Archive for July, 2008

The Monopoly Will End in 2010

KACE has repeated their survey of IT professionals’ attitudes to M$ which they did in 2007. The survey from June, 2008 has these findings:

  • the number seeing no possibility of migration from M$ is less than 10%, down from 15% in 2007
  • of the 40% looking at migration, the number in the process of switching is 11%
  • of the 40% looking at migration, the number planning to migrate this year is 30% up from 22% in 2007
  • of the 40% looking at migration, the number planning a later migration is 50% down from 57% in 2007
  • 29% of those planning to migrate plan to migrate to MacOS instead of Vista
  • 68% of those planning to migrate plan to migrate to GNU/Linux

Assuming most IT professionals work for business, this means a huge part of M$’s business will be gone by 2010. Combined with spectacular growth in emerging markets and established retail markets, this means GNU/Linux and MacOS could take 50% of PC seats in 2010. That would mean the end to M$’s monopoly.

Here is my calculation:

year GNU/Linux MacOS M$
2008-06 7% 3% 90%
2009-06 26% 5% 81%
2010-06 46% 12% 41%

I have assumed 1000 million seats with about 700 million in business to which the KACE numbers apply. I combined that with known figures for retail sales/predictions for GNU/Linux and 100% per annum growth in those numbers. This may be optimistic, but if M$’s “Lose 7″ is anything like VIsta: vapourware/buggy/bloated, and M$ does not do a GNU/Linux release of its own, or promote Novell, seriously, this is how it will go. Retail lock-in is crumbling. Business lock-in is all but gone. Only those businesses securely locked-in will stay with M$ because they have to have working IT in order to stay in business and to compete with those using GNU/Linux or MacOS to good effect.

M$’s only effective defenses are to produce a good OS but that will not be compatible with what they have in their installed base: XP, or to distribute GNU/Linux which could retain market share but not lock-in or cash flow. The PR task is just impossible with GNU/Linux for M$ so they will have to produce XP version 2 or something to keep the money flowing. Vista has nothing to offer business so they need to make something business finds useful. That will be an improvement on XP, but with all the backward compatibility customers expect, it will be no better. That is the best M$ can do, continue to produce an OS that was obsolete in 2001 when it was released. Perhaps they can continue to sell something like Vista to consumers but it has to be toned down to run on existing hardware. No one but gamers are interested in 3-year replacement cycles for home PCs. It will be years before everyone is quad-core + 2gB. M$ will have to write off emerging markets going lighter although their embedded stuff may work there, at greater cost. No matter how they go, they will have drastically reduced market share in two years as things go. There is no marketing campaign that can prevent that, only good product and M$ never designed a good product in the desktop OS field. M$ is soon to become irrelevant to the desktop OS market or at least, just another player, not anything larger than life.

- Robert Pogson

Explosion of Small Cheap Computers

NYTimes has a neat article describing the explosion of the eee PC and imitators/competitors in the past year. ASUS increased sales of PCs in Europe from 2.8 to 6% market share largely on the basis of the eee PC. No word on how many run GNU/Linux. The whole world of OEMs is in commotion. Some are holding back because they think it is a flash in the pan or not a worthwhile investment. Intel thinks sales of netbooks could reach 40 million in 2011. One thing is for sure, because of the lower price of these units, it pays to avoid M$. The licensing fees would eat up the profits. The world seems surprised that they can live without M$ but they can.

“IDC, a market research firm, is predicting that the category could grow from fewer than 500,000 in 2007 to nine million in 2012 as the market for second computers expands in developed economies.

Intel is projecting that by 2011, the market for the netbooks will be 40 million units a year, which is why Intel is jumping in with low-powered chips that would be used in the netbooks and the net-tops.”

Dell, of course, continues not to get it:“Dell has not been specific about the price or features of its entry, but Michael Tatelman, vice president for marketing at Dell, said he believed that the category would have limited consumer appeal.”
see Smaller PCs Cause Worry for Industry

The most worried of all is M$ because if they cannot force OEMs to install that other OS, the monopoly is dead.

Scenario: “Ma’am, this PC is $183. A licence to downgrade to XP from VIsta will be $350, or you can have GNU/Linux for free and it will do what you need.”

What would you choose?

On top of this energy. ASUS will put a minimal GNU/Linux GUI on each motherboard of all kinds of PCs… How cheap will a PC be if you do not need any drive to boot to a GNU/Linux kiosk? Wait a bit and see. ASUS is not afraid to put some boots to M$. Why is Dell so shy? In the same market where ASUS had 100+ % growth, Dell had less than 2% growth. Take a hint, Dell.

- Robert Pogson

Software for Libraries

OK, it is summer. I took time off to go to a pool party…

Lo, and behold, I chatted with a lady who works in a library. She and many of her staff are ticked at commercial software for libraries. It turns out they were looking at Koha. HeHe… I mentioned that that was a web application that could be accessed from any OS and that they could benefit from lower costs on the client-side by using GNU/Linux… Fun. Only a couple of years ago, no one that I met had even heard of FLOSS. Now all kinds of people are using FLOSS. They have lined up a local firm to help install/configure the system and to provide support. Cool. She and I compared notes on the horrors of dealing with commercial/non-free software, lock-in, vapour-support, inflexibility and the inability to deal with your own data the way you want. If/when they make the change, they will no longer need M$ on the client or server. Sweet.

I have used Koha and Emilda. Emilda seems to lack development. Koha is hot. On a system with a good infrastructure for perl, it takes only a few minutes to install. On some distros, there are a few obscure perl modules that need to be installed. If you are not a perlista, this is a strange process, but it works. Being php/perl most problems are fixable one way or another. Of course, one can always use the distro that Koha uses, Debian. see http://www.kohadocs.org/Installing_Koha_on_Debian_sarge.html#d0e432 A new release of KOHA is in the wings with a better installer.

Koha is yet another example of good things coming from cooperation rather than bullying and competition. The folks who started it needed software that worked for a modest price, so they made their own.

- Robert Pogson

GNU/Linux is Going Up the Middle

There has been a surge in production and sales of low-end PCs and notebooks in the last six months. Many of the small machines were sold with GNU/Linux installed. To exclude GNU/Linux from the new markets as much as possible, M$ extended the life of XP on low-end machines. Now M$ has included machines with larger screens…


“Under the new terms, outlined in the documents, PC makers must limit screen size to 14.1 in. and hard-drive capacity to 160GB. Ultralow-cost PCs with touch screens will also be eligible. Earlier terms set in April did not allow touch screens at all and limited screen sizes to 10.2 in. and hard-drive capacity to 80GB. The processors are still limited to a single-core chip running at no more than 1 GHz, with memory limited to 1GB of RAM.”

M$ is blinking. GNU/Linux can be seen to work very well on the low end and it can run on the more powerful/larger machines as well. That M$ is including larger screens and hard drives is acknowledgment that GNU/Linux is expanding into mid-range machines. At this rate XP will be extended for all notebooks by Christmas. It won’t do them much good except for businesses. At the prices of these machines, GNU/Linux is expanding into a vacuum. M$’s gesture is window-dressing. They cannot hold back the tide. I suppose they could pay OEMs to use it but that would clearly be dumping. It might work in the USA but the market is global.

- Robert Pogson

GNU/Linux Works in Education

That’s reality. GNU/Linux can help students and teachers find, create and present information in an educational setting very efficiently. That’s what a school that went 1:1 in students per PC found.


“A study conducted by the school since the inception of its PC computing program in 2005 indicates by the end of the first school year, students using ThinkPads spent 50 percent of their time on the PC in the Linux environment. This increased to 75 percent in the 2006-2007 school year, and 86 percent the 2007-2008 school year ending in June 2008..”


We do not need M$ to educate our children. We can get more bang for the money with free software and have more fun doing it, too.

- Robert Pogson

Maxed-out

The tiny PC is taking the world by storm. Even Intel cannot keep up with demand for the Atom. “Asustek Computer president Jerry Shen last month said the battery shortage would ease in July, but the shortages of the Atom processors could persist through September“. These things are ideal for newbies in the emerging markets with GNU/Linux. At this rate OEMs will soon realize that M$ is holding them back in the areas of growth. XP is a lot more expensive than GNU/Linux to install and margin is critical on these low-cost machines.

I would have orders in for a couple now but a decent notebook was forced on me by a relative. ;-) With my Fujitsu keyboard and laser mouse attached, it is quite usable. I was planning to use a low-end machine as a presenter and a terminal to my LTSP machine. It’s all good.

- Robert Pogson

Barriers

I have refrained from writing about Gates’ departure because it is irrelevant. Here is an article about what really matters by Richard Stallman:

BBC NEWS
It’s not the Gates, it’s the bars
By Richard Stallman
Founder, Free Software Foundation

To pay so much attention to Bill Gates’ retirement is missing the point. What really matters is not Gates, nor Microsoft, but the unethical system of restrictions that Microsoft, like many other software companies, imposes on its customers.

That statement may surprise you, since most people interested in computers have strong feelings about Microsoft. Businessmen and their tame politicians admire its success in building an empire over so many computer users.

Many outside the computer field credit Microsoft for advances which it only took advantage of, such as making computers cheap and fast, and convenient graphical user interfaces.

Gates’ philanthropy for health care for poor countries has won some people’s good opinion. The LA Times reported that his foundation spends five to 10% of its money annually and invests the rest, sometimes in companies it suggests cause environmental degradation and illness in the same poor countries.

Many computerists specially hate Gates and Microsoft. They have plenty of reasons.

‘Solicit funds’

Microsoft persistently engages in anti-competitive behaviour, and has been convicted three times. George W Bush, who let Microsoft off the hook for the second US conviction, was invited to Microsoft headquarters to solicit funds for the 2000 election.

In the UK, Microsoft established a major office in Gordon Brown’s constituency.

Many users hate the “Microsoft tax”, the retail contracts that make you pay for Windows on your computer even if you won’t use it.

In some countries you can get a refund, but the effort required is daunting.

There’s also the Digital Restrictions Management: software features designed to “stop” you from accessing your files freely. Increased restriction of users seems to be the main advance of Vista.

‘Gratuitous incompatibilities’

Then there are the gratuitous incompatibilities and obstacles to interoperation with other software. This is why the EU required Microsoft to publish interface specifications.

Microsoft would have us believe that helping your neighbour is the moral equivalent of attacking a ship

This year Microsoft packed standards committees with its supporters to procure ISO approval of its unwieldy, unimplementable and patented “open standard” for documents. The EU is now investigating this.

These actions are intolerable, of course, but they are not isolated events. They are systematic symptoms of a deeper wrong which most people don’t recognise: proprietary software.

Microsoft’s software is distributed under licenses that keep users divided and helpless. The users are divided because they are forbidden to share copies with anyone else. The users are helpless because they don’t have the source code that programmers can read and change.

If you’re a programmer and you want to change the software, for yourself or for someone else, you can’t.

If you’re a business and you want to pay a programmer to make the software suit your needs better, you can’t. If you copy it to share with your friend, which is simple good-neighbourliness, they call you a “pirate”.

‘Unjust system’

Microsoft would have us believe that helping your neighbour is the moral equivalent of attacking a ship.

The most important thing that Microsoft has done is to promote this unjust social system.

Gates is personally identified with it, due to his infamous open letter which rebuked microcomputer users for sharing copies of his software.

Gates may be gone, but the walls and bars of proprietary software he helped create remain, for now

It said, in effect, “If you don’t let me keep you divided and helpless, I won’t write the software and you won’t have any. Surrender to me, or you’re lost!”

‘Change system’

But Gates didn’t invent proprietary software, and thousands of other companies do the same thing. It’s wrong, no matter who does it.

Microsoft, Apple, Adobe, and the rest, offer you software that gives them power over you. A change in executives or companies is not important. What we need to change is this system.

That’s what the free software movement is all about. “Free” refers to freedom: we write and publish software that users are free to share and modify.

We do this systematically, for freedom’s sake; some of us paid, many as volunteers. We already have complete free operating systems, including GNU/Linux.

Our aim is to deliver a complete range of useful free software, so that no computer user will be tempted to cede her freedom to get software.

In 1984, when I started the free software movement, I was hardly aware of Gates’ letter. But I’d heard similar demands from others, and I had a response: “If your software would keep us divided and helpless, please don’t write it. We are better off without it. We will find other ways to use our computers, and preserve our freedom.”

In 1992, when the GNU operating system was completed by the kernel, Linux, you had to be a wizard to run it. Today GNU/Linux is user-friendly: in parts of Spain and India, it’s standard in schools. Tens of millions use it, around the world. You can use it too.

Gates may be gone, but the walls and bars of proprietary software he helped create remain, for now.

Dismantling them is up to us.

Richard Stallman is the founder of the Free Software Foundation. You can copy and redistribute this article under the Creative Commons Noderivs license.

Story from BBC NEWS:

http://news.bbc.co.uk/go/pr/fr/-/1/hi/technology/7487060.stm

Published: 2008/07/03 09:22:35 GMT

© BBC MMVIII

- Robert Pogson

Bargaining

ELCOT is doing it. They asked M$ to bid on 100 thousand copies of that other OS for laptops for students. M$ declined to match $12/copy and instead replied with a $57 bundle including Office. ELCOT plans to distribute GNU/Linux instead. What was M$ thinking? This is still the good old days? Any price is a good deal for our stuff? Who knows? ELCOT has been using GNU/Linux in their offices for years so they know it works. Whether GNU/Linux is your bargaining chip or the goto OS, GNU/Linux works for almost everyone.

What has ELCOT against bundling?

Microsoft’s offer and the current stage of negotiations:

ELCOT had asked Microsoft to supply its operating system for Rs.500 ($12). But Microsoft offered a bundled version of its operating system, office suite and anti virus software for Rs.2500 ($57). This is not acceptable for ELCOT as this was an academic edition. ELCOT does not accept the marketing concept called ‘academic edition’. There can be only one price for ELCOT to market a product. Academic edition concept goes against this principle. Again, Microsoft has bundled its offer. ELCOT believes in openness. Any such bundling could result in serious exploitation of the consumer. This could be considered an anti-consumer move. ELCOT cannot support an anti consumer move. Hence ELCOT asked Microsoft to debundle its offer.

HEHEHE M$ just does not get it. Everyone is wise to the bundling game. It used to work for most people when they had the only game in town , but the emerging markets are not locked in and have learned from the mistakes of others. Let’s see $12X100k = $1.2 million. $57 X 100k = $5.7 million. Do the maths. M$ is all about greed, not supplying the customer’s needs.

- Robert Pogson

POP!

NetApplications shows quite a pop for GNU/Linux in May/June 2008, advancing from 0.68% to 0.80%, 17% growth in one month, 70% in one year. Of course the numbers seem heavily weighted towards North America/Europe, showing MacOS over 7% (units shipped are about 3%, globally, for Apple), but the growth is real in that market. Imagine what it must be in the rest of the world where large sections are not locked-in to that other OS. ;-)

What makes June so special? Second quarter? High rates of IT acquisition? Fresh grads? Realization that Vista is dead for business? It could be all of these factors, but I suspect that NetApplications is weighted to business sites so the hardware/software refreshes of businesses could be a big factor. We know 50% of businesses are giving GNU/Linux a close look for the desktop. Some are adopting. A lot are adopting, apparently.

Conversely, that other OS has lost 2.4% of its loyal following in the past year and MacOS has gained only 30%.

Vista is going on about 10 million machines per month and only about half of them were running XP. That means Vista has been replacing a lot of old versions more than XP. The world is creating about 25 million new machines each month, so Vista is not making it. When XP is killed, will Vista get a pop? Let us wait for July’s numbers. Steve Ballmer’s job may depend on them. I expect GNU/Linux will get a pop. The June pop may have been early adopters. 8-)

- Robert Pogson



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My Mission

My observations and opinions about IT are based on 40 years of use in science and technology and lately, in education. I like IT that is fast, cost-effective and reliable. I do not care whether my solution is the same as yours. I like to think for myself.

My first use of GNU/Linux in 2001 was so remarkably better than what I had been using, I feel it is important work to share GNU/Linux with the world. I have been blessed by working in schools where students and school systems have benefited by good, modular software easily installed in most systems.

I have shown GNU/Linux to thousands of students and hundreds of teachers over the years and will continue in some way doing that until I die in spite of the opposition.

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