Linux Spurs MS Price Cuts 480
jimb writes "Yahoo!
reports:
'What's happening is that Microsoft sales reps have been instructed to be on the lookout for any businesses that are migrating some of their machines to the Lindows OS,' Yankee Group analyst Laura DiDio told NewsFactor. 'If [the sales reps] think there's a real threat of some pretty large numbers of defections to open source, they can request authorization from Microsoft higher-ups to offer steeply discounted pricing."' I wonder how many businesses will now start pondering aloud the possibility ... I'm sure OS X is on MS's mind as well.
Selective discounting? (Score:5, Interesting)
- mark
Re:Selective discounting? (Score:5, Funny)
Re:Selective discounting? (Score:5, Informative)
The article has it wrong. Microsoft normally slaps a 100% gouging charge on top of the real price. For especially good customers, they sometimes remove it for no reason, resulting in a 50% reduction. This has nothing to do with Linux. Nothing to see. Move along...
Re:Selective discounting? (Score:3, Funny)
Re:Selective discounting? (Score:2)
Re:Selective discounting? (Score:2)
Re:Selective discounting? (Score:3, Interesting)
Re:Selective discounting? (Score:5, Funny)
"So, ah, (checks list) which booter are you using, Lilo?"
"Ah sure, uh and Stich, of course."
"Stich..?"
"Yes, version er 2.7 of course, very solid..."
"Right ah umm.."
That sort of Battle of the Titans could go on for hours.
Re:Selective discounting? (Score:3, Informative)
Re:Selective discounting? (Score:3, Informative)
Re:Selective discounting? (Score:3, Informative)
In the case of OEMs shipping M$ products (Score:5, Informative)
B. Microsoft's provision of Windows Operating System Products to Covered OEMs shall be pursuant to uniform license agreements with uniform terms and conditions. Without limiting the foregoing, Microsoft shall charge each Covered OEM the applicable royalty for Windows Operating System Products as set forth on a schedule, to be established by Microsoft and published on a web site accessible to the Plaintiffs and all Covered OEMs, that provides for uniform royalties for Windows Operating System Products, except that:
I want to see the schedule (Score:5, Insightful)
The Plaintiffs were the USDOJ. I am a US citizen and they were acting on my behalf, therefore I am a plaintiff. I want to see the price schedule.
Any lawyers out there looking for a challenge?
Re:Selective discounting? (Score:5, Informative)
I know, I know! (Score:5, Insightful)
Nothing new here. Bill Gates will take as much money as you are dumb enough to give him.
Of course, you should give to Microsoft. It's kind of like a charity that benifits people in India with aids. Bill Gates and mother Therisa were good friends you know. Also benifited are the children of the USA! Previous previous licensing deals [slashdot.org] and last summer's anouncement to end accademic discounts tell the whole story of the gift that keeps giving.
Price of Linux drops to compete! (Score:5, Funny)
Re:Price of Linux drops to compete! (Score:3, Interesting)
Wait, so all I have to do is tell my Microsoft sales rep that I am thinking about switching to Lindows, and I'll get a 50% price cut? Yay! Windows XP for $50. And Office XP for, umm, $250!!
Re:Price of Linux drops to compete! (Score:2)
However, the marketing department has an easier time with things if you use round numbers.
Re:Price of Linux drops to compete! (Score:5, Informative)
Division by zero (Score:3, Insightful)
To elaborate, and if memory serves me, which it does not do very well these days...
The definition for division is not defined independently-- division is defined as the inverse of multiplication. When you compute c=a/b, you are saying "find me a number c, so that c*b=a".
So when you compute 1/0, you are saying "find me a number x so that 0*x=1". Since any number multiplied by 0 is 0, no such number exists. So if memory serves 1/0 is said to be "undefined"
However, when you computer 0/9, you are saying "find me a number x so that 0*x=0". Now any number x can fulfill this condition, so 0/0 is said to be indeterminate
I believe that if you have a high school algebra problem where the answer comes out to n!=0/0 you can stop and answer "undefined" but if the answer comes out to 0/0 you still need to do some work to arrive at the final answer.
My god, I still remember this. I'm amazed and shall buy myself a beer.
Re:Price of Linux drops to compete! (Score:5, Funny)
Aindows
Bindows
Cindows
Dindows
Eindows
Findows
Gindows
Hindows
Iindows
Jindows
Kindows
Mindows
Nindows
Oindows
Pindows
Qindows
Rindows
Sindows
Tindows
Uindows
Vindows (Indian Versions)
Xindows
Yindows
Zindows
Rumours of AAindows and ABindows are surfacing. Windows anagers:
KDE, Gnome, Insightful Troll, Redundant Insight, Informative Redundant, XX-Windows
This is NO surprise. (Score:5, Interesting)
Re:This is NO surprise. (Score:5, Informative)
Don't forget the MS balance sheet that was released a month or so ago - it showed their leading source of revenue was Windows, followed by Office. Everything else was negligible or lost money.
A prime example of why their monopoly is so important, subsidising and providing a vehicle for all their other projects, but it also shows how important that revenue stream is! Making Windows free beer would leave them only Office to make their money. Investors no like.
Re:This is NO surprise. (Score:2, Interesting)
Re:This is NO surprise. (Score:3, Insightful)
By making a better office suite.
Openoffice has a long way to go before I, or my employer, or my employer's organization, or anyone my employer deals with can seriously consider it.
Given the right circumstnace, MS would "give windows away." Think about it: a 100% DRM media box, with a contractual deal that you pay $1 per file (or even $0.10 per file) that you add into the box...
Yeah, I could see them giving windows away.
Re:This is NO surprise. (Score:5, Insightful)
Nobody sees a reason to upgrade Office anymore and switching to OpenOffice is a lot easier than switching to Linux altogether.
Effect might be adverse however (Score:3, Insightful)
Also, the message that MSFT sends with this (now publicly known) policy is that they consider Linux to be an extremely dangerous competitor. This must put some companies to think.
My thinking (Score:5, Interesting)
What price free(as in liberty)dom? (Score:3, Insightful)
Re:My thinking (Score:5, Informative)
Don't waste your breath, Microsoft (Score:5, Interesting)
No 20, 30, or even 50% discount could have changed the minds of the CTOs for whom I worked. Now, all the mail, Web, etc. servers are running Linux, and these companies are happier than ever.
Re:Don't waste your breath, Microsoft (Score:3, Funny)
Uh, you appear to be the most-hated [slashdot.org] too.
Re:Don't waste your breath, Microsoft (Score:4, Informative)
Many people know that Free/opensource software can hack it on the server side, but many (myself included) need convincing that Free/opensource software can hack it BETTER than Windows on the desktop. (I would even say that, rather than just BETTER, it has to be much much better -- enough to make relearning many things worthwhile. Avoiding the occasional reboot is not worth it. Avoiding thousands of dollars of software licenses is not worth it. Avoiding the wrath of the BSA is not worth it. Getting your work done better and faster and making people say "Wow. That's awesome! How'd you do that?" will make it worthwhile.)
Right now, Microsoft and the software that runs on Windows is hacking it better, thus Microsoft can afford and be expected to do whatever it can (including lowering its prices) to keep their position.
The sad thing is... (Score:5, Interesting)
It's odd that Microsoft would admit to being willing to lower prices if someone happens to bring up the name, though. Maybe they're feeling bad about the "Licensing 6.0 won't raise the price you're paying" lie. Probably a lot of AP departments are now asking MS why they posted their biggest quarter ever once it was institued if it wasn't a net gain for MS.
hmm (Score:5, Funny)
Re:hmm (Score:5, Interesting)
price cuts (Score:3, Interesting)
That's pretty impressive to me. But it reminded me of the IE and Windows thing. Tie them down to the apps, and they are forced to the OS.
a bad deal at any price (Score:5, Insightful)
The other issue is that free software is not about getting the software itself for free, it's about the freedom to inspect, use, and improve the software as you like. That lowers TCO and reduces business risks; even if MIcrosoft gives away Windows for free, they can't compete with that.
Re:a bad deal at any price (Score:2)
When the "revolt" comes from the end users, it's virtually impossible to stop.
Massive price discounts is the "worst" thing Microsoft can do (to Linux based companies), since -most- people could give a $%#@! about software freedom. It's the wallet that people mostly pay attention too.
they are trying, however (Score:3, Interesting)
Re:a bad deal at any price (Score:3, Insightful)
Wrong. That's what software patents are for.
Re:a bad deal at any price (Score:3, Insightful)
Wrong. That's what software patents are for.
Actually, that would only work in the U.S. or whatever satellite states they can bribe and/or threaten into submission.
As long as there's one tiny speck on the map where people are allowed to share intellectual property unhindered, or enough civil courage within the intellectually suppressed nations, Free software will continue to be developed. And that's the doomsday scenario. As things stand, the number of countries finding OSS advantageous is only just starting to really take off, and we all know how the network effect works!
not surprising... (Score:3, Informative)
Lindows? (Score:5, Interesting)
Re:Lindows? (Score:3, Insightful)
Don't be surprised, most "analysts" are marketroids with no technical background whatsoever, and really know little of what they cover, besides what they read in the press releases and company calls.
Re:Lindows? (Score:3, Interesting)
It takes a brash set of executives to pick a name that's sure to bait the MS laywers, then have the lawyers to win the resulting stare-down. They're willing to play MS at its own game.
Lindows, what else is there? (Score:5, Insightful)
I'm not willing to pay $99 for beta-open-source-software [especially considering the high quality of many other distros]
M$ knew this would make a stir but did not want to advertise any of those other distros. How many people do you know who even know what a distro is, much less can name several. M$ is pointing toward what it gathers is the least attractive alternative as a making themselves look better. They would never point them toward Debian, Red Hat, Suse, Caldera, Mandrake, Net/Free/OpenBSD. What they are pointing them to is a "discount" distro sold at Walmart that's doing everything it can to look and act like windows.
It does not matter. The cat's out of the bag and Microsoft is gonna get it. They really have pushed people too far and been, well, evil. They, not the government nor Slashdot nor the mass media, proved their nature with EULAs and pricing. Good riddiance M$.
Re:Lindows, what else is there? (Score:4, Funny)
Yes. Microsoft will watch in horror as their marketshare falls from 96% of desktop users to 95%. Soon we'll be rid of them.
Mac OS X (Score:4, Insightful)
Yeah, but prolly not to anywhere near the same extent - proprietary hardware, remember? Added to which, Mac OS X isn't offering windows application interoperability.
On MS's mind, sure. In their sights...not nearly.
Triv
Re:Mac OS X (Score:2)
Oh? I am moving files back and forth between other people running Windows and my OS X machines all the time. I have built in Windows networking on OS X, and all the files I use are compatible between Windows and OS X.
Re:Mac OS X (Score:3, Insightful)
What he meant to say was that Mac OS X cannot run Windows apps in the same way Linux+WINE can/could/will-be-able-to. Sure, you could install Virtual PC, but you'll still have to buy a copy of Windows, so it would be all the same to MS.
Unless you were to install a Linux/x86 distro with good WINE integration into VPC, and run applications meant for Windows that way. But if you did that, Linux would be the thing enabling that, not Mac OS X or Virtual PC.
A really smart company.... (Score:3, Interesting)
Whether that's a true savings or not is left as an excercise for the reader...
My God...the consequences (Score:5, Insightful)
Next thing you know, Office will be free to compete with OpenOffice and the like.
I've said it before, and I'll say it again, Microsoft is heading back into a world of competition. The monopoly ride was good, but now they gotta get back to selling the shit on the grounds of quality and superiority in peoples mind, even if that means selling it for less.
Yo Grark
Canadian Bred with American Buttering.
Re:My God...the consequences (Score:3, Insightful)
Not quite. The haven't actually lowered their prices. That would be competition. What they are doing is price discrimination. Not as helpful for competition.
Do ya think? (Score:3, Interesting)
Really? Maybe. The Xserve has gotten some attention, sure, but I think WinXP has solved Microsoft's biggest problem with Mac OS X: both XP and OS X look Shiny now.
I know, I know, Aqua is technically and aesthetically better, but most people don't know the difference. (Emphasis on most people, there.)
When companies start to realize that they can deploy both Macs and Linux with basically minimal fuss between them, that's when things get interesting.
All companies do it... but monopolies do it best.. (Score:3, Insightful)
Lindows is not synonymous with Linux (Score:4, Interesting)
I don't believe it (Score:3, Interesting)
What's happening is that Microsoft sales reps have been instructed to be on the lookout for any businesses that are migrating some of their machines to the Lindows OS,' Yankee Group analyst Laura DiDio told NewsFactor.
I don't believe it. Lindows has gotten a lot of hype, and even some positive reviews, but I have not gotten the impression it's made any impact yet. (OK, maybe I do have some information -- reading KDE bug reports, mailing lists and help channels, I've never seen a single person using the KDE-based Lindows.)
Either the author confused "Linux" with "Lindows", it's another analyst shooting off her mouth about something she read a press release about or there's some financial connection to Lindows.
Is this true and legal? (Score:2)
I mean comon, its not like Linux is that much of threat right now. To go to such an extreme to twart any sign of competition even in the earliest stage possible shows that they wont settle for anything but total domination. Thay still do anything possible to stop anybody from competing no matter how small they might be. That judge wouldnt get a clue with Cluestick 2000(tm) up her but powered by a nuclear powerplant.
Re:Is this true and legal? (Score:3, Interesting)
This is not undercutting by any stretch of the imagination since they're competing with free.
MS can't win on Slashdot. If they raise their prices they get accused of being a monopoly and abusing it. If they lower their prices they get accused of "dumping" and undercutting the competition.
Re:Is this true and legal? (Score:4, Informative)
I've never come across such a definition of undercut.
The plain old dictionary (ie. the non-economic general definition) gives me:
In economic writing I've only ever heard the term undercut to mean, sell for less than your competitor is selling, nothing to do with cost.
Dumping is the term I've seen for selling below your cost (predatory dumping if you are doing so to remove competition, but usually because government subsidies make it worthwhile for you), and you use that further down.
Re: Is this true and legal? (Score:3, Insightful)
> I mean comon, its not like Linux is that much of threat right now.
If you count the "might switch" headlines it looks like there has been a sudden upswing in Linux interest among companies and governments this year. Sure, it's still really minor in the big picture, but it's growing, and it appears to be growing faster. Someone at Micorsoft may have catastrophe theory on the mind.
Indeed, this announcement could be catastrophic as far as Micorsoft's pricing is concerned. And in the new Can't Cook The Books Anymore climate, that might be bad news for some quarterly income reports.
And since Micorsoft has always been more interested in share prices than in software, the catastrophe may be at hand.
Microsoft Secret Sale! (Score:5, Funny)
OS X (Score:2)
It has to be. When one of the companies that I consult for decided to move from Windows to OS X, the Microsoft rep was VERY concerned but could do nothing about the decision as they were absolutely sick of all the security snafu's from Microsoft. Personally, I also Switched [apple.com] my individual workstations from two Windows boxes and an SGI to a single OS X box saving me space, maintenance dollars and security and maintenance headaches.
OS X? (Score:3, Insightful)
What are they going to do? Offer to raise the price if someone is looking at buying a Mac?
Yeah, you may call me troll if you like, but as long as Apple keep its pricing, it will be a niche OS, partly for those that wants to tell the world they can afford it.
I'm sure it is a great computer, but even die hard Mac fans I know are buying PC's because they can not afford the computer they really want. Not to mention all non-Mac users.
Ellen Feiss or no, people that actually do switch are really, really rare, even these days.
let's hear it for (Score:2)
Advisory: Never underestimate the power of Linux (Score:3, Insightful)
I found out about Gentoo from an Internet Web site and soon began investigating the feasibility of converting most of the existing machines over to Linux.
Years later, I saved my old school probably $5,000+ and they're all running highly-optimized, natively-compiled Linux systems courtesy of the Gentoo creators. I initially considered Slackware and Debian since they're rock-solid, but I felt that Gentoo had a more active community and a quicker turn-over in the development cycle.
Regardless, though, Linux was the right choice, and I urge potential Microsoft customers to seriously consider Open Source solutions. Do not let these meager price cuts deceive you!
How do you get the best price possible for MS SW (Score:5, Interesting)
http://www.lindows.com/lindows_michaelsminutes.
So true! (Score:2, Interesting)
And those other companies? They do the same things when customers start getting evil thoughts of moving to Microsoft. Or one of the other companies, ad nauseam.
It's called "business". But it's not "news".
Why OS X ? (Score:2)
Why would you be so sure ? AFAIK, there are no large movements under foot in corporations to move from Windows to OS X. And OS X suffers from many of the same undesirable qualities as Windows: for instance, it's not (completely) open and it requires hefty licensing fees. Moreover, the huge variety of apps availble under Windows are mostly NOT avaible under OS X. So why would MS deem OS X to be a threat ?
Re:Why OS X ? (Score:3, Insightful)
The cheapest Xserve you can buy is $2999 and includes a copy of Mac OS X Server with an UNLIMITED concurrent-client access license. When I showed the specs on the Xserve to the Windows guys in my company, their jaws hit the floor when they saw that. How much does a comparable license cost for Windows 2000 Server? Last time my company bought a license like that for a Windows-based client, it was in the high four to low five figures, and didn't include the price of the server hardware. Right there, that's significant savings over using Microsoft stuff.
I can't really comment on the workstation pricing as I am not familiar with Microsoft's pricing. However, Apple is selling 5-license "family" packs of OS X for $199, which works out to $40 per seat. I can't imagine the business volume-license pricing for OS X being much different from that.
Moreover, the huge variety of apps availble under Windows are mostly NOT avaible under OS X.
Uh huh. And that's an issue how, when probably 85% of people who use a computer as part of their office job only use Microsoft Office (which is available for the Mac), a browser, and an e-mail client?
~Philly
I'm sorry, but.... LINDOWS !?!? (Score:3, Insightful)
I can see the points of sticking with Windows (software works OK, no retraining costs, licencing cost increase doesn't outweigh short-term pain of switch). I can see the points of switching to a *real* Linux distro (Red Hat, SuSE, et al) aiming at the business desktop (Free, secure, etc).
But Lindows offers no advantage to a business. It is different enough from a user point of view that there would be big-time retraining. Most custom apps would not work (hell, most packaged Windows apps wouldn't either). They also play loose with the spirit of the GPL and it runs as root to open themselves up to viruses and hacks.
Maybe Microsoft is targeting businesses that show interest in Lindows because, when it comes to customers contemplating a switch from Windows, you might as well go after the dumbest ones first!
Great! (Score:4, Funny)
Do you think Bill will give me a discount on Windows XP Pro? $80 instead of $299 would be great!
(Laugh, it's funny :-)
Hehe...sounds like an ad from a car dealer :) (Score:3, Funny)
later, small fast voice in background says
Offer valid on select Licensing 6 programs geared toward small business customers.
Another proof that monopoly is bad (Score:2, Insightful)
I hope businesses see this as an opportunity to say no to Microsoft. Because if they all say yes, Microsoft will increase its market share and the discount will disappear right before their eyes.
50% market share for Linux and other open source OSs would be perfect and would make Microsoft play nice with their customers.
Linux: the best friend for Microsoft users.
A great opportunity to screw up (Score:3, Insightful)
Yet open source advocates should keep focused. The software is almost where it needs to be, not quite. Why is this bad? Because there will potentially be a huge flood of new users, who will run crying back to MS if they encounter any significant issue (even if the issue is all in their mind). Basically, if open source loses this round of potential converts, we could be locked out for many many years.
Remember "that which doesn't kill me only makes me stronger".
selective discounts lead to diminished stature (Score:5, Insightful)
MAKE MONEY FA$T!!! (Score:3, Insightful)
I bet there will be a sudden demand for Linux gurus next week. Not for conversions, but for "studies" of potential conversions, so the companies can reap the new "Linux discounts" from Microsoft.
If you're idle, this might be a good time to set up a "switch to Linux" consulting business.
Competition lower prices, (Score:3, Funny)
Surely this should be from the 'Economics 101' department.
Can ms survive only making 60% profit on sales? (Score:4, Funny)
Can now only fund 3 world domination plans rather than 5.
Balmer can only use anti-persperent at a 1/3 of the conventions rather than 1/2 of them.
Ms can only afford to leak a document every other Halloween now.
Will be forced to change the name to 'Window'.
A good thing? (Score:3, Interesting)
I've noticed lately that Fry's has started to sell a system with some distro of linux pre-installed, complete with free versions of every office based application imaginable, for a grand total of $199. With that low of a price, there might be some people who buy it just to find out what this whole linux thing is all about. Microsoft might be giving other retailers an excuse to do so as well. So let them shoot themselves in the foot if they want to.
-Restil
Warning-this may make takers into targets (Score:5, Interesting)
Dealing with the BSA issue (Score:4, Insightful)
We have been quietly migrating most of our servers to Linux, and we are evaluating a Linux desktop as well. When our CFO gets wind of the cost of complying with your little "audit", he will hit the roof. When the friendly folks in the IT department offer OSS products and the CFO evaluates the savings, Microsoft in our company will be DOA. If you're serious about auditing us, do it quickly. Otherwise, there will be no M$ products to audit.
If threatening to switch is what triggers the new M$ discounts, I figure it would be a suitable prescription for the BSA headache as well.
View this as pulling threads in a woven cloth (Score:5, Interesting)
One of the hidden messages in the Linux Meme is that the retail price of world class operating systems, and office suites is $0/copy. Imagine the price erosion on cars if there were free ones available.
The existance of Linux/Lindows has pulled at a thread. MS's cash cows are OS's and Office Suites. (kinda funny how this is the area of recent attack by the Open Source Community:-).
If MS's margin of profit on these two areas falls, then all their business plans are threatened. If these areas are only marginally profitable, the natural condition in a competative market, then there is little cash left over to preditate other areas. If cash is tight, them MS can't afford the current level of post sales support. That will hurt in the long run. If their cash reserves are depleted in the fight, then their stock price could fall. If the stock price falls, then the options which they pay their employees becone worthless
Here's the Meme, the talking point: The fair market price of world class OS's, Office suites, web servers, Mail Servers, RDBMS;s etc is $0/copy.
Find a loose thread, pull it.
Microsoft promotes Open Source! (Score:5, Insightful)
There is no discount, people. ZDNet had the story under a similar headline (http://zdnet.com.com/2100-1104-975399.html) with the misleading headline of "Microsoft targets defectors with discounts". If you read that article, it becomes clear that Open Value is an extended payment plan for bad old Licensing 6. Aside from stretching your payments out (thereby "lowering" them), you pay the same money as Licensing 6 plus interest, and have all the wonderful disadvantages of Licensing 6. The only discount at all is a potential 0% financing you might get if you drag your feet and throw a screaming temper fit. Licensing 6 saves you money (only in Ballmer's head) while it costs you more (minimum 33% to 107%).
The people they are targeting are the 66% of their customers smart enough not to fall for Licensing 6. Don't fall for this either, unless your only objection to Licensing 6 was the lack of a payment plan with an interest escape clause based on your temper throwing skills.
As for Microsoft promoting Open Source, that was the subject of an article by Japan Today (http://www.japantoday.com/e/?content=news&cat=4&
I don't know whether Microsoft is purposely sending out a lot of misleading press releases or we have had a really bad press day today, but that sure is a lot of misinformation being spread for just one day. Just goes to show, you can't believe everything you read, especially if it is based on an MS press release.
Chief Tsujimori: "I won't let you get away. I will never let you escape."
Godzilla elegantly lifts his tail skyward to give her the "finger", crashes it down on the water, and submerges.
"Godzilla X Megagiras", 2000
Strange Rationale (Score:3, Interesting)
However, my family uses Windows. Most of my friends use Windows. Have I mentioned Linux? Of course. Have I forcibly converted them? Absolutely not.
Don't get me wrong -- Linux evangelization is a great thing. People should know that better software exists. But I simply don't understand the rationale of people who want to see Linux on everything. Frankly, I like Linux the way it is (was) -- almost an 'elite club' of computer geeks. I'm not implying that we shouldn't let people use Linux, or that we should keep it a closely guarded secret. I just don't see why we think that my grandma should run Linux -- yes, it can be very easy to use. But what does it matter if she runs Windows or Linux? Her box came with Windows, and it still runs Windows. Today, if it came with Linux, it might run Linux, but if it came with Windows, it would also run Windows.
The point of this lunatic diatribe is this: I think we should 'evangelize' Linux to some extent, but we should really rethink the "Linux on everything!" approach -- do we really want millions of people using Linux? (Applogies if this sounds like a troll, or some sort of insane rant... But I'm trying to pose a serious question.)
Lindows? Come on. (Score:3, Interesting)
When you care about your business, you don't buy a crescent wrench to use as a hammer. Any business in their right mind that relies on Microsoft software is going to run that software on Windows.
I wonder if this article was written by an armchair Linux enthusiast with the ever infamous penguin tunnel vision. Linux is great for workgroups and closets, and it absolutely sucks in the enterprise. No decent distributed user store (OpenLDAP is NOT decent for production enterprise environments, nor is 'scp
H'mmm, where have I heard this before...? (Score:3, Insightful)
When GeoWorks had a workable competitor to 16-bit Windows, MS had nearly-free DOS/Windows bundle deals with almost every OEM.
When MS charged for IE, before Windows 95, and Netscape troubled them, they incorporated it into the OS, so it was free as in without extra cost.
Intel is doing the same thing. When the heat was still on them just after their favorable anti-trust judgment, they allowed AMD to gain almost 5-per cent market share. Now that the heat from the Feds is off, and the heat from the investors is up, they are disallowing AMD market share by dropping prices so low AMD has to sell at a loss.
Every monopolist does this.
__
I have seen war. You will not like it.
The price is meaningless (Score:3, Insightful)
Its more about ease of use, if the OS is difficult to set up and maintain, why would I use it just to save a few $.
That's why I use Linux, not because it saves me a $100, but because I find it annoys me less than windows.
I am much more productive with Lunix, that's why I have all this free time to post meaningless stuff on
competition (Score:3, Insightful)
I am preaching to the choir, but so what.
Maybe by the time Longhorn comes out it'll be sitting on the shelves at Fry's for $74.99. Of course, Linux will still be cheaper, and come with more software (the hypothetical Longhorn is not expected to come with Office, IIS, etc)
The Amdahl mug... (Score:3, Funny)
Seems as if there is, at the very least, an opportunity to sell some Linux Journal subscriptions and Tux merchandise to Microsoft shops, if for no other reason than to have strategically visible when Microsoft comes around to negotiate license terms.
OS X shouldn't be on their radar. Apple is harware (Score:3, Interesting)
M$ is starting to see defection to Linux and resistence to their subscription schemes, flat or negative PC sales as good enough is good enough for users.
It doesn't help sales that all of the bells and whisles M$ is bundling into the OS are things that businesses definitely don't want their employeer playing with at work and most PCs are owned by corporations.
People are scared to upgrade even more than they are of getting viruses. As Linux gets more respect for security and M$ slowlky strangles users' machines with unused feature-itis the desertions will accelerate.
Since M$ has always assumed that revenues would always grow and all of their financial planning is based on this fallacy. Meanwhile hardware sales are in replacement mode (flat) and upgrades are meeting solid walls (negative territory.)
Revenue will crash at some point and M$ has no real assets compared to manufacturing companies. The X-Box is a money loser. Their partnerships are non-producing. The competition is getting tougher. Users are getting fed up. The economy sucks and price points are getting too tight to keep a resource hog like M$ in business. All things being equal, like admin costs... Linux is free acquisition.
When the end comes, it will be stunningly quick.
So should they cut their margins or not? (Score:3, Informative)
Isn't dropping your prices a fairly normal way to deal with increased competition: supply and demand and all that? A couple of weeks ago we were complaining that MS's margins were too high. Now we're complaining that they are cutting their margins...
Sure, they are doing it selectively, but, if they did it across the board, it would really be bad news : does anyone think that Corel or anyone else could compete with XP Office for $50? That's cheaper than Star Office 6 in a box. And this is exactly what will happen if open source ever starts to dent their desktop market share.
Note in passing that breaking up MS would have made things worse in this respect, as the highly profitable OS and Office departments would not even had to carry the loss-making departments anymore, so they could slash prices even lower and still make a respectable profit.
The postings about Linux for $0 are funny, but miss the point that no OS change is free for a company with existing staff and data. If you take discounted MS products and set them against free Linux products plus the number of man hours needed to reskill your staff, the figures are closer than we might like to admit.
Re:Unfair pricing? (Score:2)
Re:Unfair pricing? (Score:4, Insightful)
Do the math... (Score:2, Informative)
Go read this [slashdot.org].
Then do the math. At full price, MS has a profit margin of 85%. If they discount to half price, their profit margin drops precipitously to 70%. Other businesses should be so lucky; if my business had a profit margin that high, we could all retire after one contract.
Re:Do the math... (Score:3)
Re:I learned my lesson (Score:3, Interesting)
No they aren't!
There, now our "must be fact because it's bolded" statements have nullified each other. Seriously, either Yale Law School is turning out bad students, or the law is so rediculously misworded that no one could even attempt to understand it. The settlement, in my rendering, appeared to put certain limitations on a) the kind of specialized price cuts and b) a limit on price cuts to certain OEM's. However, this issue is not about OEM's selling to consumers, it's about CTO's making educated decisions. It's a totally different ball game.
Re:MS Bank? (Score:3, Funny)
Not if they're Red Swingline Staplers ...
Re:Wow... (Score:3, Insightful)
Almost any huge company employs similar tactics when trying to win customers over from or keep current customers from switching to another vendor. As someone else mentioned, IBM does this with Oracle, HP with Dell, and vice versa and across many industries. It's nothing new. As far as a company claiming to be considering switching to Linux, it's like a game of poker- sometimes people bluff, sometimes they don't; sometimes their bluff is called, sometimes not.
It may sound too simple to you, but trust me- MS won't be fooled if some kid calls them up on the phone and says "Hello!!!1 I am pretty good haker and I was thinking of swichz0ring to Lindows OS you better give me VisualWarezStudeo.NET and WinXP (p stands for porn EHEHEH) for only $30 or else I will sooooo go to Leenucks!!"