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Intel, Microsoft Despised the XO Laptop
Posted by
kdawson
on Sat Nov 24, 2007 03:59 PM
from the immune-response dept.
from the immune-response dept.
gregsim writes "The Wall Street Journal today reports that the new XO laptop, centerpiece of the One Laptop Per Child project, is stimulating an active response from both Intel and Microsoft. The companies evidently feel threatened by the little upstart, intended to help third-world children. (The XO runs Linux and uses AMD chips.) Microsoft has cut their software to $3 each and Intel has designed their own laptop called the Classmate to sell between $230 and $300, nearly double the XO's price. Rather than defend the relative merits of his creation, professor Negroponte is crying foul and (if the article is to be believed) not even arguing the technical merits. The initial demand for the XO has fallen well below Mr. Negroponte's projections as Intel and Microsoft have successfully argued that their entries are superior. 45,000 have been ordered through the Give One, Get One campaign. I am happy that I ordered mine — it will be a landmark model in any case."
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Your Rights Online: Nigerian Company Sues OLPC 277 comments
d0ida writes on the continuing troubles at the OLPC Association. Adding to the recent difficulties — the BBC has picked up the litany — a US-based, Nigerian-owned company has now filed a patent-infringement lawsuit against OLPC. Lagos Analysis Corp. claims that OLPC "made unauthorized use of LANCOR's multilingual keyboard technology invention in XO laptops." The suit was filed in Lagos.
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Competition is good (Score:3, Insightful)
Re:Competition is good (Score:5, Insightful)
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Re:Competition is good (Score:4, Interesting)
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Re:Competition is good (Score:5, Insightful)
If MS and Intel want to seriously get -- and STAY -- in the game of providing system for the developing world, that's great. The concern is that they'll produce just enough press releases for the XO to stop getting orders it needs to stay viable, then once the XO is basically dead, MS/Intel say "oh, well now that we look at the market, we really think tour new $500 design is more appropriate". Then it would take another year or three for the XO or something similar to get back into production. Anyone with more than a few months of experience in the computer industry is familiar with this pattern.
As a side note, I was shocked when my sister, who is about as technical as "my computer's cupholder is broken!" actually mentioned the "buy one get one" promotion over Thanksgiving. They've done a great job marketing, even if my sister didn't have any idea what the program was about or what made the computer unusual, she just knew about it as the $150 laptop.
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Re:Competition is good (Score:5, Informative)
The practice is most easily done by a monopoly to prevent competitors from entering the market. We see it extensively in the diamond market, we see it by Microsoft in China to block Linux releases, and we've seen it in new markets by Intel. So there's no surprise here.
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Re:Competition is good (Score:5, Informative)
According to the article I read, Microsoft has been dumping Windows+Office at $3 into these markets to stunt the OPLC market share. That's dumping by any definition.
The worst was reading some guy from Libya saying they opted for Intel/MS vs OPLC because they didn't want to be a dumping ground for OPLC. Wait 10 years, let MS get their hooks in, then as soon as the competition is gone, no more $3 windows. This is how the developed world always rooks the undeveloped world. The 419ers are just a tiny bit of poetic justice by comparison - it turns out the nuclear weapon Microsoft holds is the same psychology that fuels Ponzi schemes. Just afraid to be left out of the "success" everyone else APPEARS to be having.
Sad, really, that this one official will sell his whole country out to loan sharks because he's scared of not looking like a cool kid ("no one ever got fired for buying IBM!"). Well, that and probably some well-placed bribes.
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Re:Competition is good (Score:4, Interesting)
Which is exactly the problem. The OLPC program wants children to have access to computers for educational uses. Microsoft and Intel want to make money, which they will likely not be able to do in the long run, at the prices the XO goes for. Which means that their best bet is to run it out of town then hike prices and leave out a big segment of the society. But those people don't really count as they don't have money.
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Re:Competition is good (Score:4, Interesting)
Well, there is the fact that the XO is sold by a non-profit and it uses an OS that costs no money, so it makes sense to say that anyone selling such a computer will be able to undercut the prices of a company making money on both the OS and the hardware.
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Re:Competition is good (Score:4, Insightful)
It is hard to blame Microsoft entirely, since they can't exactly compete with free. Intel, on the other hand, has no excuse. If they were truly acting competitively, they would try to sell Negroponte on their processors and compete with AMD (you know, their actual competitor) that way, and not screw over those kids in the process.
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Re:Competition is good (Score:5, Insightful)
If the people buying these machines aren't spending their own money, and intel or microsoft offer them some money into their own back pocket in exchange for spending more of someone else's money, what do you think they'll do?
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Re:Competition is good (Score:5, Insightful)
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Re:Competition is good (Score:5, Insightful)
Only if the market is actually free (of biased legislation, etc.)
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Re:Competition is good (Score:5, Insightful)
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Re:Competition is good (Score:5, Interesting)
Not true at all. The poster child for the situation is Netscape, but Microsoft has "done a Netscape" on lots of other startups.
Fact is, a high-quality product by a small, underfunded company can be and often is squashed by a poor-quality product with a large advertising budget. That has been Microsoft's approach from the very start, when they had the huge IBM budget behind the first model "IBM PC". The tech world smugly predicted that such a shoddy, overpriced computer couldn't possibly succeed against the many better things that were already for sale. But it did succeed, and most of those CP/M companies are long gone, because people recognized the IBM brand, and IBM could spend more on the ad campaign than the entire operating budgets of all its competitors combined.
That's exactly what MS will try here, and chances are very good that they'll end up bankrupting the OLPC project before it gets off the ground. MS has already shown that it's willing to use bribery and back-room politics [slashdot.org] to derail OLPC orders. They've probably learned to not be quite so blatant, and cover their tracks a bit better, and they may well succeed with such tactics in many cases.
This campaign could well be yet another textbook case in how monopoly capitalism works. Stay tuned; it'll probably be well covered here, though not in the mainstream media.
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Re:Competition is good (Score:4, Insightful)
That's an important point, and it's why we're seeing so much effort from Microsoft.
The more Linux machines that get out to real users, through the OLPC, Asus EEEPC, Nokia N810 and other similar machines, the clearer it will become how much of a lie that disadvantage claim is.
A successful OLPC project would show the world definitively that an expensive, proprietary, antifeature-laden [fsf.org] OS is an unnecessary waste of money and resources.
Would a starving ethernopian...
Ethernopian?
Christ, at least with enough OLPC using kids out there we might get some decent discussions on Slashdot, not more of this ignorant, bigoted astroturf.
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Re:Competition is good (Score:5, Funny)
Then explain windows' success.
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Not a Monopoly (Score:4, Insightful)
The major point is that their project was free/libre opensource based. It could have been emulated by any one else. And whole point of Negroponte is that one day, as those kids grow up, they would be able to easily start their own computer technology project, based on knowledge they acquired learning on tools like the OLPC and using technology and ressources available freely for them to base they project on, thanks to F/L-OSS.
It's not a monopoly to Negroponte because their technology isn't locked into their own hands at all.
Your analogies are bad.
It's not Pespi or Coke, it's OpenCola and Vores Øl (recipes freely available on wikipedia for every one to use) against both of those corporation.
It's not BigMac or Super...whateverstuffyoumentionned, it's home grilled buger on your own backyard grill (without any intellectual property lawsuits involved) against the fast-food corps.
The main purpose behind this is bring those kids a tool that they can subsequently own themselves and do whatever they want to do. This is possible with free/libre software, because that's the whole point for which the GPL license and the FreeSoftware Foundation where created.
This wouldn't be possible with microsoft in the play, because whatever happens with the Classmate, the software running on it will continue to be the private property of Microsoft. Everything one could dream to do with it will have to be done only after obtaining license. Even if it may cost only 3$ currently, it remains in the hand of a foreign US company.
XO Laptop is about empowering the current learning kids, and giving them something that they can control.
Classmate and $3 Microsoft softwares is about creating a steady stream of future consumer which have been raised into sheepishly thinking that information technology is only something that come from a foreign US company, and who could one day buy Microsoft's future software at whatever price they decide then.
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Re:Competition is good (Score:5, Insightful)
If Microsoft and Intel put Negreponte out of 'business' by selling subsidised low-cost PCs, how long do you think they'll continue to sell them afterwards?
They're not doing this out of the kindness of their hearts, they're doing it because they see a competitor they want to eliminate.
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Re:Competition is good (Score:5, Interesting)
Maybe a long time if Walmart decides that selling $200 laptops along side their $200 desktops sounds like a good idea. Granted that won't help children in developing nations much, but it'd sure do something interesting to the PC market.
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the nature of the competitive threat (Score:5, Interesting)
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Re:the nature of the competitive threat (Score:5, Insightful)
In the USA many jobs require some basic knowledge of computer concepts, like files and folders, user accounts and passwords, use of a mouse, etc. They also require knowledge of word processor use, spreadsheets, e-mail, web browsing, etc. For those uses, Windows, Linux and OS X are interchangeable.
The XO operating system is a little further out there, because the UI is quite different from Windows or mainstream Linux distributions, but even there the differences aren't going so large that significant retraining is required. Especially since the XO is specifically designed to encourage exploration and make its users comfortable with the computer, rather than afraid of it. A user who is willing to explore a little and understands basic concepts can easily figure out how to get the job done, without a lot of remedial training.
Even more important than all of that is the simple fact that we're talking about kids who aren't going to be in the workforce for years, and during that time the systems are going to change -- probably more radically than they have in the last 10 years. The key is to understand what computers are and how they work, and for that purpose the XO is a significantly better system than any variety of Windows. I think kids who grow up using an XO laptop will probably be more capable of using a Windows 8 system than kids who grow up on Windows.
Finally, odds are that in the parts of the world where lots of XO laptops are used, when the kids enter the workforce they won't be using Windows anyway. That, of course, is what terrifies Microsoft.
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Re:Competition is good (Score:5, Informative)
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Re:Competition is good (Score:5, Interesting)
Good question, and the answer is that Negroponte's goal is NOT to get cheap laptops in the hands of poor children.
http://laptop.org/vision/index.shtml [laptop.org]
"It's an education project, not a laptop project."
-- Nicholas Negroponte
No matter how many times it is explained over and over again it seems Intel and Microsoft have successfully twisted this story of constructive education into some cheap assed laptops for the poor expanding market dilema where there is a need for competition. If Negroponte is pissed he has good reason to be and anyone at Intel or Microsoft who has been involved in the stupid classmate PC project and the efforts to kill OLPC should be ashamed of their scum bag used car salesman tactics.
Negroponte and his team put in the effort to research and develop their constructive education idea and now that they have implemented all their learnings and research into a ready to deploy solution you have these greedy bastards trying to destroy the project in the name of market share and profits. And make no mistake about it, neither Intel nor Microsoft actually have any interest in the goals of the OLPC project or the poor countries it is intended for, their involvement is self serving and designed to generate PR so they can maintain mind share in their current markets, not in some imagined expanding market in poor countries where they see potential for profit.
I may come across as rather harsh on the classmate PC and Microsoft and Intel's actions but again I think its deserved considering the years of work the OLPC people put into a non-profit project with admirable goals only to see it threatened in the name of greed.
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Re:Competition is good (Score:5, Insightful)
I'm not sure who I'm madder at: Intel & Microsoft for their transparent claims of "trying to help", the potential recipients of the XO who are being fooled into not ordering it, or folks like you who are not seeing any problem with this whole cock-up.
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Re:Competition is good (Score:5, Insightful)
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Re:Competition is good (Score:4, Insightful)
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Re:Competition is good (Score:5, Funny)
I agree that's a bit more than Vista is really worth, but maybe they'll give up another 20-40% on volume orders.
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Technical merits? (Score:5, Insightful)
Intel's Sucker Punch. Tech Merits are Obvious. (Score:5, Insightful)
Behold "peace" with Intel and M$:
but
Par for the Wintel course, self restraint is foolish because M$ and Intel will always pull every trick they can. When convicted monopolists urge you to hold back, listening to them is the worst thing you can do. Intel traded a few million dollars for what's going to millions of units in sales. That's too bad, because Windoze is the wrong OS for the job.
It's easy to see that the usual one size fits all Windoze is not useful to school children, especially those in the developing world. It's designed for US fortune 500 businesses and to satisfy the wants of the MAFIAA. It's dependent on a $400 "office" suite for the most basic of paper writing in English and it has little else. Native editing and authoring tools are pathetic, networking is designed for an office LAN and media tools are designed to extract money from rich US college students rather than to encourage creativity. Foreign language support in Windoze is pathetic, as you would expect from software that can't take corrections in the field. All of this can be said about M$'s latest and greatest OS. I'm scared of what they have to offer for $3. Any developing nation that wants to see what will happen to the Intel machine has only to look at what happens to the millions of used laptops the developed world disposes of daily in their backyard. Laptops being tossed out by the developed world are more powerful and have better software but could be used right now by developing nations for next to nothing. They are not used because they are not well suited to the task and Wintel laptops that make it to the developing world today are sent there as toxic waste. OLPC addressed all of these concerns in their design.
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Ah, the canonical monopoly response... (Score:5, Interesting)
Re:Ah, the canonical monopoly response... (Score:5, Insightful)
Competition is always welcomed, or so says everyone here
Do _you_ still say so, after this scenario?
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Re:Ah, the canonical monopoly response... (Score:4, Insightful)
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Fighting a non profit (Score:5, Insightful)
When they discover they're worth $200 on eBay (Score:4, Funny)
You'll find the OLPC is basically just a financial subsidy to the poor in the developing world...
What's the average annual wage in Bangladesh?
Double the cost of the XO? Huh? (Score:4, Informative)
Intel has designed their own laptop called the Classmate to sell between $230 and $300, nearly double the XO's price
What? The XO was targeted to cost $100. It ballooned out to $130, then $175, then $188, then $200 [eweek.com].
Now, if you want to donate 10,000 of them, you get that $200 price. If you want to donate 100 or less, you pay $300 per laptop. [laptopfoundation.org]
Why they have a sliding price scale is beyond me...they're supposed to be a non-profit, building the things for the poorest people in the world, and yet...the fewer you buy, the more you pay...
Negroponte is surprised about the actual demand? (Score:5, Insightful)
Talk is cheap.
Let me see who defends capitalism (Score:5, Insightful)
But in this case, companies are entering a [new] market in order to kill competition. No wonder, even in the so called developed capitalist markets of the industrialized world like Canada, no foreigner can own a majority stake in the telecommunications sector for example.
Why there is an OLPC (Score:4, Informative)
The reason for this machine and its unique interface, power saving, and wireless connection is for empowering people who do not have computing expertise, reliable power, or even telephone connections.
An important use for the machine that is overlooked is to provide textbooks to children in areas which simply don't have textbooks.
The laptop has an important reflective screen for e-book reading.
Imagine having all your courseware on one machine that you transmit to them wirelessly?
Furthermore, Worldspace at www.worldspace.com has committed to using part of its satellite radio bandwidth to transmit courseware to areas like Africa, India, and Asia.
The free sharing of textbooks and courseware are far and away the most important aspects of this laptop.
Have you ever taken a class for which the textbooks were on back-order? These children deal with that every school day. The copier is always broken, there is never any paper or toner, and this laptop helps to solve all these problems.
Ok... (Score:4, Interesting)
1) Microsoft cutting software prices?
2) Intel making similar hardware?
3) The price of Intel's similar hardware? ($230 is hardly double the XO's price, considering it's currently $200. But, you know, we'll go with it.)
4) Mr. Negroponte's disappointment in the demand for it?
5) 45,000 XO laptops have been ordered?
It just kind of rambles from one point to another without being firmly *about* any of them.
Secondly, isn't imitation the greatest form of flattery? How can you be so sure that MS and Intel are saying "let's crush this program!" and not "hey, that's a good idea, let's try it."
Three Intel MYTHs Busted Here (Score:4, Informative)
2) MYTH: Intel hates OLPC. Intel is PART of the OLPC project (since summer 2007) - Microsoft is NOT. (The original poster doesn't even mention this) Perhaps this would imply that next gen XO unit will be Intel-based ( see this post [slashdot.org] for more on why )
3) MYTH: AMD Geode is superior technology. FACT: It's very lightweight, low power technology that AMD bought from National Semiconductor. It's not based on current technology. Intel is developing a whole generation of much lower power, but much faster processors - due partially to the magic of 45nm- in the Silverthorn cpus. coming in 2008. What's interesting about them is not so much the technical specs, but that the process technology lets the dies be so small that Intel will be able to put thousands of processors on a single wafer [tgdaily.com] allowing Intel to make them very cheap and still get good margins for them. The whole target market for these cpus is phone/handhelds/MIDs and very basic systems that need x86 instruction set with sub-one-watt power consumption (and good performance). It is exactly what XO v2 should be built on.
It doesnt matter if XO is a big hit or not (Score:4, Informative)
There is a market in the US for $200 laptops, in classrooms if nothing else.
The ability to have a laptop cart with 20 laptops for under 5k instead of the normal $25000
is a disruptive technology.
If XO does nothing else but bring down the cost of laptops for people around the world..then
Mr. Negroponte deserves our gratitude.
Re:Waste of time (Score:4, Funny)
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Re:Waste of time (Score:5, Insightful)
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Re:Waste of time (Score:4, Insightful)
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Re:3rd world needs to figure out birth control fir (Score:4, Insightful)
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Re:Negroponte's Dumb Idea (Score:5, Informative)
The cheapest I can find a hand powered generator capable of powering a laptop, even used, is about $60. The cheapest I can find used laptops online is about $200. How much value there in the tailored OS, preloaded with software and reference material and preconfigured to be ideal in the conditions of the third world?
I think you're very mistaken. Getting a good laptop that will work well for children in these situations, with questionable access to electricity is a lot harder than you seem to imply. And even if you do, it probably will still fail to meet the second half of the criteria, which is to say it is all free and easily editable/customizable without any lock-in to a particular vendor. The first world has undercut the agricultural sector in much of the third world and catching them up with agricultural equipment and fertilizer production would cost a huge amount. Providing them with the foundation to enter into the intellectual property industry, including custom software. This is a chance for them to develop a sustainable industry and income and offer their services to the world.
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Re:Negroponte's Dumb Idea (Score:4, Informative)
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Re:Negroponte's Dumb Idea (Score:4, Insightful)
I said work in intellectual property including custom software. Today, a few thousand people with these laptops could probably make more than they do now, by solving captchas. Pretty much anyone can learn to be literate and to read/write several languages with a few years of training, so they can be paid for translation work and editing. Then there is original content production, data entry, etc.
Right, so they're no better at it than we are, but have a thousand times the unemployment rate in some localities and will work for one one hundredth the cost.
First, they aren't farmers now, they're children without much in the way of skills because farming does not pay enough to pay taxes on the land when the US is giving the same food away for free. You turn them into knowledge based workers by giving them a laptop and network access and a wealth of educational data and software specifically designed to be easy to modify for their entire childhood. It is called an education, and growing up with a basic laptop, wikipedia, and internet access will allow them to develop computing skills as they grow. Did you have access to a computer when you were young? Do you know many people who program who did not?
Does the phrase "modern-style economy" actually mean anything? An economy is an economy and providing tools that educate and are usable, certainly can make a real difference.
Okay your skepticism is noted. That said, this is the best effort I've ever seen to provide a sustainable income for people growing up in some of these countries. If you think giving up is a better idea, then there is not a lot of point talking to you, otherwise; let's hear your better and more effective idea.
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Re:That's great (Score:5, Insightful)
However, Monopolies are bad. This is a clear case of a monopoly using its power to stifle long term competition at a short term profit loss.
Do you honestly think Microsoft would offer both an OS and Office for $3 if it wasn't trying to stifle competition? As soon as the OLPC project is broke and a memory, expect the price of Microsoft's software to increase exponentially.
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Re:Found the Problem (Score:4, Insightful)
So perhaps you have some ideas about how vendor support will be provided by the likes of Microsoft?
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