OLPC Downsizes Half of Its Staff, Cuts Sugar

One Laptop Per Chewbacca writes "Nicholas Negroponte, the leader of the One Laptop Per Child (OLPC) project, has announced that the organization will be laying off half of its staff, cutting salaries of the remaining employees, and ending its involvement in Sugar development. The organization has had serious problems with production and deployment and has been fragmented by ideological debates as Negroponte shifts the agenda away from software freedom and towards Windows. Ars Technica concludes: 'The OLPC project's extreme dependence on economy of scale has proven to be a fatal error. The organization was not able to secure the large bulk orders that it had originally anticipated and fell short of meeting its target $100 per unit price. The worldwide economic slowdown has made it even more difficult for OLPC to find developing countries that have cash to spare on education technology.'"

Comments

Re:Thanks Intel/Microsoft

[grcumb]

You're giving Intel and Microsoft way too much credit. It was ASUS that destroyed the OLPC, by creating the netbook market when it released the first Eee PC.

I'm not so sure about that. I think the OLPC failed for political, not economic reasons. The lobbying efforts of both Microsoft and Intel did have some influence on the outcome, but more and more these days I get the feeling that the biggest reason was sheer ineptitude among the project's organisers.

Let's break these points out a little:

The OLPC pricing model was contingent on economies of scale, and the only parties with enough money to bring to the table were national governments. That logic is sound, as far as it goes. But Negroponte and co. completely ignored just how hard it is to build political will, especially where new, iconoclastic ideas are concerned.

Politicians, especially in developing countries, live from one day to the next. In many cases, their only mandate is to accumulate as much wealth as they can before their government falls, or they fall out of favour. OLPC holds no benefit for them whatsoever.

Those politicians who are competent (and who consider that governing is actually part of the job description) need to have some degree of confidence that what they're proposing isn't going to blow up in their face and leave them looking like fools. As far as I can tell, Negroponte's negotiators relied only on their own stature and authority within the geek world to reassure them. That was - how shall I say? - a little presumptuous.

One example: I have been working in the developing world for a while. In the course of it, I've developed a few very valuable contacts in certain countries in the region where I work. When I was informed that OLPC wanted to roll out in one of them, I was very enthusiastic. This particular country was perfectly suited for such a project: The population isn't too big, the current government is genuinely committed to development, and they've just come into a sizeable chunk of money from newly developed petroleum deposits.

I happened to have contacts at the very core of this particular government. It's not inconceivable that I could have arranged a few very useful conversations. So I wrote to the envoy OLPC had sent, and offered to help.

No reply.

I waited a few weeks more, and tried again. No reply.

After three separate tries, I worked the back channel and was informed by a rather embarrassed individual that the OLPC envoy thought I might cramp his style, so without even checking whether his fears were justified, he cut me cold.

In contrast to this amateurish approach, Microsoft and Intel spend a good deal of time and money building alliances within various governments. They come across as reasonable and fair, often negotiating steeply discounted licensing schemes, and bestowing a good deal of largesse while they're at it.

They're ruthless competitors, that's true, but they don't walk around with blood dripping from their fangs. When you meet with them, they're attentive, caring and sympathetic to your situation. Their job, after all, is to sell more product, and to ensure that nobody else's products look like a reasonable alternative.

Contrast that with some guy appearing from nowhere, expecting to be treated like someone important simply because the letters M-I-T follow their name, and who haven't really a clue about how to effectively navigate the corridors of power. Guess who wins?

Last point: Asus isn't competing with the OLPC. They're building a consumer device and using retail channels to deliver it. They'll sell them in numbers, I don't doubt, but the plain fact is that the devices are not nearly as appropriate for use in rural areas as the OLPC is.

In fairness to OLPC, they're victims as much of being original as anything else. But their strategy is failing because of implementation, not design.