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06.03.08

Making Silverlight a Trojan Horse and Anti-competitive Tool

Posted in Antitrust, Dell, Free/Libre Software, GNU/Linux, HP, Microsoft, Novell, Open XML, Red Hat at 10:30 am by Dr. Roy Schestowitz

Force-feeding of Silverlight at programming level and OEM level

The embrace-and-extend routine shows little or no signs of abatement. At the moment, the combination of Slashdot's editorship and Paul Krill, both of whom occasionally push the Microsoft 'open source' agenda, have this to share.

Microsoft Corp. plans to demonstrate integration Friday between its new Silverlight browser plug-in technology for rich Internet applications and the Ruby on Rails Web framework.

This is not major news and it is hardly worth a front page. However, a reader sent us a pointer to the discussion in Slashdot. Here’s one small portion of it, which is the old eye-opener.

What I don’t get is, what happened to RubyCLR? This IronRuby has the same name as an old IronRuby. Microsoft hired RubyCLR developers and now is developing yet another IronRuby instead? Are they seriously starting over just to get it under a different license?!

First of all, remember that Silverlight (or Moonlight) are pretty much verboten in Free software distributions/desktops, for legal and practical reasons. Fedora forbids it. Moreover, regarding the use of IronRuby as a surrogate with Microsoft-controlled licences which give Microsoft the ‘Ruby crown’, see this recent post. Microsoft wishes to grab Ruby from the bottom. And it’s not just Ruby by the way. It’s part of a broader push.

Further to this tie-up, consider this Live Search-Silverlight crack-cocaine-like combination:

New HP-Microsoft Live Search deal is all about Silverlight

Following the recent announcement of Live Search cashback, Microsoft has today disclosed a new deal with HP that is expected to give a slight boost to the usage of both Live Search and Silverlight in the US and Canada, starting in January 2009. The deal centers around a Silverlight-powered toolbar (not to be confused with the recently updated MSN Silverlight toolbar) that Microsoft is specifically developing for HP.

As we stressed in the past, Microsoft seems to be begging for yet another antitrust action against it, but the company has too much to lose if it does not pull such tricks and inherits control of the Web from the likes of Google, Firefox, and even Yahoo!

“Microsoft may have found a workaround, essentially pulling the same trick it was using back in Netscape Era.”The antitrust aspects of this may seem easy to dodge by not incorporating linkage at the core product which is Windows but by letting the OEMs do the job. Microsoft may have found a workaround, essentially pulling the same trick it was using back in Netscape Era. It’s a trick where the software company instructs the OEMs and makes demands — using EULAs — as to how to set up the PCs so as to exclude rivals.

For further background on this, also consider the Microsoft/H-P collusions and H-P's recent OOXML lobby. Those two companies rub each others’ back, for sure.

As trivially observed in the leaked E-mails that you can find here, none of this strategy is new. Microsoft and H-P engage in some sort of an ‘anti-Google pact’ (like Novell versus Red Hat et al), similar to that from the exclusionary deals with Dell and Compaq at the time — ones that required that the OEM puts Internet Explorer on the PC and also makes it more easily accessible to the user (desktop shortcuts and the likes of them).

Acer has been devoured by H-P and the new risk is no longer Netscape, so only technology and the players swapped roles. There is more critical information about this over at Linux Journal.

Microsoft representatives are quoted claiming 40% of searchers use the default search installed for their system. If true, the HP deal will give Microsoft an immediate audience of millions for it’s search offerings, though the company has declined to speculate on the amount of additional traffic and revenue expected from the deal.

Who is to blame here? Microsoft or H-P? Therein lies the mastery of this trickery. It’s a case of paying for market share rather than earning some in return technical merits, or even advertising. It’s hard to point fingers, too.

Related posts:

05.31.08

Dell and Novell a Match Made in Hell? (Video)

Posted in Dell, NetWare, Novell, Videos at 11:28 am by Dr. Roy Schestowitz

It just… almost… sort of… ‘works’

It has been quite a while since we last wrote about Novell's mysterious relationship with Dell. Someone might not be telling us the whole story.

In any event, just for kicks (maybe a kick in Novell’s and Dell’s groin), here’s a video that showed up in YouTube just a few days ago. It’s titled very nicely: “Dell+Novell = Hell.”

Here is an Ogg Theora version that we’ve produce for readers who prefer it.

Ogg Theora

It has been a tough week for Dell, which faced serious charges.

In December of 2002, I started a page on my Computer Gripes site devoted to Dell.

Accumulating gripes about Dell was like taking candy from a baby; there was no sport in it. Eventually, I gave up maintaining the page, but despite a total lack of advertising or promotion, people kept finding the page and adding their own gripes.

Now these Dell gripes are official.

In the words of Jerry Seinfeld, “good luck with all that.” Dell’s financial misconduct goes a long way back, but we won’t list it here because it’s definitely off topic. That company is at least trying to escape Microsoft's stranglehold.

05.24.08

Do-No-Evil Saturday – Part II: SLED/SLES Service Pack, More Xandros at Asustek

Posted in Dell, GNU/Linux, HP, Microsoft, Novell, Red Hat, SLES/SLED, Windows, Wine, Xandros at 2:32 am by Dr. Roy Schestowitz

There are various new bits and pieces in SUSE Linux, but the main news item is about the release of the second Service Pack. We start with SLES and SLED.

SLED/SLES Service Pack

Here is the mind-boggling press release.

Novell today announced the availability to customers worldwide of SUSE(R) Linux Enterprise 10 Service Pack 2 (SP2), containing enhancements in virtualization, management, hardware enablement and interoperability. SUSE Linux Enterprise Server 10 SP2 is the only Xen-based virtualization solution with full support from Microsoft for Windows* Server 2008 and Windows Server 2003 guests and live migration of those guests across physical machines. Several improvements specific to SUSE Linux Enterprise Desktop 10 and SUSE Linux Enterprise Real Time 10 are also included in SP2. Novell further unveiled the Subscription Management Tool for SUSE Linux Enterprise, designed to help customers better manage their SUSE Linux Enterprise software updates.

Put simply, it’s a large maintenance release. The Service Pack was mentioned earlier in the week. Important questions were raised.

eWeek welcomed this release with yet another article that merely lumps it in with Red Hat’s new release, which to an extent stole SUSE’s thunder.

Novell and Red Hat announced upgrades of their Linux-based enterprise distros, featuring improved virtualization and hardware support. In addition, Novell SUSE Linux Enterprise Server (SLES) 10 SP2 adds a new subscription management tool, while Red Hat Enterprise Linux (RHEL) 5.2 adds new security, clustering, desktop, and networking features.

Information Week covered this also, as did Heise Open Source (Heise Online). Even Computer World.

Red Hat introduced its latest operating system update, Red Hat Enterprise Linux (RHEL) 5.2, which includes enhancements in virtualization capabilities, updates for user desktops, encryption and security improvements, while SUSE announced the availability of its Service Pack 2 for SUSE Linux Enterprise 10 operating systems.

SLED in Action

Steven JVN, who has always been fond of SUSE (especially on the desktop), delivered a nice report covering his experiences with SLED 10 (SP1).

That really was it. There were no hoops to jump through. No configuration headaches. No fuss, no muss. The ThinkPad R61 and SLED 10 SP1 just work.

Once it was on, the first thing I did was adjust the GNOME 2.12 desktop to my tastes. Since SLED 10 SP1 is a stable distribution meant for long-term business use it doesn’t have the latest software. Eventually, I’ll switch it out to another Linux, but for this review I wanted to see how the factory-installed Linux worked out.

Vendor Support

EMC seems receptive towards Netware and SUSE (no mention of other Linuxes).

EMC builds up disk backup

[...]

The new Avamar software supports 64-bit Red Hat Enterprise Linux 4 and offers expanded client support for Microsoft SQL Server 2005; Vista; Native Netware client backup and restore (Netware V6.5); and Novell Storage Servers (NSS) volumes on Novell Open Enterprise Server (OES) SLES 10.

SAP, which is still very close to Microsoft (some suggested that Microsoft should acquire it rather than go for Yahoo!), gave Novell one of those symbolic rewards that are tossed around for mutual recognition and marketing purposes. Bear in mind that SAP’s Shai Agassi, who fortunately left the company, was a very vocal (and thus notorious) FOSS basher. The current CEO is not a fan either, unlike former managers who grew fond of it, over time.

Novell today announced it has received an SAP Pinnacle Award in the category “Technology: Co-Innovation for Core Business,” recognizing Novell as an SAP partner who has made significant contributions to SAP’s customer-focused ecosystem. Novell was honored specifically for work with SAP on SUSE(R) Linux Enterprise Server Priority Support for SAP as well as SUSE Linux Enterprise Server high availability and virtualization for SAP.

It shouldn’t be surprising that SAP goes for the ‘Microsoft-approved’ Linux. We wrote about the Microsoft-Intel-SAP-Novell axis before. It’s further augmented by relationships with OEMs, e.g. Dell and H-P. There’s a lot of ‘politics’ there.

SUSE Laptops

We encourage people not to buy laptops that have SUSE preloaded because there is no exemption from ‘Windows tax’. Microsoft collects royalties from Novell. In any event, since it’s Saturday, consider this review of the H-P laptop that comes with SUSE.

If 2007 was the year that Asus chose to introduce the small and affordable sub-notebook, then 2008 is the year that the concept has really begun to take off. Asus, predictably, has lead the way once again, with its updated Eee PC 900 putting right many of the issues raised by the original. Meanwhile, Intel has enthusiastically embraced the idea by launching its Centrino Atom platform for small, low-power, affordable notebooks and MIDs (Mobile Internet Devices). There are a few machines mooted to use Atom, most notably the impressive looking MSI Wind, but it appears it could be a while before we see Atom powered machines hitting retail.

There’s also the MSI laptop that comes with SUSE.

The other version of Wind will use Novell’s SUSE Linux OS and cost $399.

Fortunately, not all laptops come with SUSE or Xandros. Plenty of choice remains. Watch this interesting new article which speaks about “Novell for desktops.”

The big shocker for Raburn? “I was surprised to see Novell for desktops,” he says. “I’m not sure I know anyone who would run it for their desktop. Certainly Windows and Red Hat win the category, but the Mac certainly deserves a solid third place and is increasingly part of corporate networks.”

Xandros

Some people, such as reviewers from Laptop Magazine, learn the hard way that «Linux is Not Windows». They try to treat Xandros on the Eee PC as though it’ll be DRM-compatible, as well as Windows compatible (Wine serving as a compatibility layer). Watch what happens.

I am a big fan of Xandros on the Eee PC, but I’ve always said it has its limitations, especially when it doesn’t give me access to my favorite Windows programs. But when my editor told me earlier this week about Wine HQ, I nearly freaked. Wine HQ enables a compatibility layer that allows Windows programs to run on a Linux OS.

Asustek’s commitment to GNU/Linux is no surprise. It uses that same Xandros derivative to create a desktop solution called EBox.

The Ebox will certainly run the Eee PC’s Xandros version of Linux, and come bundled with the same line-up of applications.

The look of the Ebox is at odds with the design of a slimline home desktop PC that Asus demo’d at the CeBit show in March this year. That model, the “Digital Home System EP20″, was, however, said to run the Eee PC’s Linux OS.

What you ought to find most ironic is that Microsoft’s «Crippleware Program» [1, 2] (Windows XP for as little as $18 apiece) does not apply to anything other than low-cost and muchly-crippled laptops. How will it respond to this? Taxation of Xandros? This is an important one to watch.

05.09.08

Ballnux on H-P Laptops: Fail

Posted in Dell, GNU/Linux, HP, Microsoft, Novell, SLES/SLED, Xandros at 5:34 am by Dr. Roy Schestowitz

Non-Microsoft-taxable GNU/Linux works better

Steve Ballmer rides SUSEWhen Hewlett-Packard first announced that it had made SLED 10 its choice for a low-cost laptops, we were not very surprised because of the solidarity there is between Microsoft and H-P (Dell raises some doubts too). Perhaps it’s just that H-P wants to ensure Microsoft gets paid even if a GNU/Linux Ballnux distribution is sold, without alternative choices being offered (not even a blank hard drive).

Reports from Australia, where software patents are seen as valid, indicate that the Asus Eee with Xandros (or a derivatives thereof) is more expensive than that which has Windows XP. Coincidence? Maybe. Kickbacks/incentives? Maybe. Memory costs? Sounds like an excuse. Maybe the retailers just want to pocket the difference. Nobody knows for sure. Such deals have always been back room deals, until antitrust action that exposed anti-competitive agreements.

Let’s get back to the H-P laptop. Some might try to say that only SLED would work for consumers, but that is simply not true. In fact, SLED is not quite as popular or as widely-known as Ubuntu for example. Not only that, in fact, but Ubuntu also works much better on the laptop based on the following new review.

I got a mini-note 2133. It came with SUSE. I tried, repeatedly to do the most simple operations (using the software updater to update packages that had critical patches, install JDK 1.5, install Skype, etc.) and it just sucked. ZMD (the package manger) would crash, corrupt its database requiring a complete re-install to fix. It was simply aweful. I don’t know what the folks at SUSE are thinking, but coming out with software that’s more fragile than WIndows 3.1 and the registry is plain stupid.

So, I found some pointers for installing Ubuntu 8.04 on the mini-note. I installed Ubuntu and the Mini-Note turned into a great machine. I’m totally loving it. I’ve got everything except the wireless drivers working (but I’m using an EVDO modem and that works just fine…

The reviewer is happy with Ubuntu on this laptop, but sadly enough, this reviewer has already paid the Microsoft tax when a SUSE-loaded laptop got purchased. Is this the future? It needn’t be. Just boycott Novell and its products. If you don’t, Microsoft will continue to be paid for every PC shipped, no matter what operating system it runs.

Say No to Novell

04.08.08

From Ballnux-powered Eee to Ballnux-running Eee ‘Killer’ (SUSE at H-P)

Posted in Dell, GNU/Linux, Microsoft, Novell, OpenSUSE, Patents, SLES/SLED, Xandros at 8:40 am by Dr. Roy Schestowitz

If not Xandros, then Novell?

Several weeks ago we saw the BrainShare announcement from H-P about preinstallation of Novell’s SLED. This had reporters buzzing for a while and we later mentioned it in more detail here.

H-P did not quite stop there and for quite some time there have been rumours and leaks about H-P’s response to the ASUS Eee PC. One of the key bits in these rumours was the inclusion of GNU/Linux, but the chosen version was unknown — until now.

Sadly enough, despite the company’s history of installing other distributions, it chose SUSE this time around. It’s not OpenSUSE either. It’s the version Microsoft gets paid for. Have a look at this short report from Laptop Magazine.

The HP 2133 Mini-Note PC (starting at $599 for Windows Vista Basic, $499 for SuSE Linux, and $749 as configured) is a bit more expensive and weighs more than the competition, but the system’s unique strengths make it a good investment for students, mobile professionals, and anyone else looking for an affordable, highly portable computer.

There is some more information over at CNET.

Like the three aforementioned machines, the Mini-Note is not aimed at the mass market. It starts on the low end at $499 for the Linux, SSD version, but a fully configured device with Vista can top out at $1,200.

Like in the recent case of SAP (see the post about Intel-SAP-SUSE-Microsoft, aka a "Partners Triangle"), H-P is very close to Microsoft. We last showed this only about a week ago when H-P lobbied for OOXML in France. It is primarily in Microsoft’s best of interests to ensure that its favourite and largest OEMs choose distributions that are financially-tied to Microsoft. But why should customers be careless or naive enough not to see it?

Recall our recent post about what could possibly be described as Dell's "Linux tax". Amid massive layoffs at Dell, one has to wonder about their seemingly rocky relationship with Microsoft, which they try still to sustain, despite vocal disgust and rebellion against Windows Vista.

Given those historical collusion stories, it’s simply hard to get past the idea of secret software patents tax. There are more reports of this kind, one of which we cited here just a couple of days ago. Here is another newer one:

Dell giving the shaft to open source ubuntu customers?

[..]

Seems that with FreeDOS I could get a processor with a (relatively) whopping 4MB L2 cache, 2.33GHz clock speed and 1333 front side bus. I could also get a significantly larger hard disk of 500GB. These improvements would cost a mere $170 extra, not bad.

Now, there were some other differences between the setups so we’re not really comparing apples to apples. For example, the ubuntu PC had an option for a firewire port (IEEE adapter) whereas the FreeDOS option did not. But then, the FreeDOS had an option for a dial-up modem which the ubuntu PC did not have. Other than that the systems were almost identical. They have the same capacity for an nVidia GeForce 8600-DDR3 256MB video card which is respectable for a non-gaming PC and consequently one of the more important factors to consider when using ubuntu since ATI graphics cards are notorious for having problems with ubuntu.

Still, the trend is clear, Dell offers FreeDOS PCs better hardware upgrade options. In the end I opted for the FreeDOS computer simply because it comes with beefier hardware. I can install ubuntu by myself; I actually prefer it that way.

More curious, however, have always been the comparisons between Windows- and Linux-loaded PCs, where the customer gets extra for the Windows bundle and for Linux the customer receives nothing, for no apparent reason. This is definitely something to keep an eye on in case Dell’s involvement in the Novell/Microsoft deal includes payments to Microsoft for Ubuntu Linux (more details in the previous post). Based on something I was told last week in private, some of these suspicions may be justified. But they are just unconfirmed (and ‘unconfirmable’) suspicions.

Steve Ballmer license

Image from Wikimedia

04.04.08

More Hostile Fire Over Novell CEO Interview (Corrected)

Posted in Deception, Dell, Finance, Interview, Microsoft, Novell, Ron Hovsepian at 11:29 pm by Dr. Roy Schestowitz

Ron Hovsepian smiles

A few days ago we wrote about Jim Zemlin's interview with Ron Hovsepian. Glyn Moody characterised this as journalistic scum (see corrections at the bottom) criticised it because the interview contained nothing but fluff and no grilling was actually involved.

It turns out that Jim Zemlin was not the only victim whose role in the interview (seemingly more of a setup or staged act) led to gentle insults. Watch this reaction in ComputerWorld, which came under some fire by at least one reader.

While training is important, Hovsepian explained, it has to be balanced against the financial demands confronting Novell. “The cycle time is the biggest issue,” he said. “The brutality of the pressure the company has to operate under in 90 days is what drives us.”

I was taken to task by one reader for letting Hovsepian get away with that comment.

“I am greatly disappointed that you report without any critical analysis what the employers wish to propagate,” he wrote. “What utter BS! It takes them more than 90 days just to make a decision! It’s nothing to do with the ‘pressure’ in the marketplace, but everything to do with hiring the cheapest H-1B peasant programmer at the lowest price.”

Look back at our previous post about the economic downturn. Novell has actually been sending jobs abroad to reduce operation/running costs, but so have other large companies including Intel, Microsoft and Dell (the 'unholy trinity' of kickbacks).

03.21.08

Dell: Whose Tax is It Anyway?

Posted in Dell, GNU/Linux, HP, Microsoft, Novell, Patents, SLES/SLED, Ubuntu at 8:34 am by Dr. Roy Schestowitz

Speculations about GNU/Linux ‘tax’ by association

We have recently been discussing various ways in which Microsoft can collect money from the use of GNU/Linux, contracts with educational bodies being just one prime example which comes under considerable scrutiny nowadays. But there are other ways of achieving it.

“Amidst fresh reports about Dell reviving its Windows Mobile business, one has to wonder again about the mysterious Dell/Novell/Microsoft deal.”This includes the deal with Novell, which enables Microsoft to collect royalties at software distributor/vendor level. But what about our continued suspicion that the same goes for collection of royalties at hardware distributor/vendor level, e.g. Dell, H-P? By all means remember how close those companies really are.

Amidst fresh reports about Dell reviving its Windows Mobile business, one has to wonder again about the mysterious Dell/Novell/Microsoft deal. What was it about? What were the implications? And why would Hewlett-Packard sell a Linux PC only with a Microsoft-taxed GNU/Linux (Ballnux) distribution? Despite the downgrade options for a rather horrid Vista, these companies never divorced, so to speak. They have a systematic workflow of money, almost a kickback.

All the above questions and suspicions return to mind due to some very recent reports such as this.

What is Dell doing with Ubuntu?

[..]

But Dell seems to be using Ubuntu to its advantage rather than passing the cost savings to the customers. Today I found this deal in deals2buy.com. A Dell M1330 loaded with Ubuntu (30 day support) is only $10 less than Windows loaded machine with extra fingerprint scanner.

This is not the exception, but it’s the latest apparent example, which is explained politely. It’s not a rant, but the point is very legitimate. Assembly charges for ‘out of sequence’ orders needn’t cost as much as a Windows licence.

For almost a year people have been complaining about the cost of Ubuntu PCs from Dell. Comparably, the PCs are expensive and while some shoppers are encouraged to just buy an operating system they do not want or require, others just find that savings are laughable in case the Linux options are offered. Eventually, they just buy a Windows PC and dual-boot, which helps Microsoft rave about ‘market share’ (never mind install base). Therein lies the issue of Microsoft making Linux non-gratis and rather expensive at times.

Here is another new & frustrating story:

Here’s the scenario, a friend of mine just bought a new laptop. When he was buying it, he indicated that he did not want windows on it (which should make it cheaper). The response from the vendor: “We can’t do that, it comes with Windows”. When he became a bit more aggressive, they indicated they could give him one without Windows (Vista SP1), but it would cost and extra $70!

[...]

In my opinion, the above scenario is nothing more than trying to bully your way into retaining market dominance. And certainly does not do much to improve public relations or save Vista from becoming a bigger flop than it already seems to be, compared to earlier releases of Windows.

Perhaps unbundling would be the best option, never mind Microsoft’s cries about what it conveniently calls “naked PCs”, basically claiming that their buyers are prospective “pirates”.

Consider reading posts about Microsoft’s exclusionary deals with OEM and the unbundling question. The worry here — however baseless it may be — that Microsoft wishes to ensure it gets paid for GNU/Linux deployments no matter where you get it from.

03.03.08

What We Can Learn About Novell from Intel-Microsoft-Dell-Hewlett-Packard Collusions

Posted in Africa, Bill Gates, Deals, Deception, Dell, Fraud, GNU/Linux, Hardware, Novell, Vista, Windows at 2:30 am by Dr. Roy Schestowitz

“We have increased our prices over the last 10 years [while] other component prices have come down and continue to come down.”

Joachim Kempin, Microsoft’s OEM Chief at the time

“[...] current PC technology is totally sufficient for most office tasks and consumers desires and [...] any performance bottleneck is not in today’s PC’s but in today’s COM pipes. This in itself might slow down replacement cycles and life time shortening until we find true MIPS eating applications – a priority not only Intel should subscribe to.”

Joachim Kempin, Microsoft’s OEM Chief at the time

“I’m thinking of hitting the OEMs harder than in the past with anti-Linux [...] they should do a delicate dance”

Joachim Kempin, Microsoft’s OEM Chief at the time

A reader has advised that we write about the recent major revelation which revolves around “Vista-capable” deceptions. The topic is very broad, so rather than dissecting this story we shall provide many pointers with instructive remarks that bring together isolated (yet inseparable) observations.

To open up this post, here is what our reader, SubSonica, wrote in to say: “This article … refers to the consumer case against the “Windows Vista capable” marketing campaign on new laptops. It has links to some juicy email exhibits on the case worth keeping handy for future reference:

http://blog.seattlepi.nwsource.com/microsoft/archives/132891.asp

http://blog.seattlepi.nwsource.com/microsoft/library/vistaexhibitsone.pdf [PDF]

From a reader’s comment on the article:

Microsoft made decisions based not on consumers ability to get the full Vista experience, but based on the needs of Intel to be able to sell the older chipset without people knowing that it was obsolete as far as Vista was concerned. The “education” angle is pretty silly because it undermines the point of having a Vista compatibility logo at all.

But, Microsoft demonstrated very clearly with the “Plays for Sure” campaign and lack of Zune compatibility that they don’t really invest anything in these programs except for marketing. They do not back up their consumer eduction with engineering to fulfill the promises. I can’t see any excuse for Zune not being a “Plays for Sure” device.

At the end of this analysis we shall very briefly discuss collusions and their relevance to work on Mono and the impact of patent deals. Novell can now be seen as somewhat of a Microsoft partner striving to boost the success of both companies.

First of all, consider Microsoft’s well-proven exclusionary deals with OEMs. With that in mind, have a look at one of the more recent articles which investigates Microsoft’s strategy. It amounts to an ‘orgy of kickbacks‘. Look just how many companies appear to be involved.

The OEM-Hardware-Software Love Triangle

New article: E-mail: Microsoft ‘botched’ dealings with Intel, HP

Internal Microsoft e-mails revealed through a federal class-action lawsuit arising from the troubled launch last year of the Windows Vista operating system have provided a provocative inside look at the software giant’s machinations with Intel, HP and Dell.

The e-mails include an exchange in which one senior Microsoft executive described dealings with computer makers as “really botched.” Another manager complained Microsoft was “caving to Intel” and “really burning HP.”

The e-mails are included in 145 pages of documents unsealed by U.S. District Judge Marsha Pechman in Seattle late Wednesday. They include internal reports and some handwritten notes that offer a rare look inside at the famed “Wintel” partnership, and touch upon the alliance’s dealings with Hewlett-Packard, Dell and other computer makers.

Older: Microsoft, Intel and Dell: The Tech Love Triangle

It is becoming well known that Microsoft have achieved their current market share status by making major computer manufacturers sign licensing deals, so as to distribute a copy of Windows with every computer sold. What many people don’t realise, is how difficult it is to get a computer from the manufacturers without Windows.

[...]

This is first-hand experience of the power of Microsoft’s monopolistic practices, and it really does annoy me. It seems not so long ago that I praised Dell for their support, but along with Microsoft, they have now lost a customer entirely.

Needless to say, we are now looking to buy a system from a local shop with no OS.

Intel and Microsoft Closer Than They Have You Believe

Here is a group of articles with portions of interest quoted:

1. “We are caving to Intel”

There are plenty of commercial relationships involving Microsoft that have more questions than answers: Citrix, Novell, the BBC, the NHS. But none has so many far-reaching implications, nor is so hard to examine, as the mysterious Ballmer-Otellini axis.

But whatever it is, it’s strong. It made Microsoft knowingly compromise its entire Vista launch strategy, to the extent that Vista now has a terrible reputation and MS is in court. That’s some compromise.

2. What I don’t understand about Microsoft, Intel, and everything

Microsoft and Intel–the world’s biggest one-hit-wonder–will both go the way of the dinosaur if they don’t realize that it’s time to change. They need to turn the corner to a new business model while they’ve still got some of those fat monopoly profits coming in. And I don’t mean simply diversifying as they’ve been trying to do for years; that won’t cut it.

Why do you think Microsoft’s stock has essentially flatlined for eight years? Ditto for Intel. Investors are wondering what comes next after the whole PC thing has run its course. Good question. Ballmer and Otellini definitely have some ‘splainin’ to do.

3. Microsoft e-mails reveal Intel pressure over Vista

But perhaps the most surprised executive inside Microsoft at the move was Allchin, the head of the Vista development team.

“We really botched this,” he wrote in a thread responded to Poole’s e-mail. “I was not involved in the decision making process and I will support it because I trust you thinking behind the logic. BUT, you have to do a better job with customers that what was shown here. This was especially true because you put me out on a limb making a commitment. This is not ok.”

4. Vista: How cozy were Microsoft and Intel?

The notion of Microsoft making the decision specifically to help Intel’s quarterly results is drawing some attention in the industry today. Among other things, securities laws regulate selective financial disclosures.

“We don’t know who John Kalkman is,” said Intel spokesman Chuck Mulloy this afternooon. “We do know he’s not qualified to know anything about internal Intel financials or forecasts related to chipsets, motherboards or any other products.” Mulloy said Kalkman “would have no visibility into our financial needs in any given quarter.”

5. Microsoft’s court testimony: people want PCs, not operating systems

Let’s read that again:

…(Customers) are in the store buying a PC, not an OS.

I wonder if Mr. Goldberg appreciates both the truth and the difficulty inherent in his comment that consumers are looking for a PC, not an OS. To me, he could not more clearly state, “Windows is a commodity. The end of (our) world is near.”

6. Microsoft knew Vista was unready – report

We helped Intel make its figures. Sheesh

[...]

Microsoft suit John Kalkman blamed Intel to help “it make its quarterly earnings” by encouraging use of 915 chipsets which have integrated graphics.

More information in the following articles, for the sake of completeness and for future reference:

Here are some older finds that were published by Todd Bishop more recently: Microsoft’s Greatest Hits: Top 5 internal e-mails

Raikes highlighted the dominant market position of Windows and described the “pricing discretion” that Microsoft has been able to exercise.

In some respects I see the business characteristics of Coca Cola or See’s Candy as being very similar to Microsoft,” Raikes wrote, referring to two of Buffett’s high-profile investments. “E.g. in FY96 there were 50 million PC’s sold in the world, and about 80% of them were licensed for a Microsoft operating system. Although I would never write down the analogy of a ‘toll bridge,’ people outside our company might describe this business in that way.”

Raikes added later, “There is an R&D charge to the business, but I’m sure the profits are probably as good as the syrup business!”

The message didn’t turn Buffett into a big tech investor, but it was helpful to plaintiffs pursuing the company on antitrust charges. It surfaced years later as evidence in a class-action suit against Microsoft in Minnesota.

Mind the use of the phrase “toll bridge”. Look again at the earlier statement about people requiring computers rather than an operating system.

Here is another new one from Todd:

Software Notebook: A look back at Microsoft’s e-mailbag

[...]

“Today, if you e-mail things around, it’s very typical for the information to go far and wide,” the Microsoft chairman said in a 2003 address in Seattle. “The next thing you know, it’s in the newspaper.”

To give you a recent example of Intel-Microsoft collaborations, consider the one laptop per child project.

Intel and Microsoft Ganging Up Against Charity

Low-cost Linux laptops with AMD chips were bad news to Microsoft and Intel. They did not sit idly. Here are some highlights, some of which were covered here before.

1. Intel: doing the dirty on OLPC

Intel’s agreement with the OLPC Foundation included a ‘non disparagement’ clause, under which Intel and One Laptop promised not to criticize each other, according to Nicholas Negroponte in the latest article in the Wall Street Journal.

Still Intel tactics have violated that repeatedly to kill OLPC efforts in Nigeria, Libya, Pakistan, India, China and Intel is also still trying to pull those tactics in Mexico, Brazil. This is simply disgracefull of Intel, scandalous.

But Negroponte has signed an agreement saying that he is not allowed to criticize Intel, so he is not allowed to talk about these shameless tactics even though Intel is the one violating the agreement.

So only independant voices on the Internet can get those messages of truth out about Intels tactics.

In Nigeria, Intel came and donated 3000 laptops to counter OLPC efforts, then sells 17 thousand Classmates to Nigeria at a loss.

Then Microsoft corrupted Nigerian officials with 400 thousand dollars to install Windows XP on those instead of Mandriva Linux.

2. Poor Kids’ Laptop Cranks Up

Microsoft Chairman Bill Gates earlier this year told the Microsoft Government Leaders Forum, “Geez, get a decent computer where you can actually read the text and you?re not sitting there cranking the thing while you’re trying to type” (see Bill Gates Mocks $100 Laptop).

3. One Laptop Per Child – Production Delays Caused By Microsoft, Intel?

I sincerely hope that no matter what the people who are running the OLPC project decide, that their project will continue and not get bogged down in a play of corporate greed and ambitions.

4. Negroponte says Intel should be “ashamed of itself”

He is furious that Intel’s CEO Craig Barrett called the One Laptop a gadget. The Negroponte initiative is caught in the middle of a vicious fight between AMD and Intel, he said.

5. Mind Intel’s CEO’s feelings about Linux

That [Linux] software effort does not have the support of Mr. Otellini, who is concerned about incurring Microsoft’s wrath, the executive said. The two companies have a long history of tension over who controls the hardware and software direction of the “Wintel standard.” Intel has said it is supporting both operating systems.

Litigation

Then came the litigation, but there are no ‘smoking guns’ to show a relation to Intel and/or Microsoft. Here are some of the things we know nonetheless.

1. OLPC Tells Nigerian Court: We Don’t Use LANCOR’s Keyboard

Here’s what OLPC says was hidden from the court:

* LANCOR has no valid patent
* OLPC hasn’t sold any XO laptops in Nigeria
* it’s a non-profit
* the beta XO laptops tested in Nigeria were not for sale and were not given away
* OLPC never signed a EULA
* OLPC never reverse engineered anything
* its keyboards that will be distributed use all public domain techniques and not LANCOR’s Konyin keyboard

2. LANCOR’s Adé Oyegbola Answers Groklaw’s Questions About OLPC

PJ: Thank you for responding. I think you misunderstand then one thing about OLPC. OLPC is a recognized charity under the law. Selling a laptop for cost does not make them commercial, Ade.

Many of my readers have been asking me, and I hope you do not feel insulted if I ask on their behalf, but is there any connection or have you had any contact with Microsoft or Intel?

3. OLPC’s Nigerian patent suit being waged by a man convicted of bank fraud

The Boston Globe is reporting that LANCOR, the Nigerian-owned company that has filed suit against the One Laptop Per Child project for patent infringement, is actually helmed by a man convicted of bank fraud. He spent a year in prison.

PJ also added:

[PJ: I thought you might like to see the keyboard that LANCOR's thinks is being infringed by the OLPC. Here's the page for the entire world. Ah! Innovation. It certainly is an amazing technical advance to have 4 shift keys so you can do accent marks. What genius could ever think of a keyboard that can do an accent aigu? Genius, I say. Innovative genius. Nothing obvious here. So you can certainly understand why LANCOR claims it must safeguard with their lives the keyboard driver source code. For contrast, here is the OLPC's Nigerian keyboard. So different I start to wonder if this was about advertising a keyboard.]

[...]

…Dr Aja-Nwachuku said he was now assessing OLPC alongside other schemes from Microsoft and Intel.

[If you don't want a laptop from OLPC, because you feel you need schools, uniforms and chairs first -- not that any of that makes sense since the kids can sit outside under a tree and study with OLPC or at home -- why would he be considering the Classmate from Intel or a "scheme" from Microsoft? You tell me.] –

A little earlier you could find this in the same nation: Local OEMs boycott Microsoft, Intel

The local Original Equipment Manufacturers (OEMs) in the country may have commenced boycotting of placing orders on the Operating System (OS) dominantly supplied by the software giant, Microsoft Corporation and computer processor manufacturer, Intel Corporation offices in the country.

That Bribery Incident in Nigeria (Microsoft and Intel’s Classmate)

1. An open letter to Steve Ballmer

Wow! I’m impressed, Steve! What have you done for these guys to change their mind like this? It’s pretty clear to me, and it will be clear to everyone. How do you call what you just did Steve, in the place where you live? In my place, they give it various names, I’m sure you know them.

Hey Steve, how do you feel looking at yourself in the mirror in the morning?

Of course, I will keep fighting this one and the next one, and the next one. You have the money, the power, and maybe we have a different sense of ethics you and I, but I believe that hard work, good technology and ethics can win too.

2. Lessons from Africa: How to Kill Your Own FUD

So, even as Microsoft claims superior quality over Linux, they act as if they don’t even buy their own FUD. If they really believed that Windows was superior to Linux, they wouldn’t have to bribe people with “marketing help” to get them to choose Windows.

3. Linux wins Nigerian school desktops back from Microsoft

“We are sticking with that platform,” said the official, who would not give his name.

Intel’s Dumping

In the article “Africa’s digital poster child“, watch how Intel gave laptops and suffers a loss, especially at a time when the nation was adopting OLPC.

[Classmates in Nigeria]

The renovation has been paid for by the government and Intel, with the chip firm covering the majority of the costs of the technology.

Also see:

1. Why the XO Laptop is better than the Classmate

There’s been some awful FUD flying around the OLPC world in the last few days, with misquotes, misinformation, and flat out lies being propagated left and right. Even Engadget, one of the better geektech blogs out there, got it completely wrong regarding OLPC CTO Mary Lou Jepsen’s departure from the project.

[...]

Classmate is more expensive, consumes 10 times the power, has 1/3 the wifi range, and can’t be used outside. Also, the Classmate doesn’t use neighboring laptops to extend the reach of the internet via hopping (mesh-networking) like the XO does. So not only is the XO cheaper than the Classmate, the XO requires less infrastructre expenditure for electricity and for internet access.

2. Intel-powered XO is too expensive and consumes too much power

2 days before Intel CEO Paul Otellini would unveil the Classmate 2 or the Intel-powered XO at the CES, Intel announced that they are quitting the OLPC board.

Intel claims that they are quitting because of Nicholas Negroponte wanting them to stop the promotion of the Classmate/Eee to education in third world countries, but I think that the real reason is that Intel does not have a good enough processor for the OLPC project to use as an alternative to the AMD Geode LX-700. Intel has not been able to develop a processor to match the price, power consumption and performance requirements of the OLPC project. Paul Otellini could have looked like a fool at the CES if he had to unveil an Intel powered XO that was performing worse in terms of price and power consumption compared to the AMD powered one.

What We Have Seen and What We Should Learn

So, we have gone very off-topic perhaps, but the point to be taken here is that Microsoft’s special partners absolutely must not be trusted. As such, Novell with its involvements deserves to be looked upon with great suspicion. Its goal is to help Microsoft in exchange for Microsoft’s help to Novell (not to GNU/Linux).

As for as Intel and Microsoft go, crime runs through their bloodstream and we have not even presented here any of the endless crimes (primarily briberies) against AMD. The lack of regulatory involvement by the US government is a separate question altogether and it probably questions the ethics of government regulars as well. We shall leave it at that.

To close this post, here is an E-mail we received from a reader some hours ago. It probably concludes the main takeaways:


I know insisting in Microsoft’s matters would make you lose focus on Novell, but I think the source of the problem is Microsoft nevertheless and their continuous attempts at keeping a 90%+ marketshare for its cash cows, and trying to divide-and-conquer-then-destroy Linux and Free/Libre Software at any cost. If it could have made it to Red Hat we would be speaking about boycottredhat instead of boycottnovell. I think in the end the only way will be to boycottmicrosoft ;-)

Anyway, it is always handy to have legal documentation from Microsoft cases like the emails in order to shut up many big mouths and to desintoxicate people who believe in their PR campaigns and hollow promises.

“…this Windows Vista capable matter is an indication of who the real customers of Microsoft are, and how they can screw anyone…”So do as you like. If any, this Windows Vista capable matter is an indication of who the real customers of Microsoft are, and how they can screw anyone (in this case they screwed HP) no matter how important a partner is for them, in order to maximize sales of their cash cows -this one was intended to help prospective Vista sales by making users believe that by buying an intel i915 chipset-equipped machine they would be able to run Vista on it afterwards, incidentally helping intel to get rid of the surplus of stock of chipsets).

It was about that time that I was buying a laptop. I finally bought an AMD-64 based one with an Nvidia card, much more powerful than the intel 915 and it didn’t come with any “vista capable” sticker (in fact I bought it with XP since I didn’t want to pay for Vista, this notwithstanding, XP crashes so I wiped it altogether and I run only Kubuntu on it).


If you have any references you can add, please share.

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