What Microsoft's Anti-Linux Taskforce in Wal-Mart Teaches Us About Sub-notebooks

Dr. Roy Schestowitz

2009-06-03 15:05:37 UTC
Modified: 2009-06-03 15:05:37 UTC

Summary: What do leaked antitrust documents teach us about the orchestration of competition assassins (Microsoft calls them "taskforces")?

Remember when Microsoft commissioned a group of people to pressure Wal-Mart to take GNU/Linux off the shelves? Well, it worked, despite the fact that GNU/Linux was selling very well. Those who never saw this internal correspondence from Microsoft most certainly should.

The same thing appears to be happening at the moment in Microsoft's war on GNU/Linux-powered sub-notebooks.

At an earlier stage, Microsoft used its friends from NPD and right now they are using ASUS to scare vendors who are stocking GNU/Linux. This also intimidates potential buyers.

According to this new article, Microsoft is very likely behind these latest developments.

The very next day, Asus' chairman, Jonney Shih, after sharing a news conference stage with Microsoft corporate VP, OEM Division, Steven Guggenheimer, apologized for the Android Eee PC being shown.

Shih said, "Frankly speaking ... I would like to apologize that, if you look at Asus booth, we've decided not to display this product. I think you may have seen the devices on Qualcomm's booth but actually, I think this is a company decision so far we would not like to show this device. That's what I can tell you so far. I would like to apologize for that."

What the heck does he have to apology for? This wasn't some put-together at the last minute skunk-works project that never should have been seen by the public eye. This was a system that, from all reports, could have gone into production immediately.

The only thing I can think of is that Asus doesn't want to tick off Microsoft. Microsoft has been losing money by almost giving away Windows XP Home to netbook vendors. The Evil Empire wants to make that up this year by forcing netbook customers into buying over-priced, under-powered Windows 7. But, if customers get a chance to buy Linux-powered netbook for a good deal less than Windows 7 netbooks, Microsoft is scared that they'll lose the netbook market.

If this was an isolated incident, I might not make so much of it. But, it wasn't.

On the other side of the world, PC World, Britain's self-professed largest specialist chain of computing superstores, announced that, regardless of what was coming with Linux netbooks, it would only be selling Windows netbooks.

[...]

Microsoft, frightened by the sudden rise of new Linux netbooks, is doing it best to make sure that neither you, nor anyone else, get a chance to even see one, never mind buy one.

It's typical Microsoft strong arm tactics. Microsoft doesn't dare compete on quality, so it pressures OEMs (original equipment manufacturers) and retailers to keep people from even realizing that there are other, never-mind better, choices.

How much money has Microsoft spent (e.g. on kickbacks) in order to push GNU/Linux out of the market? Its people were not even successful. Microsoft reported a sharp decline in earnings and cited sub-notebooks as a reason. As Fewa put it a few hours ago, "a company can provide all the incentives it wants, they just can't be based on the boycott of opposing products or tying."

Acer, unlike ASUS, has not yet been "closely tied up with Microsoft," so it will deliver sub-notebooks with Android on them. This is also covered in the following articles that contain interesting details which we highlight:

i. Acer to make first-ever Android netbooks

Acer at Computex today said it would be the first to produce netbooks using Google's Android platform. Company IT product president Jim Wong expects the systems to appear in the summer and that the Linux-based systems will still use Intel Atom processors. He didn't provide prices, though the Android netbooks should be less expensive than Windows versions as Google doesn't charge for licenses where Microsoft asks for $15 for each copy of Windows XP.

[...]

Acer's decision is a blow to Microsoft, which has managed to achieve a near-monopoly of the netbook market by consciously selling Windows below cost to reduce most of the price advantage that had led Acer, ASUS and others to choose Linux in the first place.

ii. Acer to make first-ever Android netbooks

The Google Android OS is coming to the Acer Aspire ONE netbook, and sooner than you might imagine. As a happy ONE owner myself, and a keen observer of all things Android, the news that it could be as soon as Q3 this year really pleases me.

Microsoft is using its pressure tactics (extortion, blackmail, etc.) to not only exclude GNU/Linux from OEMs and shops but from chipmakers too. We previously wrote about the relationship between Intel and Microsoft in:

Watch what this analysts group had to say about Intel and Microsoft:

For over 20 years, Microsoft and Intel have partnered to grow the PC industry. Now, Intel is launching a netbook that will use the Linux operating system and not Microsoft. Could it be the economy and the need for more revenue? Or could it be such a huge revenue opportunity for Intel that they can not let the high price of an operating system slow them down?

What will Microsoft do next? Apart from ruining sub-notebooks as a whole by shutting GNU/Linux out, then elevating their prices and providing crippled versions of an operating system too heavy for the form factor? ⬆

More about Intel and Microsoft:

Comments

K345

2009-06-03 18:47:20

Remember the Soviet Empire? It simply collapsed when a critical mass of dissatisfaction was reached and the security apparatus could not frighten people anymore.

The solution to make the Microsoft empire collapse is universal attack in a way they cannot contain anymore.

We need to make up our own ideas what we can do to wipe that empire out but the important thing is to focus on where it hurts them most.

Roy Schestowitz

2009-06-03 18:51:59

At the beginning of this year we posted a lot of Comes vs Microsoft exhibits here. This got us some front pages in Digg and Slashdot, leaving Microsoft shamed. I have thousands more exhibits to go through and although I stopped doing this in March I intend to resume this summer. It's just very time consuming.

David Gerard

2009-06-03 22:46:50

I find myself recently redundant. What do you need? Laborious transcription? I can do that. Email me.

Roy Schestowitz

2009-06-03 22:53:45

Thanks.

There are many exhibits here from which we need to extract the full text. Find a headline you like, open the PDF and see if you can put it in text. When done we will post it in the front page.

Daniel Zand

2009-06-03 21:02:44

This is a good reason to purchase System76, Zareason, etc. They and other upstarts do not bootlick Microsoft

We’re also recommending dropping the eeePC ... http://openbytes.wordpress.com/2009/05/30/microsoft-backs-down-starters-3-app-limit-removed/#comment-1150
Needs Sunlight

2009-06-03 20:08:13

Arm-based netbooks can be a major kick in the nads for Bill. Think about how many days the average ARM-based mobile phone has. All that's lacking is a larger screen and a keyboard to make it a netbook.

Weight and battery life will outstrip the x86-based units to the point where they will be considered trash.

I suppose that's one of the reasons we've been waiting close to a decade for portable computers built on ARM...

Roy Schestowitz

2009-06-03 20:13:12

They'll prepare a Slog campaign with the likes of Enderle claiming that it's underpowered, doesn't run Microsoft Office, etc.

Wait and watch.

whatever

2009-06-03 22:55:06

I think it was less about being beholden to Microsoft and more about not having a demo-ready product.

Acer is talking about doing it on Atom first because the ARM stuff is still not ready larger devices. Android has a lot of momentum and lots of potential, but as a G1 owner since launch date, it still needs a ton of work as a mobile OS, let alone on a netbook.

The biggest advantage ARM has is for building in cellular stuff into larger devices. So your netbook uses your cellular connection, can make calls, etc. That can be huge, but the biggest adoption issue for not just ARM, but even Atom (and this includes newer Atom chips) is the total failure when playing streaming video.

Streaming .h264 encoded 320x480 clips from YouTube is one thing. Hell, you can playback large non-hd .h264 files on Atom or Arm quite well, assuming they are static files -- but streaming video still sucks. Flash isn't on the iPhone because it kills performance. Kills it. Hulu Desktop barely runs on a N270 Atom -- and it isn't watchable. Streaming video has not yet been optimized to run on low-power processors, and until it is -- the biggest hurdle for netbooks won't be Microsoft. It'll be convincing people to buy one when their smartphone is just as capable/incapable of decent streaming. And that doesn't even address battery life concerns with video.

David Gerard

2009-06-04 19:16:01

Hmm ... we have an MSI Wind, which has an Atom N270, running Ubuntu 9.04 Netbook Remix, and it's the perfect thing to play CBeebies for the toddler, either live streaming or iPlayer. It seems to cope with it just fine. I'm not sure if the BBC is using FLV or H.264 though.

Roy Schestowitz

2009-06-04 19:44:09

Yeah, I've seen something along those lines. Based on SJVN's latest review of Vista 7 on sub-notebooks (see ComputerWorld), it hardly even handles YouTube.

David Gerard

2009-06-04 19:58:41

The Atom's fine with a proper OS though ;-)
Roy Schestowitz

2009-06-04 20:27:49

For ARM it can be more complicated. Microsoft will do an anti-ARM (by inference anti-Linux) campaign using its familiar pundits and faithful groups.

Microsoft is already renaming "Netbooks".
David Gerard

2009-06-04 22:14:03

Microsoft is not going to be able to rename "netbooks" - it wasn't a brand name, remember, it was a term people just started using (Psion's trademark notwithstanding).

What will make a difference is if netbooks turn into - more or less - a phone with a bigger keyboard and screen. They're heading this way, particularly with 3 in the UK doing a data-only plan and openly advocating people use it for Skype. That is, they'll move away from being small PCs.
Roy Schestowitz

2009-06-04 22:18:32

I'm posting about it later. You'll see what I mean.

What Microsoft's Anti-Linux Taskforce in Wal-Mart Teaches Us About Sub-notebooks

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