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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

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To: krb
I thought Dell did a good job apologizing for that incident and going the extra mile to try and make ammends for it.

When the person who supposedly broke the rules and brought so much bad publicity to the company does not get fired it means that the person was following orders. The apology is meaningless.

61 posted on 08/10/2002 11:50:16 PM PDT by gore3000
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To: medved
It's not even hard to do. In fact, if the average consumer ever figured out how simple it was, Dell would go under within a week.

My way a lot of places sell 'upgrade bundles' which give you everything except the hard drive, monitor and keyboard and you can get it all for a pretty high powered system for about $300 bucks.

62 posted on 08/10/2002 11:56:52 PM PDT by gore3000
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To: Bush2000
otherwise, Dell would have to deal with all kinds of botched OS installs by consumers who don't know jacksh*t about what they're doing.

Total nonsense. They can sell good stable Linux systems preinstalled just like they do with Windows - probably more stable too. Instead they have been selling win 98 OS's with Office XP which messes everything up.

63 posted on 08/11/2002 12:10:31 AM PDT by gore3000
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To: gore3000
When the person who supposedly broke the rules and brought so much bad publicity to the company does not get fired it means that the person was following orders.

BS. It means that their filter is a work in progress and we helped calibrate it. Period.

64 posted on 08/11/2002 12:18:22 AM PDT by krb
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To: 300winmag
Thanks for your post - more reason to buy a Vaio.
65 posted on 08/11/2002 12:23:34 AM PDT by 185JHP
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To: gore3000
Excuse me, but is this not illegal for MS to do according to the consent agreements on the monopoly case?

The proposed settlement would prevent Microsoft from prohibiting PC manufacturers from selling computers with competing operating systems pre-installed.

This latest action is slightly different. Microsoft is looking for a loophole that would allow them to prohibit manufacturers from selling "naked PCs".

Perhaps this matter will be brought to the attention of Judge Kollar-Kotelly, and she will close this loophole.

Microsoft should not be dictating terms to the manufacturers about sales to which Microsoft is not a party. If the manufacturers want to sell computers with a blank disk drive, it's none of Microsoft's business.

66 posted on 08/11/2002 1:09:15 AM PDT by HAL9000
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To: HAL9000
This latest action is slightly different. Microsoft is looking for a loophole that would allow them to prohibit manufacturers from selling "naked PCs".

Says who? Some magic fairy sending email in the dark of night? Get real. This source has zero credibility.
67 posted on 08/11/2002 1:18:20 AM PDT by Bush2000
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To: gore3000
Total nonsense. They can sell good stable Linux systems preinstalled just like they do with Windows - probably more stable too. Instead they have been selling win 98 OS's with Office XP which messes everything up.

Read for comprehension next time. I wasn't arguing that OEMs are incapable of providing Linux with their boxes. Dell already did that and abandoned the effort when nobody bought it. No, the reason that OEMs want a single OS install is that it reduces the problem space that they have to support. They don't want customers installing alternate platforms because there are an infinite number of varieties/combinations to support.
68 posted on 08/11/2002 2:01:05 AM PDT by Bush2000
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To: Bush2000
Says who? Some magic fairy sending email in the dark of night? Get real. This source has zero credibility.

http://www.microsoft.com/presspass/legal/mar02/03-26ntranscriptam.asp






                                UNITED STATES DISTRICT COURT
                                FOR THE DISTRICT OF COLUMBIA
                  
                  
                  
                  STATE OF NEW YORK, et al.,    .
                                                .         
                                 Plaintiffs,    .
                                                .    
                           v.                   .    CA No. 98-1233(CKK)   
                                                .    Washington, D.C.
                  MICROSOFT CORPORATION,        .    March 26, 2002
                                                .    9:03 a.m.
                                 Defendant.     .
                  . . . . . . . . . . . . . . . .
                  
                                          VOLUME 6
                                      MORNING SESSION
                                  TRANSCRIPT OF TRIAL RECORD
                            BEFORE THE HONORABLE COLLEEN KOLLAR-KOTELLY
                                  UNITED STATES DISTRICT JUDGE

[snip]




           19     Q.  But my questions for you -- I wanted to clarify, and you 

           20     did clarify it, that your testimony is not that Microsoft 

           21     requires Gateway to include a license for a Windows operating 

           22     system with every PC.  And that is correct?

           23     A.  That's correct.  In section -- in paragraph 96, it says 

           24     must have an operating system or a license for an operating 

           25     system.







                                                                             1275



            1     Q.  And what Microsoft attempts to provide OEMs an incentive to 

            2     do, through section 3(d) of the MDP, is not ship so-called 

            3     naked machines with no operating system; correct?

            4     A.  Yes.  Again, and section 3(d) is one of the quote/unquote 

            5     prerequisites under the market development program, which means 

            6     if you don't achieve that prerequisite you lose -- you stand to 

            7     lose the entire market -- royalty discount available under the 

            8     MDP.

            9     Q.  And Microsoft's concern is that if Gateway's -- if OEMs 

           10     ship PCs without any operating system, that a pirated copy of 

           11     Windows may be installed on that PC; correct?

           12     A.  I don't know what Microsoft's concern is other than just 

           13     general software piracy.

           14     Q.  Do you know what percentage of naked PCs end up with a 

           15     pirated copy of Windows installed on it?

           16     A.  No, sir.

69 posted on 08/11/2002 7:09:00 AM PDT by HAL9000
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To: absalom01
and have found that Dell often can provide fully assembled boxen for almost exactly the same price I would have to pay for the parts.

Strange that I should read this over and over.

This makes sense if you choose the absolutely cheapest parts available.

If one even marginally recognizes the value of quality, documentation, drivers and reliability, this becomes a "no brainer" in a whole different direction.

70 posted on 08/11/2002 7:55:03 AM PDT by Publius6961
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To: Publius6961
LOL
Actually, I should have been clearer in my post. I assemble the desktop units myself, for the economic reasons that have been noted. (Also, I need an OS for those, anyway, and like it or not, Windoze is what I have to use based on the apps that I'm running.)
For my two Dell servers, the equation was different (this was a few months ago, though). Both are multi-homed, dual processor, config. nightmares (at least for a part-timer like me.) and are running Linux very happily. I don't have any interest in selling Dell, and this is getting a bit off the topic anyway, but just thought i'd clarify.
BTW -- got all of the drivers and documention I could ever want when I ordered them and told the rep how I was planning on configuring them.
71 posted on 08/11/2002 8:35:01 AM PDT by absalom01
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To: Clara Lou
"How does MS have the authority to require Dell to sell their OS on these machines?"

Microsoft offers to sell OEMs like Dell Windows at below the market price, provided they agree to a set of terms (such as buying one copy for every machine they ship, to cut down on piracy). If Dell doesn't like those terms, it's perfectly free not to sign that OEM deal, and simply pay the market price for its copies of Windows the same as you or I would. Since Dell isn't doing that and is instead complying with the agreement, presumably the money it saves by getting cheap copies of Windows more than makes up for the sales it expects to lose by not offering OS-free machines.

Offering companies a discount on your OS is known as "predatory pricing" and is a "monopolistic practice." Note that giving away your OS for free [Linux] is not predatory pricing, and refusing to sell copies of your OS to OEMs at all [Apple] is not a monopolistic practice. I hope this clears things up for you.

72 posted on 08/11/2002 8:51:28 AM PDT by Fabozz
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To: HAL9000
Got news for you: Dell has refused to sell PC's without operating systems for a few years now.

When I ordered my first Dell from them back in 1997, they refused to sell "naked pc's" (that is, pc's without an operating system. They said at the time they couldn't support the pc since a requirement by Dell was to have an OS that was capable of running their diagnostics utilities - which were ironically all Windows based.

Last year when I ordered my second Dell -- same story.

Now, I've ordered from Dell out of convenience. I can easily build my own pc to spec, but because I lack the time to do it, I order them from Dell. The last PC I bought "in pieces" was 3 years ago - the parts are all still in their boxes and it's a worthless system now.

73 posted on 08/11/2002 8:55:25 AM PDT by usconservative
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To: HAL9000
Simple: Just refuse to pay money to anyopne fololowing Microsoft's philosophy of "forcing" the consumer to behave.
74 posted on 08/11/2002 8:57:34 AM PDT by RISU
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To: Fabozz
Thanks, I appreciate the explanation. The only thing you said that I already knew is that Linux is free.
75 posted on 08/11/2002 8:59:32 AM PDT by Clara Lou
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To: boris
"Don't buy Dell: they are anti-gun."

Since when is Dell anti gun ? I planned to make my next computer a Dell and not a Gateway for the very reason that Gateway is anti gun. I seem to remember in that incident that Dell apologized to the gunsmith and gave him a free computer. It was some low level anti in the Dell offices that refused to sell to him.

76 posted on 08/11/2002 9:10:42 AM PDT by SSN558
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To: HAL9000
I love your research! The M$ shills are pretty pathetic. What's their next course of action? Attack you personally because you have the facts?

It is a shame that M$ feels that they have to do this kind of thing. Its their paranoia that turns everybody against them. The M$ agrument appears to be that a PC manufacturer can't distribute a "naked box" because they (in their infinite paranoia) believe the customer will install a pirated copy of Windows on it? Pretty bent logic, if you ask me.

There are lots of other OSs other than Windows that can be installed on a "naked box" -- Linux, Darwin, Solaris, NetBSD, ....

77 posted on 08/11/2002 9:24:48 AM PDT by Utopia
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To: HAL9000
Hey HAL, you forgot to include additional testimony. Your clip only tries to show that Microsoft forced Gateway to always include Windows. That's a bit of a half-truth isn't it???

Here is a blurb you didn't want to mention:


Q. Now, is it your testimony, Mr. Fama, that section 3(d)

18 requires Gateway to include a license for a Microsoft operating

19 system with every PC?

20 A. No. It says, must have an operating system or a license

21 for an operating system. Does not have to be a Microsoft

22 operating system.

23 Q. It could be a non-Microsoft operating system; is that

24 correct?

25 A. Yes, that's correct.







1274



1 Q. It could be a license for a Linux, for example; is that

2 correct?

3 A. I suppose, yes.

4 Q. And it could be a license for an OS2; is that correct?

5 A. Yes.

6 Q. It could be a license for a Caldera's DR-DOS?

7 A. If that product's still on the market, yes.

8 Q. Caldera's. C-a-l-d-e-r-a apostrophe S D-R hyphen DOS,

9 D-o-s.

10 Now, if Gateway wanted to, Mr. Fama, it could ship a

11 free operating system like Linux with PC systems and thus

12 satisfy the requirement of section 3(d) without paying a

13 royalty to Microsoft or anyone; is that correct?

14 A. That would be correct if that particular license were in

15 fact free, but again the customer may not want Linux. The

16 customer may already have another license to either Linux or

17 whatever software products, so may actually want the PC from us

18 with no operating system.

78 posted on 08/11/2002 9:46:14 AM PDT by PatrioticAmerican
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To: SamAdams76; All
"The first thing I do when I buy a computer (when I don't build my own) is wipe the hard drive completely clean. Then I do a clean install of Windows. This gets rid of all the crap that comes with a store-bought PC that you will never use and bogs your system down. For those who wish to install Linux or some other non-Microsoft OS, it can be done easily enough. Just wipe the hard drive clean and install whatever you want."

True to an extent, Sam, but the point is that you definitely pay for that OS that you're wiping off. Trust me.

I work for the workstation division of ......ahem.......a very large computer company. :) We've dealt with this issue, and frankly.........this is 100% about the contract that is negotiated with Microsoft based upon the pricing that a company wants from Microsoft. IOW, you want their absolute, best, rock-bottom price.......then you install a Microsoft OS on every machine. It's really that simple.

They're not nearly as unreasonable as many think.

In our case, we agreed that every system shipped will have an OS, but it does NOT have to be a Microsoft OS. We, therefore, have the leeway to sell whatever the heck our customer needs on their workstations.

This also means our customers aren't paying for a Microsoft OS that they're going to "toss" if they plan to do their own Linux preload/image.

79 posted on 08/11/2002 9:53:15 AM PDT by RightOnline
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To: SSN558
"Since when is Dell anti gun ? I planned to make my next computer a Dell and not a Gateway for the very reason that Gateway is anti gun. I seem to remember in that incident that Dell apologized to the gunsmith and gave him a free computer."

Oh come now. You should understand that an individual's first reaction is usually the one truest to his nature. The same is true of corporations. There was a policy in place. The apology and free computer were damage-control measures, taken only when the whole ugly matter blew up in their face.

Just as I will never again buy a S&W (I don't care who bought them), I will never buy a Dell. They were caught doing what came naturally; that is enough for me.

--Boris

80 posted on 08/11/2002 10:05:34 AM PDT by boris
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