Rex Ballard wrote:
> At one time, the OEM believed that "Without Microsoft (OS du jur), all
> you have is a box with blinking lights". Today, OEMs know that Linux
> will work perfectly well, but they also know that most customers still
> want to run Windows in some form. Microsoft's pricing model is pretty
> simple. By what you need (say 80%) at 10% discount, or by way more
> than you need at a 40% discount. Let's say that the OEM price is $100
> for 100 copies or less. Let's say that the OEM can sell 10 million
> machines, both the OEM and Micrososft know this, based on previous
> year sales, license registrations, and the XP "phone home" update
> service. The OEM can buy 8 million licenses for $90 per copy, for a
> total of $720 million. Or the OEM can buy 12 million copies at $60
> per copy, which also happens to be $720 million.
>
> There is a catch. The OEM must purchase all of those copies within
> the year. They can only install them on their own machines (can't
> sell them to other OEMs or VARs), they can't use them the following
> year. On the other hand, if they order the entire amount, Microsoft
> will finance the purchase interest free, and give them 12 months to
> pay. If the user violates the OEM license agreement, they still have
> to pay off the loan, even though the licenses purchased would be
> revoked. If the licenses are revoked, Microsoft can negotiate a
> "repurchase", and might even offer them for as little as $10 copy,
> but only if the OEM accepts even more draconian terms.
Here you go again, laying out very specific numbers when the truth is you
have no idea about any OEM contracts with Microsoft. Is this what a
"visionary" does?
> Keep in mind that the terms are also pretty simple. Microsoft will
> provide the "core" configuration. Any change to that configuration
> (such as addition of drivers for hardware) must be approved by
> Microsoft prior to shipment. This means that ANY change to the
> configuration, such as the addition of boot managers, change in drive
> partitioning, additional applications, and so on, must be approved, by
> Microsoft, in writing prior to shipment.
How do you know? You don't. So why do you blab this stuff?
> They are not willing to
> continue to have Microsoft "tell them what they are going to eat".
> With OpenOffice, FireFox, and numerous critical applications now
> available on both Windows and Linux, and Linux now offering equal or
> better applications at a fraction of the cost,
Which apps?
> The end-user gets misdirected to MSN and ends up
> getting billed $20/month.
Liar.
> Microsoft can easily make as must as $2,000 per machine
> in revenues AFTER the Windows.
ROFL! From who?
> This is one of the reasons
> that they are willing to offer OEM prices that are 75% off MSRP, then
> reduce them another 40% for market "saturation". Microsoft will sell
> a $400 product (MSRP) for $20 per copy because they can get $4,000
> over the next 5 years from the customer if they do so.
You're nuts. Slinging crap numbers pulled out of thin air - with no
relation to reality - which the cola cabal is all too willing to let slide.
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