Dell Inc. (NASDAQ:DELL) says that its virtual suggestion box is filled with people who want to have Linux on their PCs. Perhaps consumers and enterprises think they can save money compared to using the Microsoft OS.
Linux is still Windows for dummies. A look at a well-developed Linux desktop product like Linspire demonstrates that the spreadsheet, multimedia, and word processing features are either missing or aren't very robust. Interacting with Microsoft software is possible, but not easy. The high end product is just under $90.
Dell is going to find that offering Linux is not going to reverse its market share loses against companies like Acer and Hewlett-Packard (NYSE:HPQ). The fourth quarter of 2006 shows how badly Dell has slipped.
Investors have to expect that price is the key issue with most corporate and consumer purchases. And, many machines from companies like HP are available in stores where customers can actually give them a try.
The "to do" list at Dell ought to have Linux at the bottom.
Douglas A. McIntyre is a partner at 24/7 Wall St.
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Reader Comments (Page 1 of 1)
3-07-2007 @ 4:26PM
Gordon Anderson said...
That is true,but I think it will create curiosity and that gives some marketing advantage.
3-07-2007 @ 5:19PM
Don said...
I think you don't know much Linux. I seriously doubt that the people clamoring for Linux on their laptops are by and large asking for Linspire. They are probably not "Dummies" users at all, but more likely capable users, and they'll be looking for Linux versions like Redhat, Ubuntu, or perhaps Suse.
Most of what they really want is hardware that is tested and works with Linux. The only way to really get there is to ask Dell to carry a Linux-preloaded line. A certification with simple driver compatibility guarantees would go a long way to answering the need, though.
I'd specifically buy a Dell notebook if they would spec and use components that have open source Linux drivers, particularly for video and wireless (the two most common problem areas).
As it is, I've got my eyes on the HP notebook lines that carry Linux.
3-07-2007 @ 8:16PM
Ray D George said...
Windows for Dummies? Let me get this right ... an os that lets its users delete any file they may want without any type of warning other than the fact that the next time they try to boot their pc they are amazed when the file they deleted was a critical system file and the pc once again needs to visit the local repair shop is seen as an "intelligent" os ... ok.
An os that cannot run steady on for more than a couple days without needing a reboot (unless you mind the performance hit) ... is an "intelligent" os ... ok.
An OS that needs constant mothering and attention lest it becomes infected with nasty wasty viruses and spyware programs just by being conected to the internet is an "intelligent" OS ... ok.
An OS that needs a reboot every time something gets installed on it is "intelligent".
An OS that can't even be run as a 'live' OS to try it out before deciding to install it is "intelligent".
An OS that takes hours to install after numerous reboots only to be left with a sparse at best desktop is "intelligent".
As far as interaction with Microsoft software ... who really cares. I wouldn't buy a Mac because I want to run Microsoft software and I don't run Linux because I want to run Microsoft software. The next time you want to drive a Mercedes maybe you should buy a BMW ... makes sense right?
I don't think I need to say anymore, though I easily could.
Douglas, I think you'd better stick to Wall St. and leave computers to "intelligent" users.
Being associated with Wall St. though, begs the question ... more uptime = more productivity = more profit = ... I think you see my point here. Simple math even a "dummy" user can figure out.
Thank God we're not all "intelligent" users like Douglas ... well then again if we were we could stop wasting time on silly things like innovation and things that drive the market like competitiveness.
3-10-2007 @ 2:20PM
Richard said...
It sounds like you've been fed some bad information. The office suite (Open Office) that you speak of that is "missing features" or "isn't very robust" will do 95% of everything Office 2003 will do, and some things it won't do. It can also read and write to Microsoft's formats without breaking stride. And both Linux and Open Office are part of a much larger movement away from the proprietary business model called Open Source. Ever heard of it? I'm not an investor, just like you're not computer knowledgeable, but if I was I would do research with people who knew and understood Open Source.
3-07-2007 @ 9:26PM
Bhavish said...
What Dell is lacking is a good product mix, their price structure is too high as compared to features, and ignoring Linux is not a solution to that. However, it should be noted that satisfying customer's demands is never incorrect, to implement Linux is perhaps more quickly satisfied then say, changing the product mix.
A prime example of the shoddy product mix is the weight of the laptops for the home consumer line as compared to the business line, who wants to lug around a 5, 6, or even a 7lb laptop? Further the battery life isn't that great as well, as compared to the extendible battery life available in the business line. Have a look at Dell's own website in a forum marked with dozens of posts in which users pointed out the poor lcd quality build quality in the D620 laptop model. Hopefully, this is corrected in the soon to be released D630 model.
HP may be gaining from Dell's demise, but it is not conducting anything special, its just that they have a better product mix. Dell can still bring a turn around, they need to introduce products consumer want and need. Bring forth a new consumer laptop, that is priced under $1000, weighs in at 4.7lbs, has core 2 duo (not X2 mobile), 1gig ram (Vista needs this, offer Xp as a option), G950 intel graphics is fine, 14.5'screen, option of extendible battery, and just watch how they fly off the shelves... Are you listening Dell?
In the desktop market I can't comment too much, but I think Dell is priced too aggressively, which is terrible, since they are short selling their capabilities. Use your economies of scale, add some value so the consumer goes "Oh Wow!" do a better job in highlighting the added features and what they do. Lcds from Dell are good, especially the widescreen kudos on that, but be careful on the lcd build quality again.
my 2 cents
3-08-2007 @ 5:10AM
Tom said...
Linux = Windows for dummies? Are you on crack?
Maybe your underlying problem is that Linux is not produced by a large corporation like Microsoft and Linux distributions offer very little in the world of stock trading.
Linux is open-source, community supported, partially programmed by volunteers. Its mere existence probably sends shivers down your spine because it undermines the capitalistic business model of Microsoft. And in fact, it seems to work much better than MS.
I have an old IBM Thinkpad T21. Had Windows 2000 on it. Just installed Ubuntu 6.10. The difference in performance is astounding. I never knew this hardware could be so efficient. Thus, Linux has given renewed life to old hardware.
Don't need any antivirus software. There are about 40 Linux viruses total, whereas with Windows there are about 1,000 NEW viruses PER MONTH!
Spyware? Adware? Malware? Also very rare in Linux, another utility I don't need.
Critical patches? Open-source code = peer reviewed. When flaw detected patch issued much more quickly than Windows.
Freeze? Crash? Incessant need for rebooting? Had to reboot twice 1) intallation and 2) after updates.
Open Office? Are you insane in your assessment? Works beautifully (a little heavy on the RAM), but IT COSTS NOTHING TO THE END USER. It has a utility comparable to Word, Excel, and Powerpoint and allows one to save in these formats. Go to OpenOffice.org now, download it and try it on your Windows pc.
The days of Windows are coming to a certain end. Windows will, in the long run, become an obsolete and inferior technology for running PC hardware. Windows is a bad design and monopolies have throughout history been victims of their own success and they become rendered obsolete in the long run (e.g., U.S. Steel).
MS made their billions, now they are going to get their ass-kicked with the trainwreck that is Vista. You could infer that Gates and Ballmer were not happy with it, but they had to balance bugs vs. timeliness. So they released an operating system which is a bad product. (Microsoft Bob or Windows ME?)
You are starting to see many gov't agencies consider switching to Linux (e.g., FAA). You are starting to see companies experiment with the Linux distributions. It is only a matter of time. Sorry power and profit, but you don't always win.