thelinuxlink.net

http://news.idg.no/cw/art.cfm?id=D04AB1 ... 4479DEEE86

Microsoft plans to offer PC makers steep discounts on Windows XP Home Edition to encourage them to use that OS instead of Linux on ultra low-cost PCs (ULPCs). To be eligible, however, the PC vendors that make ULPCs must limit screen sizes to 10.2 inches and hard drives to 80G bytes, and they cannot offer touch-screen PCs.

The program is outlined in confidential documents that Microsoft sent to PC makers last month, and which were obtained by IDG News Service. The goal apparently is to limit the hardware capabilities of ULPCs so that they don't eat into the market for mainstream PCs running Windows Vista, something both Microsoft and the PC vendors would want to avoid.

Imposing the limitations solves a number of problems for the PC industry, said industry analyst Roger Kay, president of EndPoint Technologies Associates. "It allows PC makers to offer a low-cost alternative, and it prevents eroding of pricing and margins in the mainstream OS market," he said.

Microsoft declined to comment on the documents. "We don't speak publicly about our agreements with [PC makers]," the company said in a statement via its public relations agency.

Microsoft plans to charge PC makers US$26 for Windows XP Home Edition for ULPCs sold in emerging markets such as China and India, and $32 for those sold in developed markets, the documents show. PC makers who are eligible for its Market Development Agreement, however, can get a discount of as much as $10 off those prices, the documents say.

I would think any manufacturer telling MS that they are considering putting Linux on a netbook will magically qualify for MS's Market Development Agreement and get that $10 discount. That means low cost netbook makers can expect to pay no more than $22 for XP ( probably less).

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 authorized to discuss the program.

"[Low-cost PC makers] have made some good inroads with open-source, and Microsoft wants to put a stop to it," the official said.

Microsoft has said it plans to stop selling new Windows XP licenses after June 30, but it has made exceptions, including for the use of XP Home in ULPCs.

Someone should mention this to the E.U., they might be interested in hearing more about this. Typical MSFT, undercut the "competition" to make them go out of business. Except Linux can't go out of business, and that must be pissing Ballmer off big time.

It was different when it came to the Philippines... MSFT offered to give licenses for XP and Office for $30 a pop. Still the government turned MSFT down and went to Linux anyway.


http://education.zdnet.com/?p=1498

"Computerworld is featuring a story on initiatives in the Philippines to ensure that every public school has at least one computer. While the program has now expanded to provide most schools with a small lab, a server, and Internet access, the most notable feature of the program is the use of Linux on all of the machines.

The Philippine government initially attempted to deploy Windows computers several years ago, but a lack of training for teachers and students meant that they weren’t used. A local consultant convinced the government that a second iteration of the program could benefit from the use of Linux. According to Ricardo Gonzales,

“We wanted to use Fedora 5 and it went all the way to office of [the Filipino] President and they kept passing it around saying ‘why would they offer something for free, and how would they support and teach it’,” Gonzalez said. “The project dragged on for four to five months to a point where Microsoft matched the price by offering Windows XP for $US20 a copy and throwing in Office for $US30, but we still came out cheaper. Microsoft was also providing free training to high school teachers. Because we saved so much [by using Linux] we gave the government 3000 additional units, so now another 300 schools have Linux networks,” Gonzalez said.

Another thousand schools are being added to the program, this time using Kubuntu and Edubuntu, for a total of 23,000 computers. While the program appears to have been quite successful, Gonzales notes,

“If Linux and open source wants to take hold in the education market it must deliver course material for high schools and elementary schools.”

Christopher Dawson "