ASUS starts to suck severly

[deanjo]

You'd think that Asus's decision to ever use Linux in the first place was a calculated one. Probably they did focus groups and the people not willing to buy a linux netbook because it's unfamiliar etc were outweighed by all the people who were much more likely to buy a linux netbook simple because it would be cheaper.

So somebody just needs to make the argument to Asus that findings like that (findings that have an impact on Asus's bottom line) are not to be thrown out the window just because the CEO played a round of golf with some Microsoft guy (or whatever).

I don't think they really needed a focus group to figure out that most of the world is familiar and comfortable with windows. One of the biggest reasons you saw linux on the first ones is probably more of a case of Asus slapping linux in a hot product to force MS to lower the price of Windows for netbooks. Mission accomplished. If a company can charge $100 more for the same hardware because of a piece of software that they bought for $30 then that's another $70 in their pockets (which probably is close to as much profit they made on the hardware alone).

[StringCheesian]

I don't think they really needed a focus group to figure out that most of the world is familiar and comfortable with windows. One of the biggest reasons you saw linux on the first ones is probably more of a case of Asus slapping linux in a hot product to force MS to lower the price of Windows for netbooks. Mission accomplished. If a company can charge $100 more for the same hardware because of a piece of software that they bought for $30 then that's another $70 in their pockets (which probably is close to as much profit they made on the hardware alone).

That can't be what Asus is thinking.

Employee: I've got a idea, lets flirt with linux to get a better deal from MS!
CEO: Flirt how, release some products with linux?
Employee: Sure, why not?
CEO: Well, shouldn't we at least investigate the potential for losses or for profits? Will these linux products sell?
Employee: Naw, it doesn't matter how well the linux products do, we'll be ok. Don't bother investigating.
CEO: Ok, I'm sold - lets do it!

See how unrealistic that is? Getting a better deal from MS would not have been enough of a reason all by it self to start with Linux in the first place.

More likely, Asus projected higher profits (due to greater volume) from a range of OSs (from the cheap to the familiar) and then later MS offered them a deal for dropping linux guaranteeing even higher profits due to paying less for Windows.

And all I'm saying is that if we had more info, there would probably be lots of arguments to persuade Asus that such a deal with MS isn't smart. The MS deal is temporary while their previous strategy was long term potential, issues with antitrust law, etc.

What's with the us vs them attitude where Asus is ether a one of the good guys or one of the bad guys? Why are you so quick to give up on Asus?

[deanjo]

That can't be what Asus is thinking.

Employee: I've got a idea, lets flirt with linux to get a better deal from MS!
CEO: Flirt how, release some products with linux?
Employee: Sure, why not?
CEO: Well, shouldn't we at least investigate the potential for losses or for profits? Will these linux products sell?
Employee: Naw, it doesn't matter how well the linux products do, we'll be ok. Don't bother investigating.
CEO: Ok, I'm sold - lets do it!

See how unrealistic that is? Getting a better deal from MS would not have been enough of a reason all by it self to start with Linux in the first place.

More likely, Asus projected higher profits (due to greater volume) from a range of OSs (from the cheap to the familiar) and then later MS offered them a deal for dropping linux guaranteeing even higher profits due to paying less for Windows.

And all I'm saying is that if we had more info, there would probably be lots of arguments to persuade Asus that such a deal with MS isn't smart. The MS deal is temporary while their previous strategy was long term potential, issues with antitrust law, etc.

What's with the us vs them attitude where Asus is ether a one of the good guys or one of the bad guys? Why are you so quick to give up on Asus?

It is a very realistic deal, one only has to take a look at how intel was refusing at first to allow the atom to be sold without a intel chipset and then Nvidia announces ION 2 for the nano and all of a sudden wow you can purchase atoms individually. It happens all the time in the IT industry. Same thing happened with classmate PC's. Sometimes it never gets past the sabre rattling bit other times such as with windows in EEE pc it took them to install linux to send a wakeup call to MS to give better, more profitable prices on windows. This scenario also rolled out in OLPC as well.

[Blue Beard]

Yup cater to your target audience. You don't dump millions of dollars into marketing and R&D, for ~1-2% of the marketshare when you can market to 90+% of the market. Doing otherwise is called financial suicide.

It has taken the last 3 years for Microsoft to lose about 3-4 % of the market based on numbers captured by Internet website traffic surveys.

The last one I saw placed Microsoft at 87.9 % and Linux at 1.02%. Three years ago Microsoft was always 92 to 93+%.

Intel like many profit oriented companies flirts with Linux most likely to make Microsoft more competitive.

If the rumors are true that Microsoft is OEMing XP at $15 for netbooks instead of the previous $50, the ASUS, Intel, etc strategy worked.

The important observation is that Linux is being considered as a serious commercial alternative.

[L33F3R]

The important observation is that Linux is being considered as a serious commercial alternative.

the age old tale that nothing in life is free. proven false.

[deanjo]

It has taken the last 3 years for Microsoft to lose about 3-4 % of the market based on numbers captured by Internet website traffic surveys.

The last one I saw placed Microsoft at 87.9 % and Linux at 1.02%. Three years ago Microsoft was always 92 to 93+%.

True, couple things to consider. Most of that marketshare was not lost to linux but to Apple. Also it would not be surprising at all to see MS to gain a large chunk of that back with Win 7 and the push they are giving on making Windows dirt ass cheap in markets where piracy is rampant and income is low.

BTW, Asus is hardly the first to offer linux as an alternative. Many companies over the years have "toyed" with it and then later reverted back.

[AdrenalineJunky]

You'd think that Asus's decision to ever use Linux in the first place was a calculated one. Probably they did focus groups and the people not willing to buy a linux netbook because it's unfamiliar etc were outweighed by all the people who were much more likely to buy a linux netbook simple because it would be cheaper.

So somebody just needs to make the argument to Asus that findings like that (findings that have an impact on Asus's bottom line) are not to be thrown out the window just because the CEO played a round of golf with some Microsoft guy (or whatever).

i would like to point out that the state of the market now is drastically different then when they introduced the eeepc.

back then a windows liscense would have represented almost a third of the cost of the device.

now on the other hand is a different story, microsoft cut the royaltees for netbooks drastically, they now sell for pretty much the same price with windows or linux.

due to that fact, it does make windows netbooks far more appealing to alot of people then they would have been when the eeepc was introduced.

asus is going where the money is, while i love to see companies supporting OSS, you can't really blame them for that.

[Dosfish]

Personally every asus product I've brought and my friends have brought has died within around 2-3 years, I (and my firends) refuse to buy asus products for the past 5 years. Point being if asus and microsoft want to jerk off in each others pockets, let them. Neither of them will be getting my money.

[krazy]

http://www.pcworld.com/article/16004...ml?tk=rel_news

http://www.itworld.com/microsoft-win...ost-pcs-080512

^^ a couple of interesting reads. especially about microsoft segmenting the market with their licensing hardware limits..

[curaga]

The recent news about how MS now calls netbooks "low cost small notebook pc"s, and how the thin-and-light category of laptops is going to be "entirely different", it's fun to watch.

The thins will likely only see the higher cost version of 7, home premium or something like that, and that alone will make them at least 100$ more expensive than netbooks.

Segmentation, or, divide and conquer..