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Windows Operating Systems Software The Almighty Buck Technology

Is Windows Worth $45? 1038

bgelb writes "This article from the Wall Street Journal questions whether Microsoft really innovates enough to justify the enormous amount of money (nearly 10% of the cost of every PC!) it takes from consumers each year. Hard drive and chip makers innovate constantly, but what about Microsoft?"
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Is Windows Worth $45?

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  • Who actually pays? (Score:5, Insightful)

    by LlamaRama ( 561817 ) * on Monday March 08, 2004 @09:45PM (#8504975)
    I'm not a Windows user, but all of my friends in my networking class pirate, even the ones who are Windows enthusiasts. Of course, they all build their PCs, I suppose it is really people buying OEMs getting hosed.
    • by Roger Keith Barrett ( 712843 ) on Monday March 08, 2004 @09:52PM (#8505047)
      What do you mean by "pirate"?

      Is this the Microsoft definition that says that since I don't have a license for each and every CPU that I am "casually pirating" their software?

      That's just dumb. I have bought Windoze many times in many different ways ranging from the Microsoft tax to computer shows to computer software stores... if I use windows on 4 machines and I have 3 licenses why should I be given this highly inflamatory label as a pirate? Once it gets through my door I should be able to use it as I please just as any other form of "Intelectual Property."

      Wow.. fair use really must be dead as the corp guys said...
      • by drsmithy ( 35869 ) <drsmithy@nOSPAm.gmail.com> on Monday March 08, 2004 @09:58PM (#8505103)
        That's just dumb. I have bought Windoze many times in many different ways ranging from the Microsoft tax to computer shows to computer software stores... if I use windows on 4 machines and I have 3 licenses why should I be given this highly inflamatory label as a pirate?

        Same reason people who download an MP3 of a song that plays on the radio every other hour get called "pirates".

        Not that I agree with it, that's just how it is...

      • by Anonymous Coward on Monday March 08, 2004 @10:10PM (#8505214)
        They're the copyright owners they stipulate how it can be distributed or whether it can be copied to multiple copy's. People get pissed when large companies break the GPL why shouldn't microsoft get the same people being irate for them? Don't give me that whole microsoft is monopoly deal, morals are morals. If you think its wrong to break the gpl don't go doing the same for windows.
        • by Roger Keith Barrett ( 712843 ) on Monday March 08, 2004 @10:28PM (#8505381)
          It's also morally wrong to use your "Intellectual Property" as a sword and not a shield... and it's also morally wrong to use your "I.P." to fleese every nickel out of someone for a product that has already legally paid for. If YOU are in favor of the GPL you will already know that the reason it even exists.

          The GPL has neither one of these problem, thank you. I have paid for windows, and, for your information, I have a legal association with a university with an extended site license so EVERY copy I have is legal and I can run it where I want... LEGALLY.
        • by Txiasaeia ( 581598 ) on Monday March 08, 2004 @10:39PM (#8505478)
          Excellent point. By the way, I'm the copyright owner of this comment, and by reading it you agree to pay me $1000. If you think it's wrong to break copyright, then please don't read this comment, but since you already have, I'll take the full amount in $20's please.
          • by Uggy ( 99326 ) on Monday March 08, 2004 @11:11PM (#8505854) Homepage
            Take copyright and turn it around...

            Right to copy.

            Copyrights are rights granted to copy something... and copying it into your mind by reading it doesn't qualify. This is why we get all into talking about fair use etc. What constitutes copying? Partial copying, quoting with attribution, backup copy for personal use?

            Anyone know what the default copyright's are? Are all rights reserved by default? What rights are granted by not explicitely stating what the right to copy is.

            And in closing, I think copying a slashdot comment will more likely get you bitch-slapped than sued... but that's just my two cents.
          • by zangdesign ( 462534 ) on Tuesday March 09, 2004 @12:01AM (#8506364) Journal
            It wasn't worth time I spent reading it, so I'm filing a claim under my state's lemon laws. Oh, yeah, I've also called the BBB about shoddy merchandise. I will be filing a class action lawsuit next week on behalf of all /. readers who may have reason to believe they were harmed emotionally, mentally or intellectually by your comments.

            I've also called Random House and Webster's. Their lawyers may want to speak to you about the usage of various of the following words:

            Excellent point. By the way, I'm the copyright owner of this comment, and by reading it you agree to pay me $1000. If you think it's wrong to break copyright, then please don't read this comment, but since you already have, I'll take the full amount in $20's please


            Have a nice day.
      • by bluekanoodle ( 672900 ) on Monday March 08, 2004 @10:52PM (#8505607)
        Sorry, not to be a Microsoft apologist, but if you bought that license with your machine, you didn't buy a full license, you bought the OEM license, which is intended to be used on that machine and that machine only. Because of this restriction, you did not pay the full retail price of Windows.

        Many people pay much more then $45 dollars for their OS, hell, even Mandrake and Suse cost more then that if you buy it.

        Nobody forces you to buy a computer with Windows on it, yet. If you don't like Microsoft's practices, buy a computer with no OS, or build your own. The vast majority of people would rather pay extra and not have to worry about loading the OS manually. And those who know how to load an OS also usually know where and how to build or buy a system without an OS.

        • by jedidiah ( 1196 ) on Monday March 08, 2004 @11:15PM (#8505892) Homepage
          This violates the Fair Use and First Sale doctrines. Corps make it common practice to toss legal language into contracts knowing that it can't/won't be enforced. This is one way those with a clue like to abuse those without one.

          Don't take is the next gospel just because it's in a contract or license.
    • by i.r.id10t ( 595143 ) on Monday March 08, 2004 @09:57PM (#8505092)
      Funny, the college I work at has the Academic Alliance thing... so our students get like just about anything MS has for $25 total, but only if they are majoring in the ITE fields.
      • by Ianoo ( 711633 ) on Monday March 08, 2004 @10:01PM (#8505128) Journal
        Their differential pricing model in general hints at monopoly abuse - by this I mean the fact they can charge different prices for 7 different versions of Windows (XP Home, XP Pro, the various Server 2003's), which ultimately aren't very different under the hood, combined with the fact that they'll practically give software to anyone with a good enough excuse (governments, universities, the third world...). Clearly their mark-up on Windows is pretty huge, given that they don't need to be making lots of money on every single copy.
        • by jproudfo ( 311134 ) on Monday March 08, 2004 @10:18PM (#8505289)
          That has nothing to do with being a monopoly. Practically every hardware/software vendor in the world does the same thing.

          Sun and IBM, for example, price their hardware and software all over the map depending on what type of customer you are. Everyone gets a different level of "discounts" or slightly different SKUs, depending on the audience/purchaser, even though it's all the same under the hood.
          • by gad_zuki! ( 70830 ) on Monday March 08, 2004 @10:37PM (#8505466)
            > That has nothing to do with being a monopoly.

            I see where you're going with this, but I don't know if its that clear cut. For instance, three weeks ago I was talking to one of our NOC guys at school and essentially they're going to phase out Novell because MS is giving them so much free software (upgrades to XP and server2003) they can finally shift to AD and drop Novell.

            Now how is MS able to pay for this generosity?

            1. They abused their monopoly and are arguably paying for this kind of thing with their ill gotten gains.

            2. They're just a good company. *snicker*

            I'm leaning towards 1. Novell has money and doesn't want to lose customers either, but they can't afford to supply an entire 20,000 person campus for 2 or 3 grand.
            • by Sabalon ( 1684 ) on Monday March 08, 2004 @11:22PM (#8505977)
              They can afford to give it away. As someone else wrote, it is also a tax break for them.

              But it is also advertising. Students at the school don't see novell at all anymore, they see Windows and AD. They get used to this, they learn it. When they graduate, they know it. They go other places and ask why it's not there or help to bring it there because they know it.

              With the Microsoft Campus Agreement, campuses license Windows and Office at a flat fee based on the Full-time enrollment equivalant. At our campus of 6000 students, it works out to cost about $8/student/semester. That $8 gets then the OS installed (9x/ME/2k/XP), and the Office Suite, and a couple of other things, like Visual Studio. When they leave the school, they get to keep it as well. Yeah...we pay for it, and the students pay for it, but for what is basically $16 a year, they get the OS and office suite with free upgrades. On the other hand, the amount the campus pays has gone up a couple times.
        • by kfg ( 145172 ) on Monday March 08, 2004 @10:47PM (#8505550)
          Indeed, and I have long publicly held that $45 is right about the fair price for the retail version of the "greatest" version of Windows. Rather less for the "lower orders" and OEM versions.

          Particularly over the past few years when the legal street price for a functional OS has been $0. All Microsoft is really selling these days is value added above that which is available for free, and that added value shrinks daily.

          The same goes for pirated versions as well, were XP Pro $45 retail and XP Home $25 I dare say you'd see 90% of the pirate market dry up over night and Microsoft revenues either hardly dip at all, or perhaps even rise slighttly.

          Those who would still pirate it at those prices are those that will pirate it anyway, notwithstanding price.

          Any company that can, at those prices, cry that they're only making about 90% clear profit on their wares had best not cry to me. I shall likely be entirely deaf to their entreaties, knowing, as I do from personal experience, that squeezing 20% overall profit from commercial trade is doing rather well, both by one's self and by reference to the profit margins of others.

          Take GM, for instance, who must deliver to you a car for the same profit margin that MS makes on Windows+Office, and who must invest billions of dollars in research, regulation compliance, manufacturing facilities, distribution channels, liablility etc, in order to deliver that car to you.

          Microsoft's vauted "R&D" costs are peanuts compared to what it takes to make a simple change to an existing auto design, let alone the cost of designing and certifying a wholely new model. Their manufacturing costs are virtually nil, as are their distribution costs.

          This is why they have been able to gather their unparalleled vast fortune in only a couple of handfuls of years, and why they must now resort to extraordinary actions to maintain their sales, even though their vast fortune would allow the company to live quite securely ad infinitum without conducting any overt commercial trade whatsoever.

          Yes, for Windows XP Pro $45 seems fair, to a bit less than fair, as a retail price.

          Let's say $19.95 for Office.

          KFG
    • by primus_sucks ( 565583 ) on Monday March 08, 2004 @10:05PM (#8505185)
      I can afford Windows, but I still choose Linux. Why would I want to pay for an inferior, insecure product when I can get Linux for free?
    • by Deusy ( 455433 ) <charlieNO@SPAMvexi.org> on Monday March 08, 2004 @10:15PM (#8505270) Homepage
      I suppose it is really people buying OEMs getting hosed.

      Not at all. Most OEMs get it massively discounted, for something like $1 per machine. It's one of the major leverages Microsoft have had over the OEMs.

      Basically if an OEM is pissing MS off by, say, negotiating with another OS inventor, then they pull on the leash and threaten with making the OEM pay the normal $45 price. $45 is a lot to OEMs who are constantly trying to undercut competitors in order to maintain market share.

      Just ask Be Inc who couldn't get a single major OEM to even consider BeOS. Even IBM suffered from this as they struggled to get OS/2 onto the consumer/coporate desktop. Hell, Linux is free yet no major OEMs properly push a machine pre-setup with Linux. Or are you going to tell me there never was a desktop market for any of those (or other) OSes?

      Only recently have OEMs started to flaunt a little disregard for the desires of Redmond because of all the Antitrust hoo-haa. But now that all the states have been bought... I mean, have reached settlements, things will soon return to normal.
      • by Great_Geek ( 237841 ) on Monday March 08, 2004 @10:41PM (#8505493)
        You actually think OEM's pay Microsoft $1 per machine? And you actually think Microsoft has $61 billion in cash by collecting $1 per machine?

        The WSJ numbers are OEM quantity numbers. MSRP for Windows is a lot higher (same for all the other components as well). It is true that Microsoft will massively discount for their friends; but $45 is the DISCOUNTED price.
      • by HardCase ( 14757 ) on Tuesday March 09, 2004 @12:35AM (#8506631)
        Not at all. Most OEMs get it massively discounted, for something like $1 per machine. It's one of the major leverages Microsoft have had over the OEMs.


        I worked for a major OEM for several years. I don't know where you got your figure (but I can guess...), but it's wrong. OEMs pay about $45 per license. The price hasn't changed for years. It used to be $45 for WfWG, about $50 for NT 4 and the same for 98 and up. And that was back when MS was strong-arming exclusive contracts.


        We had to consider the cost of every component that went into a PC, down to the screws. So even back when a hot computer was Pentium 166, that $45 was a chunk of change. You can bet that it's virtually intolerable today.


        What really made us grit our teeth, though, was that we paid $45 to $50 for a copy of Windows, but we were responsible for all of the manufacturing costs, from the media to the packaging. We had to contract our own mastering, printing and packaging services. So, while we paid Microsoft their money, we also had to pay Phoenix another few bucks for the actual media. And when a new version of Windows came out, we had to pray that Microsoft would actually get us a master soon enough so that we could ship systems with their OS on the announced release date.


        At the time, we were the second largest build to order PC company (behind Dell). I'd hate to think of how things would have been if it was a tiny outfit.


        Not a dollar. Not even close.


        -h-

  • by Valar ( 167606 ) on Monday March 08, 2004 @09:46PM (#8504987)
    No.

    It isn't even worth $0. I don't want it near me.

    No, really, I'll get a restraining order.

  • by Ars-Fartsica ( 166957 ) on Monday March 08, 2004 @09:46PM (#8504989)
    If consumers don't like paying for Windows they can buy a Mac, use Linux, or pirate it.

    There are choices for consumers and if they refuse to vote with their wallets, I have little pity on them,.

    • There are choices for consumers and if they refuse to vote with their wallets, I have little pity on them,.

      Patience young one. This is a Wall Street Journal article, not a computer focused article. This is just a sign that Wall Street is waking up to the fact that Windows isn't worth the money they've been spending. Ever since Microsoft released XP with these new tighter contracts, businesses who hadn't previously cared about alternatives now care. We've already seen some Microsoft replacing going on, this article is probably a harbinger of more.

      • by ergo98 ( 9391 ) on Tuesday March 09, 2004 @12:48AM (#8506725) Homepage Journal
        This is just a sign that Wall Street is waking up to the fact that Windows isn't worth the money they've been spending.

        The real assessment is much more sobering to those of us in the software industry -- this is just another bit of proof that the general perception nowadays is that software should be free, or damn close to free. No one groans about $600 for an LCD monitor, $200 for a hard drive, or $250 for a new video card every two years, but $45 for tens of millions of lines of code that is the single most important element of the PC (how great is that PC minus software)? Whoa, that's just unacceptable!

        Consider this a win if you're blinded by your anti-Microsoft rage, but the reality is that this is yet another step towards the caveman mentality that only physical objects that you can hold in your hands have value. Of course I realize that's the going philisophical argument in these parts, so I'm preaching to the wrong crowd.
    • by mtnharo ( 523610 ) <greengeek@noSpAm.earthlink.net> on Monday March 08, 2004 @09:57PM (#8505097) Homepage
      The average consumer purchasing a cheap $500 Dell or E-machine does not have as great a choice as it seems. Only Walmart has been offering cheap PCs without Windows lately, whereas everything from the low end Compaq/HP, Dell and Gateway machines that are more popular have one and only one OS installed on them.

      "Buy a Mac," while it is a good solution for some people, doesn't work as well for those on a budget. Pirating windows is not a legally friendly option, and it wouldn't save Joe Sixpack any money if he's buying a new Dell anyway. As much as I think Linux should become more widespread, I'm not sure if the masses are quite ready for it yet.

      The issue is not that Windows costs money, but that there is no choice in the matter for the average user when they buy a new PC.

    • by The Snowman ( 116231 ) * on Monday March 08, 2004 @10:02PM (#8505135)

      If consumers don't like paying for Windows they can buy a Mac, use Linux, or pirate it.

      There are choices for consumers and if they refuse to vote with their wallets, I have little pity on them,.

      Easy for you to say, but most people only know what is on display at CompUSA, Best Buy, Circuit City, WalMart, etc. As soon as the big OEMs with retail distribution stop giving in to Microsoft exclusion deals (I forget the economics term, when a monopolist refuses to sell its product to a middleman if he sells competitors' products too). Dell employees came out of the closet and told the world about these deals, we know it goes on. Do you really think any OEM will stand up to Microsoft and risk losing Windows? Only WalMart has been able to do this, one juggernaut battling another...

    • by MouseR ( 3264 ) on Monday March 08, 2004 @10:05PM (#8505181) Homepage
      Regardless if you like them or not, weither they need your money or not and weither you have pity or not for MicroSoft, no software developer should be punished by pirating their work.

      If you dont support MS, then fine. Don't buy their product. But using their product (pirated or otherwise rented where legal), you're just indirectly supporting them by telling your friends and relations that it's OK to send you MS -formated documents (Word, XCell etc). You're not accomplishing much, in a show of disapproving their products or business model, by using their products.

      The best protest you can make is categorically not using their stuff, and returning send documents to the sender and asking them to save it as an open format (RTF or PDF to name just two).

      I don't use any MS product--even those that came with my Macs (including but not limited to Explorer) for this precise reason. For those very rare occasion where I simply can't escape it, I resort to an open source product that can read or convert said documents.

      Act, on your beliefs.
  • $45? (Score:4, Insightful)

    by BenSpinSpace ( 683543 ) on Monday March 08, 2004 @09:46PM (#8504994)
    Windows may take $45 dollars per year, but trust me... it certainly takes a lot more, when you factor in all of those lost papers, doomed databases, and the dozen hours each of us loses from meddling with its problems.
    • Re:$45? (Score:4, Insightful)

      by ad0gg ( 594412 ) on Monday March 08, 2004 @10:15PM (#8505259)
      If that was the case, Apple system 8.5 would have been priceless. I remember many times browsing the web with netscape 1.1 while writing a paper and having netscape crash, sometimes I was lucky and could type "G F" in the debug window but the most time it trashed the systems memeory requiring a reboot. Those were the days.

      Today nothing ever crashes, my work box has uptime of two weeks(win2k), our servers(solaris and red hat linux) never go down along with our sql servers(win2k server). If you getting crashes, i'd point fingers at hardware. I've had problems in the past with bad hardware(VIA Chipset + Creative Labs SB Live) or bad hardware drivers(VIA chipset before 4 in 1 drivers).

      • by RoundSparrow ( 341175 ) on Monday March 08, 2004 @10:55PM (#8505643)
        I agree what what you say! And Microsoft by far as to support the largest combination of drivers and hardware... so of course they have the most problems.

        I think everyone wants but does not realize that modern OS is not 'hardware proof'. They don't test drivers and hardware, they just assume they work... and fail badly when they don't. FreeBSD 4.9, Redhat Linux 9, Windows XP -- all the same. In some respects, Windows XP is actually doing more to adress the problem - the crash reporting component helps Microsoft narrow down which 'real world combinations' are problem. I wish they were more in sharing the results... but that is more a 'corporate America' problem than anything...
  • by Anonymous Coward on Monday March 08, 2004 @09:47PM (#8504996)
    (I'm posting the text because the online access will go away in 7 days for non-subscribers)

    Do We Get Enough In Innovation for What We Give to Microsoft?

    It's 2004; do you know where your computer dollars are going?

    One can learn a lot about the computer industry by looking at the breakdown of manufacturing costs in an average desktop PC, as compiled by iSuppli Corp., a market-research firm. Excluding labor and shipping, and leaving out the costs of a monitor, keyboard or mouse, the typical desktop PC these days costs the Dells or the H-Ps of the world roughly $437 in parts.

    The biggest portion of that -- 30%, or $134 -- goes to Intel for a Pentium processor. The disk drives, including whatever CD or DVD is installed, cost around $104; the RAM memory is $54; and the remaining hardware items -- power supply, case, circuit boards -- total $100.

    The final 10%, or $45, goes to Microsoft for the Windows operating system.

    Because these prices are never disclosed, the figures here represent best guesses. But you can start to see the contours of the computer industry in that bill of fare. Specifically, you begin to understand how Microsoft could amass its $61 billion in cash and other assets. It's easy when you collect nearly 10% of the cost of every PC that's shipped, while having no manufacturing costs of your own.

    Most technology companies that do well justify the money they make by saying that is what is required to fund innovation, that were it not for all the profits they were accumulating, the industry would be standing still.

    The claim is suspect. The disk-drive industry, for one, manages to release drives with ever-larger capacities while often barely breaking even. And the technical challenges they face are among the most formidable, involving squeezing more and more bits of data onto ever smaller portions of a rapidly spinning magnetically charged platter.

    Intel is no stranger to big profits. Analysts estimate the Intel CPU costs more than a comparable product from rival Advanced Micro Devices. What about the added charge? Think of it as an Intel tax on each PC.

    Even if you're not an Intel shareholder there's arguably a benefit associated with that tax. Intel is like a research-and-development operation for the entire semiconductor industry. The manufacturing processes it uses for its latest-generation Pentiums are the most advanced in the world and cost billions of dollars. Eventually, though, these processes become widely available to everyone in electronics. This is one case where trickle-down economics seems to work.

    That leaves Microsoft, and the question: What does the world get for the 10% Microsoft tax on every PC?

    No one could ever say Microsoft is sitting idle. That was clear last week at a Research TechFest the company held at its Redmond, Wash., campus. Microsoft has an advanced research operation that employs about 600 people all over the world. These are some of the smartest people around, and they don't work on specific Microsoft products, but rather on long-range ideas, usually matching their own interests.

    The TechFest was like a science fair. Researchers set up booths, and the managers of Microsoft's many products milled around, looking for useful ideas they could deploy in future products. The number of people doing the milling was in the thousands.

    But is the innovation from Microsoft commensurate with the awesome resources it has been given? The average Microsoft customer probably wouldn't say so. Indeed, the advances the company lists for its new products all too often involve fixing shortcomings of earlier products, such as security and reliability in the case of its operating systems, and ease of use with its Office suite.

    In fact, you can argue that genuine innovation is the last thing monopolists want, since it threatens to upset the very applecart that made them rich in the first place.

    When asked which research from its labs has made its way into M
  • perhaps... (Score:5, Insightful)

    by Chuck Bucket ( 142633 ) on Monday March 08, 2004 @09:47PM (#8505000) Homepage Journal
    if you had an option to either pay it, or buy a PC without an OS. that it's forced upon you when you buy a PC (via OEM agreements) isn't fair regardless of the cost. I bought and iBook just because I wouldn't pay for Windows, since I would never use it. Yes, I pay a little for OS X, but it's something I may actually use (via MOL in Linux).

    CBV
  • by ObviousGuy ( 578567 ) <ObviousGuy@hotmail.com> on Monday March 08, 2004 @09:47PM (#8505003) Homepage Journal
    So either you get users pissed off that they have to spend MORE to get similar functionality, or you get them bitching about how user-unfriendly Linux is (though free).

    Not much of a choice between all three, really. What there ought to be is a free OS that is as comfortable an environment as MacOS and supports as much software as Windows.

    They say I'm a dreamer, but my heart's of gold...
  • $45? Yes. (Score:4, Insightful)

    by de Selby ( 167520 ) on Monday March 08, 2004 @09:48PM (#8505005)
    I'd pay $45 for Windows. I'd pay $60 if they let me not install most of what I don't want.
  • Does it matter? (Score:4, Insightful)

    by cgranade ( 702534 ) <cgranade@gma i l . c om> on Monday March 08, 2004 @09:48PM (#8505007) Homepage Journal
    Does it matter if MS is innovating or not? They still get the 10% in the form of the "Microsoft Tax" whether they innovate or not. When I bought my Dell (which I won't do again, now that I've learned how to build my own from scratch), it came with Windows XP. I then upgraded to Red Hat Linux 9 (OK, technically I changed...), but MS had already got their bucks out of me for WinXPH. Mayhaps FTC should get involved in this (again)?
    • Re:Does it matter? (Score:5, Informative)

      by LurkerXXX ( 667952 ) on Monday March 08, 2004 @10:01PM (#8505133)
      Why just look... http://www1.us.dell.com/content/products/features. aspx/precn_450n?c=us&cs=04&l=en&s=bsd

      Well, what do you know? A Dell machine with Linux on it, and another with FREE DOS. Just because you are an uninformed consumer who can't be bothered to look for a machine configured with the software you want (from the same vendor no less!), don't waste the time of the FTC.

    • Re:Does it matter? (Score:5, Informative)

      by -tji ( 139690 ) on Monday March 08, 2004 @10:02PM (#8505137) Journal
      Buy from the Dell Business site, rather than Dell Home, and you can get machines without an OS. There are some great bargains on the low end Poweredge 400SC servers.
  • Not Microsoft (Score:5, Insightful)

    by gid13 ( 620803 ) on Monday March 08, 2004 @09:48PM (#8505011)
    It seems to me that essentially what Microsoft does is wait for someone else to come up with a cool new idea and take the risks of making sure it works, and then implement the same concept themselves in an integrated fashion so that the lazy and/or uninformed will just use theirs. I think a prime example of this is ICQ, which of course was followed by MSN.
    • Re:Not Microsoft (Score:4, Interesting)

      by Kanasta ( 70274 ) on Monday March 08, 2004 @11:14PM (#8505883)
      A better example is the middle scroll button. I saw them working in Taiwan mice about 3-4yrs before MS made them. Special drivers so you could scroll in ALL apps. When MS came out with theirs, the scroll only worked in its NEW office and IE programs. They couldn't even retrofit the functionality into its basic windows widgets despite owning the OS.
  • Usually.. (Score:5, Interesting)

    by SisyphusShrugged ( 728028 ) <meNO@SPAMigerard.com> on Monday March 08, 2004 @09:48PM (#8505012) Homepage
    Usually I would be the first in line to bash Microsoft, as would the vast majority of the slashdot group.

    However, I do have to give them credit for Microsoft XP, being the best thing they have done in a long time, and for allowing me to use a form of Windows that can actually have a nice interface if you tweak with it a bit.

    And for making a Windows that is easier to install, and doesnt crash quite so often, as Win98, WinMe, Win95, ad nauseum did.

    So basically Microsoft needs to just wait, work on Longhorn, make it stable and release it once it is completely finished, with much much more stability and Bill Gates will just have to wait before becoming a quadro-gonzo-bobillionaire.
    • Re:Usually.. (Score:5, Insightful)

      by Coryoth ( 254751 ) on Monday March 08, 2004 @10:22PM (#8505330) Homepage Journal
      So basically Microsoft needs to just wait, work on Longhorn, make it stable and release it once it is completely finished, with much much more stability

      That's a bit of problem though, because a lot of the timelines are now starting to place Longhorn at around 2008. That's an awfully long time for Microsoft to be sitting on their hands really.

      Yes, there are plenty of promises of wonderful new features in Longhorn, but then MS was promising a OO filesystem in "Cairo" the update to WinNT that was perpetually delayed and never quite arrived. As long as Longhorn is several years away they can promise all the amazing innovations they like - we have to wait to see what they actually deliver

      Jedidiah
  • I've done my part! (Score:5, Informative)

    by asit+ler ( 688945 ) * <asittler@@@brad-x...com> on Monday March 08, 2004 @09:49PM (#8505022)
    I think their estimates are off a little. $45 for a copy of Windows seems a little bit underpriced. I know an OEM installer, and he says that every copy of Windows they get (and they have to get multiple ones) costs on the order of $99. Granted, he's not a _big_ OEM builder, but he's still an OEM builder.

    He also has a monopoly on the area's new PC market, but that's okay.

    I've paid a Microsoft tax on two of my 11 PCs. Five of the others are too old to run Microsoft software, two of them are relics that will never leave my house. One is incapable of running any Microslut OS and it would be preferable if it stayed that way. One is a hunk of silicon which I didn't pay microslut taxes on. One other, my Quadra 630CD, runs a Microslut OS, but I didn't pay the taxes on that one, AAPL did way back when. (consequently, that thing runs Windows 3.1 on its 486/66 processor better than my native 486/66 did, with less RAM)

  • by Junior J. Junior III ( 192702 ) on Monday March 08, 2004 @09:50PM (#8505029) Homepage
    It's a lot more than that, when Dell is selling it's low-end machiens for around $399. XP Home costs over 25% of the cost of that new PC. Pro is almost half!
  • Laptops... (Score:5, Interesting)

    by cuban321 ( 644777 ) on Monday March 08, 2004 @09:55PM (#8505072) Homepage
    I recently was on the hunt to purchase a laptop. I had no use for Windows as Linux suits all my needs. I went immidetly to the pro-Linux shops: HP, IBM, Dell.

    I was very disapointed to find out that not ONE of the vendors would sell me a laptop without an operating system. ESPECIALLY IBM! I eventually gave up and went with my first choice which was IBM.

    I guess my point is, sometimes you don't have a choice. You're stuck paying the MS tax.

    Daniel
  • 45 $ (Score:4, Interesting)

    by cyberfunk2 ( 656339 ) on Monday March 08, 2004 @09:55PM (#8505073)
    To everyone who's saying that the 45$ price is way out of touch with reality... READ CAREFULLY... The 45$ is what the WSJ is guessing that the computer manufacturers (eg: HP/Dell/Gateway) pay microsoft due to custom liscencing agreements. We may not be able to buy windows for 45$, but the computer makers wouldnt stand being charged full retail price when they use so much in terms of volume. Read carefully the article and the subtleties you will soon understand.
  • by Bryan Ischo ( 893 ) * on Monday March 08, 2004 @09:55PM (#8505074) Homepage
    I have always wondered what the world would be like if a company with
    better technical leadership had been handed the PC operating system
    monopoly by IBM oh so many years ago. Perhaps it would not have been
    possible for that company, whoever they might have been, to achieve the
    level of domination that Microsoft achieved because such a company might
    have put too many resources to the task of technical innovation and left
    the business (i.e. monopolization) side of things to falter. It is quite
    possible that the only company which could achieve the kind of dominance
    that Microsoft has achieved would be one which, like Microsoft, cannot
    innovate or excel technically, because it would take too many resources
    away from the business side of things to focus on the technical.

    I guess this would mean that the companies which achieve monopoly status
    are by definition technically inferior? This would certainly seem to be
    the case ...

    Some people would argue that Microsoft is not a monopoly because it does
    not in fact have 100% complete control over the operating system market.
    But Microsoft does have a monopoly in one *very* important market -
    operating systems capable of running Microsoft Windows software. You
    see, I think that the fact Microsoft's operating system's are the only
    ones which literally trillions of dollars worth of software can run
    on means that Microsoft is by definition monopolizing an absolutely
    enormous market. While it may sound flippant to say that Microsoft
    has a monopoly on Microsoft operating systems, I think there is something
    really important behind this. No one company should be the producers
    of a commodity which so many other companies depend upon to sell their
    product. It's not healthy for the market and it's certainly not to the
    benefit of consumers.
    • by DarkSarin ( 651985 ) on Monday March 08, 2004 @10:31PM (#8505407) Homepage Journal
      This is important--and it is why wine is such an important program. I know many people don't like it, but as long as MS continues to restrict other companies' ability to run a fully compatible OS, this is a valid concern.

      As an interesting aside, how long do you think it would take to get COMPLETE compatibility with Windows under linux if MS opened the source code? Three days? Five maybe.

      This is the exact reason that MS will never do that. Because as long as Adobe, Macromedia, and most of the big game shops don't release native versions of their software on linux, MS will continue to have a powerful monopoly.

      IF OpenOffice EVER is as good as MS Office in the ways it counts (usability, userfriendly), then we will another step toward lessening MS monopoly power.

      My big concern is that people like norton, TurboTax, and the gazillion and one other 'useful' commercial app makers will never jump off the MS bandwagon. As long as this is the case, then there will be big issues.

      As a note, Pampered Chef uses some type of VB app for their consultants. It's windows only, and is one of the BIG reasons I can't ditch windows.

      Another reason is companies like SPSS and SAS. If you can show me a stats app that is as easy to use and as powerful as either that runs natively under linux, I will be shocked.

      These are just a few examples of apps that need replacing before Linux is ready for primetime.

      Perhaps a repository is in order to list all the apps that need replacing, and possible alternatives--if one exists, PLEASE let me know.
  • No, but... (Score:5, Funny)

    by stephanruby ( 542433 ) on Monday March 08, 2004 @09:55PM (#8505081)
    No, but Microsoft is worth 45 stories on Slashdot every month. That has to count for something.
  • Great Article (Score:5, Interesting)

    by cmacb ( 547347 ) on Monday March 08, 2004 @10:04PM (#8505163) Homepage Journal
    This is the most on-target article on the subject I've seen in a long time. The only thing he didn't emphasize enough is that there is a deference between software research and hardware research. The sort of research that Intel does CAN'T be done by small companies or people working at home (for the most part). Intel, IBM, AMD and a very few other companies have the capital to do these kind of hardware innovations, and they may be helped a bit by government funded universities etc.

    Software research can be done at all levels, by individuals, small companies, groups of individual working together. There is, and always will be Open Source software. I can't forsee there ever being an "Open" architecture CPU, that could be manufactured on a small scale (it would be a great thing if there was though!).

    Microsoft's day are numbered unless they find a new business model. I don't hate them, love them, or feel sorry for them, thats just the way it is. A free economy will eventually favor value. It moves at a snails pace sometimes, particularly when impeded by monopoly practices and governmental indifference. But one way or another things will change, and anyone or anything who blocks that change will find themselves bypassed or submerged.

    The article "does the math" that I'm sure even Bill Gates is capable of following. I just don't' think Microsoft has figured out how to respond yet. The stock market will punish them until they offer a response, and this article wouldn't be appearing in the WSJ if that were not the case.
  • by rcamera ( 517595 ) on Monday March 08, 2004 @10:14PM (#8505249) Homepage
    "It's easy when you collect nearly 10% of the cost of every PC that's shipped, while having no manufacturing costs of your own."

    this guy is a total asshat. how can he say that windows has no manufacturing costs? 3-4 weeks ago on slashdot after the windows source code leak, folks were saying "holy shit guys - look at the 4.5 million lines of code that becomes windows! what a crappy, bloated OS!". now this dumbass claims that it costs nothing to manufacture. how many man-hours did it take to write windows 2000? windows xp? the media it is shipped on costs very little, but one-time cost of writing is also counted in the total-cost. so unless it was written by non-paid interns (which we know is not the case), this guy is grossly underestimating the profit.

    i bet he's just another disgruntled mac user...
    • by Coryoth ( 254751 ) on Tuesday March 09, 2004 @12:31AM (#8506591) Homepage Journal
      this guy is a total asshat. how can he say that windows has no manufacturing costs? 3-4 weeks ago on slashdot after the windows source code leak, folks were saying "holy shit guys - look at the 4.5 million lines of code that becomes windows! what a crappy, bloated OS!". now this dumbass claims that it costs nothing to manufacture. how many man-hours did it take to write windows 2000? windows xp? the media it is shipped on costs very little, but one-time cost of writing is also counted in the total-cost. so unless it was written by non-paid interns (which we know is not the case), this guy is grossly underestimating the profit.

      I think you'll find he'll be considering development costs as R&D costs, not manufacturing costs. The comparison was hardware manufacturers - Intel spends vast amounts of time and effort designing their chip; comparable to development time for a new version of windows. The difference is, once Intel is done, they still have a manufacturing cost on every chip they sell. Fabricating chips costs serious cash. In comparison, once the design work is done for Microsoft, they have a new version of windows - the only manufacturing cost is stamping CDs.

      In other news, Microsoft most likely doesn't write those 4.5 million lines of code from scratch for each new version of windows. One would hope that the bulk of that code is fairly stable and not undergoing constant rewrites and changes. Which is to say, you are grossly overstating the development work involved in producing a new version of Windows.

      So, in summary: You are overstating the amount of development work required to create a new version of windows, and the author of the article is already factoring that cost in anyway.

      Jedidiah.
  • by AgentPhunk ( 571249 ) on Monday March 08, 2004 @10:17PM (#8505281)
    How's this for a kicker: the sysadmin at my current gig purchased about 10 PCs with Win XP Home Edition preloaded, and now we need to pay $179 EACH just to upgrade them from XP Home to XP Pro. (The 60+ systems were all in "Workgroup" mode, moving them to Active Directory so I can have security on the file shares. XP Home won't join a domain.)

    Yes, I know there are some hacks to make XP Home join authenticate to a DC, but they're just that, hacks (and work about as well.)

  • yes. (Score:4, Interesting)

    by man_ls ( 248470 ) on Monday March 08, 2004 @10:17PM (#8505287)
    Yes, to me, it is worth it.

    I'll admit that I'm a bit biased and didn't pay $45, or even $75 or $275 for my licenses of Windows -- I got them through Microsoft for Partners professional discounts, which gets me them for approximately $30/license (Professional) but there's so much more stuff in there that it's closer to about $6/license.

    I'm not a new computer user. I've been using PCs, and the Windows architecture, for 14 years now -- since right around 1990, and Windows 3.1. I still, at this point, find Linux too difficult for me.

    Case study:
    Booting a *LIVE CD* distribution of Linux, it was impossible for me to make it detect my USB Mass Storage device. Then the autoconf script to place a /home folder on that device, and check for its presence at boot, never worked. I never did get that working -- and that's not even kernel hacking.

    Then, fed up, I went on AIM (gAIM) to ask a friend who'd had similar experience. When signing back on with a Windows client later in the day -- my buddy lists were completely rearranged, groups were created with copies of people, and a handful of names were missing, for no apparent reason whatsoever. gAIM messed it up.

    I'd love to use Linux, but I'm afraid to honestly, becuase of the fact that I don't know a thing about how to use it, and it doesn't seem to want to be used itself. I'll just stick to administrating Windows networks. Anything I've wanted to do so far, I've been able to do under Windows. That includes running Unix-only scientific tools - thank god for Cygwin.
  • Possibly (Score:4, Funny)

    by Barumpus ( 145412 ) on Monday March 08, 2004 @10:18PM (#8505297)
    The only window I know that is worth $45 is the one used to keep the snow out of my house during the winter. But seeing how I live in Florida, a $10 screen in the summer and a $5 sheet of plastic in the winter seem a better way to go.
  • Fedora Linux for Me (Score:4, Interesting)

    by www.fuckingdie.com ( 759660 ) on Monday March 08, 2004 @10:19PM (#8505306) Homepage
    Not that I like the idea of piggybacking on all of the Open Source talent out there in the world, but when faced with the choice of building my computer using Windows or linux I have to choose linux.

    I would rather pay to purchase a copy of a linux distro and support an open source cooperative than pay to purchase a liscence for a microsoft product and put another gold toilet in the Gates' House.

    If more people felt the same way then maybe, just maybe, we wouldn't have to put up with another IE popup asking us if we want to enhance some random body part......

  • no. (Score:4, Insightful)

    by pair-a-noyd ( 594371 ) on Monday March 08, 2004 @10:20PM (#8505310)
    1. I build my own stuff from scratch.
    2. I do not use MS products. Period.
    3. I use and sell Linux. More bang for your buck.

    Windows, out of the box, does nothing but get you online so you can get infected and download warez and pr0n. Oh yeah, and mp3z...
    No word processor, no spreadsheet, no much of anything.

    Linux comes with too many things to list.

    Yeah, Linux has it's shortcomings but it's benefits FAR outweigh it's shortcomings.

    I just can not justify paying for trouble.
    I had a guy today ask me to sell him a system and install a pirated copy of windows on it.
    I told him I don't do that, I don't have any copies of windows, and I wouldn't do that to someone that I like anyway.. I offered him Linux instead. He declined, I lost the sale. Life's tough..

  • Not Flaming (Score:5, Interesting)

    by H8X55 ( 650339 ) <jason...r...thomas@@@gmail...com> on Monday March 08, 2004 @10:20PM (#8505314) Homepage Journal
    Actually, if windows xp home was available for a mere $45, it'd be a steal. the $45, i guess, represents what the OEM pays for it, not the price that consumers pay for a boxed copy. nonetheless, even $100 ain't bad. let's review;

    red hat enterprise liunx workstation starts @ $179.00.

    mac os x is $129.00.

    i know there are free (beer) variations of linux and bsd, but you don't get much support. i know everyone rags on MS for the extent of their support, but let's face it, they do still support their software. MS just recently ended support for windows 98. windows 98, people. six years of downloadable updates.

    when you grab the cheapie pc @ best buy for $400 that comes pre-loaded w/ win xp home, i don't care if emachines is paying $4, $40, or $400 to microsoft. i know i'm getting a pc w/ a legal os, and i'll get support for several years.

    is MS evil?
    sure.
    is $45 too much to pay for an OS?
    no way.
    • Re:Not Flaming (Score:4, Informative)

      by k_head ( 754277 ) on Monday March 08, 2004 @11:24PM (#8505996)
      "is MS evil?
      sure.
      is $45 too much to pay for an OS?
      no way."

      It is if you are furthering the cause of evil.

      No raindrop may be responsible for the flood but every drop does it's part.

      So yes. Paying $45.00 to further evil in the world is too much to pay.
  • by MavEtJu ( 241979 ) <slashdot&mavetju,org> on Monday March 08, 2004 @10:24PM (#8505348) Homepage
    IBM, too, is famous for its research, and it has five Nobel Prizes to show for its work.

    Just wait until the government in Sweden gets a nice deal on Windows and Bill Gates will have his Nobel Price too!

    (If you don't believe, compare it with the deal the government in the UK got and that he immediatly after it got knighted :-)

  • by Justice8096 ( 673052 ) on Monday March 08, 2004 @10:30PM (#8505403)
    Don't think about the cost of the Microsoft OS - think about how it drives hardware obsolescence - the average user only buys a new machine because they need a new version of Microsoft Office, which needs a new version of the latest Microsoft OS, which needs a faster CPU, and more memory. (Or, more recently, getting the latest Microsoft OS because they can't keep up with the patches).
    This drives computer sales - versus what would happen with Linux - users would still buy better peripherals, but Intel wouldn't be where it is now - because the peripherals would use embedded processors, and Intel doesn't rule there. Memory wouldn't sell as much, because without OS bloat, we wouldn't need as much memory. So in summary, I'd say that Microsoft does serve a purpose - marketing of new computers.
  • by Anonymous Coward on Monday March 08, 2004 @10:42PM (#8505504)
    You get a bunch of free software with Windows, so it's money well spent!
    • Think of Wordpad, for professional documents.
    • Paint for quality graphical designs.
    • Notepad, the professional HTML (and more) editor.
    • Several great programming languages (bat, jscript, vbscript).
    • A great jukebox, Windows Media Player 9 Series.
    • Windows Messenger, the nice instant messenger.
    • Internet Explorer, the most web-standards compliant browser around.
    • Outlook Express, the best email client around (unless you need spam filters).
    • Bunches of games, such as Internet Reversi (very addictive!)
    • etc, etc...
  • by ryanw ( 131814 ) on Monday March 08, 2004 @10:42PM (#8505505)
    The question I think should be asked isn't whether it's worth it, but rather, "How many times do I have to pay for windows?".

    Several people purchase computers to replace the computer they already have. The old computer gets junked. Lets forget about the possibility of people switching from windows to linux. Lets just ask an even more clear issue. Why can't the user use his old copy of windows on the new dell? Can't resellers ask for proof of previous windows version to not get billed for the software?
  • by Odin's Raven ( 145278 ) on Monday March 08, 2004 @10:45PM (#8505529)
    Is Windows worth $45?

    A little while ago I spent roughly this amount on a game called Uru. (For those living in caves, it's the latest in the Myst series.) I seem to remember paying quite a bit more for Windows, but maybe the price has come down since then. No matter.

    When I'm playing Uru, I wander through a variety of odd (but usually very pretty) environments, often sitting for hours on end contemplating alien mechanisms that I don't understand. Sometimes I click on a control or two (or ten), and sometimes things start working as a result. Other times I wander for days, trying every knob and button I can find, peering suspicously behind doors, retracing paths I've been down dozens of times, and in the end I still haven't figured out how to make some odd machine power up or work properly.

    Which pretty closely parallels many of my experiences trying to get Windows to do things.

    So...ummm...I guess by analogy, if Uru is worth the money, then surely Windows must also be worth it. ;-)

  • I get it at $50. (Score:5, Informative)

    by KenFury ( 55827 ) * <kenfury&hotmail,com> on Monday March 08, 2004 @11:04PM (#8505772) Journal
    I am on smaller OEM and typicaly buy XP home OEM for $50-54 and XP Pro for $65 or so. I purchase 10 packs to get a price like this and go through 2 or 3 packs of home a month and a pack of Pro every six weeks or so. Dell buys direst from M$ while I go through a middle-man. I am pretty sure that since the big OEMs are buying 10000 the volume I do they get a better price.

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