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To: Gerald R. Lampton who wrote (21892)12/3/1998 5:43:00 AM
From: Charles Hughes  Respond to of 24154
 
>>> But try not to chuckle, either, when I raise the possibility that, when you add in support and other costs, just maybe Windows is cheaper than Linux. <<<

Many people now think that Linux support is both better and cheaper than it is with Windows. Like the OS itself. FWIW, MHO too.

>>> even though demand for the total product might be very price-elastic.

All of the price elasticity coming from plunging hardware prices, of course.

Users whose wise IS gurus have standardized on Word and Excel will not be able to read their files on other systems. Their data is crucial. Therefor they will buy Windows until the slow extrication from this trap we are all in can occur. Meanwhile, MSFT may crank up the price if they think they have a dead end product with a lot of folks still trapped in it. They could buy a lot of stuff with that money, so as to be in some other business when the bell tolls for Windows, if it ever does. If it doesn't, hey, they just keep charging.

But everything depends on the lawsuit, of course. The pricing strategy of a broken-out OS division would be completely different than a monolithic company trying to raise cash to pay off options and buy TV channels. Or of a dozen possible other outcome configurations.

What percent of revenue are the OS revenues? Anyone?

Cheers,
Chaz



To: Gerald R. Lampton who wrote (21892)12/3/1998 11:35:00 AM
From: Reginald Middleton  Read Replies (1) | Respond to of 24154
 
< I agree that Windows is not a "premium product." But try not to chuckle, either, when I raise the possibility that, when you add in support and other costs, just maybe Windows is cheaper than Linux.>

Come now, Gerry. I think your being a little lenient. Can you use Linux? If so, do you think your wife and children can use it? Linux is a product preferred by the (don't flame me) "geek" crowd. The guys who know their way around a command line and think that UNIX is just as easy to use as Windows Notepad. The time and effort that went into the GUI and application compatibility brings rise to a significant premium. We will not even get into the network effects stuff. Despite what you read on the Internet (where I always see technically biased stories in the media), Linux is FAR from being mainstream due to its practical applciations for the average consumer.