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Don't buy Microsoft's $100 PC pitch

By David Sugar on November 20, 2004 (8:00:00 AM)

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I read with some amusement Microsoft CEO Steve Ballmer's recent call for $100 computers for the world's less affluent consumers. While many developing nations struggle with overwhelming poverty, and at least some struggle with just trying to feed their population, the cost of computing and technology are often not among the immediate concerns of such governments.

Some governments, such as Thailand's, have looked at making computing more affordable for their citizens. However, even with government support, the cost of computing hardware, even before any operating system is licensed or used, is often beyond the means of most of their citizens.

While standardization of PC hardware led to competition and commoditization that drove down hardware cost over the past decade, today this process has come to a halt, and it appears that the cost of new computers has reached a price floor. Ironically, this floor is a result of the same standardization process. How so?

Today, for a new PC to be compatible with the Microsoft Windows operating system, it must retain an accumulated set of odd architectural choices, starting with the Intel or Intel instruction set-compatible microprocessor, and ending with standardized BIOS that must be licensed. Part of their cost is in supporting these specifications. What if PC equipment were designed without such constraints, and were able to use components and architectures that best met the needs of business and home computing in the developing world?

Such systems would not need to use Intel processors, but instead could use alternate chips (perhaps ARM or PowerPC or something else) that run with far less power and cooling needs and still prove fast enough for ordinary business tasks. They would not need the same bulky and expensive power supplies. They could use less RAM. Furthermore, by eliminating any vestige of PC architecture compatibility, system vendors could produce machines with fewer specialized components that have licensing fees attached, and put them into smaller cases that take up less physical room and material costs.

The cost to provide such a machine may indeed be close to $100 when manufactured in quantity, compared to the minimum deliverable cost of $400 or so for an Intel- or AMD-based box capable of running the latest versions of Microsoft Windows and entertainment software.

Such PCs would of course not be compatible with Microsoft Windows, thus there would be no issue with their enabling copyright infringement of Microsoft products. However, GNU/Linux systems are very portable, and already have been ported from microcontrollers to mainframes. A complete and fully usable GNU/Linux system could run on such a machine. Indeed GNU/Linux systems have already been ported to and demonstrated on many of these non-Intel architectures. Over time, newer iterations of GNU/Linux systems tend to improve in computing efficiency and system requirements to run, rather than the trend of requiring ever more computing hardware just to perform the same tasks that one finds in proprietary solutions such as Microsoft Windows.

Indeed, the cost of computing can be made more affordable. This does not mean that computing hardware will ever be free. The simple reason is that, unlike software, whose marginal per-unit cost for the nth copy to manufacturer does approach zero, there remains a substantial and real fixed cost in parts, labor, and materials for every PC produced. Economy of scale may reduce these costs somewhat, but they never approach zero as they can for software.

When looking to provide affordable computing for the needs of developing nations, the best option to consider is free software. The economics of free software generally recognize and approach the ideals of a free market, where costs for software can approach zero.

However, some claim that free software delivered on standardized PCs for the developing world somehow promotes copyright infringement. Part of this is because of the economics of the pushcart vendor, who can and does sell proprietary licensed software illegally and unconstrained at its natural free market value. Hence, the cost difference between software that offers freedom and software that does not is not very great.

When Ballmer speaks of making PC hardware for $100 for developing nations, he is also speaking of selling users Microsoft Windows XP and Microsoft Office for an additional $900. True, Microsoft does offer "discounted" versions of its software, but it is provided as incompletely functional, such as Windows XP Starter Edition. This does nothing to reduce copyright infringement, but the company sells it on the principle that it is better to force hardware vendors to include a "broken" version of Microsoft Windows than to permit other operating systems to enter the market.

Contrary to Microsoft's apparent expectations, consumers in developing nations are no dumber than those in the rest of the world, and know a bad deal when they see it. Surely the most immediate result of making PCs a few hundred dollars cheaper will not be a sudden surge in the purchase of $900 worth of software, but rather more business for the pushcart vendor.

Even with a $100 PC, consumers in the developing world today must either do without computing altogether, or accept the necessity of being copyright infringers. However, there is another choice and a better way forward for universal computer access. We can actually achieve the goal of meeting the world's computing needs at $100 per machine without additional or hidden costs by removing Windows from consideration on such hardware, and using GNU/Linux instead. This will have the happy side effect of eliminating copyright infringement against Microsoft products.

Isn't it nice when free software can make everybody happy?

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on Don't buy Microsoft's $100 PC pitch

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Fraud, waste and abuse - report this graft

Posted by: Anonymous Coward on November 20, 2004 05:43 PM
Back in the old days there was a fraud, waste and abuse hotline that one could inform of such scams. Even 1% reward for turning that deal in would be a nice bit of pocket change for a 3-day binge for an airman and his unit, or a good bit towards college tuition after the tour is over.


I have a hard time imagining how MS is going to be cheaper or better or faster than time proven traditional tools like AFS, OpenLDAP and Kerberos. Given all the spyware, security problems, and illegal activities of MS, it shouldn't qualify for even a low level clearance.


Shame on the Benedict Arnolds that opened the door to Redmond.

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Re:Fraud, waste and abuse - report this graft

Posted by: Anonymous Coward on November 20, 2004 09:30 PM
A $100 dollar computer would be nice. Even better would be a $10 dollar operating system. How about it Steve?

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Re:Fraud, waste and abuse - report this graft

Posted by: Anonymous Coward on November 21, 2004 12:13 AM
We already have it. It's called Linspire 4.5. Just walk into any Micro Center store, and you'll see it--Linspire OEM (the full deal, not a "starter" crippled version)--for, yes, US$9.95. That includes, BTW, full office suite (OpenOffice.org) and a whole boatload of other software, not just the operating system.

That's ten bucks. You asked for it, now you got it.

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Re:Fraud, waste and abuse - report this graft

Posted by: Anonymous Coward on November 21, 2004 02:55 AM
Why would you want to install Linspire?

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Re:Fraud, waste and abuse - report this graft

Posted by: Anonymous Coward on November 21, 2004 03:12 AM
All Linspire distribution are crippled Debian version<nobr> <wbr></nobr>... and there are only micro center in the US , nobody asked for Linspire thats why its not making any money.

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Re:Fraud, waste and abuse - report this graft

Posted by: Anonymous Coward on November 21, 2004 07:45 AM
Lindows/Linspire isn't as crippled as your remark would lead readers to believe. Non-CNR software usually installs without a problem, in evaluations that I've done on their latest iteration of the 4.5.xxx release.

There *is* a place in the market for Linspire, and that's for the entry-level Linux user--kind of a way to wean themselves off of M$.

I *would* rather see Linspire force a root password, rather than suggest it, as well as force the creation of a user account for daily use; but this is the way it happens to be right now.

The state of computing--even with Linspire--is *far * better than it is in the Windoze world.

Rather than denigrate a reasonably good distro, a far better response would be to take pen in hand and write Michael Robertson to encourage him to "tighten-up" the approach to security that they implement in their install driver.

Giving him a pat on the back couldn't hurt either. After all, from what I've seen there are some very good advances in novice usability in their offering.

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Re:Fraud, waste and abuse - report this graft

Posted by: Anonymous Coward on November 21, 2004 12:35 PM
Linspire is a Crippled Oned desktop appliance , it offer less then the real distribution its based off Debian , and when I mean less I mean less in every sense of the word , it cost more , offer less software , less support , dont go on as much hardware and offer less freedom , you cant install it on all the computer you own legally and you cant legally share it with your entire familly and all there computers, it dont have the kitchen sink in other word and thats a bad thing.

There is a clear message the market is sending to Linspire : " your not wanted " , otherwise it would have made money and be profitable by now.

My message to MR. Robertson is this : You shited on us , told us whe where incompetent , and that you where going to show the world *how* to do it , now you say your one of us even do you try to dont follow our rules, well the Joke is on us and your loosing everyday.

The advance made where made by the Gnu/Linux community at large , not by linspire.

Gnu/Linux is the game , Gpl is our license and total freedom is our goal.

- Real friends dont let there friend use Linspire

- Hell yes, Gnu/Linux Guru pooh-pooh on Linspire. because 10$ box spent on shit still make it shit.

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OT:Re:Fraud, waste and abuse - report this graft

Posted by: Anonymous Coward on November 21, 2004 04:48 AM
Um... I think you meant this for the previous article on the Air Force contracting MS for security work.

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no better then linspire

Posted by: Anonymous Coward on November 21, 2004 04:02 PM
Linspire is a Crippled One desktop appliance , it offer less then the real distribution its based off Debian , and when I mean less I mean less in every sense of the word , it cost more , offer less software , less support , dont go on as much hardware and offer less freedom , you cant install it on all the computer you own legally and you cant legally share it with your entire familly and all there computers, it dont have the kitchen sink in other word and thats a bad thing.

There is a clear message the market is sending to Linspire : " your not wanted " , otherwise it would have made money and be profitable by now.

My message to MR. Robertson is this : You shited on us , told us whe where incompetent , and that you where going to show the world *how* to do it , now you say your one of us even do you try to dont follow our rules, well the Joke is on us and your loosing everyday.

The advance made where made by the Gnu/Linux community at large , not by linspire.

Gnu/Linux is the game , Gpl is our license and total freedom is our goal.

- Real friends dont let there friend use Linspire

- Hell yes, Gnu/Linux Guru pooh-pooh on Linspire. because 10$ box spent on shit still make it shit.

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Your poor writing

Posted by: Anonymous Coward on November 22, 2004 03:40 AM
doesn't give you much credibility. Stay in school, and leave the opinions to literate people.

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Re:Your poor writing

Posted by: Daniel Carrera on November 22, 2004 03:48 AM
It looks like English isn't his first language actually.

But even if you account for that, the content of his ideas is rather poor (to put it mildly).

Cheers,
Daniel.

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Re:Your poor writing

Posted by: Anonymous Coward on November 22, 2004 04:19 AM
No english is not my first language , its my second , I am forced to use it as you would not understand any of my words otherwise. Its not an idea it simple facts put togheter inside a comment , what is poor is your reply , intelligent people discuss the content not the
way its delivered.

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Wrong. Delivery matters.

Posted by: Anonymous Coward on November 22, 2004 10:52 AM
Poor language reflects poorly upon the content. If you don't understand that, then good luck in life. The content was crap, and so was the delivery. No surprise.

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Re:Wrong.

Posted by: Anonymous Coward on November 22, 2004 01:06 PM
Poor languages is the comment of those who have nothing to say of value , they cant participate on the merit of there views , observations , facts , or even discuss why they disagree. Why do they even wish to participate by saying poor language must be in response to the fact that they add a feeling they are of no consequence and there entire life meaningless and they would be right.

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Re:Wrong. Delivery matters.

Posted by: Anonymous Coward on November 22, 2004 02:59 PM
How about he posts the ideas in his native language, then you respond in the same language, who's posting would be shit then?

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Re:Your poor writing

Posted by: Anonymous Coward on November 22, 2004 04:14 AM
Its in English , sorry if its not your first language and you have trouble understanding its meaning. I am not after credibility otherwise I would sign my name. But my name would add too much credibility to this opinion I prefer people make up there mind on there own.

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Re: But my name would add too much credibility

Posted by: Anonymous Coward on November 22, 2004 10:58 AM
A little high on yourself, aren't you? I don't think anyone would know you, nor even care.

"I prefer people make up there mind on there own."

No you don't. If you are the original poster, your post was a persuasive post, not an informative one. It was just so poorly written, I know it's hard to tell.

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Re: thats because your name is worthless

Posted by: Anonymous Coward on November 22, 2004 01:23 PM
"A little high on yourself, aren't you?"

No , but then you cant understand the feeling,
or the responsability.

"No you<nobr> <wbr></nobr>... it's hard to tell. "

I am the original poster , and yes I let people decide on there own , they can decide on there own if I am right , and its very informative because your the one who as to compare it with whatever you choose to compare it with.

its not poorly written , its poorly understood by you , english is not your first language or your too stupid to fully understand your native tongue either way your not very bright if you cant discuss what point you disagree with and
concentrate on its delivery. Sorry I cant dumb my comment more to please you.

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Good luck in life.

Posted by: Anonymous Coward on November 22, 2004 10:00 PM
I'm sure your a great success.

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Open machine spec

Posted by: Graham Lee on November 21, 2004 07:33 PM
The author suggests that a machine could be cheaper if it were based on an alternate CPU...this is probably true, but rather than Power or ARM, I think SPARC should be considered. Why? Well, it's completely open, which means competition is solely based on performance and feature considerations. There are even <A HREF="http://www.sparc.org/productspg/gaislerLeon.htm" title="sparc.org">LGPL implementations</a sparc.org> of the <A HREF="http://www.sparc.org/resources.htm" title="sparc.org">SPARC architecture</a sparc.org>. A Free CPU will never be free due to fab costs, but it would be very easy for a company such as TI to knock out a bargain-bin high volume part based on the open spec.

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All this for developing nations

Posted by: severian66 on November 21, 2004 10:07 PM
I question of the motives of MS in suggesting $100 PCs.

For one, most people in developing nations do not need computers and will never need them. They will incur costs associated with owning them that would be better spent of the family's welfare.

Two, it is arrogant to think that technology as we know it will improve people's lives in another country. Canadian eskimos were excited to finally get televisions, and when they did, the children quit listening to their elders, women worried about fictitious characters on Dallas, and children became susciptible to advertising.

Three, if MS wants to really help developing nations, they could help fund clean water projects.

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Re:All this for developing nations

Posted by: OwlWhacker on November 22, 2004 04:11 PM
The only thing Microsoft is interested in is to get the developing nations locked into Microsoft solutions, rather than using Linux/Open Source.

It's only now, when the threat of Linux/Open Source being used in developing nations is apparent, that Microsoft is stepping in to 'help'.

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Re:All this for developing nations

Posted by: Sam Leathers on November 23, 2004 05:51 AM
Granted, I understand that MS doesn't have any kind of good motive, but I disagree that computers in third world countries wouldn't help. The Internet is a great resource for research and learning, and if every village had one computer where people could take turns using the computer, they could better there next generation, and improve their minds. This may not help with the starvation aspect in short term, but in long term, it's how countries could help develop themselves. Personally, after I get out of school, I plan to go into the mission field setting up computers in third world countries.

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Re:All this for developing nations

Posted by: severian66 on November 24, 2004 12:31 AM
The internet is a very poor resource for learning, unless you're a college student. There are far too many bogus sites full of misinformation, and the majority of the world citizens have become educated without the 'benefit' of computers in schools. Computers are useful tools for work, but that's about it. They are great toys, too.

For most businesses, computers increase efficiency and reduce the amount of manpower needed to accomplish a task. For large organizations, computers allow the processing of tons of data, which is great for globalization, but terrible for victims of globalization.

When you actually visit a third world country, you will find computers are probably the last thing on anyone's mind. If used as an educational tool in a school, I could see a use, but books would go much further. The best use would be communication with students outside their area.

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LinuxDevices.com

Posted by: Anonymous Coward on November 21, 2004 11:20 PM
I can only recommend before starting writing an article to do some research. You have guessed right that biggest part of the cost of the modern PC is backward compatibility cruft.


I can only recommend reading LinuxDevices.com - amount of work done on industrial front is just astonishing. But it can be more. Embedded/industrial applications are gaining much power. But still are shadowed by fat, gov.-sponsored, political, high-performance project Linux is rather used to run on.


You just need to recall all those projects like: Linux on wristwatch, transparent Linux firewall (which looks more like tiny convertor), etc.


If someone will jump in, and produce little appliance with only needed minimum - I bet it can cost even less than $100. And you even do not need to change CPU arch - VIA produces bunch of low-end low-power low-cost CPUs and SOCs.


P.S. Another story which comes to my mind, is that when one Chinese producer had proposed to produce Palms. He had estimated that Palm produces in China would cost about $40. But including all PalmOS/etc licensing costs it would cost less that $150. Not bad? Let's start with $40. Add $10 for CPU which is capable running Linux, subtract $15 - we do not need LCD/touch screen, and finally add $40 for video card with TV/out. We are about $75. What do you think? Definitely possible.

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Re:LinuxDevices.com

Posted by: David Sugar on November 22, 2004 03:47 AM
I am very aware of the various work on micro controllers, low power embedded systems, industrial systems, etc. Unfortunately most of these designs are not mass produced sufficiently and so are often offered at premium prices currently.


For example, I recently put together a small VIA based 800mhz server with 80g drive from components because I needed a small low power headless server that is convenient to travel for demos; while I am very happy with the result, the cost was around $450 to build and hence hardly what I would call competitively priced. Of course via maintains extensive x86 pc architecture compatibility to support use with Microsoft Windows, even on their very tiny boards, and this no doubt also effects their pricing, which was one of my original points.

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What happened to the simputer?

Posted by: Anonymous Coward on November 25, 2004 08:22 AM
It was an open design, running a linux.

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Why does this keep coming up?

Posted by: Anonymous Coward on November 22, 2004 09:37 PM
Search Pricewatch. Barebones Athlon XP 2000 for $76. In the same range you have literally dozens of machines available for under $100.



Add a monitor (you can't give 15" CRTs away on EBay) for basically the cost of shipping, and a keyboard (woo woo, $3), and you have a full machine.



As for software - I personally don't really care if people want to pirate Windows. But Linux does work adequately - I wouldn't call it user friendly yet, but for someone who wants to stay legal, it will do.



So, can we please stop seeing all this commentary on Balmer's red herring about a $100 PC? It already exists. It just doesn't run Windows legally. End of story.

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lets see

Posted by: Anonymous Coward on November 22, 2004 10:36 PM
I built my pc for about 110 bucks with quality parts be it they may be dated but they are of quality and will work on linux.

now if I get fedora/debian/mandrake and put it on there the price stays at 110 - maybe more if you want to include the price of the cd's I burned it on or bought.

now if I want to put windows on there the price triples - because a full version windows xp pro is around 180 to 200 dollars so that just brought the 100 dollar pc to 300.

does anybody see a problem here - apparently ballmer doesn't

ballmer is nothing but a used car salesman.

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Re:lets see

Posted by: javaboy on November 23, 2004 03:57 AM
I think most used car salesman would resent the comparison.

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