Microsoft Potential Dell Investment: Bad for Linux, FOSS?
Amid rumors that Microsoft (NASDAQ: MSFT) may invest in Dell (NASDAQ: DELL), a massive question has emerged: If such an investment occurs, will Dell maintain its extremely close relationships with Canonical (Ubuntu), Red Hat (NYSE: RHT), SUSE and other open source providers? Hmmm… Here’s The VAR Guy’s spin.
First, a little background. As you may have heard, Dell may go private. Investors could include Silver Lake Partners (a private equity firm), Microsoft, Michael Dell and others. If Microsoft pumps money into Dell, the software giant could strain relationships with Hewlett-Packard, Lenovo, Acer and other PC makers. Acer has already been critical of Microsoft’s Windows Surface RT and Surface Pro tablet launches.
Open Source Concerns
Meanwhile, a Microsoft-Dell financial relationship could also have a ripple effect in the open source world. Dell is one of the top suppliers of servers running Red Hat Enterprise Linux and SUSE Linux. The company also has a close, ongoing relationship with Canonical, promoting Ubuntu Linux on PCs in emerging regions and also working with Canonical on cloud computing.
Moreover, Dell’s own public cloud will leverage OpenStack, the open source platform for launching infrastructure services.
But if Microsoft invests in Dell, will Dell deemphasize or abandon its open source relationships? The VAR Guy seriously doubts it, especially when it comes to servers and cloud computing.
With or without Microsoft’s money, Dell must answer to customers. And customers will revolt if Dell somehow abandons or weakens its engagements with Red Hat and the other major Linux providers. Heck, even Microsoft has opened up to the cross-platform reality, allowing customers to run Linux in the Windows Azure cloud.
Still, other server makers — such as HP and IBM — could wind up being the big open source winners if customers perceive that Microsoft has somehow undermined, however slightly, Dell’s Linux strategy.
On the desktop and in the notebook markets, where Windows still rules over Linux in most regions, The VAR Guy could imagine Microsoft trying to inspire Dell to go “all Windows, all the time.” But hopefully, simple logic will prevail.
Even as Dell focuses more and more on enterprise computing, the company can’t overlook opportunities with Android, Chrome OS, Linux and other software in the mobile market.
Can it?
Speculation speculation all the time from the VAR Guy, who seems to know very little of what’s going on around the world as far as Linux on the desktop is concerned. It does not take a genius to work what Mr Dell is up to He has seen what Mr Shuttleworth is up to and wants the same thing for Dell.
Has for MS selling windows 8 on Dell desktop and laptops. MS would be cutting their own throats. With their own over priced over rated windows surface systems, so that’s not going to happen any time soon
Even the Raspberry Pi is out selling windows 8 systems with over a million sold in less than 9 months
Mr Var Guy go back to sleep and dream up something better. stop your speculations on what MS is going to do. we all know whats coming, it’s just a matter of when it will happen.
The VarGuy is a bit naive about and ignorant of the history of corporations that have gotten into bed with Microsoft.
At one time Dell provided significant volumes of servers in collaboration with Oracle for clients running the Oracle database suites on Oracle (Red Hat) Linux. Since that time Dell has retreated substantially from that opportunity, and instead moving prodigiously to serious promotion of their servers running newer Windows 2012 Enterprise with Microsoft V-Sphere and Hypervision Cloud Computing with virtualization.
It has reached the stage that all the profitability of Dell-Oracle cooperative venture will be compensated for by Microsoft, so there is no need or desire to continue with Linux support or involvement should Microsoft get on board.
The Ubuntu desktop project was never high priority or revenue positive.
It sounds like Microsoft is willing to throw more money out there to try and buy customers, as usual. It will probably work, if Dell goes along with it. And I think Dell is getting desperate. Unfortunately, this does hurt competition but I don’t think it will hurt open source and GNU/Linux much if any. People still have the freedom to install whatever operating system they choose, regardless of what Dell does with Microsoft.
Carling@1: The VAR Guy appreciates your thoughts but what’s the bottom line here: Microsoft-Dell combo promoting an all Windows world?
W. Anderson@2: You raise some interesting points re: Dell and Oracle. At one point, The VAR Guy believes, Dell was Oracle’s biggest reseller. Still true? The VAR Guy is checking…
Chris@3: Yes, people can “install” FOSS. But that’s really not the point. CIOs and channel partners need certified, battle-tested solutions from hardware and software companies that work together…
-TVG
sounds like reasons for Microsoft to throw moneys into Dell like they have done many other times. They threw a hundred or so million into Corel to get them to dump Linux and their Linux software migration. Dumping a few billion into Dell not only would curb some Windows shop migrations or toe dipping it would also give Microsoft ownership in a hardware based channel for pushing Microsoft’s growing hardware business.
I would think this is a done deal and hammering out the details is what’s going on now. Remember, Ballmer is throwing out anyone who opposes his reign so it’s pretty obvious he’s willing to do and spend anything to continue to protect the Windows platform. Well, anything except grow it.
Doug: The VAR Guy agrees fully with at least one point… He agrees this is likely a done deal with the details being hammered out now.
-TVG
Remember what happened when Microsoft invested in Corel? WordPerfect Office Suite was at the time still a viable contender to MS Office, but a few months after the MS investment Corel “decided” to discontinue the product.
Var Guy take a look at Linux foundation members list. you will find the Dell are silver members which costs them big bucks to be a silver member,
I disagree with many of the remarks buyers are no more free to choose the OS they use thanks to the new “security” feature imposed to PC manufacturer by Microsoft:UEFI. You don’t have to underestimate the high capacity of Microsoft to kill any possible free choice on the desktop. You need to rent a Windows licence and are not allowed to install a deviant (non microsoft developped) OS on the hardware you buy. Owning a major PC manufacturer is certainly another step to be sure we will have this brigth future on our desktop PCs.
To Carling@. Dell’s membership in the Linux Foundation is “peanuts” as far as costs are concerned, and the company is unlikely to quit the Foundation if they marry Microsoft, since this will give Microsoft an nside view” of potential Linux initiatives via Dell membership.
A kind of inside job, or “trojan” so to speak.
Interesting remarks by every one but people fail to see the strength of GNU/Linux and Open Source. All Open Source has to do is make their own motherboards and processors and build their own PC cases too.
To Wisdom@. Your comment about “Open Source” as if it were a corporation or a milti billionaire is mispalced. Unfortunately for some, the Free/Open Source Software (FOSS) Community or movement is not monolithic, and comprises Academia, Science and Research, technology companies, Universities and millions of individuals. If it were easy for some or several entities to just simply manufacture FOSS enabled or compatible motherboards, it would have been done years ago.
While there are efforts to codify specifications around Open Source hardware, this effort is ongoing and no one knows for sure the outcome.
Suffice to say that Dell will likely concentrate more on Windows Servers for Microsoft Cloud services and Windows mobile devices – Tablets and smartphones, so that Microsoft will be less dependent on Nokia and “half-hearted” efforts from Samsung, Acer and others. I think that Microsoft also believes the future for PC growth is limited and diminishing, which may account for strong move to Office 365 Cloud services and other Software-as-a-Service.
With Lenovo plan of soon offering (Linux based) Android notebooks/Netbooks and or possibly acquiring RIM, Microsoft desperately needs a solid hardware partner, I mean subsidiary.
@ W. Anderson
Do you know how many Linux Open source companies MS have bought out? including Novell Linux 3 years ago, Novell is still a silver member, MS bought Skype another open source system, Now go away and read up what’s going on in Europe over MS UEFI and IE, MS might get away with things in the states but not in Europe they won’t. Plus Dell now have 250 outlet in china to sell Ubuntu systems.
Read up on what’s going on in Europe with the Linux $35 Raspberry Pi. Over a Million units sold in less than 9 months, they can’t make them fast enough, 6yr old kids are being taught how to build $10 robots and program them with the Raspberry Pi, the Pi can do more than windows 8 can do, so w 8 desk top will be out period as who builds them
People still buy Dell? I don’t deal on the server end, but on the consumer end, Dell is pretty much a dead duck.
As far as W. Anderson’s comments about FOSS enabled/compatible motherboards, unfortunately, FOSS drivers are reactionary and not proactive and thus will slow the progress of better, faster hardware. Much of the drivers used in Linux rely on Open Source and those drivers aren’t usually developed until the hardware appears on the market. It’s commonly known to not build a new computer using just released hardware, if you plan to run Linux. Unless OEMs get serious like nVidia and HP about developing drivers for Linux, and until Linux snobs cease trying to completely push out anything and everything proprietary in Linux, this will never happen.
The Linux community, itself, is its own worst enemy. It’s they who’ve stifled the adoption of Linux. Many of the developers refuse to take UI seriously, the development is too fractured, and anyone successful in developing and distributing Linux is soon to be brought down by the backlash of those that really don’t want anyone to succeed without everyone succeeding. It’s a crab bucket mentality.
To Carling@
I can assure you that I am fully aware of Linux adoption and Free/Open Source Software policies and practices in Europe. I am European and have been directly involved in many EU projects, and was Suse GmBH reseller there some time ago, before Novell. My comments were directly strictly to Dell operations in US.
If Microsoft buys (and controls) Dell, sorry I mean puts substantial monies into Dell, they will certainly not allow Dell to sell hundreds of thousands or millions of Ubuntu or any other Linux based computers in China or any where else. You may not be familiar with practices of Steve Ballmer or Bill Gates.
For example, Bill Gates donated about $100 million to the India Government for Aids research and treatment and about $400 million for “Microsoft only” technology development (sick proportion). Fortunately the President of India declined the $400 million donation with any restrictions, which was honourable and shrewd. However many other places will accept Microsoft technology development money from Microsoft to the exclusion of any Free/Open Source Software adoption.
@W. Anderson.
Do you think I’m stupid, You don’t need to try and tell me anything about Bill Gates, it’s the same with the Linda amp; Bill Gates foundation. all donation given are tied into Microsoft agreements, If they donate a million they get 3 million back over time from the poor and under privileged souls that they force to use windows, But now with introduction of the $35 Raspberry Pi computers that run off 512 megabytes of ram and free open source education software, it will put a stop to the Gates and MS corruption, MS can’t match them for price and give and support free software, like FOSS communities do,
@Carling, um yes they can match the price and support and have many times over. OLPC was a good example where Gates went into Egypt and millions was paid out by Microsoft to get Egypt’s gov to lock all gov entities into a Windows-only scenario. OLPC went back to Egypt with their original MOU but since the OLPC didn’t run Windows, all they got was ‘does it run Windows’ over and over when they knew it did not. Spending a few hundred million to protect a multi billion dollar profit machine is part of Microsft’s business practice and always has been.
It is probably time for a big reorg though since it’s getting tougher for them to continue showing growth as the PC segment sags and mobile device segment booms without Microsoft. Those multi million dollar deals will get tougher to hide from investors but it’s still years from now before their income sags to levels required to expose these.
@ Doug
It’s a win one government loose a dozen governments where it counts the most for MS, would you like me to list them, Russia, Spain, Portugal. Pakistan. Italy, Ireland, France, Germany, Estonia, Greece, Turkey. India, Switzerland, Denmark Iceland, Macedonia, Mexico.
Wall St, Uk is now moving to open source,
The US government departments using FOSS, US Department of Defense, US Federal Courts, Homeland Security, US Postal Service House of Senates, Navy, The White House. NASA, Federal Aviation, 492 of the worlds fastest top 500 HPC,
Read todays news, MS are blaming their OME partners for the claps of windows 8. lets see how well MS Surface does when they release it in February, who will they blame for that when it fails to sell.
You might find this web link a interesting read check it out
http://www.comparebusinessproducts.com/fyi/50-places-linux-running-you-might-not-expect
@Carling, I’m well aware of where FOSS is winning and it’s been a good decade for FOSS and getting better. But I’m also aware of where MS is winning. For instance, they just did a $600+ million dollar deal with the DoD for Windows 8. There are still tons of “Windows shops” who will go without before they’ll bring in any FOSS.
Microsoft has a way of buying itself out of troubles and buying ways to harm competitors. I did get a laugh out of that news they were blaming OEMs for poor sales. And that Surface Pro coming out is everything you’d expect from a Windows tablet. Larger, heavier and with less battery life along with a higher price tag. That’s winner the market isn’t going to want either.
@Doug.
I have not read that report please give me a link to it.
Here is another interesting read posted 22 jan 13 Great things for open government
http://opensource.com/government/13/1/hackathon-hosted-new-york-state-senate
@jim Linux is just the current target, look at BeOS, OS/2, Netscape, Java etc etc. They were all threats to Windows and the control Microsoft has via Windows. Yes, they are a convicted monopoly and surely this Dell deal must be investigated by the DOJ and over in the EU too.
I do agree that Linux and eliminating a large corporate Linux distribution channel is likely high on the list of reasons for them spending the money. But not the only reason.
Robert@7: WordPerfect Office was in steep decline before Corel made purchase. And did Corel ever really kill the suite?
Carling@8: Dell’s payments to Linux Foundation are likely very small.
W. Anderson@12: The VAR Guy really, really, really thinks highly of your comment.
Folks: Let’s not turn the reader comments into personal attacks. All opinions welcome but let’s keep it business professional. Thanks for reading.
-TVG
Quote VAR Guy
Carling@8: Dell’s payments to Linux Foundation are likely very small.
LOL what’s it like being the annual idiot, go take a look
@Carling, LOL? I’m shaking my head here since Dell is a Silver member of the Linux Foundation and at most that’s only $20,000/yr and if I wanted to waste more of my time I could look up how many employees and get the exact amount. But I’m not going to since $20,000 is a very small annual payment to a corporation such as Dell. Look down to the bottom of this page:
http://www.linuxfoundation.org/about/bylaws
@Doug
Bit out of date don’t you think 2009 try again