IT-Director: Microsoft Windows for free Jul 31, 2000, 19 :48 UTC (11 Talkback[s]) (3676 reads) (Other stories by Cheshire Cat)
"By entering the domain of the appliance -- the games console,
video engine, wireless PDA or whatever -- Microsoft is
recognising one crucial fact. With appliances, nobody cares
about what is under the bonnet, the external functionality is
more important than the internal components. This is the
rationale behind other companies (such as these) using Linux
-- there is no operating system sell, it is the box that counts.
Also, with Linux there is no operating system buy as it is
license- and cost-free. Microsoft cannot compete at the OS
level as others are giving it away, hence they are competing at
the level of the complete device. This is a dangerous game --
hardware margins are notoriously lower than software margins
-- but the company has no other choice."
"By bundling Windows with the device, Microsoft is essentially
giving it away. In doing so it gives itself an exit strategy from
the oncoming drought in the OS space. Perhaps more
importantly, it can move on without losing face -- a necessity in
the technology market, where image counts for far more than
people give it credit."
