Is Ballmer conceding victory to Linux Netbooks?
In the process of pillorying the intelligence of buying Macs in the recession, Microsoft CEO Steve Ballmer may have admitted defeat in fighting Linux-based Netbooks. Ballmer said:
Paying an extra $500 for a computer in this environment--same piece of hardware--paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be.
But if this reasoning is sound against the Mac, doesn't the same apply to Microsoft in its competition with Linux? Glyn Moody thinks so:
This is a very frank analysis of the problem for Microsoft: after all, who's going to pay extra money just to get the Windows logo on a Netbook, when they can get the same features for less with free software?
What goes around, comes around. Indeed, Canonical's Ubuntu distribution already claims fealty from a host of OEMs (original equipment manufacturers) like Dell and Hewlett-Packard, with more signing on, and Novell also has scored some considerable points on the Netbook.
Even if consumers and businesses don't opt for Linux on their Netbooks, the Windows they're choosing is not very profitable for Microsoft, and getting users to upgrade to a pricey Windows 7 could prove to be a fool's errand, as Microsoft admits. Microsoft may well end up winning the Netbook war against Linux and losing at the same time.
Why pay a few hundred dollars for Windows on a device that costs only a few hundred dollars and drops all the time? The economics of the recession may help Microsoft against Apple, but they're no help against Linux-based Netbooks.
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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. You can follow Matt on Twitter @mjasay. 
I guess MS will respond with "But you get better quality with Windows" which also applies to Apple!
If you are price driven only then Linux and the cheapest PC with the cheapest parts is for you. Even if not, if you are paying less than $750 for a system more than 10% of that price is going to MS... But it's not a tax ;)
With Netbooks, though, the willingness of people to shell out a lot more (maybe even $75) will deter more people in this market than in the full-blown computer market and that's only IF Microsoft can sell it at that point without loosing too much.
Microsoft will have to either suck up the losses or push the advantages as being worth the added cost while Linux already works well with Netbooks and looks to grow in the future without the added costs of anti-virus, anti-spyware and what-nots not only possibly costing money but also sucking up resources.
Netbooks is one market that Linux has a chance with. I hope they take full advantage of it while they can!
Have you ever compared like machines before? For the low end machines (Macbook, Mac Mini) there is only $100-200 difference. However, try to get a machine that cost as much as the 17" Macbook Pro. It might be a little unfair because Apple includes that second video card, but the extra card does not justify the gap in price.
Average users get used to the OS they are on. It is like an addiction, M$ wont let the users get used with Linux.
The solution will be to keep XP for free. Or downgrade 7 to a point that a netbook can run, netbooks power will keep growing.
Also, Windows is not that pricey when bought in bulk... Just ask HP and Dell. I think the price for Dell is less than $40 a copy for Vista. If Win 7 is better and can be configured for a netbook to a highend desktop that would do Microsoft well...
Why pay a few hundred dollars for Windows on a device that costs only a few hundred dollars and drops all the time?
Industry standard support for applications and hardware. Windows works, everybody knows it, its reliable. You are guaranteed any application you buy out there will run on Windows. So don't try to ignore that Matt, its just very foolish and plain craaaaaaaaaazzzzzzzzzy.
Matt, you can continue to ignore my plea to understand what you love about this 'Linux', its just not pretty and not easy to use. Now everyone can reply with their negativity, I really don't care. Stop being closed minded and understand that Windows is here to stay and dominate. Linux is just hype and hot air, nobody is using it and nobody cares about it. Even you Matt, I know that your house is full of Mac's because your family knows that Linux is just not usable.
No-one cares and no-one will until it settles on one homogenous version.
If Linux were about making sales, your statement about "Market penetration" would be valid. Stop thinking in terms of sales. Do you think there is any way for you personally to know how many linux installations there are out there? How many machines have dual boots? My Linux installation is portable, did you know that? I can run it via portable media on any machine and keep it synced to any workstation I own.
You go by what your eyes see. You walk into best buy and see row after row of windows computers and think that means something, but each and every one of those computers represents a potential linux installation. So how do you conclude "market penetration" in this?
I believe you don't. And by the way, if you happen to admin a website of your own you can see through you chosen analytics service just how many computers show up at your website with Linux.
And on the note of you get what you pay for, people payed for windows me and it cost about the same as the boxed versions of xp and vista when they first came out. What does that say about the value of buying windows?
You should think about giving your MS shill check back. You don't do it very well.
Linux is years ahead of Windows and can do things that Windows users can only dream about.
Really? I guess the fact that Linux owns the web server and high performance markets is nothing?
I guess that MS is madly copying Linux is nothing?
And of course, the fact that MS spends millions of dollars spreading FUD doesn't mean that they are concerned about this non-competition?
- Android as the "thin" OS.
- Ubuntu as the "thick" OS.
Android would be for general use (fast, light, easy to use, easy on the battery, cool market apps).
Ubuntu would be for any heavy lifting I need to do on-the-go (e.g. software development/testing, OpenOffice).
Fortunately, both run on x86 and ARM, so I can choose whichever architecture provides the most bang for the buck.
But hey, don't take my word for it. Computer World has the NPD numbers (http://blogs.computerworld.com/study_windows_clobbers_linux_on_netbooks_with_over_90_share).
But really, Apple computers are priced competitively for all the features you get. You can get PCs cheaper, but it's like the Nissan where it looks good on paper but in reality they cut corners everywhere. There's also the longevity. This computer is 3.5 years old and still going strong. My Sony (supposedly one of the better brands at the time) died after 3 years and I had to factory restore it very couple of months the last year to keep it running at more than a snails pace. With the Mac the battery had an issue, and I took it into the store and they replaced it for free with zero fuss even though the computer was past the warranty. When the hard drive broke, I took it into the store for free and got a definitive answer that the issue was my hard drive, and told by a person exactly what I needed to get to replace it. There were also clear instructions on the Apple website with pictures of my exact model on now to replace the hard drive.
I think they have everything the middle 80% of people need. They aren't the company for the cheapos who want barebones (which will backfire after a few years) and the high enders who want to be able to customize every aspect of their machine (though the Mac Pro is the best high-end computer out there). The latter people are mostly gamers and gaming software is written for Windows anyway.
Sony one of the better PC brands? Are you kidding me?
Although it can not run windows natively, it still rund virtual pc 6 ok.
now that is coming up to 6 years old, one battery replacement.
Try running latest win on a 6 yr old non-mac laptop for starters. 500 bucks saved me a whole new pc... if I had not upgraded to an intel mac - ah the irony.
W7 will and does.
Next.
?
All they say in that quote is that what they need to do is up-sell the customer.
This is an issue that anyone involved with the netbook/low power computer industry is having to deal with.
If the consumer can purchase a low margin, low cost system- that they at least perceive to be an alternative to a higher margin, higher cost machine/part- why would they buy the higher margin, higher cost product?
I admit- though I'll probably never buy one- Linux netbooks are very capable machines- and have their uses.
But Microsoft will not lose any significant marketshare in the overall netbook economy- if anything- its a growth space.
The issue is- How do we make money- real money- on these machines?
I pay more for Apple hardware because my time (and sanity) are worth the extra dollars.
Microsoft is the McDonalds of software. And some of us don't care to eat McDonalds just to save a couple of bucks.
I wonder if Ballmer pays extra for a better logo on the hood of his car? Yeah, he does.
Steve Ballmer: hypocrite and tool.
Most consumers who purchased early netbooks simply HATED running Linux. Lets face it, this is giving Linux a bad name!!!! The exception seemed to be in Asia where they bought the cheaper Linux versions, then simply installed pirated copies of Windows.
It's game over now because many stores are no longer stocking Linux-based netbooks. Why should they stock two SKUs for each netbook model, plus their sales staff don't even know Linux.
E.g., I went to Best Buy (Canada) to check out their netbooks and they were ALL running XP. Someone suggested going to their online site, but even there 100% of the netbooks have XP pre-installed.
Ballmer might hate the form factor, but he's not losing any sleep due to Linux on netbooks.
- Mac: More expensive than MSFT. I might have some compatibility issues still in a Windows world but I'm willing to pay the premium because the closed world of Apple makes for a very seemless day to day interaction with my computer
- MSFT: Much cheaper than Mac although not as easy to use but is the clear market leader so I know I won't have any issue with software availability etc
- Linux: Sounds like I might save $50 or $100 on laptop or Netbook but is that going to feel like penny wise/pound foolish when I realize it doesn't run some key application I need/like such as iTunes/IE/printer drivers/camera drivers?
That's why Linux is going to struggle (forever?) in the consumer space.
IE : What? are you still using that??? forget it and use firefox (note that IE works with Wine too)
printer drivers : if HP printer then no problemo.
camera drivers : hmm not as bad as it seems ... just look around before buying.
So what's the problem here?
If tinkering with computer hardware, OS, and software is your hobby, more power to you. Nothing wrong with that. but understand that for the vast majority of users, a computer is a tool to get something done, not a hobby.
As for itunes, if you are a mac fanboy just buy a mac...
Talking about hassle, I had to deal with Windows for 8+ years and what I can tell is that it's not hassle free ....
Dont get me wrong here, I am not seeing Linux @ 50% market share tomorrow. There are still stuff to be worked on.
iTunes is garbage, there are better option in Linux.
Linux has far better support for printers than you ignorantly assume. I would be willing to wager that Linux has better support for printers than Vista.
You obviously aren't much of a computer professional. 99% of apps and drivers for Linux is in one place, no having to look all over the place. That is how the Windows world operates.
Clicking 3 buttons to get a fully set up system with all drivers is not tinkering. Tinkering is what happens in Windows.
The difference between a Windows Netbook and a Linux Netbook is that you're paying less to do less with a Linux Netbook.
So not the same thing at all.
I throw at them
I would love to know How they do less ?
in fact there r thousands of OSX/Unix Apps that Windows Pcs can't run {eg-: iLife , quicksilver etc }
Less crapware removal.
Less waiting for bootup and shutdown.
Less adware/spyware detection and removal.
Less waiting due to virus scanning.
Less waiting due to bloated OS.
Less re-installing OS to fix incremental slowdown.
Less replacing under-powered hardware to run the latest apps.
Yes, without all of that, I can do more of what I want to do...for a lot longer.
-That's the fault of the PC manufacturer, not Microsoft. Windows comes clean. If you don't like the crap Dell, HP etc. put on your computer, choose a different PC manufacturer.
Less waiting for bootup and shutdown.
-Score a huge win for Mac, they saved you a couple minutes when you do shutdown/startup. Big win.
Less adware/spyware detection and removal.
-This kind of software doesn't magically just end up in Windows. Its the user's fault. If you have ever had any of this on your PC, you are the one to blame.
Less waiting due to virus scanning.
-Like I said above, you are the one to blame.
Less waiting due to bloated OS.
-Broad generalization with no facts. How is it bloated? XP and Vista run pretty fast for me. Maybe it happened when you installed Banzai Buddy.
Less re-installing OS to fix incremental slowdown.
-XP and Vista both run fine for me after years of being on the same install.
Less replacing under-powered hardware to run the latest apps.
-Hmm ok... seeing as how that has nothing to do with Windows and has everything to do with third party applications, again not the fault of Windows. Also, technology improves and software improves to take advantage of it. Are you still using the first iMac? Didn't think so.
Yes, without all of that, I can do more of what I want to do...for a lot longer.
-The point of what I was trying to say is that Mac has a fraction of the software that Windows has. OSX does nothing more than Windows can do and has a fraction of the software, yet you pay more.
Eeeehmmmm. Less? with Linux?
With windows you get a black box, with a very very very restrictive license. Actually, that windows black box isn't yours. You don't buy it. It does not become your property. You just "rent" the right to use it, only on one machine. And it is a black box.
With Linux, or with any other open source OS, instead of a black box you get something open. You can look right into the guts of it. You know exactly to the last detail what you get (and even if you don't understand what you see when you do the looking, there always is someone that does). And, of course, since it is open, you can do anything you want with it, as long as it remains open. In the case of netbooks, anything you can expect to do with them can be done with OSS. And of cource, you are given the right to use any other OSS on your netbook.
How is this less? In my point of view it is quite the opposite. OSS gives you ground to do more.
Look at all the open source software that gets ported to Windows, simply because that is where a real user base exists. Take Pidgin (Gaim) for example.
No in regards to Linux, I love it. I use Ubuntu, SUSE and a few others. BUT, it is not ready for prime time because not even 5% of the world has adopted it.
I like Netbooks and plan to buy one. But remember, it is a stipped down laptop.
something Windows most certainly won't let you have
If you Like being a slave to your O.S thats fine
but Some people have Higher Standards
Is OSS a less expensive alternative? Sure. But when you factor in "sweat equity" - especially among non-technical users - it may not be the bargain it initially appears.
cosumer martket? i don't see anyone in the world with a normal nerve system cares about linux.
What a vision you share ! Take a look at Windows EULA : it states that you should'd "overcome technical problems" or something of the same (just below where it state that you are not allowed to do benchmark tests).
Hey, let us be men!
It appears you're just making details up and using things out of context just to fit your own agenda, just like the author of this article did.
Most honest Linux supporters do agree that while it's got its strengths, it's got its own set of weaknesses, and there's just no way it's a mainstream consumer OS as it stands.
MS explicitly noted that netbook sales (linux, forced to offer xp, much lower margins on OS) in it's most recent quarterly statement for missing it's expected profit number and for it's future numbers.
Weird that this could be true if you were correct.
- by RighteousSoutherner March 23, 2009 9:26 AM PDT
- Pure fantasy drivel. Matt I like you as a person, but your "logic" simply drives me insane! :-)
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