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- Xref: sparky comp.os.os2.advocacy:11218 comp.os.ms-windows.advocacy:3551
- Path: sparky!uunet!think.com!ames!sun-barr!cs.utexas.edu!tamsun.tamu.edu!bdubbs
- From: bdubbs@cs.tamu.edu (Bruce Dubbs)
- Newsgroups: comp.os.os2.advocacy,comp.os.ms-windows.advocacy
- Subject: Re: Is Microsoft the next Standard Oil?
- Date: 30 Dec 1992 19:51:08 GMT
- Organization: Computer Science Department, Texas A&M University
- Lines: 53
- Message-ID: <1hsujcINNjrq@tamsun.tamu.edu>
- References: <1992Dec29.194407.13490@noose.ecn.purdue.edu> <1hqe98INNsef@tamsun.tamu.edu> <1992Dec29.225839.15668@noose.ecn.purdue.edu>
- NNTP-Posting-Host: neuron.tamu.edu
-
- In article <1992Dec29.225839.15668@noose.ecn.purdue.edu> helz@ecn.purdue.edu (Randall A Helzerman) writes:
- |In article <1hqe98INNsef@tamsun.tamu.edu>, bdubbs@cs.tamu.edu (Bruce Dubbs) writes:
- |
- ||> If one company has deep pockets and no controls,
- ||> the potential exists for that company to dump the product (software) for a
- ||> period of time until the competitor goes out of business and then
- ||> raise the prices again.
- ||>
- ||> Has MS done this? You bet. How much was OS/2 1.0? Answer: $325.
- ||> Why so much? No competition. How much was the original OS/2 PDK?
- ||> Answer: $2600. Same reason. Did IBM go along? Yup. They were
- ||> partners, not competitors then.
- |
- |Wait a minute--how was this an example of a company dumping a product,
- |getting a hugh market share, and then charging outragious prices?
-
- Dumping wasn't necessary then. There were virtually no competitors
- then. Its an example of having a huge market share with no *effective*
- competitors.
-
- ||> Dumping of any product at such a low price to put competitors out of
- ||> business or prevent them from entering the business hurts the
- ||> consumer. Look beyond today. If competitors are eliminated, we all
- ||> lose.
- |
- |By "Dumping" I assume you mean selling something below what it costs to
- |produce it. However Microsoft hasn't been doing that--even when you factor
- |in the cost of developing Windows--selling a million copies of it a month
- |at $8 a copy still isn't selling it below cost.
-
- Using your definition, its impossible to "Dump" a software license,
- because it costs nothing to reproduce. (The HW vendors do the
- reproduction.) What MS is doing is selling below *value*. Most
- people would think an OS is worth a bit more than $8.
-
- The real battle is for those users who don't know much about
- computers. If they are given something that provides inefficient
- functionality, there will be reluctance to change--even for more
- functionality.
-
- ||> Look beyond today. If competitors are eliminated, we all
- ||> lose.
- |
- |With OS/2 and NeXTSTEP (both of which can run DOS _and_ Windows programs)
- |Solaris, and Pink, I don't think Microsoft has faced as many competitors
- |in its history.
-
- Agreed. Thats why MS wants to go back to the bad old days.
- -- Bruce
- --
- Bruce Dubbs | Oxymorons of note:
- bdubbs@neuron.tamu.edu | Honest Politician, Political Science,
- | Scrupulous Lawyer
-