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[News] A Look Back at a Good Year for Linux (Windows Sold for $20 to Compete)

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A quick look at Linux events of the first half of 2008

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| With the first half of the year 2008 now behind us, let's take a look at some 
| of the most interesting events that shaped the past six months. 
| 
| Probably the most important Linux-related story of this year was the 
| continued success of Linux on ultra-portable laptops. These simple Internet 
| devices, pioneered by ASUS in the form of its Eee PC and later "copied" by 
| just about every major hardware manufacturer, are largely responsible for the 
| growing perception among the general public that Linux is just as effective 
| an operating system as any of the mainstream alternatives - all without the 
| extra costs and limitations present in proprietary products. In fact, such 
| was the success of Linux on the Eee PC that Microsoft was forced to spend a 
| large amount of money on promoting Windows and has reportedly cut the price 
| of its specially built Windows XP to as little as US$26. Despite that, it 
| might still end up on the losing side of the battle.          
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http://distrowatch.com/weekly.php?issue=20080707#feature

How low can Microsoft's margins go? In some countries, Microsoft dumps even
hardware to keep up with Linux demand.


Recent:

Microsoft U-turn to stop Linux dominating ultra low cost PCs

,----[ Quote ]
| By offering Windows XP Home Edition at bargain prices, Microsoft hopes to
| secure its place in the ULPC market and reduce the use of Linux, according to
| an official at one PC maker, who asked not to be identified because he was
| not authorised to discuss the programme.
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http://www.computerworlduk.com/technology/hardware/laptops/news/index.cfm?newsid=9006


They Criticized Vista. And They Should Know.

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| Act 1: In 2005, Microsoft plans to say that only PCs that are properly
| equipped to handle the heavy graphics demands of Vista are “Vista Ready.”
|
| Act 2: In early 2006, Microsoft decides to drop the graphics-related hardware
| requirement in order to avoid hurting Windows XP sales on low-end machines
| while Vista is readied. (A customer could reasonably conclude that Microsoft
| is saying, Buy Now, Upgrade Later.) A semantic adjustment is made: Instead of
| saying that a PC is “Vista Ready,” which might convey the idea that, well, it
| is ready to run Vista, a PC will be described as “Vista Capable,” which
| supposedly signals that no promises are made about which version of Vista
| will actually work.      
|
| The decision to drop the original hardware requirements is accompanied by
| considerable internal protest. The minimum hardware configuration was set so
| low that “even a piece of junk will qualify,” Anantha Kancherla, a Microsoft
| program manager, said in an internal e-mail message among those recently
| unsealed, adding, “It will be a complete tragedy if we allowed it.”    
|
| Act 3: In 2007, Vista is released in multiple versions, including “Home
| Basic,” which lacks Vista’s distinctive graphics. This placed Microsoft’s
| partners in an embarrassing position. Dell, which gave Microsoft a postmortem
| report that was also included among court documents, dryly
| remarked: “Customers did not understand what ‘Capable’ meant and expected
| more than could/would be delivered.”    
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http://www.nytimes.com/2008/03/09/business/09digi.html?_r=2&pagewanted=2&oref=slogin
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