Who is Corel (CORL)? I've never heard of these guys before!
I just bought it this morning @ $1.25 ps.
>>HP, Dell turn from Microsoft to Corel<<
August 30, 2002
SAN JOSE – In a rare chink in Microsoft's dominance of personal computing, the two largest PC makers have decided against bundling the Microsoft Works productivity suite on some models in favor of rival software from Corel.
Hewlett-Packard and Dell Computer said earlier this month they will not bundle Works on some models geared toward consumers. Instead, a version of Corel's WordPerfect Office suite will be pre-installed.
The standard Works suite – it includes word processor, spreadsheet, calendar and database software – can be purchased separately for $109 but is often included on new computers as a bonus to buyers.
Microsoft's big money generator isn't Works, however. It's Microsoft Office, which sells for $479 for the standard edition and is targeted at businesses and power users.
In fact, Microsoft's share of the productivity suite market exceeds 90 percent.
"Success (in the market) will be dictated by what the Fortune 500 wants to buy," said Robert Austrian, an analyst at Banc of America Securities. "It's a tough choice to move away from Office."
The decisions by Dell and HP are more likely driven by profits than a desire to distance themselves from Microsoft.
"We're able to do it at a less expensive rate than Microsoft," said Steve Houck, Corel's executive vice president of strategic relations.
Microsoft, which also sells the ubiquitous Windows operating system, has been assailed for using its monopoly to pressure PC makers to adopt its products. As part of its antitrust settlement with the Justice Department, it has agreed to halt such practices.
"It's a reflection of PC vendors looking for anything they can do to increase their margins and increase the perceived value of the systems," said Meta Group analyst Steve Kleynhans.
Paul DeGroot, an analyst at the independent research firm Directions on Microsoft, said the impact on the company is insignificant – and Microsoft knows it.
"The fact that they didn't match (Corel) suggests to me they're not worried about it," he said. "This is what I would call a minor PR blow for Microsoft."
HP and Dell said the Corel suite creates more options for consumers. In both cases, customers can still choose to upgrade to various versions of Microsoft Office – for an extra charge.
HP's move affects only its Pavilion models to be released this fall in North America. HP, which merged with Compaq Computer earlier this year, also offers the Compaq Presario line, which includes Works or a version of Microsoft Office.
Dell is bundling the Corel products with its Dimension 2300 desktop and an upcoming Inspiron laptop. Other models in the lines will continue to be bundled with Works or other Microsoft Office options.
The vendors will offer Corel's WordPerfect word processor and Quattro Pro spreadsheet. Both are mostly compatible with Microsoft Office components Word and Excel. |
