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Technology Stocks : How high will Microsoft fly?
MSFT 482.22-1.6%12:42 PM EST

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To: Dwight E. Karlsen who wrote (32510)11/7/1999 2:22:00 AM
From: ed  Read Replies (2) of 74651
 
What I am going to say is that from your post , you are not a business man at all and do not understand the business world.
Microsoft told DELL. CPQ/ HWP ..etc, if you buy 100 thousand copies of Office from Microsoft in one order , you will get this discount on each copy , and if you buy OS together with certain application program , you will get that discount, this is a very common practice in the business world. By ordering big quantity in one order, the suppliers can plan their manufacture in advance and do not have to hold big inventory of raw materials or products and this will reduce the cost of manufacturing and the cost of products, and Microsoft gave the savings of cost to the customers, and reduce the cost of customers , which will benefit the consumers , because consumers will get the products with lower price. So, what is wrong with it ?

As to DELL/CPQ/HWP...etc, for the purpose of getting the discount from Microsoft, they will like to sell as much products as possible from Microsoft , so that they can order in big quantity from Microsoft to get the discount. So, DELL/CPQ/HWP..etc told their customers if you buy a PC preloaded with Microsoft's products, you
do not have to pay addition , but if you buy the software from other
vendors, you will need to pay addition, because DELL/HWP/CPQ ..etc do not get the discount from the other vendors , and the cost base is higher on those software from other vendors. Besides , the other software vendors can offer the similar discount package to DELL/HWP/CPQ if they want to compete with Microsoft , it is the other vendors' free choice. So, if you want to blame of paying additional
on other vendors' software, well, you should blame DELL/HWP/CPQ ..etc, or the other software vendors who do not offer the similar discount package which Microsoft offer to compete with Microsoft. The hardware vendors probably realize that most consumers will choose Microsoft's software ( free choice) which are more popular , so it is the hardware vendors' best advantage to charge you additionally if you want other vendors' software, because they can make a double on you !!!!

You probably did not realize in the real world if you buy 1000 floating license from SUN in a bundle or 100 floating license in a bundle , the price of each floating license will be different . This is a very common practice in the business world , what is wrong with it ? The same for the CPU business , and any other business. I hope this answer your question !!!! As a competitors if you want to compete, well, you can offer the same or better price policy . If you do not , well, it is your own fault to lose business. The customers always like to choose the most efficient suppliers who can offer the best products with the best performance / price . This is what we call free market force , the most efficient one will survive and succeed. Or you can call it free competition !!!!!

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