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The Microsoft Monopoly vs. Economies of Scale
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| The Microsoft machine seems to have been avoiding the
| netbook market, and there has been much discussion
| about what this might mean. One recent article, Why
| Microsoft won't fight moblin, raises an interesting
| point about the economic relationship between
| Microsoft and Intel. While this article discusses
| the performance ceiling that now confronts all of the
| hardware companies, it more importantly indicates
| that Microsoft has become too dependent upon the
| profits it was able to raise for higher-priced
| hardware. Unfortunately, for Microsoft, the netbook
| market is not one of high-priced hardware.
|
| [...]
|
| The resulting situation is that Microsoft is
| suffering from a significant drop in revenue, a
| significant increase in costs, and a product with
| limited appeal. There just isn't enough in Windows 7
| to justify its cost. Microsoft will earn some
| revenue by selling it with new machines, as it did
| with Vista. Microsoft is also in the process of
| trying to force IT departments to buy Windows 7 by
| ending support for Windows XP. And, Microsoft is
| even adjusting its offerings for netbooks.
|
| But, it doesn't appear the Microsoft has gotten the
| point about profit margins and reaching a wider
| audience. It is not enough to make a product that is
| technologically accessible to the average user, you
| have to also offer that product at an accessible
| price. To reach the widest market, you have to sell
| at discount store prices. It simply does no good to
| design a product for a wide market and then price it
| beyond the reach of that market.
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http://www.raiden.net/articles/the_microsoft_monopoly_vs_economies_of_scale
Microsoft's report (2.5 weeks from now) will be as bad as the previous ones.
Recent:
The tanking economy and OSS
,----[ Quote ]
| Finally, advice that applies anytime becomes even more critical in times like
| these. "Really focus on your existing customers," says Asay. "The first thing
| to go and worst thing that can happen is that your customers leave. They'll
| be the most sure source of income. Hold on to what you've got and try to sell
| deeper into existing accounts. Customers could be harder to come by for a
| little while."
`----
http://www.linux.com/feature/153637
Red Hat: Crisis to boost open source
,----[ Quote ]
| The global economic crisis would provide a boost for open source software,
| Red Hat chief executive Jim Whitehurst claimed during a visit to Sydney this
| week.
|
| Whitehurst, who stopped over down under as part of a tour of the Asia-Pacific
| region, said in an interview with ZDNet Asia's sister site ZDNet Australia
| that the crisis would cause companies to consolidate their technology
| infrastructure and reduce spending.
`----
http://www.zdnetasia.com/news/software/0,39044164,62047208,00.htm
No Recession at Red Hat
,----[ Quote ]
| It is flattering to be mentioned, Mr. Whitehurst said, but he noted that
| corporate customers and the industry benefit from what he called Red
| Hatâs âSwitzerland statusâ â not being a province of one of the major powers
| in the technology industry.
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http://bits.blogs.nytimes.com/2008/03/27/no-recession-at-red-hat/
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