Dell's Ubuntu Linux Strategy Extends to China
From time to time, Dell does a poor job articulating its Ubuntu Linux strategy. But sources close to Dell and Canonical continue to insist the relationship remains healthy and “stronger than ever.” Here’s an update on Dell’s Ubuntu strategy — which includes a dramatic Dell-Ubuntu PC push in China.
First, some background: Dell began shipping Ubuntu preloads in mid-2007 on selected U.S. desktops. Dell’s decision to offer Ubuntu came only a few months after Microsoft launched Windows Vista. That certainly caught my attention.
By July 2007, I jumped on the Dell Ubuntu bandwagon, and hoped to eventually launch an Ubuntu-centric web site that tracked Canonical’s business strategy.
My business partner (Amy Katz) and I discussed the opportunity, and we ultimately funded WorksWithU’s soft launch in May 2008, and a full-fledged launch in November 2008.
So yes: Dell’s initial commitment to Ubuntu influenced our decision to launch WorksWithU. To Nine Lives Media Inc. (WorksWithU’s parent), Dell’s Ubuntu move was a significant watershed event for the desktop Linux market.
Evolving Focus
Still, Dell’s Ubuntu Linux strategy has suffered from some perception issues. First up, the Dell U.S. web site (www.dell.com/ubuntu) has stopped selling Ubuntu desktops from time to time, and instead emphasizes Ubuntu notebooks and netbooks.
In fact, a quick check of the Dell U.S. site today shows that Dell’s Ubuntu portfolio has been reduced to a single fully-baked device (a Mini 10n netbook).
Not exactly a great Ubuntu selection from Dell — especially when you consider all the Ubuntu notebook, desktop and server innovations from System76 and ZaReason.
Plenty of readers have complained to me about Dell’s inability to market Ubuntu desktops in the U.S. and abroad.
Now, The Good News
When it comes to Ubuntu, I still believe Dell deserves the benefit of the doubt. For Dell, Ubuntu has been a grand experiment. I hear the company has tested Ubuntu on everything from mobile internet devices to high-end servers.
That’s no small feat. Novell, Red Hat and Microsoft are entrenched on the server. Microsoft and Apple are entrenched on desktops. Yet Dell has continued to test and refine its Ubuntu strategy for nearly three years now. Most recently, Dell has bet its initial cloud partner program on only three companies. Canonical is one of them. Dell, it seems, has a sincere interest in Ubuntu Enterprise Cloud (UEC).
Has any other major PC vendor shown Ubuntu the same attention since 2007? I think not.
Emerging PC Markets
Generally speaking, I think Dell remains highly committed to Ubuntu. But perhaps not in the ways that some customers and Ubuntu users would like.
In mature PC markets like North America, Europe and Australia, Dell hasn’t done anything really dramatic with Ubuntu lately. But keep an eye on China. For example, visit www.dell.com.cn (Dell’s China web site) and type “Ubuntu” into the search bar.
As of this writing, the online search displayed at least seven Dell systems that offer Ubuntu as a pre-load option in China.
Big Numbers?
Now, let’s look at Canonical’s potential market opportunity in China. In 2008, total PC shipments in China reached 39.6 million units, up 9.3% from 2007, according to IDC. The research firm estimates PC sales in China rose about 2.7 percent in 2009, and will accelerate to a 21% compound annual growth rate through 2014.
Thanks to Dell, Ubuntu could potentially grab a significant piece of China’s PC market.
Bottom Line
Based purely on emotion, I wish Dell would do more to promote Ubuntu in mature markets like the U.S., Europe an Australia.
But based purely on market opportunity, it’s easy to see why Dell has been making Blue Ocean Strategy moves — embracing Ubuntu Enterprise Cloud and Ubuntu netbooks in the U.S., and serving up far more Ubuntu options in China.
Joe:
Your 7 chinese systems include some false positives. You CAN NOT customize some of them for ubuntu pre-installed.
So which ones are actually customizable?
Inspiron Mini 1011 Yes
Dell Vostro 1014 Yes
Dell Vostro V13 Yes
Dell Vostro 1015 Yes
Dell Vostro 1088 Yes
Dell Latitude 2100 No – even though the search lists Ubuntu
Side note…still available in the US with Ubuntu
http://www.dell.com/content/products/productdetails.aspx/laptop-latitude-2100?c=usamp;cs=04amp;l=enamp;s=bsd
Dell Vostro 3300 No – even though the search text lists Ubuntu
Dell Vostro 3400 No – even though the search text lists Ubuntu
Dell Latitude 13 No – even though the search text lists Ubuntu
Dell OptiPlex 780 No – even though…..
Dell OptiPlex 980 No – even though…..
Dell OptiPlex 580 No – even though…..
For the systems that do have Ubuntu as a pre-install option you can find similar search hits on the US site. For example search for Dell Vostro 3300, V13, 1014 or 1015 on the US site and you see the search hits for products that include text which reads as if Ubuntu is an install option..go to the product details and you find that its not. Isn’t that awesome!
More likely than not the Chinese Dell website is lagging behind in terms of product alignment and the Ubuntu options you see available are actually out-dated… just like the US search results which incorrectly list Ubuntu are all aging models. The US store doesn’t even offer a Vostro 1088 any longer but the Chinese store offers it still.
The point being…. you can’t just go by search results. You need to confirm that product is still actually shipping. As far as I can tell all of these models shipped at some point in the US store with Ubuntu as an option according to the US site’s search results but Ubuntu was dropped as a configuration option. The Ubuntu Inspiron 537 desktops last fall that you spent time hyping prior to launch have disappeared completely and there’s no evidence that a single one of them shipped to a single customer. I found a report where a customer put in an order for one of those Ubuntu desktops and waited 3+ months before just flat cancelling the order.
The real question is, going forward, what’s Dell going to do with new models. None of the newer Vostros which were introduced last month have a pre-install Ubuntu option either in the US nor in the China store. I seriously doubt Ubuntu pre-installs on aging laptop models marks a new dramatic shift in how Dell is going to approach the Chinese market. It’s not really sound business logic.
-jef
So Dell pushing SLED didn’t work in China then? I wonder if the Chinese will be happy with a single netbook as their only Ubuntu choice.
Actually I take it back. I’ve just checked and it seems there are now absolutely no Ubuntu options in the UK. None! Dell have lost a customer.
aikiwolfie:
And your new vendor of choice in the UK is? Do the US based vendors like ZaReason and System76 ship to the UK?
-jef
Yes, ZaReason ships to the UK, EU, and many other countries.
It has always seemed to me Dell’s Ubuntu offerings have been some high management’s pet project, perhaps because that manager likes Ubuntu. Until GNU/Linux becomes and option along side Windows in the OS version selection box, i will assume Dell doesn’t really care or want to offer an OS other than Windblows Vista7.
MS, TAKE CARE OF THIS!!! QUICK! YOU POOR SOULS
http://configure.euro.dell.com/dellstore/config.aspx?b=amp;c=ukamp;cs=ukbsdt1amp;kc=N4X21001amp;l=enamp;oc=L0221001amp;rbc=L0221001amp;s=bsd
CORRECTION, MS
LOOK HERE:
http://www1.euro.dell.com/uk/en/business/4x_latit_2100/fs.aspx?refid=4x_latit_2100amp;s=bsdamp;cs=ukbsdt1
OOOOHH, NEVER MIND, MS
Dell Latitude 2100 IN uk IS STILL OFFERED WITH BUBUNTU
Linux in China has no chance. They use pirated software (and rightfully so), so there is no need for Linux.
Piracy is the biggest problem for free software and the biggest ally of Microsoft next to people who hate Linux.
If you ask me, the biggest chance for Linux is in Islamic countries. You add up a little dirty MS american propaganda and everybody will use linux. Check out Sabily, former Ubuntu Muslim Edition, that distribution has a great potential in these countries. However Canonical made a huge mistake when they told them that they can’t use the name Ubuntu ME.
Forget China and Asia, you need to play dirty M$ game to win market. It’s not nice, but unfortunately that’s how world functions.
Ed@10: I wanted to double check… you’re endorsing pirated software?
-jp
@ed, #10: you are assuming that MS’s software is all a person may need, and the only issue is the cost of the license. You are also implying that a MS system is better in the abstract than a Linux system. This is simply not true for very many people, including me. All things equal I’d always prefer open source (both for personal and business use).
I guess Joe made it clear above, but penetration in a relatively small but tremendously growing market is a lot simpler than in an established market. This is what this article is about as far as I can tell.
Incidentally, I am pretty pissed it’s almost impossible to find ubuntu laptops in the outlet for US, even though these same laptops sell new with ubuntu (for instance, the vostro V13)
@Jef Spaleta: My new vendor of choice is me. I will go back to self building. Could be tricky with laptops though. Not that I need a new laptop. Unfortunately no. The like of Zareason and System76 don’t ship to the UK. I think there may be a few smaller retailers in the UK selling Linux systems. They all look like beige boxes though if memory serves me correctly.
Ah right, so now Ubuntu is buried in the business channels? Why would I look there. I don’t buy for a business. Dell has still lost a customer. I’m tired of this game of hide and seek.
@akiwolfie: please see the response from Earl, I think Earl works in Zareason (I might be wrong).
Also: both in the Business section and Home section, for each category of computers, you can filter by OS, and there is always a button for Linux, I think, and a few options to buy hardware with Linux (not that many though). And yes, there are more in the business section these days, though Linux seems to have been exiled away from the Outlet !
Aikiwolfie@14: I understand your frustration and can’t debate your point. I still think Dell is serious about Ubuntu, but your points are well-stated.
Dell could make life easier if they simply stated their most current Ubuntu offerings on http://www.dell.com/ubuntu with clear language about the company’s Ubuntu strategy.
-jp
I just checked out of curiosity. As of today, NONE of the computers in the the Dell US Outlet have anything other than Linux. This can’t be a coincidence (they sell lots of pc/laptops/workstations/desktops with no OS, or some form of Linux including Ubuntu).
The only explanation I can find, is that regardless the OS on the computer, they just go ahead and install a new copy of Windows, and buy a new OEM License. I will NOT pay the MS Tax. I’ll pay a little more but get a (new) laptop with Linux preinstalled.
Joe: next time you talk to Dell, it would be nice to ask about the US Outlet, I think.
Errata: in my previous post, I meant to say that “NONE of the computers in the Dell US Outlet has anything other than *WINDOWS*” (not “Linux”, as I wrote).
IMHO the article is only pure DELL PR. In Czech Republic (formerly Czechoslovakia) where Dell have subsidiaries you cannot configure own Dell notebook as you wish with Ubuntu preloaded, but you must still pay the license fee for M$ (http://premierconfigure.euro.dell.com/dellstore/config.aspx?~tgt=global_cfgamp;c=czamp;cs=RC1077928amp;customer_id=RC1077928amp;l=csamp;oc=LE65101amp;s=PADamp;fb=1). So the above is valid only in another countries but not in Czech Republic, how bizzare. The question is : why Dell don`t offer another configurations with Ubuntu, for example as option, not only the Vostro series?
@gorg: did you miss the “Evolving Focus” section above? What PR? I understand your frustration though.
Folks: besides protesting and asking Dell to sell computers with Linux, we need to buy them. Even if there is a slightly cheaper version with Windows. If Dell sells well on the Units they put for sale, they’ll offer more variety. I am not sure this has been the case. In other words, those who can, need to vote with their wallets. Dell is a public company, not a charity!
Look at what people do, not what they say.
We’re talking about Dell selling systems with Ubuntu preinstalled, right?
Forget the red herring. What exactly is Dell selling today with Ubuntu preinstalled?
The answer is almost nothing.
I can’t believe there is even a debate.
Pat:
Are there any major OEMs selling more Ubuntu pre-installed options than Dell? Out of all the OEM deals that Canonical struck up initially…how many are still shipping any Ubuntu product? Who can really stand up and say they are serving the market demand that Dell has ignored?
Globally right now.. who is the leading OEM pre-installer? If it’s not Dell who is it?
HP? Toshiba? Sylvania? They were all highly publicized OEM partners in 2008-2009…are any of them still shipping _any_ Ubuntu pre-installed systems?
ZaReason and System76 are surely bright points…but they are niche retailers who focus exclusively on linux solutions.
We don’t have any numbers on how much product they are shipping. I take them at their word that they are seeing very high demand for product. But the question is high relative to what? For all we know their total product numbers for desktops and laptops are still well below the threshold to adequately scale up in a larger OEM setting.
We also don’t really know if either of these smaller OEMs are contracting with Canonical for engineering or support services via Canonical’s OEM partner program. It would be very ironic if the most successful Ubuntu OEMs were in fact the ones who didn’t pay for Canonical’s expert help and did their own engineering in house.
-jef
Jef’s comments raise a very good question: Why is there so little OEM support for Linux?
That wasn’t the case in the early days of netbooks, a purely consumer niche unfettered by change-adverse IT managers. Then Microsoft started giving away Windows XP for as little as $25 extra and consumers went with what was familiar.
But is that a sustainable business model? Microsoft apparently makes more money from Office than Windows, but the price of Office has dropped sharply in recent years.
In the same period, meanwhile, Apple Macs remained pricier than Windows PCs, yet Apple continued to grab market share. I personally see more and more people and businesses using Macs.
I use all three operating systems and I know how well Ubuntu stacks up. I think it’s only a matter of time before the word gets out and enough people start using it to provide the critical mass to embolden a major manufacturer to give Linux another try.
Microsoft will do everything in its power to prevent this with imaginative strategies such as giving away its for-profit operating system as a way of competing with a free operating system.
But in the long term, can Microsoft compete with a high-quality free OS when it couldn’t even protect its market share from expensive Macs in the short term?
I gather Shuttleworth has the money and the patience to wait it out, all the while improving Ubuntu. Stay tuned. The last chapter of this story is far from written.
Thanks for the link Joe. Unfortunately though that page only seems to serve US customers. I’m in the UK. Dell won’t let a Spanish customer buy from the French web site. What chance have I got of being able to buy from the US web site from the UK?
Dell is certainly serious about Linux. It brings them profits in places where Microsoft is weak. They’ve tried SLED in China already and I guess it didn’t work out. Maybe Ubuntu will work better for them their.
Unfortunately for people like me, Microsoft are not weak in the UK desktop and laptop PC markets. And again. I’m tired of playing hide and seek.
@akiwolfie: I just bought the V13 with Ubuntu, in the US. I think I am gonna love it.
But back to the issue, one of the checkboxes that you need to agree on before you buy, states that you will not export the laptop to another Country. Wow!