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August 25, 2008 9:37 AM PDT

Desktop Linux proves its mettle in emerging markets

by Matt Asay

While I'm not much of a desktop Linux cheerleader, I found this news that the Philippines has rolled out 23,000 Linux desktops to schools very interesting, particularly when read in conjunction with commentary from Malaysia.

The net? Microsoft is heavily subsidizing Windows and Office to keep Linux out, but Linux is proving cheaper ("Microsoft matched the price by offering Windows XP for $US20 a copy and throwing in Office for $US30, but we still came out cheaper") and at least as easy as Windows to use.

In fact, the cost savings from Linux have been so substantial that the Philippines is rolling out its Linux desktop program beyond the 30,000 existing seats, and was even able to purchase an additional 3,000 seats for government use. The rationale is clear:

In a brand new computer 50 percent goes to the operating system and office suite, so how many people can afford that?

Or, rather, why should they be asked to try to afford it? In emerging markets that have not yet been saturated with Windows, Microsoft's lock-in value proposition ("Everyone is already using it, so why don't you?") lacks cogency. No one needs to be retrained on Linux in such markets. It's a green fields opportunity.

Do the "green fields" promise to go with Linux? Based on Microsoft's aggressive discounting response, I suspect the people in Redmond believe the answer is an unequivocal "Yes."


Many thanks to Glyn Moody for the original link.

Matt Asay brings a decade of in-the-trenches open-source business and legal experience to The Open Road, with an emphasis on emerging open-source business strategies and opportunities. Matt is vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.
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by Brooklyn Bankruptcy August 25, 2008 10:12 AM PDT
Wow this is great
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by Brotherred August 25, 2008 8:34 PM PDT
I happen to know that Microsoft has more or less saturated the market in the Philippines. Or had been some four years ago. That is mostly do to piracy. Friends of mine used to own an Internet cafe that was shut down partly do a government crack down. The same that has brought about or helped bring about the events reported on here, I would guess.

I helped or tried to help via instant messenger to move said cafe to a GNU+Linux distro but it did not go well because every one there was used to Microsoft Windows and the media and programs options there in.

The people that owned the cafe said that other cafes were often having US based benefactors pay for the then legal Microsoft licenses. Perhaps if I had the opportunity to actually be there it might be different.
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About The Open Road

Matt Asay brings a decade of in-the-trenches open-source business and legal experience to the Open Road, with an emphasis on emerging open-source business strategies and opportunities. Matt is general manager of the Americas division and vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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