyone_ knows how to use Windows and Word, but we'd need to retrain everyone if we installed Linux and OOo."

    And in that aspect, raising a whole bloody generation of Indians and Chinese on Linux and OOo, is probably something that scares the seven shades of shit out of MS. It's the kind of thing that could lead to "nah, if we're offshoring there and/or importing workers from there anyway, we'd Linux and OOo are for free and we'd need to retrain them for Windows and MS Office." Or worse yet, to realizing, "hmm, everyone there uses ODF, don't they? I guess it would cost us more to force them to accept .xls files." It's that kind of things tha

    --
    A polar bear is a cartesian bear after a coordinate transform.
  15. Re:I can't wait by griffjon · · Score: 3, Informative

    Remember MS has already created a program (Unlimited Potential) to sell XP (sans Office) for $3/pop to government programs in developing countries. OLPCNews covered this before, during the last MS on XO scare.

    --
    Returned Peace Corps IT Volunteer
  16. Re:I Like Your Ideas But They Are Altruistic by Myopic · · Score: 5, Funny

    I wouldn't buy Office at any price (I never need it, so it is worth zero) but I would pay a reasonable price for Windows. Say... three or four dollars. Five seems a little steep.

  17. MS will give it away by davester666 · · Score: 5, Insightful

    It'll be XP Crippled, and only work on these wacky laptops, but there is going to be too many of these things being given to too many kids for MS to even consider letting Linux get that about of mindshare.

    And they aren't going to aim at Negroponte to pre-install this instead of Linux. They will aim at convincing the governments where these laptops will eventually be shipped to, to get the government to demand that MS's software be installed so they can interoperate with the government's newly installed MS server software.

    They can't let a generation of children, eager to learn to use computers to get a better life, learn how to use and program something other than Microsoft, and to know that the majority of computers around them can run something other than Microsoft software and run well.

    Just like heroin, the first hit is free, but you pay dearly for the rest of your life. And you life sucks once you take that hit.

    --
    Sleep your way to a whiter smile...date a dentist!
  18. It doesn't fully emulate HE by curri · · Score: 4, Informative

    That emulates OS, not all specific HW, so there may be (is?) a way for WinXP to distinguish from real HW, especially from XO HW. For example, VMWare will NOT run inside another VMWare VM.