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November 17, 2006 4:00 AM PST

Newsmaker: Gates on Vista, Linux and more

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And there's a lot of scenarios that that works for. We can project onto your TV, we can connect up a keyboard. You can have AC power, so that you can maybe clock (the processor) a little higher. We have an incubation team working on that as an entry point. It's not a replacement (for a PC), you know.

We also have a team that works on what we call "shared-use PC," where you go into a library or a cafe and you just bring, on your USB stick, your files. Or you have those in the (server) cloud--the cloud store that we'll make available in the not-too-distant future. So that shared-use model is a very big deal--that's schools, libraries, community centers--a huge thing. And we did that in every library in the United States; we learned a lot from that. We've taken it to many other countries.

The dream for me is to get the tablet computer to be so cheap that it's less than you would have spent on textbooks.

The phone thing is a new thing for us. That's not out for a while, but the hardware industry is giving us the chips that can do the projection. And we've talked with some operators--they like the idea of what we're doing there. So there are many ways into this thing.

The PC itself keeps getting cheaper, and the multiuse phone gets it out even (more broadly). Because, as you say, we do want everyone--certainly every kid, as part of their educational experience--to have that kind of access.

The dream for me is to get the tablet computer to be so cheap that it's less than you would have spent on textbooks. Then every kid has a tablet. We're still working hard to make that happen.

Listening to you speak at Stanford, it's almost like, if there are not two Bill Gateses, there are at least two really different viewpoints that come out. On the one hand, you talk about global prosperity as not a zero-sum game. And then, when you're talking about Microsoft and wearing your software hat, it's "We're either No. 1 or we want to be No. 1" in everything. How do you reconcile those two?
Gates: Oh, no, those things are perfectly the same. I mean, when companies compete to do their best, when you have an economy like the U.S., where you've got the infrastructure and the stability, consumers get a good deal.

And people who go into Google every day, they want to be No. 1. Our people go in and do the best they want to do. But the effect of that is that for things that are in demand in those countries, the market selects, and there's very rapid innovation.

The PC space has seen better improvement in performance, better reduction in price than any part of the economy. So it's fun to be in that part of the economy. It's more scary.

Vista's last mile

If you want a really stable job, our industry is not the place to be because (of) companies like Wang or Digital Equipment--those are two companies I grew up admiring immensely. But you just miss a turn in the road or pick a few of the wrong people, (and) that makes it interesting. It means you come in every day and think, "Hey, I'll save the company for another year if I do something well today."

Those marketplace things work very well for most things. In (The Bill and Melinda Gates Foundation's) global health program, we're dealing with the fact that the people who want the malaria medicine aren't able to spend money on it. There, it takes a lot of cleverness to say, "OK, how do we take the skills that big pharma has, and the skills that the universities have, and bring those together in such a way that we get the smartness that they use in doing market products, but have them focus it on things where we know they couldn't prioritize it otherwise?"

The foundation is pioneering a lot of models like that. We have partners who are doing things in new ways, including people like One World Health, or GlaxoSmithKline on this malaria vaccine partnership, (who) agreed to do things a pretty different way and yet put their best people on the work, so we're super-pleased about that.

With Vista and Office, probably two of the largest examples of commercial software are both coming out; at the same time, Microsoft announced a deal with Novell around open source. Has your thinking evolved? What role do you see open-source development playing, beyond the fact that customers are asking for it?
Gates: Well, there are many issues here. One is that UNIX has had a market share on servers for decades, and there's always been a lot of variety. Under that label--Linux--there's an immense amount of variety. But, in general, Linux is not nearly as high-volume as Windows is on servers. But (it's) significant, so customers want new kinds of interoperability.

We've done fantastic things on interoperability. Here, we're doing virtual machine interoperability. So you can just have a pool of hardware and applications that use Linux, applications that use Windows, and just have the VM manage which one needs more resource, which one is done, which one needs to be restarted.

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PS3 vs 360
by Dachi November 17, 2006 5:10 AM PST
The main reason people are willing ot pay so much for PS3 is becasue there is this assumption that since it is a PlayStation it will become the standard.

The specs of the 360 and the PS3 are actually pretty similar despit the 360 being released last year.

The reason the PS3 costs so much more is because of the Blu-Ray drive which will come down in price long before you might actually need one. Besides, to actually use the PS3 on a high def system you have to pay $99 extra for the component cable.

I actually like the way the 360 handles the HD-DVD drive as an add-on, that way I am not stuck getting the drive now at a premium when I don't need it yet, and if Blu-Ray ever takes off, they can just make a Blu-Ray add-on.

I am not saying the PS3 won't pick up steam, but it does look like the 360 will be more competitave than the first xbox.
Reply to this comment
Well...
by umbrae November 17, 2006 6:08 AM PST
I am not sure people are assuming the PS will be a standard. Sony has a bad track record with standards. The PS became popular because it targeted a mature audience. At the time, we were getting to a point where gamers were getting older and Mario did not always leave you fulfilled. It was never a good product, it just offered something to a group that was being ignored.

The people getting the PS3 are getting it to sell or because they are loyal to Sony. Gates statement sums it all:

"You know, Sony can make 80,000 bricks, and people would buy them."

Very true.
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Wrong about PS3 cable for high-def system
by November 22, 2006 10:25 AM PST
You would have to be an idiot to pay $99 for a component cable for any game console. Sony should have included a high-def cable with the PS3 but it's not a big deal since an HDMI cable (which most people will use to hook up their PS3) can be purchased for less than $10 on the Web.
"Free software? We paid for that, you're welcome"
by Havin_it November 17, 2006 6:14 AM PST
Hope you got that part, all FOSS developers out there. Bill's tax dollars made all your efforts possible. How can you be so inconsiderate as to use the GPL to weasel out of paying him back?

And how much do you make flogging Windows licences to educators, Bill? I'll bet if you combine the dollar-value and indoctrination ( = 'future loyal customer') value, it pretty much writes off your tax bill. **** you and the high-horse you rode in on.
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is that so?
by therealCSMR November 17, 2006 8:57 AM PST
You are saying that microsoft "pretty much" doesn't pay any tax?
View reply
It's called supply and demand
by Seaspray0 November 17, 2006 10:18 AM PST
I don't hear you screaming about 90%+ of the people using VHS format over betamax (by all accounts a better format). You don't like it because microsoft got rich selling a product. Why shouldn't they? They're doing what every company does... sell products at a price people are willing to pay. It's the public that decides what they want and that's what they're going to get, and that includes educational institutions. If the institutions didn't provide the demand, then there would be no supply to them. If you don't like it?... Tough!
Nope, I'm paying for it
by Seaspray0 November 17, 2006 10:28 AM PST
Tax dollars help fund our educational institutions. Microsoft pays taxes along with everyone else. So... they are, in part, funding free software that is developed through that funding. Do you have a problem with that? I don't. I find it amusing that money that would have gone into MS's pockets is used to develop free software. I also know that money that would have gone into MY pockets is also used to develop free software (I pay taxes too). Hope you got that part, all FOSS developers out there. MY tax dollard made all your efforts possible. How can you be so inconsiderate as to use the GPL to weasel out of paying ME back? SHOW ME THE MONEY!
tablet pc? wrong timing?
by rslc November 17, 2006 8:03 AM PST
first, timing is almost everything.
second, tablet pc was a big joke.
what abt PDA?

Sad case of a geek who think he is a visionary.
That title is given to Steve Jobs and others
already.
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Tablet PC/saving trees
by castingRod47 November 17, 2006 8:35 AM PST
I saw this vision in the Bill Gates story on Tablet PC..that the TEXT Books in the Public Schools could evolve away from PULP..then Bill Gates has been mentioning the CLOUD..I quess for lack of a better word/Cloud/has the necessary Pulse of TIME-on a level of days..Simple approach to things I have gathered so far..Visionary often means:SCIENCE:Bill Gates did mention his envelope theory about Pharma and malaria and Universities funded on a TAX-side..I think its the right foundation to accept ideas at..RESULTS vary always/and even slip away..I think Bill Gates is thinking ahead w/a level head..the world just needs some mention of their willingness of the foundations used so far..It seems the people problems excist at a Microsoft level of design.
Software and money
by castingRod47 November 17, 2006 8:17 AM PST
I'm a Home Desktop user..my very first PC was an AT&T PC[6300]in 1984 it cost $$2000.00 came with a SET of Books called George Washington-BASIC..it was a very baffleing piece of equipment..I read the Manuals of BASIC and subscribed to a Magazine and there were offers of $$10,000.00 or even $$20,000.00 for Programs to be written..from my first impression the Software looking for acceptance was very simple stuff/I never really went past some play-time w/the AT&T PC6300..in 1999 the COMPAQ Companion came along/the Internet RECIEVER-actually lasted about 1-year and died of[??who knows what??]..DELL started offering nice machines and Support Services/Microsoft OS/Office/and peripherals..I think along the way the(thing)that impresses the novice is the clear sense of moving into the Advanced PC-user..Microsoft has that offer "nailed" in my opinion..I think language has a very real place in the Support of PC's..if the language begins to drop off the SCOPE..so will the past success/soon diminish away like bad hardware..time will waste away and the PC-experiance will fall like a melting Ice Cream Cone at the Bazarr..I hope that Microsoft continues to be Microsoft..when Bill Gates loosens his grip on the day and the company works on the software in every space/we can always find every word at Microsoft about it.
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is that so
by therealCSMR November 17, 2006 8:56 AM PST
You are saying that microsoft "pretty much" doesn't pay any tax?
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Outright Ignorance on Gates' part
by Penguinisto November 17, 2006 9:42 AM PST
Seriously - even GPLv3 licensed software can be commercialized, no problem.

Gates' problems w/ all GPL versions is that:

1) it cannot be locked into a proprietary format, which means...
2) it cannot be stolen and called, say, the new TCP/IP networking stack for Windows
3) he cannot figure out a way to make money off of it, in spite of IBM, RedHat, etc etc. making quite a nice chunk of cash from Linux.

PS: Linux dominates in the server market - is the poor guy reading stats from 1996 or something?

/P
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Free Software != Non-commercial software
by Russell McOrmond November 17, 2006 9:58 AM PST
While I believe Bill Gates is very smart, he is on the "flat earth" side of a 200 year old debate and that is whether knowledge is like physical property. He equates charging a marginal cost for knowledge like software with commercial, when nature has made knowledge such that charging only fixed-costs is also possible.

Most Free/Libre and Open Source Software is commercial, it just doesn't charge royalty fees. Royalty fees are simply a business model choice, not the only way to make money with knowledge. Hopefully people will eventually realize the earth is round and stop making such silly mistakes.

Richest man in the world still admired, even if he believes the world is flat..
http://www.digital-copyright.ca/node/2793
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He is ok with Open source which is commercial!!!
by Tanjore November 17, 2006 12:29 PM PST
He doesn't have a problem with opensource movement. Opensource that is free!!!!

Current generation opensource though free, companies are charging for support and Gates should be ok with it.!!!
View reply
Microsoft makes money when it "donates" software
by Russell McOrmond November 17, 2006 10:04 AM PST
The marginal cost to Microsoft for a license is zero. That's the nature of knowledge, and you can't argue with nature.

Microsoft then gets a tax write-off for the retail value of the software, and the reduction in taxes is *real money*. Can't argue with real money.

I've always thought it was a scam to allow companies to get a tax write-off for other than their marginal cost, which for software is zero.

I can legally donate a million dollars worth of Free Software to a school -- can I get my government welfare cheque now, just like Microsoft does?
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Bill: Please do something about Ballmer
by Dachi November 17, 2006 12:24 PM PST
I just finished reading this article on computer world: http://www.computerworld.com.au/index.php/id;839593139;fp;16;fpid;1

In it, Ballmer says Linux "uses our intellectual property".

The antitrust case would never allow MS to sue Linux out of existence even if it does use MS IP, so why make the comment in the first place?

George Bush shows more tact and diplomacy.

Maybe people are not ready to adopt Linux in mass, but they like knowing they have the option if it comes down to it. If Ballmer forces people/companies to take sides in the matter people are going to stand behind Linux to make sure you don't take away their plan B and that could be bad for MS.

If they have code that infringes your IP it will be rewritten, if you sue Linux companies out of existence new ones will emerge in their place and it might land you back in front of judge Jackson.

You know you can't sue Linux, so all Ballmer is doing is lighting a fire under your opposition.

Kicking Ballmer out now would look bad, so maybe you should hire him an "advisor" that will help him make more informed decisions moving forward.
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Bill taught Balmer everything he knows
by slim-1 November 20, 2006 2:44 PM PST
So your kidding right?
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Gates on Vista, Linux, more
by Bob H in NPR November 17, 2006 1:58 PM PST
If these same comments had come out of Steve Ballmer's mouth, my reply would have been pure acid. With the announcement of the non-aggression pact between MS & Novell, the first question in my mind was, "We are being shafted. How deeply, how soon, & in which orfice?"

Bill Gates created the money grubbing, lying, mean spirited, monopolistic culture at MS. His unselfish contributions to the poorest cultures of the poor & the recent overwhelming blessing from Warren Buffet have earned him some of my respect. I still look for the other fork of the tongue when he speaks. I finally believe that sometimes his motives are as he says they are. I still need to ask the question, "Which ones?"

Many for profit corporations have contributed enormously to the development & distribution of open source software. Sun, Google, Yahoo, Grisoft, Lavasoft all come to mind, adding to the efforts of non profits like Mozilla in offering an alternative to high priced programs & software. Without this competition, today's prices would seem like bargains. I hope MS & Apple will soon follow suit. I'm just not going to hold my breathe. I will wait & see . . .
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Wii little flaw
by FimShady November 17, 2006 5:37 PM PST
Even if all of the people lining up were selling their systems, there are people buying them. Can't sell something to no one. The system is still being bought, even if it ends up in different hands than the ones that initially bought it.
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Alternate Realities
by x-nc November 18, 2006 10:36 AM PST
"But, in general, Linux is not nearly as high-volume as Windows is on servers."

Billy-boy, what have you been smoking?

You know, sometimes I really wonder how Gates, Ballmer, et. al. are able to keep a straight face when they say things like this. These guys make politicians sound like the most honest people in the world.

Additionally...

"We're also letting Novell give something that you get in the commercial model, but you rarely get otherwise, which is the indemnification, just like we always do with every copy of Windows."

Since the EULA for every version of every piece of software states that Microsoft can not be held legally liable for anything and everything related to their software. This whole "indemnification" thing is just another big smokescreen. A last gasp effort to try and keep their domination.
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Tablet PC
by jchandler15 November 19, 2006 9:35 AM PST
Will the tablet PC ever have a big enough market??

Josh Chandler
www.techilious.wordpress.com
Reply to this comment
maybe..
by KDubII December 13, 2006 7:51 AM PST
...IF it ever gets small enough and powerful enough to do what we all want it to do..
I doubt a tablet the size of laptop is going to do well..PDA's and Blackberries are too small.. a virtual keyboard (have you seen the laser types! COOL) that is integrated and something the size and weight of a good hardcover novel will probably do ok.. what I have seen aren't near to the right size.. I think they need to go to the consumer and do what Chrysler did in designing the miniVAn.. find out what the END USER wants in terms of form and function.. then think OUTSIDE the standard box and do it right! For now..they are going to gather dust on the shelves for the most part .. unfortunately the most likely scenario is to keep bringing cost down so people wind up using what is presently available..a bad alternative in my opinion!
Bill & MS know nothing about Free & Open Source
by netbuddy01 November 20, 2006 2:25 PM PST
Bill is no dummy but for some reason he fails to understand the FOSS world completely. FYI Billy most of the Internet is running FOSS of all sorts! Your cute characterization of this industry makes me laugh. Its a multi multi billion dollar industry that will continue to compete against you. The FOSS licensing spectrum is not at odds with Capitalism as you assert but you are at odds with understanding a thing about it.
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Bill says it's all about timing.
by slim-1 November 20, 2006 2:51 PM PST
Very true.

It's about time they designed a brand new from scratch secure, not bloated OS preferably Unix based.

It's about time the stopped lying in every statement they make.

It's about time they quit attacking Linux and OpenSource software.

It's about time they quit screwing over their own business partners and PC vendors.

It's about time they quit pretending they don't do the above.

It's about timing all right. And it's time we all moved to anything but Microsoft.

Join the boycott Sony and Microsoft movement.
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