Dell's Open PC Costs More Than Windows Box 440
fist_187 writes "In this article at The Register, they show thath Dell's Open PC costs more than a PC shipped with Windows XP. That's right, getting a PC with a blank hard drive costs more than the same hardware running Windows XP." From the article: "As it turns out, Dell's sales staffers have a secret web page for the product that you can't find with normal search tactics. A kind lass we'll call 'M' pointed us here. On this site, Dell presents a couple different versions of the mysterious E510n. The lowest-end system starts at $774 and is exactly like the boxes above - including the free flat panel - except it has 512MB of memory. For some reason, Dell told reporters that the box starts at $849 - yet another one of the odd sales tactics surrounding this "open source" kit. [Following the publication of our story, Dell raised the price of the PC back up to $849. See the sales pages below for the original $774 price comparisons.]"
New math.. (Score:5, Funny)
Re:New math.. (Score:5, Funny)
Resell Windows (Score:5, Interesting)
Would you buy something... (Score:2, Insightful)
Re:Would you buy something... (Score:2)
Re:Resell Windows (Score:2, Insightful)
Re:Resell Windows (Score:5, Insightful)
You'll never get fired for recommending Dell. (Score:5, Insightful)
Re:You'll never get fired for recommending Dell. (Score:5, Insightful)
People tend to call the company who built their pc's to fix them.
"You're just asking for trouble. Machines have fairly high failure rates no matter what brand or components you use. I'd rather point people to Dell so that when something breaks, I'm covered. =)"
And yet, somehow, Dell seems to turn a profit on these high failure rate systems. Dell offers a 90-120 day warranty. The odds of something going wrong with a pc in that time at all, and even more the odds of something going wrong in that time that is not billable are pretty slim. If you put 20 systems in a lab something has to go wrong with each and every one that takes several hours to fix before your cash flow goes out of the green and that is just on the initial sale. Even if you broke even after hardware difficulties residual business after the warranty term will put you back into the green.
"Besides, with PC prices the way they are, how much can you save your clients anyway? Especially once you factor in the cost of your time."
Not much. Of course you can offer them systems with increased reliability and/or performance than Dell can. Last I checked Dell and every other major brandname use the cheapest proprietary components on the market that will get them up to the "specs" that consumers are looking for.
The other thing to consider is that while you will not beat the price of the Dell by much at least you will keep the profits instead of giving Dell a handout. You can offer your customer a superior machine at the same or lower price AND on-call in-house expertise that Dell can't even begin to compete with.
Re:Resell Windows (Score:5, Insightful)
Re:Resell Windows (Score:4, Insightful)
and 3) having a computer that's actually coherent.
3.6GHz P4 is (not so) neat, but when coupled with integrated graphics, 256Mb of shitty RAM and the worst mobo of the market it becomes quite... uselesss.
Better get a much lower clock and have the other components match the processor's level of performance.
Re:Resell Windows (Score:5, Informative)
Behold the OEM license, and Anti-Unbundling clauses. The software is tied to the hardware, and the license sticker is even on the unit (just the case).
It's annoying -- but intentional -- to prevent exactly what you describe.
Doesn't matter (Score:5, Interesting)
Re:Doesn't matter (Score:2)
Re:Doesn't matter (Score:4, Interesting)
Re:Doesn't matter (Score:4, Insightful)
When I started up my brand new Dell laptop I immediately booted to CD-ROM and installed Linux.
I never agreed to the Windows EULA. You have to be careful when it first starts up because any key will make it accept. So if it comes up you have to shut the power off then start it back up and get to the boot menu before it comes up again.
Re:Doesn't matter (Score:4, Interesting)
read your windows eula buddy, or be ready to defend your rights under it it in a court of law.
What eula? You buy the Pc, then wipe the disk. You never even saw the EULA, just sold off the software you had no use for.
Re:Doesn't matter (Score:2)
You didn't buy it, you licensed it. That's the whole point behind software licensing.
-Charles
Depends on how the state defines a "sale" (Score:3, Informative)
You didn't buy it, you licensed it.
A "copy" is defined by federal copyright law (17 USC 101) as a physical object in which a computer program is fixed, such as a hard drive or an optical disc. The "owner" of a physical object is defined by state law and is generally set up by a transaction called a "sale". Combine these and you get the "owner of a copy", who retains specific rights backed up by defenses under 17 USC sections 109 and 117 as well as fit-for-purpose provisions of state law. In order for th
Re:Depends on how the state defines a "sale" (Score:3, Informative)
Re:Doesn't matter (Score:3, Interesting)
Did you sign a license? No, you bought a computer, and it's nearly impossible to buy a dell computer without windows. You can do whatever you want with everything that comes with the computer - sell it, burn it, or throw it away. It's the doctrine of first sale.
There was a case a few years back about someone selling OEM adobe software. The guy had obtained genuine OEM adobe software and was reselling it. Adobe sued the guy,
Re:Doesn't matter (Score:4, Interesting)
technically if not totally legally including installation on multiple boxen. If a blank PC is considered to be just as profitable to Dell as a PC without Windows it is fairly clear that Dell must be paying next to nothing to Micro$oft for each copy.
Micro$oft is probably regarding the supposed lack of revenues from Dell as sheer marketing cost. It's likely also that higher end machines pay off more to Microsoft though since they aren't being sold to poor/penny-pinching people.
Corollary - what's the difference to Microsoft if they just sold Windows at very affordable prices? Standalone Windows pricing is just to appease the trustbusters
The question begged is what is Microsoft getting out of all this? Is it really worth it to be competing with open source operating system at an equivalent price? Will the ultimate operating system be open source? If you buy from Dell you're not paying more. This is just the first PC offering from Dell with no Windows. Quite possibly the economy of scale for entry-level machines having Windows included actually cost LESS!! It's all about warranty and support infrastructure, perhaps. Let's see what happens with later machines as Moore's law drives prices lower and lower. If Microsoft seeks to build higher level software while leaving the operating system to the public domain, it'll be an interesting world.
Re:Doesn't matter (Score:3, Informative)
Re:Doesn't matter (Score:3, Informative)
No, not the case (Score:5, Informative)
The other is that even without that, software is kind of special. When you use software, you actually make a copy of it to your computer, something not necessiarly permitted by copyright law. Thus the permission comes in the form of an EULA, to which you must agree or you don't have that right. Well the EULA restricts this.
Is that legal? Well, maybe. Notice that game rental sotres don't rent computer games, just console games. The reason is, of course, concerns over copying. However console games can be, and are, copied all the time. So what's the deal? Well, likely game companies have sucessfully used the EULA argument to stop rentals. Can't be done with console games. No copying, thus no legal problems, and doctrine of first sale allows the rentals. However with PC games the copying happens, thus the need for EULA agreements, thus the problem.
Now like I said, all that's murkeir, might be that provision of the EULA isn't enforcable. However it's all moot, given the DMCA. You can't sell your copy of Windows using the provided key, it won't work, the key is Dell only. To modify Windows to use a different key is to break the DMCA which, retarded as it is, is the law.
Informative? Plain old wrong. (Score:5, Informative)
May I direct you to Exclusive rights in copyrighted works [cornell.edu]. I quote: "(3) to distribute copies or phonorecords of the copyrighted work to the public by sale or other transfer of ownership, or by rental, lease, or lending;" Nothing to do with copying. Nothing to do with EULAs. Not permitted by doctrine of first sale. Rentals are specifically named as an exclusive right. The console game companies want to license that right, the PC game companies do not. That is all.
Re:Informative? Plain old wrong. (Score:5, Insightful)
May I direct you to Limitations on exclusive rights: Effect of transfer of particular copy or phonorecord. [cornell.edu] I quote: "a) Notwithstanding the provisions of section 106 (3), the owner of a particular copy or phonorecord lawfully made under this title, or any person authorized by such owner, is entitled, without the authority of the copyright owner, to sell or otherwise dispose of the possession of that copy or phonorecord."
In other words, while the owner of the copyright can license for rental, if they sell the copy instead of merely renting it, then the right of first sale says they no longer have control over the where/what/when of that copy.
Re:Informative? Plain old wrong. (Score:5, Funny)
Re:No, not the case (Score:5, Insightful)
No, it is specifically allowed by copyright law, it's the normal use of software.
Re:No, not the case (Score:3, Informative)
Re:Doesn't matter (Score:3, Interesting)
OK. So take your perfectly LEGAL copy of Windows, and um... sell it on EBay. Let us all know how
Re:Doesn't matter (Score:3, Informative)
That is incorrect. Copyright holders have no ability enforce an unaccept contract. If I don't accept the license, the default is NOT that I can not use the software. That is incorrect, the default is docterine of first sale. I own it, I can do what I want with it. There is NOT
Re:Doesn't matter (Score:3, Interesting)
Really? So, if (for example), SCO were to reject the "license" for the Linux kernel given persuant to the GPL, why, since they "bought" a copy of Red Hat, why, they can do what they want with it?
Ever consider that you don't generally buy software, in any sense at all? As with renting anything else (EG: a DVD, an apartment, a car, etc) you get the right to USE it for a fee, so long as you honor certain conditions. I can see it
Won't work in all jurisdictions (Score:4, Informative)
IIRC, the court explicitly applied the german equivalent of the "First Sale" doctrine, the EULA mumbo-jumbo nonwithstanding.
Re:Resell Windows (Score:2)
Again I'm not 100% on that but considering it is an agreement in which you don't knowingly partake or sign in any real sense it should be non actionable in the UK and Germany
Re:Resell Windows (Score:5, Informative)
Thats illegal, you can't use it on any non-that-brand machine so its worthless.
Baloney! [wikipedia.org]
District courts in California and Texas have issued decisions applying the doctrine of first sale for bundled computer software in Softman v. Adobe (2001) and Novell, Inc. v. CPU Distrib., Inc. (2000) even if the software contains a EULA prohibiting resale. In the Softman case, after purchasing bundled software (A box containing many programs that are also available individually) from Adobe Systems, Softman unbundled it and then resold the component programs. The California District Court ruled that Softman could resell the bundled software, no matter what the EULA stipulates, because Softman had never assented to the EULA. Specifically, the ruling decreed that software purchases be treated as sales transactions, rather than explicit license agreements. In other words, the court ruling argued that Californian consumers should have the same rights they would enjoy under existing copyright legislation when buying a CD or a book.
Re:Resell Windows (Score:3, Interesting)
* If you don't explicitly agree to be bound by the EULA, you aren't bound by it ("explicitly" is bloody hard to fully define though)
* Buying a tightly integrated hardware-software bundle (eg: hardware with preinstalled OS with preinstalled OS) may be different than buying a bundle of "identical" items (eg: MS Office software suite).
Interesting case though.
Think they might have noticed the slashdot directs (Score:3, Funny)
Re:Think they might have noticed the slashdot dire (Score:5, Insightful)
I don't know what kind of deal they have with Microsoft to make that happen, but I suspect it is more than just the AOL and McAfee add-ons that they can bundle with XP.
Isn't this considered dumping? (Score:4, Interesting)
I don't understand why this is allowed to begin with. Wouldn't this be considered Microsoft (or Dell) "dumping" their operating system if they make consumers pay more to not get it. With the computers shipping with an operating system out of the mailing box, an alternative OS has a harder time even getting a trail run on the machine. Even if someone was specifically interested in an alternative OS, they would buy the Windows-preinstalled machine because it costs less. Then, well they could reformat the drive and install SuSe, Linspire, ect. But the machine is ready to go right now...
Re:Isn't this considered dumping? (Score:3, Informative)
Re:Isn't this considered dumping? (Score:3, Funny)
Re:No Windows Tax Puts *UP* the Price? Err... (Score:3, Insightful)
Dell should want to make money, selling the box for *more* when it does *not* have the Windows tax doesn't make much sense.
Don't you realize what Dell is really selling? Support. People buy those machines because when something gets stupid on it, they'll take care of it. The spend most of their time talking dumb users through un-screwing personal settings, removing
Re:It's not necessarily a deal (Score:2)
Re:It's not necessarily a deal (Score:2)
Obvious, actually (Score:5, Insightful)
Re:Obvious, actually (Score:2)
And why is anyone even bitching about it? If removing Windows costs money for other wierd reasons like the above, then just buy a Windows machine and reformat the hard-drive.
Re:Obvious, actually (Score:2)
Re:Obvious, actually (Score:5, Interesting)
Wasn't there some period of time where you could redeem unused Windows XP licenses for cash from Microsoft? Whatever happened to that?
Re:Obvious, actually (Score:4, Insightful)
Re:Obvious, actually (Score:2)
Exactly... so why not provide a CD that has all the same trial software on it? That wouldn't even require work on Dell's part, beyond slapping the files into a master for their duplicator folks, and maybe adding an installer menu. Dell's partners still get their crap distributed and Dell still gets their cut.
Or maybe some sort of basic free desktop and a runtime to demo said trial software? Oh yeah, that would require work on Dell's part. Never mind!
Re:Obvious, actually (Score:2)
Who expects to find GATOR of all programs burried on their brand new box??????
Re:Obvious, actually (Score:5, Informative)
To heck with Dell (Score:4, Interesting)
Comment removed (Score:5, Interesting)
Re:To heck with Dell (Score:2)
in some places this phenomenon is also known as "plausible deniability".
so when like someone, oh i don't know, AMD subpoenas you, you can plead ignorant. sort of like encrypting two pieces of data and then only giving the key to the worthless and non-incriminating piece.
Re:To heck with Dell (Score:3, Informative)
It's just like a bait-and-switch, except harder to prove.
Dell prices to value, not to cost. (Score:5, Funny)
Even though Windows has a lot of cost - it adds negative value.
Since Dell (and any company looking to please its customers) will price things based on the value the customers receive, it makes perfect sense that they have to compensate the end user for the negative value Windows inflicts on them (pain, grief, anguish, suffering).
(seriously, however - On the Windoze box there's a bunch of third-party crap that Dell was paid to put on there - I know, I worked for a company that paid OEMs to pre-install crippleware in the hopes for upgrading -- and in effect subsidized the windows boxes. I suspect this is what's happening, and Dell's just passing on the subsidy).
The Register as a news source? (Score:2, Insightful)
Eeek!
Third option... (Score:2, Interesting)
Not the same (Score:5, Informative)
Re:Not the same (Score:2, Informative)
Re:Not the same (Score:3)
Dell's Prices (Score:5, Informative)
Re:Dell's Prices (Score:2)
Add to those cathegories "Higher Education Institutions", "Higher Education Students, Faculty, and Staff", "Health Care", and "Government" (although these are harder to fake than say when you're a home user pretending to be running a business and vicevesa.)
Re:Dell's Prices (Score:2)
I think the vast majority of people who buy a blank computer will be Linux enthusiasts who object to the Microsoft tax. For those people, the
Re:Dell's Prices (Score:3, Interesting)
They are banking that most customers have not nearly enough information to find the best value, by comparing all the different
I Knew It! (Score:5, Funny)
I kid, I kid.
Re: (Score:2)
Use coupon codes (Score:3, Interesting)
For instance right now they are running a sale on the excellent UltraSharp 2005FPW 20" Widescreen LCD Monitor for $394.35.
A good place to find about theses deal is at this page: http://www.gottadeal.com/Deals/Store/dellhome [gottadeal.com]
Re:Use coupon codes (Score:2)
been there done that (Score:2, Informative)
http://hardware.slashdot.org/comments.pl?sid=1643
Re:I'm shocked! SHOCKED! (Score:2)
Don't even try (Score:5, Funny)
Personally, I use their pricing changes as a source of entropy to help generate cryptographic keys.
Makes sense (Score:2, Insightful)
Re:Makes sense (Score:3, Insightful)
Re:Makes sense (Score:2)
When I upgrade, if they are cheeper then building, I'll buy from them again. If they are not, I will build.
Re:Makes sense (Score:2)
Well isn't a virgin worth more then a slut (Score:5, Funny)
Re:Well isn't a virgin worth more then a slut (Score:3, Informative)
Well, I know of a computer company [apple.com] that sells virgin computers, in nice [apple.com], elegant [apple.com], white [apple.com] boxes [apple.com].
Re:Well isn't a virgin worth more then a slut (Score:2)
One Page (Score:5, Informative)
http://www.theregister.co.uk/2005/10/06/dell_open
About the name... (Score:3, Funny)
Michael Dell, standing there with smoking gun (Score:2)
How much longer is it gonna take & how many whacks with a clue-bat to make him understand that sleeping in the same bed with M$ isn't always the smartest business decision? But I suppose just one phone call from Bill, to remind him of the juicey discount he gets on winderz goes away if he so much as sells a single pc without it.
There should never have been such a discount in the first place. If winderz is worth x dollars at stap
Guess Microsoft Windows has really become a tax (Score:5, Interesting)
For all we know, it's supposed to be the other way around, because Microsoft shouldn't be offering the nice and heavy OEM discount to Dell anymore since they're violating Microsoft law by not selling PCs exclusively with Windows. Of course, most probably Dell is doing this on purpose, the ulterior motive being to put some pressure on Microsoft or other PC manufacturers.
It's a strange world we live in...
Dell has tricky prices. (Score:5, Informative)
Basically, I have found Dell to be a very abusive company. The only reason I would buy from them is if they have something not available from somewhere else, such as the 2405FPW 24 inch LCD monitor made by Samsung and BenQ.
If you do business with Dell, get a written warranty.
Be careful about Dell employees. They sometimes act for themselves and against the interest of their company. Talking to Dell is like going into a rough neighborhood.
My experience is that Dell is undergoing the social breakdown that is happening in other parts of the United States. One big example of the general breakdown is discussed in this transcript and video: Ike Was Right About War Machine [informatio...house.info]. ("Ike" is former U.S. President and former Supreme Commander of Allied Forces in Europe General Dwight D. Eisenhower.)
See also Andy Rooney speaks out against the war in Iraq [archive.org].
Dell routines..? (Score:3, Interesting)
Why was I told, by a Dell sales representative (our key account manager, actually), that "if I wanted to have a Matrox dual-DVI G650 card with my computers, I would *have* to accept that they came with WinXP preinstalled"??? I asked back, what does a piece of hardware have to do with any piece of software. And why on earth do they offer (now, but not when we placed our first batch of orders) a dual-DVI ATI card, for about half the price, WITHOUT requiring a WinXP installation?
Let me try to get this straight:
- I order a clean PC, and tell them I want a Matrox G650 card preinstalled
---> No can do, if you want the Matrox card preinstalled, you need XP preinstalled.
- I order a clean PC, and tell them I want an ATI Xwhatever card preinstalled
---> No problem, do you want FreeDOS with that?
And to top it off: I COULD have the Matrox card, OF COURSE, but then I'd have to install it myself.
Yea right, install a frikkin' gfx card in 60 computers, thereby ruining much of my warranty - up yours.
Puzzled, I am.
Not a Suprise, been buying from Dell for Years (Score:3, Informative)
TCO (Score:3, Funny)
Of course (Score:3, Interesting)
Companies (Score:3, Insightful)
Still, that doesn't mean we enjoy dealing with their tech support folks. What idiots!
Re:Build it yourself? (Score:5, Insightful)
Re:Build it yourself? (Score:2, Insightful)
The justification ought to be based on the answer to the question "Is the amount we would pay Dell (or another company) more, or less, than the cost of the hardware plus salary for someone to build/maintain the machines?". If it's less, it would make sense to do it - if it's more, it makes sense to go the Dell (or another company) route.
Simply saying "If some shop has the time to screw with this stuff, the
Google Builds Their Own! (Score:4, Insightful)
Hmm, Google does screw around with this stuff. Perhaps they have too many IT staff (although it is their business). Whether or not they piss away money can be debated when their profits triple next, or they go bust, whichever comes soonest.
Re:Build it yourself? (Score:4, Insightful)
It seems you need to hire an operations manager.
You could be saving a little bit of up front cost to just piss away tens of thousands of dollars a month because you can't justify the cost of labor. Sure if you had the time, I'd warrant that you would have peformed a true cost-benifit analysis of maintianing the machines in-house. But by you're own words "We just don't have time for anything else."
Sad truth is, you probably don't have time to properly account for the the time and money you waste by coordinating with Dell, and I'll wager that your company (by it's size in computer demand) is large enough that it's already utilizing resources just to track and coordinate the problem machines.
Sure, it might only cost you a percent or two of profit, and changing could be the wrong decision (depending on the data you collect), but even a COMPUTER SCIENTIST knows that basic business classes provide ample opportunity for justifying decisions with real resons (cost / savings) than the cop-out, "We just don't have time for anything else."
Re:Build it yourself? (Score:2)
Re:Build it yourself? (Score:2, Insightful)
Re:hmmmm (Score:5, Funny)
Re:What's the big deal here anyway? (Score:3, Insightful)
That's beside the point. The point is that this shows evidence of the "Microsoft Tax". You're paying Dell for Windows whether you get it or not. Maybe I already have a Windows license in my home and one is enough. Thinking like that of your post is what would seemingly
Re:What's the big deal here anyway? (Score:4, Funny)
I will never, under any conceivable circumstances, ever need it. I have as much use for a Windows license as your average vegan has for a nice, juicy steak - and every bit as much desire to have one delivered to my house.