Why netbooks are killing Microsoft, Very good and informative read! Options

[illriginal]

Editor's Note: This story is excerpted from Computerworld. For more Mac coverage, visit Computerworld's Macintosh Knowledge Center.

When Microsoft laid off 5,000 people in January, analysts and pundits pointed to plenty of reasons for the first major layoffs in the company’s history. The obvious culprits included the overall economic meltdown, Apple’s continued success and Wall Street’s desire to see a leaner Microsoft.

But the real cause of the layoffs can be summed up in a single word: netbooks. These lightweight, stripped-down laptops that sell for between $200 and $400 have taken a big chunk out of Microsoft’s bottom line. Unless the company comes up with a plan to handle them, its revenue will stagnate.

In announcing the layoffs, Microsoft said that its revenue had increased an anemic 1.6 percent in the quarter that ended Dec. 31 compared to the same quarter a year earlier. But that number doesn’t tell the whole story. Windows took the biggest hit, while systems for servers and related tools had hefty increases in sales. Windows sales were down an eye-popping 8 percent; server and related revenue grew 15 percent.

Microsoft clearly blames netbooks for the drop in Windows sales. Here’s what it said in its statement: “Client revenue declined 8% as a result of PC market weakness and a continued shift to lower priced netbooks.”

Netbooks have become the only bright spot for PC makers, with sales accelerating while the rest of the PC market stays in the doldrums. According to IDC, 10 million netbooks were sold in 2008 and that number should double to 20 million in 2009.

Why is all this bad news for Microsoft? First, an estimated 30 percent of all netbooks ship with Linux. That means Microsoft doesn’t get a penny for Windows from 30 percent of all netbooks being sold. Given that netbooks represent the fastest-growing PC market segment, the company’s problem may get worse with time.

In addition, netbook owners who buy Linux machines won’t be buying Microsoft Office, handing Microsoft an additional revenue hit for every Linux netbook sold. So it’s not surprising that in the most recent quarter, sales of Office were anemic. Overall, sales for Microsoft’s business division, which is in charge of Office, were up slightly, at 1.9 percent. But sales of the consumer version of Office plummeted 23 percent—and consumers are the people buying netbooks.

Microsoft faces other netbook-related woes as well. The company doesn’t get paid as much for a version of Windows sold on a netbook as it does for a version of Windows sold on a laptop or desktop PC. There’s very little margin on a machine selling for $200 to $400, and so Microsoft simply can’t charge full freight for Windows on one. And given the price that Microsoft charges for consumer versions of Office—usually about $200 for the lowest-priced version—netbook owners who use Windows aren’t likely to pay for Office either. It doesn’t make much sense to pay as much for a piece of software as you did for your entire PC.

Microsoft clearly recognizes the problem and is taking action to try to solve it. First, it built Windows 7 to run on netbooks, something that Vista doesn’t do. When Windows 7 ships, expect Microsoft to spend plenty of money promoting it for use on netbooks, in an attempt to drastically cut into Linux sales.

In addition, Microsoft is working on low-cost, ad-supported, Web-based versions of Office. That way, it can start to get Office revenue from netbook owners.

Will these steps be enough to make up for the overall shortfall in revenue caused by netbooks? Probably not. That’s why the company is desperate to figure out a way to make its online businesses succeed. If it can’t, the days of big revenue growth are behind Microsoft, thanks in part to netbooks.

Source: http://www.macworld.com/article/138972/200...l?lsrc=rss_main

[heyo-captain-jac...]

Tl;dr

I'm getting a netbook pretty soon. I need a laptop for school, I figure that a netbook is all I would need. My current rig is going a bit overboard for word processing.

[illriginal]

Netbooks are definitely worth it. Specially for the price of its quality.

[heyo-captain-jac...]

That's what I figure. It doesn't take much to run openoffice.org, or Firefox. The computer I'm on is built to run Crysis.

[HeartOfPandora]

Who wants to pay for all that junk you can't do much with when you could just have a free OS or a simple netbook?

Microsoft sucks and there are better alternatives, that's why it's going down the drain. ;)

[Uronacid]

I don't think this is the case. For the following reasons:

• Windows XP is the most popular Netbook OS.
• Nvidia is releasing their ION Platform this year.
• Windows 7 takes less resources than Vista.

[heyo-captain-jac...]

XP is the most popular out of the box OS. Roughly 50-60 percent of Netbooks have some distro of Linux installed, even if it came with XP.

[Maccabee]

Netbooks, are too small. I would rather use a itouch than a netbook.
Unless of course it is for school, i would want a 13 pc. Or a macbook air if i could afford it.

[Uronacid]

XP is the most popular out of the box OS. Roughly 50-60 percent of Netbooks have some distro of Linux installed, even if it came with XP.

I don't believe you.

[heyo-captain-jac...]

I don't believe you.

That's fine. But you should know that many people who buy netbooks buy them because if they screw them up while modding them, they lose $300 instead of $1200.

[Uronacid]

That's fine. But you should know that many people who buy netbooks buy them because if they screw them up while modding them, they lose $300 instead of $1200.

You can't be serious... I'm sure a small percentage of the people own netbooks do that, but the number of people who buy netbooks just to mod something they don't have to worry about break is not going to have that much of an effect.

[heyo-captain-jac...]

Like I said, that's fine. You can think what you want to think, and I'll think what I want to think.

[Uronacid]

Like I said, that's fine. You can think what you want to think, and I'll think what I want to think.

Then we're in agreement, we can both think differnt things.

[brooklyneast05]

i'll think what josh thinks

[heyo-captain-jac...]

i'll think what josh thinks because it's not what CJ thinks

[superstitious]

^ ORRRRRR Josh has a good track record with these things.

[illriginal]

That's fine. But you should know that many people who buy netbooks buy them because if they screw them up while modding them, they lose $300 instead of $1200.

You just reminded me!
That's one thing I'm doing for sure next time, the next laptop I'm buying, I'm making sure it doesn't come with an Operating System. I'm just gonna install Ubuntu and run Windows XP via Java Virtual Machine if needed. Ubuntu 8.10 pretty much covers every single thing Windows XP does except for all Windows platform games. But a good list of new games are WINE-able, nonetheless

[mipadi]

I'm just gonna install Ubuntu and run Windows XP via Java Virtual Machine if needed.

Oh yeah? Gonna get the new version of XP that's written in Java?

[illriginal]

Oh yeah? Gonna get the new version of XP that's written in Java?

I already run Windows XP on my desktop via Java's virtual machine

[mipadi]

I already run Windows XP on my desktop via Java's virtual machine

Oh yeah? Where can I get the Java port of Windows XP?

[illriginal]

Oh yeah? Where can I get the Java port of Windows XP?

It's in your repository. Hold on I'll look for it!

My mistake, it's within Virtualbox

Tutorial:

[mipadi]

My mistake, it's within Virtualbox

[heyo-captain-jac...]

^ ORRRRRR Josh has a good track record with these things.

That could be true, but it's no secret that JC doesn't like me.

[Medi]

I have an HP mini. I really don't agree with the article posted here.

[*BOSS*]

Or a macbook air if i could afford it.

lololol

[queen]

there's also the mac mini

[superstitious]

That could be true, but it's no secret that JC doesn't like me.

Yeah but man, when you make random generalizations like that, I can hardly blame him.

(just sayin', that was a left field comment)

[Uronacid]

Linux is great for power users, servers, and enthusiasts; however it has a long way to go before it becomes a mainstream OS. It's just not user friendly enough. Also, the masses are growing up on XP and MACOS. People tend to stick with what they're familiar with.

Every year:

• Windows gets bashed.
• Mac is "going" to take over the market.
• Linux is going to take over the world.

Every year:

• More PCs are sold with Windows than any other OS.

[*BOSS*]

if you win every year, except for 1 year, people are gonna talk about that 1 year

[Uronacid]

if you win every year, except for 1 year, people are gonna talk about that 1 year

3rd Qtr. 2008 Apple Inc. sold 1.6 million Macintosh computers... Toshiba alone, sold 3.6 million PCs. Many other PC manufacturers did far better. Linux is trailing even further behind MAC. It's going to be a long time before the other OS's catch up with Windows.

Don't get me wrong though, I hope that they do. If an OS emerges and is superior enough to capture the market then "AWESOME". Competition is good for the consumer. It will only force the other OS manufactures to struggle for a better operating system of their own. In fact, I'm happy the Apple Leopard OS is so good. Its pushed Microsoft to come out with Windows 7, and Windows 7 is looking great.

Anyway, I don't care if linux or leopard topple windows. I'm not here to support any OS. I'm just here to tell the truth. The truth is that:

• Enthusiasts make up a small percentage of the netbook market.
• Linux is not toppling over windows and won't any time soon
• Netbooks aren't killing Microsoft.
• Windows is the most popular OS in the netbook market.
• Windows 7 already runs well on a netbook, because it's less of a resource hog than Vista ever was.
• The Nvidia ION platform will give us netbook performance like the world has never seen. Enough power for the general public to use their favorite familiar OS on a netbook platform.

[*BOSS*]

3rd Qtr. 2008 Apple Inc. sold 1.6 million Macintosh computers... Toshiba alone, sold 3.6 million PCs. Many other PC manufacturers did far better. Linux is trailing even further behind MAC. It's going to be a long time before the other OS's catch up with Windows.

the journey of a 1000 miles starts with 1 step

[illriginal]

Linux is great for power users, servers, and enthusiasts; however it has a long way to go before it becomes a mainstream OS. It's just not user friendly enough. Also, the masses are growing up on XP and MACOS. People tend to stick with what they're familiar with.

Every year:

• Windows gets bashed.
• Mac is "going" to take over the market.
• Linux is going to take over the world.

Every year:

• More PCs are sold with Windows than any other OS.

Linux does NOT have a long way to go. If you're talking about video games... not even that. I advise you to install Ubuntu 8.10. Or even wait til the next version comes out with EXT4. You're brutally unaware of the achievements of Linux.

And Linux/Unix is the preferred OS in majority of corporations, including banks.


Show me proof to back up your statement about Linux being the least used.

[illriginal]

Brutally unaware.

Every site, source, etc states that windows holds about 90% of the client operating system market, with Mac in second, and linux trailing behind. It's probably not the least OS used, that would probably go to something a lot less popular. But in terms of "popular operating systems" it's the least used.

It's the least used in "house holds" not in businesses... by far not in businesses.







BRB Watching APPLE and Microsoft steal more ideas from Linux.

[illriginal]

Consumer and Sales reports disagree with you.

LOL Sales.

How can you compare sales of Linux, Windows, and Mac... when uh.. LINUX IS FREE.


The only thing you pay for Linux.. is a donation, IF you wanna pay it.

Is this your best argument?... c'mon give me something better, I don't like elementary arguments.

[illriginal]

You can download linux too. I realize that, but you pay for the cd if you buy it in the store. In which case I think it's like ~$9

How can you say that linux is used the most in business.. when every school, and almost every business runs on XP Business??

I think you need to let us know where you're getting your statistics from, if you want to uphold any argument.

Which store sells it? This way I can recommend everyone to buy a copy at the store instead of just handing them a disc.

How can I say about it being used in most businesses? I'm a Network Engineer and System Administrator. When you go to a bank... for example, the teller isn't using Windows XP. They're using Unix. When you purchase a domain and the webhosting company is hosting your website, they're using a Linux based environment. Like someone mentioned in this thread, Linux is widely used for professionalism, such as servers... there's windows based servers but those are the least used and are very faulty. I know this because I used to work for the 3rd largest web hosting company in the world, "Hostway". MySQL was favored over mSQL. Redhat was favored over Window's server and the list goes on.

When I built servers and networks, it was Linux/Unix that was prefered for security, performance, and stability.

[*BOSS*]

why are there arguments on which is better? Obviously everyone has their own tastes and preferences. Whether you think windows or Linux is the "better" one is irrelevant. In the end, its what the audiences want, and by a landslide, windows is still owning. Each OS has its own perks and claiming one steals from other is just stupid. Like claiming Karl Benz's invention of the car was a stolen idea because he took the idea of the wheel from the Mesopotamians.

[Uronacid]

why are there arguments on which is better? Obviously everyone has their own tastes and preferences. Whether you think windows or Linux is the "better" one is irrelevant. In the end, its what the audiences want, and by a landslide, windows is still owning. Each OS has its own perks and claiming one steals from other is just stupid. Like claiming Karl Benz's invention of the car was a stolen idea because he took the idea of the wheel from the Mesopotamians.

Exactly, it's f*ckin' stupid. If you look back on my posts, I never said linux was a bad operating system. This topic is about netbooks and how they can kill Microsoft (which they won't and can't).

Which store sells it? This way I can recommend everyone to buy a copy at the store instead of just handing them a disc.

How can I say about it being used in most businesses? I'm a Network Engineer and System Administrator. When you go to a bank... for example, the teller isn't using Windows XP. They're using Unix. When you purchase a domain and the webhosting company is hosting your website, they're using a Linux based environment. Like someone mentioned in this thread, Linux is widely used for professionalism, such as servers... there's windows based servers but those are the least used and are very faulty. I know this because I used to work for the 3rd largest web hosting company in the world, "Hostway". MySQL was favored over mSQL. Redhat was favored over Window's server and the list goes on.

When I built servers and networks, it was Linux/Unix that was prefered for security, performance, and stability.

This topic isn't about which one is better. Each OS serves it's purpose. Netbooks aren't killing Microsoft. The netbook is a novelty item for home users. Home users purchase windows pcs. Netbooks are terrible for the business user. They're small, have a low resolution, are underpowered, don't have CD-ROM drives... the list goes on. They aren't cut out for business use.

I would venture to say that the small business and consumer markets combined buy more PCs with Windows installed this year than the total number of pc's that are purchased and have linux installed this year. Nothing is killing Microsoft. People just like to think that things are killing Microsoft.

[Uronacid]

Windows Loaded on 96 Percent of New Netbooks:
http://www.tomshardware.com/news/windows-n...linux,7479.html
LOL

[heyo-captain-jac...]

Among the computer illiterate.

[illriginal]

Windows Loaded on 96 Percent of New Netbooks:
http://www.tomshardware.com/news/windows-n...linux,7479.html
LOL

lol!

[Uronacid]

Among the computer illiterate.

Which is the majority of the population.

"Because users simply expect the Windows experience. When they realize their Linux-based netbook PC doesn’t deliver that same quality of experience, they get frustrated and take it back. Here’s a telling stat: In the UK, Carphone Warehouse dropped Linux-based netbook PCs, citing customer confusion as a reason for a whopping 1-in-5 return rate.”

Like I have been saying all along. People are drawn to things they're comfortable with. It makes them feel safe even if it's not.

[illriginal]

Well what do you expect? Windows was mainstream and backed by a thief who gave nothing but empty promises? I mean think about it, Microsoft almost had monopoly chain going on. When you hit that status, you know damn well your product is hardcore mainstream.

So ya, over the years people simply get used to Windows. Imagine if the community of Linux mainstreamed their product(s) since the late 80s? Pffft... Windows wouldn't even be looked at.

For example, security? Linux/Unix destroys all other OS in regards to security. Stability? Heh... without a doubt. Viruses? Non-existent. Productivity? Of course... in fact you can have a lot more productivity in Linux than Windows. And finally, how about style? Microsoft is JUST now making their OS stylish, while also making it into a fat slow cow. While Linux has been stylin on them fools since back in 2002.

So... with the flexibilities, productivities, and security of Linux compared to any of Microsoft's distros, Linux by far is the better choice. It totally owns Windows in every which way.

If companies were to just hire a few Linux/OpenGL etc.. programmers, they could make all their Windows format software compatible with Linux, such things as video games and video cards drivers, Windows would probably have a challenge. In the last 5ish years you have seen companies making drivers for not just Windows, but also Mac.

If Crysis was compatible with Linux... pffffft I could easily max out all my settings to the fullest on both the video card and the game and I'd have a flawless game play.

Anyways, this is never going to happen. People are just too mentally lazy to even learn a different OS. Regardless of all the positives it has, especially for office or even home use.

[mipadi]

If companies were to just hire a few Linux/OpenGL etc.. programmers, they could make all their Windows format software compatible with Linux, such things as video games and video cards drivers, Windows would probably have a challenge. In the last 5ish years you have seen companies making drivers for not just Windows, but also Mac.

The lack of "really good" video card drivers for Linux isn't really due to a lack of manpower, but rather politics. Companies like ATI and NVidia are resistant to releasing really decent open-source drivers, for obvious reasons. Likewise, Linux kernel hackers are really resistant to allowing closed-source drivers to have full access to the kernel, and they refuse to lend technical support to people writing closed-source drivers.

[illriginal]

The lack of "really good" video card drivers for Linux isn't really due to a lack of manpower, but rather politics. Companies like ATI and NVidia are resistant to releasing really decent open-source drivers, for obvious reasons. Likewise, Linux kernel hackers are really resistant to allowing closed-source drivers to have full access to the kernel, and they refuse to lend technical support to people writing closed-source drivers.

I totally agree... except for NVidia and just recently, Adobe. NVidia and Adobe finally opened up to the community after hearing/reading our demands from a good bunch of consumers who actually do use their products but are not affiliated with Microsoft Windows.

I remember back in 2005, I believe, the community signed petitions for Adobe, ATI, and NVidia (just now realized that's Latin for envied), and ATI is the only one at the moment giving us a hard time. Luckily I've stuck to NVidia.

What boggles my mind is that these are just drivers, what could we possibly use that data for? They're not gonna lose any money for developing open source drivers. Because it is their products that we purchase that needs those drivers, that's where they make their money, through their hardware. And Adobe as well, they wouldn't lose money if they made a Linux friendly Flash player, which finally they've made stable releases (except for Kubuntu 64 bit, I'm still having a hard time with audio in Flash while the video looks flawless).

[Uronacid]

Anyways, this is never going to happen. People are just too mentally lazy to even learn a different OS. Regardless of all the positives it has, especially for office or even home use.

Yup

[Jghelfi]

My Sub Teacher today was telling us that APPLE is coming out with a NetBook that is ALL TOUCHSCREEN, and she went to CES.. shes like a TECH FAB..I DIDNT EVEN KNOW IT!!

and she was also telling us about how you can Hack into another persons phone using BLUETOOTH, but you have to pay for that Bluetooth program..

[illriginal]

eh touch screen laptop? kinda dumb... unless they make like... 17"+ laptops.

[heyo-captain-jac...]

I had a 21 inch laptop for a while, but I ended up frying the mobo.

As it is, great paperweight.

[Jghelfi]

hahaha thats a good idea when you fry it..
but yea the net book is supposed to be like 10" or bigger, and it has no keyboard. the keyboard just pops up on the screen..