home *** CD-ROM | disk | FTP | other *** search
- Newsgroups: comp.os.os2.advocacy
- Path: sparky!uunet!zaphod.mps.ohio-state.edu!usc!cs.utexas.edu!torn!watserv2.uwaterloo.ca!watserv1!wes.on.ca!tomh
- From: tomh@wes.on.ca (Tom Haapanen)
- Subject: Re: MS-DOS bundling (was: FCC will proclaim ...)
- Organization: Waterloo Engineering Software
- Date: Wed, 30 Dec 1992 21:46:29 GMT
- Message-ID: <1992Dec30.214629.23490@wes.on.ca>
- References: <8236@lib.tmc.edu> <1992Dec29.213438.387@wes.on.ca> <1992Dec30.183717.6535@mksol.dseg.ti.com>
- Lines: 48
-
- mccall@mksol.dseg.ti.com (fred j mccall 575-3539) writes:
- > Now, look at the situation. This is NOT a volume discount, since the
- > number of units of MS-DOs I buy has nothing to do with it. After all,
- > Cloner B is only buying 10k copies a year and he gets it for $8/copy.
- > Cloner B, with a much higher volume of 75k copies/year can only get it
- > for twice that unless he pays MS for 25k machines/year on which he
- > does NOT install MS-DOS.
-
- How do you know that the hypothetical $8 isn't dependent on the volume?
- Have you compared different cloners' agreements? Do you *KNOW* that
- Joe's Computers doesn't pay $12/CPU when Compaq can get it for $6/CPU?
-
- And I doubt you'll see very many cloners shipping only 75% MS-DOS/Windows
- systems, regardless of that software's technical merits.
-
- > Now, the people who buy those 25k machines/year from Cloner A are
- > going to have to pay that MS royalty in the cost of the machine, even
- > though there are no MS products in it. THIS IS AN ARTIFICIAL PRICE
- > BARRIER TO MARKET ENTRY BY OTHER OPERATING SYSTEMS, WHICH ONLY MS CAN
- > 'FORCE' BECAUSE OF THEIR CURRENT MARKET POSITION.
-
- I still have a hard time seeing how Microsoft is "forcing" all those clone
- makers to sign contracts -- any more than Dolby is forcing cassette deck
- makers to put Dolby on tape decks, or Matsushita is forcing VCR companies
- to use VHS instead of Beta. Oh well -- doesn't seem to be much point in
- arguing that any further.
-
- >> Of course none of us know whether the real numbers are anything like $8,
- >> $20, 40% or 25%.
-
- > Right, which is why the numbers in my preceding example are totally
- > made up. But the PRINCIPLE is the same; the price difference is NOT
- > based on volume, or on any sound reason.
-
- So if you don't know the numbers, how do you *KNOW* it's not based on
- volume? If I start up Tom's PC Clones and Lawnmowers, Inc., can I get
- Microsoft to sell me MS-DOS + Windows for $8, too? Thought not.
-
- > Those are IBM machines and they can do what they want insofar as
- > bundling their own stuff. If Microsoft sold machine, I would grant
- > them the same privilege.
-
- So do you think it'd be OK to bundle Word, Excel and Powerpoint with every
- copy of Windows sold, then? After all, they do sell the OS...
-
- [ \tom haapanen | "only auto racing, bullfighting and mountain climbing are ]
- [ tomh@wes.on.ca | sports -- all others are only games" -- ernest hemingway ]
- [ waterloo engineering software | "to thine own self be true" -- polonius ]
-