04.19.09

Gemini version available ♊︎

GNU/Linux is Killing Microsoft Financially in Sub-notebooks

Posted in Deception, Finance, GNU/Linux, Microsoft at 5:26 am by Dr. Roy Schestowitz

It’s the margins

Tux illustration

Summary: Why GNU/Linux is by all means Microsoft’s #1 competitor, as Microsoft admits repeatedly

FOR MICROSOFT to sell Windows for just $5 apiece is not a sustainable business model; when it comes to Vista 7, Microsoft intends to offer it almost gratis, but only a crippled version of it. Even Intel has publicly claimed this strategy to be misguided.

Intel’s concerns are actually closely related to Microsoft’s. ARM and Linux go hand in hand and some days ago we found reports about ABI on GNU/Linux and ARM.

ABI Research reports that a downturning economy may be advantageous for inexpensive netbook computers. In 2008, 75% of netbooks ran Microsoft Windows XP, but ABI Research predicts that in 2012, netbooks running Linux-based and mobile operating systems will outnumber those running Microsoft operating systems.

Here is the original.

All of this is not particularly new or surprising, but Microsoft uses NPD to spread lies. It is part of the following strategy from Microsoft:

“Ideally, use of the competing technology becomes associated with mental deficiency, as in, “he believes in Santa Claus, the Easter Bunny, and OS/2.” Just keep rubbing it in, via the press, analysts, newsgroups, whatever. Make the complete failure of the competition’s technology part of the mythology of the computer industry. We want to place selection pressure on those companies and individuals that show a genetic weakness for competitors’ technologies, to make the industry increasingly resistant to such unhealthy strains, over time.”

Microsoft, internal document [PDF]

The reality of this matter is that the news is not about market share, either. It’s about Microsoft compromising profit (not just in the short term) because anything that runs GNU/Linux is Microsoft's lost revenue anyway.

One of Microsoft’s biggest fans, who makes a living from consulting/writing in that area, is admitting that “netbooks are destroying the laptop market” for Microsoft.

Netbooks are a cheap narcotic. They bring Windows OEMs a brief sales high, while laying their margins low. Microsoft and its Windows PC partners must get back to basic business fundamentals before netbooks destroy the lifeblood of the laptop market: margins.

Even Microsoft’s pseudo-journalists are now echoing this concern.

So, will it impact Microsoft or will it not? Well, it most certainly will. It already does.

Ahead of Microsoft’s next quarterly report it got a slap on the wrist. As Market Watch put it, “Microsoft expected to post sharp drop in profit.”

Redmond, Wash.-based Microsoft’s quarterly results are generally expected to have been undercut by growing demand for cheaper computers with relatively low-cost software.

Look what happened shortly afterwards (on Friday):

Microsoft shares dip after analyst cuts forecast

Microsoft shares stumbled Friday after a Thomas Weisel analyst cast some doubt on Wall Street’s earnings and sales forecast for the company’s fiscal third quarter.

Microsoft has done badly for several consecutive quarters, but its aggressive buybacks and risky financial strategy can truly deceive those who just watch the stock price.

So what will it be next for Microsoft? Other than suing companies like TomTom for using Linux?

Microsoft is now suing its partners a little more, this time not necessarily sending them to prison though. Here is what Microsoft is doing to computer shops, comparing them to murderers, just as the BSA did last week.

Microsoft New Zealand says it has entered settlement agreements with three Auckland PC stores that sold knock-off versions of its software. They are:

TDM Technology, operated by Ayman Franso and Nicholas Jansen;
Pars TV, operated by Al-Huseiny Ibrahim; and
PCTown, run by Linjiang Yu.

A Microsoft guy responded to this and so did a lot of the New Zealand press.

To summarise the points we showed here using evidence from the past week’s news:

  1. GNU/Linux is doing well on sub-notebooks and is expected to do even better in the future, thanks to energy-efficient ARM chips
  2. In order to fight GNU/Linux on sub-notebooks, Microsoft lowered the price of Windows considerably
  3. Microsoft’s financial results will take a huge hit from the decrease in the cost of Windows
  4. To create new revenue streams, Microsoft began suing Linux
  5. To create some more revenue streams, Microsoft began suing shops that distributed Windows cheaply

Good times for GNU/Linux. As Microsoft’s profits decline, its ability to hold on to products like Encarta (and even its employees) becomes limited. The harder Microsoft tries to suffocate GNU/Linux with price reductions, lawsuits, and a crackdown on Windows shops, the quicker it will injure itself. This changes the perceived value of Windows and alienates Microsoft partners.

Microsoft may not be announcing yet another round of layoffs, but judging by the news, Microsoft keeps offshoring its jobs (for savings) as much as it is allowed; it can also use those visas that were earned using corruption with Abramoff.

Here is another preposterous claim that what’s good for Microsoft is good for America.

Well, no – actually, Microsoft’s obligation is to keep itself afloat in these difficult economic times, so that it can continue creating revenues for the American economy. And it’s no surprise Microsoft would look to foreigners for help – 35 percent of the company’s patent applications last year came from its H-1B and green-card employees.

But these are delicate things to point out to the American public. Fearing more political demagoguery, Microsoft swiftly backpedaled, claiming that it plans to file “substantially fewer” H-1B applications this year, and adding that none of the foreigners will be replacing fired American workers.

This is a lie that was dismissed before. In many ways, Microsoft is a parasite to the American economy. There is also this in the news:

Foreign companies seeking to place workers in American jobs were the big winners in the past, with Indian technology companies Infosys Technologies Ltd., Wipro Ltd. and Satyam Computer Services Ltd. netting 9,154 spots for the 2008 fiscal year, according to Citizen and Immigration Services. By comparison, Microsoft was awarded 1,037 H1-B visas and Intel got 351.

Microsoft’s workforce scale is almost on par with Intel’s, so the Microsoft rates almost triple those of Intel. It’s worth adding that Intel is among the most notorious companies in this area, and that’s not even mentioning Microsoft's lobby, which by far outweighs others’.

Share in other sites/networks: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Reddit
  • email

Decor ᶃ Gemini Space

Below is a Web proxy. We recommend getting a Gemini client/browser.

Black/white/grey bullet button This post is also available in Gemini over at this address (requires a Gemini client/browser to open).

Decor ✐ Cross-references

Black/white/grey bullet button Pages that cross-reference this one, if any exist, are listed below or will be listed below over time.

Decor ▢ Respond and Discuss

Black/white/grey bullet button If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

7 Comments

  1. Zelrik said,

    April 20, 2009 at 10:19 am

    Gravatar

    Very nice post.

    I cannot wait until the ARM-based netbooks/laptops come up. That will be awesome.

  2. Myfraudsoft said,

    April 20, 2009 at 10:25 am

    Gravatar

    To bad there won’t be any Window~1 for ARM-based netbooks. Personally two things I’ll miss the most are malware and DRM. That and crawling slow speed which made Micros~1 so popular with users.

  3. Roy Schestowitz said,

    April 20, 2009 at 10:38 am

    Gravatar

    Microsoft’s main problem with ARM is that third-party developers won’t compile for the architecture (and it’s proprietary, so Microsoft can’t compile for them like Debian does). The whole software compatibility merit Microsoft always crows about vanishes with ARM.

  4. Myfraudsoft said,

    April 20, 2009 at 10:47 am

    Gravatar

    But let’s suppose Micros~1 compile some of their own apps for ARM. Apps such as Office and Wormdows Defender, which, by the way, does such great job defending Conficker from users.

  5. Roy Schestowitz said,

    April 20, 2009 at 10:52 am

    Gravatar

    ARM CPUs don’t have much power. I very much doubt they can handle Windows Defenders all that well. It would also drain battery power.

  6. Myfraudsoft said,

    April 20, 2009 at 10:55 am

    Gravatar

    Ironically, even if they port Windo~1 to ARM, only available non-MS software would be Free Software and open source, which works better under Linux kernel anyway. It’s a lose-lose situation for Micros~1.

  7. Roy Schestowitz said,

    April 20, 2009 at 11:08 am

    Gravatar

    And that’s why its pseudo-journalists complain about it too (see the examples above).

    One can envision the next FUD campaign against “underpowered” ARM MIDs.

DecorWhat Else is New


  1. Linux News or Marketing Platform?

    Ads everywhere: Phoronix puts them at the top, bottom, navigation bar, left, and right just to read some Microsoft junk (puff pieces about something that nobody other than Microsoft even uses); in addition there are pop-ups asking for consent to send visitors’ data to hundreds of data brokers



  2. Daily Links at Techrights Turn 15, Time to Give Them an Upgrade

    This year we have several 15-year anniversaries; one of them is Daily Links (it turned 15 earlier this week) and we've been working to improve these batches of links, making them a lot more extensive and somewhat better structured/clustered



  3. Back to Focusing on Unified Patent Court (UPC) Crimes and Illegal Patent Agenda, Including the EPO's

    The EPO's (European Patent Office, Europe's second-largest institution) violations of constitutions, laws and so on merit more coverage, seeing that what's left of the "media" not only fails to cover scandalous things but is actively cheering for criminals (in exchange for money)



  4. European Patent Office Staff Votes in Favour of Freedom of Association (97% of Voters in Support)

    The Central Staff Committee (CSC) at the EPO makes a strong case for António Campinos to stop breaking and law and actually start obeying court orders (he’s no better than Benoît Battistelli and he uses worse language already)



  5. Links 02/02/2023: Glibc 2.37 and Go 1.20

    Links for the day



  6. IRC Proceedings: Wednesday, February 01, 2023

    IRC logs for Wednesday, February 01, 2023



  7. Links 01/02/2023: Security Problems, Unrest, and More

    Links for the day



  8. Links 01/02/2023: Stables Kernels and Upcoming COSMIC From System76

    Links for the day



  9. IRC Proceedings: Tuesday, January 31, 2023

    IRC logs for Tuesday, January 31, 2023



  10. Links 31/01/2023: Catchup Again, Wayland in Xfce 4.20

    Links for the day



  11. Links 31/01/2023: elementary OS 7

    Links for the day



  12. Intimidation Against Nitrux Development Team Upsets the Community and Makes the Media Less Trustworthy

    Nitrux is being criticised for being “very unappealing”; but a look behind the scenes reveals an angry reviewer (habitual mouthpiece of the Linux Foundation and Linux foes) trying to intimidate Nitrux developers, who are unpaid volunteers rather than “corporate” developers



  13. Links 31/01/2023: GNOME 44 Wallpapers and Alpha

    Links for the day



  14. Free and Open Source Software Developers' European Meeting (FOSDEM) and KU Leuven Boosting Americans and Cancellers of the Father of Free Software

    The Free Software Foundation (FSF) and its founder, Richard M. Stallman (RMS), along with the SFLC one might add, have been under a siege by the trademark-abusing FSFE and SFC; Belgium helps legitimise the ‘fakes’



  15. Techrights in the Next 5 or 10 Years

    Now that I’m free from the shackles of a company (it deteriorated a lot after grabbing Gates Foundation money under an NDA) the site Techrights can flourish and become more active



  16. 60 Days of Articles About Sirius 'Open Source' and the Long Road Ahead

    The Sirius ‘Open Source’ series ended after 60 days (parts published every day except the day my SSD died completely and very suddenly); the video above explains what’s to come and what lessons can be learned from the 21-year collective experience (my wife and I; work periods combined) in a company that still claims, in vain, to be “Open Source”



  17. IRC Proceedings: Monday, January 30, 2023

    IRC logs for Monday, January 30, 2023



  18. Taking Techrights to the Next Level in 2023

    I've reached a state of "closure" when it comes to my employer (almost 12 years for me, 9+ years for my wife); expect Techrights to become more active than ever before and belatedly publish important articles, based on longstanding investigations that take a lot of effort



  19. The ISO Delusion: When the Employer Doesn’t Realise That Outsourcing Clients' Passwords to LassPass After Security Breaches Is a Terrible Idea

    The mentality or the general mindset at Sirius ‘Open Source’ was not compatible with that of security conscientiousness and it seemed abundantly clear that paper mills (e.g. ISO certification) cannot compensate for that



  20. Links 30/01/2023: Plasma Mobile 23.01 and GNU Taler 0.9.1

    Links for the day



  21. EPO Management Isn't Listening to Staff, It's Just Trying to Divide and Demoralise the Staff Instead

    “On 18 January 2023,” the staff representatives tell European Patent Office (EPO) colleagues, “the staff representation met with the administration in a Working Group on the project “Bringing Teams Together”. It was the first meeting since the departure of PD General Administration and the radical changes made to the project. We voiced the major concerns of staff, the organization chaos and unrest caused by the project among teams and made concrete proposals.”



  22. Links 30/01/2023: Coreboot 4.19 and Budgie 10.7

    Links for the day



  23. IRC Proceedings: Sunday, January 29, 2023

    IRC logs for Sunday, January 29, 2023



  24. [Meme] With Superheroes Like These...

    Ever since the new managers arrived the talent has fled the company that falsely credits itself with "Open Source"



  25. Not Tolerating Proprietary 'Bossware' in the Workplace (or at Home in Case of Work-From-Home)

    The company known as Sirius ‘Open Source’ generally rejected… Open Source. Today’s focus was the migration to Slack.



  26. The ISO Delusion: A Stack of Proprietary Junk (Slack) Failing Miserably

    When the company where I worked for nearly 12 years spoke of pragmatism it was merely making excuses to adopt proprietary software at the expense of already-working and functional Free software



  27. Debian 11 on My Main Rig: So Far Mostly OK, But Missing Some Software From Debian 10

    Distributions of GNU/Linux keep urging us to move to the latest, but is the latest always the greatest? On Friday my Debian 10 drive died, so I started moving to Debian 11 on a new drive and here's what that did to my life.



  28. Stigmatising GNU/Linux for Not Withstanding Hardware Failures

    Nowadays "the news" is polluted with a lot of GNU/Linux-hostile nonsense; like with patents, the signal-to-noise ratio is appalling and here we deal with a poor 'report' about "Linux servers" failing to work



  29. Microsofters Inside Sirius 'Open Source'

    Sirius ‘Open Source’ has been employing incompetent managers for years — a sentiment shared among colleagues by the way; today we examine some glaring examples with redacted communications to prove it



  30. Links 29/01/2023: GNOME 43.3 Fixes and Lots About Games

    Links for the day


RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

Recent Posts