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Microsoft Operating Systems Software Windows Hardware

Cheap Solid State Computers Could Kill Microsoft 427

Eh-Wire writes "This is an interesting point made by a Clayton Hallmark on IndyMedia out of Argentina. He predicts that cheap Asian computing appliances with an Open Source Operating System on a chip will be the ultimate MS killer. References to the US$220 Mobilis out of India suggest the begining of newer, more powerful, and cheaper things to come. Mr. Hallmark also points to the success of the Wal-Mart cheap PC as proof the end is near for proprietory software. Overall an in interesting and thought provoking read."
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Cheap Solid State Computers Could Kill Microsoft

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  • by Bazzalisk ( 869812 ) on Monday May 30, 2005 @06:36AM (#12675371) Homepage
    Have you heard of FlashROMs?

    It's a nifty technology which allows a chip to be written to as well as read from, but remain persistant in the manner of a ROM. Very few so-called ROMs these days are actualy read-only -- you just write to them occasionaly, and read from them often.

  • by lseltzer ( 311306 ) on Monday May 30, 2005 @06:50AM (#12675418)
    From TFA: "...has its OS on chips -- where, by the way, viruses can't get to them..."

    Why would this stop a virus? Answer: It wouldn't.

    BTW, he doesn't tout the success of the Walmart PC, he just notes it's existance. Who said it's successful?
  • by Seahawk ( 70898 ) <tts@nOsPAm.image.dk> on Monday May 30, 2005 @06:59AM (#12675451)
    For example, with that sort of money on hand, I recommend they buy Intel (or AMD) and Seagate, then almost give the CPUs/disks away - make the whole box a commodity. TCO drops and everyone can afford MS software. The software becomes the key factor again. MS continue to extend their protocols to ensure non-interaction (as they constantly do now).

    This would most likely be agains anto-competitive laws in alot of countries.

    I'm pretty sure it would be a problem in Denmark anyway.
  • by Anonymous Coward on Monday May 30, 2005 @07:00AM (#12675455)
    I suggest taking stories in Indymedia with a grain of salt. All the stories I've seen on those sites this far are extremely anti-capitalistic, anti-authoritarian and generally very elitistic (in the way that suggests people writing and reading the stories consider themselves the vanguard of neo-socialistic revolution, which elevates them above the laws and the society). When truth is subordinated to the service of dogma in this scale, reality tends to be a bystander.
  • TRSDOS? (Score:3, Informative)

    by b1t r0t ( 216468 ) on Monday May 30, 2005 @09:08AM (#12675900)
    TRS-DOS (Radio Shack) -------------- 4 KB

    Um, NO. The first model of computer was indeed sold with 4K, but TRSDOS absolutely required 16K minimum, and even then it was barely usable (you had 5K left for BASIC). Try "16K minimum, 32K recommended". And CP/M needed more to be useful because it didn't have 12K ROM BASIC like the TRS-80.

    Also, he forgot to add "128M minimum, 512M recommended" for OS X. OS X is a dog (though usable) with 256M. 384M might be enough, but at that point you might as well go for 512M. It'll boot with 64M, though. What he fails to point out is that the later OSen provide many more features (which take up more memory), and application memory requirements go up with time, too. And I'd still rather have a six-year-old Mac than this toy on my desktop, though as a PDA it might be interesting.

    Indymedia is the fanfiction.net of journalism, but at least this is clearly a blog rant, not an attempt at journalism. I think he's basically right in that these things could put a dent into the generic PC marketplace, not just Microsoft, but anyone who wants games or multimedia isn't going to be satsified. And it's not like Microsoft is completely ignoring this space... what do you think the Xbox 360 is all about? It's this low-end consumer space, only they're starting from the multimedia/games end of the low-end space, which is the harder problem anyhow.

    I don't hear much about Indians being gamers, you know. The Koreans wouldn't be satisfied with a toy like this, that's for sure.

  • by CaymanIslandCarpedie ( 868408 ) on Monday May 30, 2005 @09:52AM (#12676137) Journal
    They've already agreed to piss away $37 billion for exactly those reasons - the stockholders were getting scared.

    OK, I'm not sure how many times I'm going to have to hear this ;-) Its OK for tech types not to understand economics or financial markets (hey you cannot know everything), but then don't pretend like you do please.

    First, the one-time bulk dividend you are refering to was approx 32 billion not 37 (not really important). Anyway, it will most likely actually be higher than that as that dividend was actually part of a three piece four year plan. Besides the one-time bulk divedend, MS also planned a stock buy-back and an additional raise in normal dividends over a four year period based on performance. This three part plan could equal as much as 75 billion over four years. Now I won't go over the calculations AGAIN, but basically with crazy assumptions to the low side, at the end of the four years MS will still have at least 30 billion in cash (more realistic numbers would have that number much closer to 40 billion).

    OK, besides the numbers its important to understand WHY this is being done. No, its not because anyone is scared ;-) At the time of this decision, MS had almost 60 billion in cash (56 I believe at last reporting period). Also, at that point its market cap was just below 250 billion. Thats getting close to having 25% of thier market cap just sitting in cash. Another way to look at it is they had about 90 billion in assets on the balance sheet so that about 65% of assets in cash. Not good!!!

    Now many will say "how can having that much cash not be good?". And that is a very fair question, and the fact that it isn't certainly can seem counter-intuitive on its face. However, when we all talk about the job of a corporation is to make money, we are talking mainly about making money for its shareholders (not to make the corporation itself rich). Yes, you do need to have some cash on hand (war-chest) and what that amount is, is not easy to calculate. It will depend on industry, company outlook, short and long term plans, etc, etc, etc. Coming up with a number for this is very complicated, but every company should have a target cash-on-hand number (thats what CFOs are for). Again, this number is not easy to calculate, but anyone looking at financials and understanding MS knew they had TOO MUCH cash. They are making money faster then they can spend it and unless they were planning the purcahse of IBM or something, it was just getting rediculous. The job of the corporation is to make money for shareholders and keep itself happy, but historically MS has just horded all of its cash. As a shareholder, I'm going to get a bit miffed if they already have more cash then they can resonably spend and just keep adding 10 billion a year to thier cash position instead of paying that out to shareholders.

    While you think this was done out of fear, it really points in the opposite direction. When a company sees tough times ahead, they will try to raise thier cash reserves to be able to weather whatever is ahead. The tech industry has traditionally horded cash, because they are young want to be VERY safe (and may not have a "traditional" CFO). This payout if anything shows they are maturing as a company and feel VERY safe. As a rule (of course depending on other factors) you want to hold just enough cash to pay expenses and a nice "war-chest" just in case. In the case of MS, that war-chest was getting rediculous to the point of many seeing it as plain irresponsible. Cash like most other things isn't always more == better.

    A very basic explaination [investopedia.com] about corporations cash. If you want to do more reading on this just google for "too much cash in reserves" and you can find plenty of discussion on this.
  • by monopole ( 44023 ) on Monday May 30, 2005 @12:18PM (#12676902)
    Put Knoppix or Slax on a CF card, install on a mini ITX Board (or eventually a nano). The result is a machine with all the functionality necessary for day to day functionality. Get the price down just a bit and you have bubble pack PC which is an impulse buy . While servers will still be needed a complementary linux solution will be better any way.
  • Free CP/M? (Score:3, Informative)

    by westlake ( 615356 ) on Monday May 30, 2005 @12:52PM (#12677104)
    IBM/Microsoft DOS was based on CPM, an open source/free OS

    CP/M was not free or open source.

    Since the cost of version 1.3 (1.4?*) was only 70 $, this operating system soon became installed on every 8080 computer. CP/M, what's that? [www.gaby.de]

    I'll leave adjustment for inflation as an exercise for the reader.

  • by serutan ( 259622 ) <snoopdoug@geekaz ... minus physicist> on Monday May 30, 2005 @10:06PM (#12680469) Homepage
    If you're interested in more details about the Mobilis here's another article with couple different photos [hindu.com].

    Whenever subject of solid state computers comes up I have to throw in a few words about the Audrey, a failed Internet appliance made by 3Com a few years ago. When they didn't sell for $499 3Com dumped them and they are readily available on EBay for about $85.

    The Audrey has a 7-inch 640x480 color touch screen built into a 2-inch-thick package that looks like like a Jetson's version of an Etch-a-Sketch. Several dedicated buttons on the front were intended to start dedicated apps like email, address book and web browser. It was made to sit on the kitchen table so you could read the news, send email and look up recipes. Inside is about a P200, 32Mb ROM and a 32 Mb flashcard for RAM. The original built-in software included a telephony app. There is a built-in 56K modem, microphone and two tiny speakers, also 2 USB ports and an audio out jack, and a no-frills wireless IR keyboard. Most of the ones sold on EBay include a USB LAN interface and have replacement software, an embedded Unix called QNX.

    When these things came out on the market for such a low price a hacking community quickly sprang up (for example Audreyhacking.com [audreyhacking.com]). You can find lots of free goodies such as an mp3 player and home automation software. Because of the touch screen I bought 5 of them to use as UIs for streaming music to stereos all over the house. Anyway, they are fun toys.

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