While admitting that it was hurt by increased sales of netbooks in terms of revenue for the Windows Client division, Microsoft is also applauding the victory over the open source Linux operating system when it comes down to portable cheap computers also referred to as “mini-notebooks” or “sub-notebooks.” Brad Brooks, Microsoft’s corporate vice president for Windows Consumer Product Marketing revealed that customers have been disappointed by Linux on netbooks, and that is precisely the reason they are turning to the Windows operating system on such machines.
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“Customers choose Windows because they want the best possible user experience. While many initial small-notebook PCs in the market were Linux-based, they didn’t live up to customers’ expectations. Customers expected a Linux-based PC to look and function like their Windows-based desktop PC and they were disappointed,” Brooks stated.
The Microsoft VP emphasized that according to data offered by partners such as MSI and Canonical the return rates for Linux-based netbooks dwarf those for Windows powered computers. “Partners MSI and Canonical have mentioned to press that return rates on their Linux-based small-notebook PCs are about four times those of Windows-based small-notebook PCs,” Brooks stated. “Windows provides a level of application and device compatibility you simply don’t get with Linux. Windows works with everyday programs like Microsoft Office and popular applications like Apple’s iTunes and Microsoft’s Zune, PC games like “World of Warcraft,” and a host of others. It also works with the largest set of printers, digital cameras and other devices. Linux doesn’t come close to doing any of these things.”
In the end however, Microsoft gets less money for each copy of Windows pre-installed on a netbook in comparison to a fully fledged PC. This because such machines are defined not only by their limited hardware capabilities, but also by their cheap price. Still, Microsoft claims that it has witnessed nothing short of “spectacular Windows growth” on notebook PCs, praising the Windows operating system for familiarity, compatibility, and ease of use in comparison to Linux.
“To share some numbers: since February 2008, Windows OS share has gone from 10 percent to over 80 percent on these machines, and our research shows that these are overwhelmingly new PCs and/or PC users. To put it another way, we think most small-notebook PC buyers are either purchasing a secondary machine or buying a PC for the first time. And we think purchasers are drawn to these PCs by their small size and affordability, particularly given the current environment,” Brooks added.
For the time being the majority of netbooks that ship are pre-installed with Windows XP, but Microsoft promises that this aspect will change. The software giant has optimized Windows 7 to play nice with netbook PCs, and indicated that all editions of the next version of the Windows client would work with such machines.
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In spite of all the marketing tricks M$ used to push XP on netbooks, many millions of people experienced GNU/Linux for the first time in 2008 and several times as many will do so in 2009. The rate of growth of machines running GNU/Linux is still small but accelerating. Eventually M$ will have to cut its price on all types of PCs because GNU/Linux will eat its lunch otherwise. The monopoly is ending. It ended on netbooks in 2007. It will end on notebooks and desktops in 2009.
If the reader doubts that, look at sales of PCs. They are almost flat in regions friendly to M$. In the BRIC countries where government is actively promoting Free Software, growth has slowed but is several times higher than growth in the old markets. That is a market of 3 billion people and they are not locked-in to the M$-way. In Brazil and Russia, every school will be using GNU/Linux in 2009. Netbooks will be the first PC people in these regions can afford and some cannot even run that other OS, like the ARM netbook being produced in China for $100. There is no room for XP or 7 in that price and XP will not run on ARM. China is maxed out on production and much of it will be for machines running GNU/Linux.
M$ has some people locked in but even those are starting to wiggle. The Canadian Government recently asked for information about "No Charge Licensed Software". I gave them quite a bit. I am sure I was not alone. Brazil, Russia, China have all made serious moves to escape the Wintel treadmill. The question is not whether a new equilibrium will be reached but only when and at what level. I would not be surprised to see GNU/Linux take about 30% of seats in a few years. The world of IT is growing fast and M$ is not. M$ has lost its monopoly so it will take a serious hit in income soon. They have been diversifying but the cash cow of the monopoly has dried up.
$ in MS is so childish these days and "uncool", i think you need to read the artical again.
I work in retail selling these machines and id say more like 70% are returns because of Linux.
Windows is now being installed exclusively on most and probably all netbooks soon as the industry cannot sustain such returns on such small margin products.
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