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New Microsoft contract orders PC manufacturers to stop selling hardware without operating system
Slashdot.org ^ | August 10, 2002

Posted on 08/10/2002 10:30:07 AM PDT by HAL9000

Dell No Longer Selling Systems w/o Microsoft OS

Posted by CmdrTaco on Saturday August 10, @01:17PM
from the yer-bringing-me-down-man dept.

Some Sys Admin sent in an email that he got from Dell which basically says Microsoft will no longer allow Dell to sell PCs without an operating system. Please note that Microsoft is not a monopoly, and does not use their monopoly power to squish competition in the market place. The message itself is attached below, and is worth a read, especially the last bit.

UPDATES

1. Effective 8/26 - New Microsoft contract rules stipulate that we can no longer offer the "NO OS" option to our customers beyond September 1st. As such all customers currently purchasing a "NO OS" option on either OptiPlex, Precison or Latitude for the express purpose of loading a non-MS OS will have the following options:

1. Purchase a Microsoft OS with each OptiPlex, Precision or Latitude system.

2. For OptiPlex and Precision - purchase one of the new "nSeries" products (offered for GX260, WS340 & WS530 - details in the attached FAQ) that are being created to address a different OS support requirement other than a current standard Microsoft OS.

We must have all "No OS" orders shipped out of the factory by September 1st. The "No OS" legend code and SKUs will be I-coded on 8/19 and D-coded on August 26th to ensure shipment of orders prior to September 1st. FYI - this effects all of our competitors as well.



TOPICS: Business/Economy; Technical
KEYWORDS: computers; dell; microsoft; monopoly; pc; techindex; windows
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To: Bush2000
Here's another biggie for you:

July 1994 — Microsoft in a consent decree agrees to change contracts with PC makers and eliminate some restrictions on other software makers, ending a Justice Department investigation.

This consent decree signed by Microsoft means that Dell only pays Microsoft for the computers that contain Microsoft products. Dell does not have to pay Microsoft for any royalty on any PC that does not contain a Microsoft product. Not only that Microsoft cannot make it a condition of the contract to limit Dell in any such way.

This actually started it all This consent decree is still in effect. However, Microsoft has violated it, goes to court, gets it a$$ whooped, and gets verdicts handed down that yes, M$ is in violation of its own consent decree, the Sherman Act et al.

And now, M$ is back to its own tricks demanding a royalty against the Dell naked PCs for which it has no legal right. (already proven in court).

181 posted on 08/13/2002 1:53:54 PM PDT by Utopia
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To: Bush2000; BuddhaBoy; PatrioticAmerican
Let me give you more info, for you and all the other M$ bozo shills:

Microsoft, the Department of Justice and the Consent Decree of 1994 (Note: this is still in effect)

In 1994, Microsoft signed a consent decree with the Department of Justice that provides Microsoft would not enter into any license agreement that: 

Microsoft has suggested this defeat was somehow a victory, and was in fact no finding of liability. Attorney General Janet Reno saw things differently, and said so on July 16, 1994:

"Microsoft's unfair contracting practices have denied other U.S. companies a fair chance to compete, deprived consumers of an effective choice among competing PC operating systems, and slowed innovation."

The Assistant Attorney General in charge of the Antitrust Division, Anne K. Bingaman, expressed a similar sentiment:

"Microsoft is an American success story but there is no excuse for any company to try to cement its success through unlawful means, as Microsoft has done with its contracting practices."

Are we learning yet?

182 posted on 08/13/2002 2:03:36 PM PDT by Utopia
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To: Utopia
Note to Utopia:

Quoting Janet Reno in an attempt to further your argument will not help you.

All it does is point out your desparation where the facts dont back you up, nor your new partner in Crime, MS Reno.

Seek help.

183 posted on 08/13/2002 2:17:13 PM PDT by BuddhaBoy
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To: BuddhaBoy
Quoting Janet Reno in an attempt to further your argument will not help you.

Is this the best you can do? Obfuscate? Maybe you don't know, but she was the Attorney General at the time. The fact that she is not Attorney General now does not dimish the consent decree signed by Microsoft. You see, the law is one of those things that a court order is a court order regardless of who is in the Whitehouse or DOJ. This is also true for consent degrees.

To re-interate (since I don't think you got the point), in 1994 Ms. Reno was AG. Microsoft signed the consent decree. Its still binding. There was no other AG to quote .. because ... funny thing, Reno was the AG. And, becasue the law is the law and consent decrees are binding .. its still in effect.

Are we learning yet?

184 posted on 08/13/2002 2:24:09 PM PDT by Utopia
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To: Utopia
That has nothing to do with the fact that Dell was offering naked PCs to customers who wished to purchase them

Dell's policies are their own. Take it up with them.
185 posted on 08/13/2002 4:21:32 PM PDT by Bush2000
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To: Utopia
MS hasn't violated any of these terms. Dell can offer any non-Microsoft operating system it wants. MS doesn't charge a per-processor license fee. Nor does it require licensing of any other MS product. Etc, etc.

You seem to think that mentioning Janet Reno's opinion is going to make people feel bad or something. What an utter joke. I saw her kill dozens of men, women, and children at Waco. I could care less what she thinks.
186 posted on 08/13/2002 4:28:27 PM PDT by Bush2000
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To: Utopia
Are we learning yet?

Quite obviously ... you're not, Forrest.
187 posted on 08/13/2002 4:29:26 PM PDT by Bush2000
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To: Bush2000
"Dell's policies are their own. Take it up with them."

I'm sorry - did I understand you to say, sir, that the Soviets are not using Eastern Europe as their own sphere of influence in occupying most of the countries there?

188 posted on 08/13/2002 4:35:41 PM PDT by HAL9000
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To: Bush2000
MS hasn't violated any of these terms. Dell can offer any non-Microsoft operating system it wants. MS doesn't charge a per-processor license fee. Nor does it require licensing of any other MS product. Etc, etc.

Dream on. The court documents speak for themselves.

189 posted on 08/13/2002 7:23:15 PM PDT by Utopia
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To: HAL9000
I'm sorry - did I understand you to say, sir, that the Soviets are not using Eastern Europe as their own sphere of influence in occupying most of the countries there?

That's hilarious, Hal. I hadn't realized that MS had Dell at gunpoint. Or perhaps it's all just your private delusion...
190 posted on 08/13/2002 7:24:31 PM PDT by Bush2000
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To: Utopia
Dream on. The court documents speak for themselves.

They certainly do. And I'd like you to point out where they say that per-processor license fees are being charged.
191 posted on 08/13/2002 7:25:16 PM PDT by Bush2000
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To: Utopia
Dell DID offer naked PCs once. Once. Get over it, they changed their product line. As even unix said, if Dell continues to find resistence to such a product line, then Dell will change it, again. Until then, Bill makes a few more, or less, bucks, and I love that because it pisses you off!
192 posted on 08/13/2002 7:27:26 PM PDT by PatrioticAmerican
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To: Lockbox
You are in the ballpark; it isn't much. I don't believe one penny should forced on anyone, but this Dell arrangement doesn't do that at all. Besides, people are acting like no one wants Microsoft Windows XP and Microsoft is ramming XP down their throats. The fact is 99.99% of all PC sales are requested to have Windows XP. Corporate customers buy hundreds and even thousands of PCs at a time. The Ddefense Department is one of the biggest buyers at several hundred thousand. All with Windows XP. I don't think a few spoiled brats will make a serious diff to Dell. They tried Linux, and few wanted it. I am sure they will try again as Linux matures. The market really does dictate prices and conditions, not Microsoft, but I am glad people think that. hehe
193 posted on 08/13/2002 7:41:12 PM PDT by PatrioticAmerican
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To: Bush2000
Hackers released a copy of Windows XP with activation removed before it was even released by Microsoft!!!

I didn't hear about that one. I'd hate to be the one on the trustworthy computing team that had to break the bad news to Bill.

All joking aside, I'm sure the internet activation feature has cut down the pirating by orders of magnitude.

I wonder how effectively the pirated version can receive security patches and updates?... Because without the security patches and updates... well, you know. :-)

194 posted on 08/13/2002 7:44:05 PM PDT by TheEngineer
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To: Bush2000
and when the BIOS goes looking for a floppy or a hard disk or a CDROM to boot from, it says "No Boot Device Found. Press ENTER to Reboot Now."

Sorry you didn't get my humor. But, in some jokes, there's that element of truth. I built a computer from components and a blank hard disk a week ago, and the only "OS" pre-loaded was the BIOS.

Nice computer. I'll bet you get a lot done with it.

Actually, I did... Set the BIOS to boot from CD-ROM, loaded a linux install CD, and installed Red-Hat Linux 7.3.

BTW, When are you guys over at MS going to give the Apache Web Server a run for its money?

195 posted on 08/13/2002 7:54:00 PM PDT by TheEngineer
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To: PatrioticAmerican
I love that because it pisses you off!

You are very strange. But not unexpected. The argument was that M$'s new attempt at a contract with Dell violates a previous consent decree with the court. The best you can do is obfuscate/distort/insult/deny realty because you've lost the argument. The court records speak for themselves. Your next move is probably to deny the records .. etc. I don't care. The consent decree clearly states that M$ cannot influence what OSs are installed or not on the PCs. Dell is the manufacturer .. Dell offers naked PCs -- remember those points? -- ... It wasn't that long ago a company I did some consulting for bought some naked PCs from Dell and you know something-- M$ didn't get a dime from that transaction because gasp! they were not involved in the sale! And their software wasn't needed.

Read any of this the way you want and point your IE browser with the newly discovered security flaw somewhere else. I get a headache having to think down to your level. M$ shills -- stupid to the core. Give me a Linux shill anyday. A Linux shill is so friggin' irritating, but at least they have a brain in their head and don't simply deny realty to "make a point". Read the court documents (and the consent decree) if you can.

196 posted on 08/13/2002 8:01:42 PM PDT by Utopia
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To: PatrioticAmerican
"I CAN special order a car WITHOUT a radio or transmission from Ford"

You talk about never seeing a Ford with a GM engine. I have been a Diesel Mechanic for over 20 years. I have worked on anything from M60 Tanks to Bulldozers, Front end loaders, Road Graders, Rock Drills, to Cars, Pickups, and 19 wheelers. I have seen LOTS of Fords with GM motors. Not only GM, but Catapillar, and Cummins Motors. I used to work at a rock quarry, the Boss liked Fords. We had 5 Ford trucks, 1 had an International motor, 1 had a Cat motor, 1 had a Cummins motor, 1 had a Detroit Diesel and Allison Automatic, (Both of these are built by GM), and ONLY 1 had a Ford Motor. I used tell him if he liked Fords so much, how come ONLY 1 out of 5 was powered by Ford?

Who says that you can't buy a Truck without a motor. Go out to your local Kenworth dealer and tell them you want a 'Glider Kit', that is a NEW truck WITHOUT a motor, transmission, or rearends. We had a Kenworth dump truck that was a Glider Kit. I know I had to order parts for it, and they always asked if it was a Glider Kit, the VIN was different.

Kenworth is like Dell, Kenworth sells Trucks, Dell sells Computers. And Detroit Diesel, Catapiller, and Cummins are like MS but they sell Motors, and MS sells Software.

NEVER has GM, Cat, or Cummins, EVER told Kenworth that they had to sell ONLY their motors to customers. Kenworth is free to sell anyone ANY of the 3 motors in any of there trucks. When ever you buy a used Truck you ALLWAYS have to ask what model Motor it has.

Also GM, and Cat both sell Automatic Transmissions, and NEVER have they EVER told any Truck company that if they used their Motor they had to use their Trans.

I have seen Allisons behind all sorts of motors and in all of trucks and Heavy Equipment, yes even the M60 Tank uses an Allison Automatic. I have seen the same piece of heavy equipment offer you a choice of ANY of the 3 engines. We had 2 275 Michigan Loaders 1 had a Detroit and the other had a Cummins.

So don't tell me that what MS is doing is normal. MS sells SOFTWARE. Dell sells Computers. If MS wants to sell Computers, then they can build Computers and sell all they want, But until then they HAVE NO BUSINESS telling the computer companies how to run their business.

197 posted on 08/13/2002 8:18:26 PM PDT by amigatec
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To: PatrioticAmerican
The one thing that you do not understand is OEM contracting. If the price of Microsoft Windows XP is $350 retail, and Dell wants a cheaper OEM price model, then Microsoft can offer them $25 per license, but with conditions. It is widely known that many people buy one computer and illegally copy Windows to the other or give it to their friends. So, Microsoft says, “Look, Dell, if you are going to sell our software, then every PC leaving your docks must have an OS, any OS; Linux, Solaris, Windows, pick one. If you don’t want to do that, then we will have to adjust our pricing model to adjust for the theft. So, instead of $25 a copy OEM price with the assurance that every PC will have an OS, thereby preventing theft, the price will be $100 for shipping PCs without an OS.” Dell chooses the $25 pricing model.

According to the Sherman Act their are ONLY 3 reasons to adjust price.

1. Number of units sold.

2. Cost of manufacture.

3. Cost of shipping.

So, what part of that model is illegal, immoral, or unethical?

The Sherman Act says it is Illegal.

198 posted on 08/13/2002 8:23:00 PM PDT by amigatec
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To: PatrioticAmerican
Would you want your competitor's OS next to yours? Actually, the real problem is support.

Let me go back to the Kenworth post I made.

I can walk into ANY KW shop in the country tell them I need my truck worked on and it DOESN'T matter which Motor it has.

As a Mechanic I can work on a Cat just as easily as I can work on a Cummins, or a Detriot.

Kenworth has mechanics that may just work one model of motor, but if you have a problem they can fix it.

199 posted on 08/13/2002 8:34:23 PM PDT by amigatec
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To: amigatec
"The Sherman Act says it is Illegal. "

I guess you don't know or understand the Sherman Act.

200 posted on 08/13/2002 8:57:21 PM PDT by PatrioticAmerican
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