Linked by Thom Holwerda on Wed 16th Sep 2009 18:01 UTC
Windows Microsoft has been very protective over its OEM pricing, and while various figures float around the web, the company has never really confirmed or denied any of them. At the Jefferies Annual Technology Conference, however, Charles Songhurst, general manager of Corporate Strategy, revealed some of the pricing details for OEMs.
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RE: Microsoft Tax
by kragil on Wed 16th Sep 2009 19:31 UTC in reply to "Microsoft Tax"
kragil
Member since:
2006-01-04

Agreed.

So the MSFT tax is 5%.

At first that does not sound like much, but when you consider to what length OEMs go to replace parts for other parts that cost like 5 cent less it is enormous.

With the new ARM 2GHz Cortex A9 coming I can see a net centric future were Linux (ChromeOS maybe) will be here to stay on devices.

Reply Parent Score: 1

RE[2]: Microsoft Tax
by kryptonianjorel on Wed 16th Sep 2009 20:24 in reply to "RE: Microsoft Tax"
kryptonianjorel Member since:
2006-06-28

Well that new ARM processor would be good, except for the fact that it wont stand up to the Atom 330. Even then, its not a matter of technical capability, its familiarity. People are going to buy what they know. If Harry Homeowner can't find Internet Explorer on his new Ubuntu netbook, chances are, to him, it doesn't have internet.

Reply Parent Score: 1

RE[3]: Microsoft Tax
by UltraZelda64 on Wed 16th Sep 2009 22:17 in reply to "RE[2]: Microsoft Tax"
UltraZelda64 Member since:
2006-12-05

People are going to buy what they know. If Harry Homeowner can't find Internet Explorer on his new Ubuntu netbook, chances are, to him, it doesn't have internet.

I'm sure the advertising will make it clear that you can, in fact, get online. It'll probably say something along the lines of "Firefox for Web browsing." It'll likely have (*GASP!*) an instruction manual or quick-start guide. If Harry Homeowner is really that damn dumb, then hopefully he's smart enough to use a phone and dial tech support, surely he'll find his answer within a decent period of time and be happy.

I know people are idiotic when it comes to computers, but people like you who make a case about IE vs. alternative Web browsers make people look dumber than an old, weathered pile of bricks. In some cases it's true; if so, those people shouldn't even be *buying* a computer in the first place without at least learning the absolute basics. You don't learn to drive a car without also learning such basics as checking/refilling your tires and putting your gas in your tank, do you?

Reply Parent Score: 2

RE[3]: Microsoft Tax
by lemur2 on Wed 16th Sep 2009 23:01 in reply to "RE[2]: Microsoft Tax"
lemur2 Member since:
2007-02-17

Well that new ARM processor would be good, except for the fact that it wont stand up to the Atom 330. Even then, its not a matter of technical capability, its familiarity. People are going to buy what they know. If Harry Homeowner can't find Internet Explorer on his new Ubuntu netbook, chances are, to him, it doesn't have internet.


However, when Ned Neighbour shows Harry Homeowner a website his new ARM Cortex A9 with Kubuntu bling, Harry will be a bit perplexed and ask ... "but how did you get internet with that thing when it doesn't have the blue e"?

Ned shows Harry the little firefox, and he tells Harry that his ARM Cortex A9 costs half the price, comes with all the software that Harry had to buy as extra, and the battery lasts twice as long per charge.

Harry says "Doh!". Harry buys his wife Wilma a Cortex A9 for her birthday, and she has infintely less trouble with it.

Harry's Windows 7 netbook gets a virus and everything goes wonky, and the store wants $200 to fix it. It was taking five minutes to boot anyway ... so Harry instead buys himself a new ARM netbook with Kubuntu, and gets Wilma to teach him how to use it.

Edited 2009-09-16 23:08 UTC

Reply Parent Score: 3

RE[2]: Microsoft Tax
by strcpy on Wed 16th Sep 2009 21:02 in reply to "RE: Microsoft Tax"
strcpy Member since:
2009-05-20

It is quite ironic that even if the so-called "tax" would be 15 % or 30 %, people eager to leave Windows behind have money to buy thousand dollar Apples. For a normal customer, the so-called "tax" just adds value to the product.

And btw, it is not less ironic that first the devotees rallied for Linux Netbooks, and when consumers did not want those, people started to rally for ARM Netbooks, like those would be somehow more appealing to customers.

Reply Parent Score: 2

RE[3]: Microsoft Tax
by nt_jerkface on Wed 16th Sep 2009 23:42 in reply to "RE[2]: Microsoft Tax"
nt_jerkface Member since:
2009-08-26

It should also be noted that the trialware installed on Windows PCs brings down the OEM license cost.

A lot of anti-virus companies make deals with OEMs whereby they get a cut of any future subscription fees that the customer purchases.

Yea I hate uninstalling all the junk but it does bring the cost down.

Reply Parent Score: 1

RE[2]: Microsoft Tax
by kaiwai on Thu 17th Sep 2009 09:20 in reply to "RE: Microsoft Tax"
kaiwai Member since:
2005-07-06

Agreed.

So the MSFT tax is 5%.

At first that does not sound like much, but when you consider to what length OEMs go to replace parts for other parts that cost like 5 cent less it is enormous.

With the new ARM 2GHz Cortex A9 coming I can see a net centric future were Linux (ChromeOS maybe) will be here to stay on devices.


And sometimes the decisions are based purely on stupidity too - case in point, why do all the Netbooks either come with Atheros or Broadcom wireless? why isn't there a complete Intel solution which includes Intel wireless which has the best support across the board when it comes to drivers and reliability? What I'd like to see from Intel is them pushing complete Intel solutions (chipset, graphics, wireless, ethernet, processor etc) to OEMs.

Maybe when it is Intel everything then Linux on the netbook will become viable - because right now the ath5k/ath9k are crap and the developers haven't done a single damn thing in the last year to bring it to the same level of feature completeness as the old proprietary hybrid driver.

Reply Parent Score: 2