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Cheap laptop price tags can mislead users
Leslie D'Monte & Shivani Shinde / Mumbai January 24, 2008
Personal computer (laptop and desktop) prices may have crashed. The low price tags, however, can be misleading — especially for first-time buyers.
 
Consider this. All low-cost laptops and desktops come pre-loaded with a Linux OS or a DOS version (obsolete on desktops).
 
The installation of a legal Microsoft operating system (OS) and office suite (for word, excel, etc) will increase the price of the desktop or laptop by 20 to 35 per cent.
 
What’s wrong with a free Linux OS and office suite like openoffice.org, one may ask? Linux is free but has no support unless one gets it installed from Red Hat or Novell (that charge for support and maintenance, since the OS is free).
 
This increases the cost. Besides, analysts aver, 95 per cent or more of the current 22 million users in India use Microsoft OS and Office on the desktop.
 
Of this, it is estimated, over 70 per cent of Microsoft OS, and over 90 per cent of Microsoft Office, is pirated. With Microsoft clamping on piracy, getting a legal OS becomes imperative.
 
“While the mid- and low-range PC market is growing, how much impact the introduction of low-cost PC/laptops has on the market is too early to predict. While the hardware players have done their bit of reducing cost, it is now up to the other players to come up with solutions that will make consumers adopt the technology,” says Piyush Pushkal, Assistant Director, Research, IDC.
 
The cheapest laptop from HCL Infosystems — ‘MiLeap’, for instance, comes for just Rs 13,990. It sports a flash drive, free Linux OS and a seven-inch screen. 
 
HIDDEN COSTS
Co. & Edition 

Price (Rs) 

Linux 
Linux OS  Free 
Google 
Google Docs 
(equivalent to Microsoft OS) 
Free 
Microsoft 
MS Office  8,750- 15,000 
XP Starter edition  1,500
XP Home  3,500- 4,000 
XP professional  5,900- 6,800 
Vista Starter edition  1,500
Vista Home Basic  3,500- 4,500 
Vista Home Premium  5,100- 6,800
Source: Street prices from vendors across cities 
 
The ACi Ethos 7 model (from Allied Computers International, Asia) for Rs 14,999, on the other hand, comes with DOS. The cost of the system increases substantially when you think of a larger screen and additional features.
 
The HCL high-end Y series, for instance, would have multiple navigational features such as a touch screen, thumboard, stylus, keyboard and touch buttons, with Windows Vista (Home) as the OS.
 
However, it will cost anywhere between Rs 29,990 and Rs 39,990 — more than double the price of the basic version. Users would also either have to upgrade the DOS version of the ACi Ethos model with the free Linux OS or Microsoft XP or Vista.
 
This will add Rs 1,500 to Rs 7,000, depending on whether it is a starter, home or student version. Microsoft Office will set a user back by another Rs 8,500 to Rs 15,000.
 
Acer was one of the few early manufacturers to introduce low-cost products. “Hardware prices have surely come down but OS prices, when compared to this fall, have not followed the trend,” said Harish Kohli, chief sales officer, Acer India. But he does feel that people are much more conscious about upgrades and the pitfalls of buying illegal OS copies.
 
“I think the starters edition has made good inroads. Compared to this, Linux usage has been very marginal,” he said.
 
Raj Saraf, chairman and MD, Zenith Computers, felt that software prices not keeping pace with hardware pricing would lead to piracy. Industry players thought Microsoft, with the largest market share in OS, is aware of the market condition.
 
“In countries like India, China and other markets there is a clear message coming out that the cost of software has to come down,” said George Paul, associate VP-marketing, HCL Infosystems.
 
The price of a desktop or laptop that runs a legal Microsoft OS (XP or Vista) and Office suite increases 20 to 35 per cent, admitted Doug Hauger, chief operating officer, Microsoft India.
 
The prices, he explains, “are not as high as users think they are. We give rebates to our channel partners who pre-load the branded computers. This helps reduce the street price. We are seeing a dramatic increase in the adoption of legal software in branded laptops”.
 
A few prominent vendors do propagate Microsoft Starter Edition (a stripped-down version for emerging economies).
 
R Manikandan, Business Group Head IT, LG, said: “If you compare products at the launch time, and after the lapse of a year, the price difference will be 8 to 10 per cent. The moment hardware prices drop, the configuration of the product goes up one layer.”

 
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   Discussion Board / User Comments    
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techroach
BS is turning into a real BS site (BS as in Bullshit). Linux has one of the biggest community support facility. Linux has always been proved superior to Windows in terms of stability and price. How can anyone can bring computers to the masses without Linux ? Linux is the future. Companies can utilize the Linux price reduction to improve quality. Please do atleast 5 min research before YOU "mislead users". I lost all respect for you. You're not a trusty un-biased news source anymore.
Reply
qizzer
This comment typed in the free Mozilla-Firefox browser which I got for free with my free Mandriva Linux which I put on a barebones computer that came with no operating system at all. It will now be stored on http://www.business-standard.com's apache servers which run on linux. Why should we be required to pay a tax to Microsoft for a software that will be deleted and replaced. Computers should come with no operating system at all and purchased seperately. That is only fair.
Reply
steve149914
All the key points in this artical are completly false! What's more the artical is about as "fair and ballanced" as FOX NEWS. If Business-Standard has any journalistic integrity they should with draw the artical. Leslie D'Monte & Shivani Shinde's views are extreamly bigoted and prejudiced against Linux.
Reply
rony
This article is biased against Linux. While the writers stress on Microsoft Windows being a legal system, they do not mention that Linux is also a legal system. Just as Microsoft offers free security patches and updates for Windows, Linux too comes with free online security patches plus software updates. For both the systems, service engineer support is charged extra according to the support package subscribed to. Linux is immune to viruses trojans and spyware that eternally plagues Windows.
Reply
amione
Leslie & Shivani, Kindly update yourself on the state of the current opensource technology before you try to write such a factually incorrect article which borders on actually a misinforming the public. Look at the following links from your own newspaper & do your research before submitting an article: http://www.google.com/search?hl=en&q=linux+site%3Awww.business-standard.com&btnG=Google+Search http://www.google.com/search?hl=en&safe=off&q=linux+site%3Aindiatimes.com&btnG=Search
Reply
sudhirgandotra
It is time that media looked at this revolution without prejudices and help reach this revolution to the people of country so that they can use their computers without the feeling of being a thief that piracy makes them. Microsoft is not only un-affordable, its not worthy of being called a software tool. Note: This is last comment, hence read from what you see aa the last comment first.
Reply
sudhirgandotra
It is very important that low cost computing happens and grows in India and Linux is the only choice of software to accompany this successfully. OpenLX Linux has shown that India can have its own OS. With over 1,65,000 shipments, 1,00,000 + downloads, users in 30 countries, we can say that India now makes its OS, contributes to Open source and takes Linux ahead.
Reply
sudhirgandotra
Please understand that Linux being free or affordable doe snot reduce its quality. It is an industrial grade software on which some of the most mission-critical stuff lives worldwide including in our very own India. How can anyone even compare the starter editions of microsoft with Linux, when even the highest editions of micsosoft fall flat when compared with Linux - there is no comparison - they are a class apart.
Reply
sudhirgandotra
What's so big about most people using microsoft office ? : For us it is important that they stop using pirated stuff and come to the path of truth by using free of open software, so that they can be proud of what they are doing and not having to hide their computers from law. The self-pride of human being is very important for us.
Reply
sudhirgandotra
What's wrong with Linux ?: Same is what's wrong with Mahatma Gandhi and the truth. Same as with all those people working for Human being's freedom of choice. Linux is not just the OS and Openoffice. With a typical DVD, you get hundreds of applications-tools that will see you through most of your nees. I will send a complimentary DVD to your magazine address and request you to install it yourself (yes, anyone can install it) and spend a couple of hours (warning : this may transform your life)
Reply
sudhirgandotra
Linux is free : Yes (if you download it or share CD/DVD with someone; Linux support : Mostly you don't need support as you do not get viruses and crashes (the main reasons of support on windows). But, when you do, there are many vendors giving it readily. OpenLX not only has released OpenLX Linux in India (now 3 years and 1,65,000 shipments and 1,00,000 + downloads old), it also supports its users at affordable prices.
Reply
stargazer
All in all, considering that IDC has been quoted in the study, the bogeyman of piracy is brought forth, and there is a quote from Microsoft saying that the OEM versions of Windows and MS Office are cheaper than off-the-shelf purchases, this seems a direct and concerted, but veiled effort to cast aspersions on the opportunity offered by products such as MiLeap etc. Gentlemen, and clued-in ladies, I call FUD. Please read the comments in reverse order. This commenting system is demented!
Reply
stargazer
It seems there is an attempt to suggest that even though the laptop may be cheap, if you want to use serious software, you will have to pay a large sum of money or buy a costlier laptop. Oh, and the aspect of Windows' vulnerability is also blithely ignored.
Reply
stargazer
Similarly, it also conveniently ignores the fact that apart from an office suite and the basic operating system, GNU/Linux distributions also feature a huge variety of other Free software packages, the Windows equivalents of which will see you bankrupting yourself over a period of, say, two years, considering installation and upgrades.
Reply
stargazer
There is no mention of the fact that hardly any home user of Microsoft Windows ever reads up Microsoft Knowledge Base articles or calls Microsoft for support, at least in India. There is no mention of the fact that Ubuntu, which is usually pre-installed on laptops, is available with long term support pledges, that it is very easy to keep a GNU/Linux installation updated, much more so than in case of Microsoft's offerings, which anyway cost you heavily for each upgrade.
Reply
stargazer
Poorly researched, motivated articles mislead users and create Fear, Uncertainty and Doubt (FUD), a strategy avowedly pursued by Microsoft. The article's tone seems to be to downplay the emergence of the GNU/Linux OS and software package as a strong alternative to Windows and MS Office, requiring modest hardware to run, and the increasing ease of usage. Instead, it quotes the disadvantage of having to pay Redhat or Novell for support as compared to installing proprietary software from MS.
Reply
ajithsrn
Planning to buy computers? Check the environmental norms followed by the companies too... http://www.hclinfosystems.in/hclesafe.html
Reply
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