The Death of Windows

Fri Mar 23 08:40:44 -0700 2007
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The Desktop Operating System Wars are over and Microsoft won. Microsoft's Windows, in its various forms, is the most popular computer operating system[1] in the world.  It ships on over 70% of all new PCs and is projected to remain the number one OS, though in ever declining numbers, through about 2011.[2]

Through leveraging their monopoly in computer Operating Systems and Office Applications Software, Microsoft has become one the richest companies in the world -- if not in history.  In the 4th fiscal quarter of 2006 the Microsoft Client division recorded revenue of $2.59 billion, a decrease of $841 million, or 25 percent, from the same amount recorded a year earlier. Net income in the division was $1.88 billion, down $780 million, or 29 percent, from the $2.66 billion profit recorded a year ago.[3]

Historically, only the Client Division (desktop OS) and Information Worker Division (MS Office) have consistantly made a profit.[4]  Microsoft is desparately trying to diversify, branching into online services, games, advertising, etc.  Their Herculean efforts to forestall the inevitable have paid off big in terms of $$, but they see the writing on the wall.

Windows is going away.

"World Domination. Fast." The quote is attibuted to Linus, from back in December of 1994, when asked about his plans for Linux.[5]  It has turned into a meme for Linux, and often written off as a joke.  It isn't a joke, it is fast becoming reality.

I'm going to pause here, just to address any Apple fans who are chomping at the bit to tell me how much better OS X is and how they're going to rule the world, if only everyone would give a Mac a try.

Yes, OS X is friendlier, prettier and easier than Windows or Linux.  You're right, it is fantastic.  None of that matters, it is still going the way of Windows -- away.  Read on for why.

Commoditization.

The way industry works can be summed up as inspiration leads to invention.  Invention leads to production and market growth.  Artificial constraints in the form of patents limit growth, maximizing the return to the inventor for a short period of time.  Eventually, growth gets to the point of saturation and commoditization takes over.  Commoditization is where the product in question is dirt cheap, and universally available.

Walmart is the king of the retail commodity.  Their entire business model is driving products to the commodity level and selling as many as possible.  This is why DVD players used to be $1,000 but are now $19.  Even DVD recorders are only $69.

Linux is the end result of the commoditization of operating systems.  Microsoft has put great effort into redefining what is considered an "operating system" to avoid commoditization of their biggest cash cow.  With revenues of $2.5 Billion per quarter for that product line alone, who can blame them?  But the best they can do is forestall the inevitable.

The reality is, except for a few hard-core fanatics, people don't buy and OS for the OS.  No one buys Windows XP and goes "Cool!  Minesweeper!".  Yes, Aero-Glass and CoreAnimation are totally cool, but they aren't why people buy an operating system.  Applications are why people buy an OS.

Microsoft Windows is the number one OS on desktop PCs because Microsoft Office requires it.  If it isn't office, it is one of a hundred other applications that don't work with anything else but you need to run your business.  Programs like OpenOffice.org are a start, but there always seems to be one more app that business can't live without.  "Linux with Open Office?  Great.  What about Visio, AutoCAD, Publisher and Photoshop?"

But that is rapidly fading into the past.  WINE is making great strides in running native Windows applications on Linux.[6]  The remaining few are migrating to Web-based apps.[7]

For example, when U.S. Income Tax time rolls around every year, people lament the lack of personal tax software that runs on Linux.  But this has become a moot point with online tax preparation.

Last year I went over to turbotax.com and tried to fill out the online 1040-A and one State form using Linux.  The system refused to let me continue because I wasn't using a supported configuration.  I was able to successfully do my taxes when I told Konqueror to lie about the UserAgent string and claim to be Netscape on Windows 2000.  It worked, with one or two minor visual glitches.

This year I tried again, and while it didn't like Firefox on Linux, it did give me the option to continue this time.  It worked until it wanted to print PDFs and I didn't have Adobe Acrobat installed.  KPDF didn't register with Firefox properly, so I had to download Acrobat to continue.  After that, it was without a hitch.  One less program I need Windows for.

This is what the computing world is moving to.  The OS will be a commodity and no longer a profit center, but a cost center.  Once there is no profit in it, what incentive does a company like Microsoft have to continue development?  Their efforts would be better, and more profitably spent on application software and services.

Why Linux and not OS X or BSD?  The GPL.

BSD licenses allow proprietary, profit-driven companies like Apple and Microsoft to stave off commoditization by cherry-picking the best parts and giving nothing in return.  The GPL ensures people play fair and encourages commoditization.

OS X is too tied to Apple hardware and Steve Jobs won't let it free.  Business can't adopt it en masse because Apple is a sole-source vendor, and many of them have policies against dealing with situations like that.  They'd have to junk all their existing equipment and the capital investment would be prohibitive.  Not to mention there is a large amount of business software that doesn't run on OS X.

Apple sees the writing on the wall.  Just look at their big products today: iPod, Apple TV, iPhone, iTunes and online services.  Hell, as of 2007 they aren't even Apple Computer anymore, just Apple, Inc.  Yes, Mac computers are increasing in sales.  But it isn't enough to matter.  Apple already went down the road of licensing to clone makers and Jobs killed that but good.  Even then, it has a proprietary license which forever precludes anyone but Apple from having a real stake in it.

The final straw is cost.  As more and more software just works with Linux whether natively, transparently thru WINE or via a hosted solution, more and more people will use it.  The simple fact is Linux is free and both OS X and Windows cost a small fortune.  You also don't have to pay the horde of lawyers to keep tract of all your licenses, proofs of purchase and fancy holograms.

In the end, the OS won't matter.  No one will care whether you have the latest from Microsoft, Apple or Red Hat because its really all about the applications.

Windows has won the OS war, but soon the war will end and Linux will rule the peace that follows.

* * * *

[1] To be fair, if you count embedded systems, TRON is the world's most popular OS.  http://www.linuxinsider.com/story/31855.html

[2] Gartner Research.  You have to pay to see the whole report.

[3] http://www.itjungle.com/breaking/bn012507-story03.html

[4] http://www.microsoftmonitor.com/archives/2004/02/two_divisions_c.html

[5] Thanks to Joe Barr for doing the leg work.  http://www.xent.com/pipermail/fork/2002-January/008429.html

[6] CrossOver Office is a commercial version focusing on this market. http://www.codeweavers.com/compatibility/browse/rank/

[7] A limited version of Photoshop is going online by mid-2007. The full version runs well under WINE, thank to the efforts of Disney Animation and two other unnamed animation houses.
http://www.eweek.com/article2/0%2C3959%2C1210083%2C00.asp
http://www.webware.com/8301-1_109-9692372-2.html

The Death of Windows
Fri Mar 23 09:38:46 -0700 2007
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> BSD licenses allow proprietary, profit-driven companies like Apple and Microsoft to
> stave off commoditization by cherry-picking the best parts and giving nothing in return.
> The GPL ensures people play fair and encourages commoditization.


It's funny because both of those sentences are true, but the point they are making about licenses is false.  A public domain Linux would be about the same as the existing GPL Linux.

Imagine your hypothetical worst-case licensing scenario where Linux was public domain and Microsoft released MS Linux (TM), with a tangled mess of Embrace and Extend compatibility changes.  So what?  Some unlucky people would get stuck with MS Linux for awhile, and then the free Linuxes would win anyway.

Why?  Because as Microsoft well knows, there is no way they can possibly afford to compete with a whole world full of free developers.  Any genuinely useful features Microsoft invented would quickly be duplicated for the free Linuxes.  New features invented in the free software world would be quickly stolen by MS, but not immediately, and MS would in the end be trying to charge for what was a freely available download.  The world would mostly yawn and ignore Microsoft.

License zealots are kidding themselves.  Licenses make it somewhat easier to prevent tomfoolery, but licenses aren't critical to our community.  Our community is it's own best defense.  We can outdevelop any product developed by any company, if we can only find the willpower.

I agree with your other very well-expressed points.  Operating systems don't matter much anymore.  Operating systems are the new driver disks.

 

speculations on what if

Fri Mar 23 10:17:39 -0700 2007
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 there's too many Linux and GNU toolchain & utilities developers who wouldn't work on a public domain Linux kernel or other GNU software that makes the core of GNU/Linux go, though they might work under other copyright-based license like BSD or MIT or whatever.  But it isn't happening, GPL is here, and really it's all about the users if we're talking success or failure.  Most people don't write software, and most corporations don't either, the biggest arguments on migration to Linux don't involve GPL for most.  Applications, compatibility, support, training/learning, those get talked about quite a bit.  Since I do Linux migrations, I can't recall one client who raised GPL issues but those other things I've written, talked, presented, debated, argued....
speculations on what if
Fri Mar 23 10:27:47 -0700 2007
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> too many ... developers who wouldn't work on a public domain Linux kernel

Yes but that's a PR issue within the free software community itself.  The choice of license is not a big deal, legally, as long as it is similar in legal effect to the public domain. But the license is a big deal because many developers think that the license is a big deal!

Totally agree that most non-developing users don't know or care about licenses.

 

Missing the point...

Fri Mar 23 14:18:26 -0700 2007
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In the case you specify, if MS did MS Linux, under the GPL, any drivers they added, or bugs fixed would get contributed back to the community.  Under a BSD license, they wouldn't.  Now apply the same model to Dell, IBM, and a bunch of other major companies, and you begin to lose a lot of improvements that would have made the package better, and made it run more places.

That's the shame of the situation with BSD today.  There are vendors out there selling storage solutions, etc. which are BSD plus drivers patched for some interesting hardware and a customized filesystem, either of which would be excellent contributions back into the base BSD core.  But they won't ever get there because that vendor considers those improvements to be their proprietary extensions.
Missing the point...
Mon Mar 26 04:40:10 -0700 2007
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> That's the shame of the situation with BSD today ... they won't ever get
> there because that vendor considers those improvements to be their proprietary extensions.


Which is why I say license doesn't matter (in the long run).  You could pass a law saying all software past and future is now public domain.  Free Software would still be superior to proprietary software!  With no legal enforcement whatsoever, the free software would out-compete the proprietary software, because the free software community would be backing the free software (obviously).

Our community's strength is based on deeper foundations than copyright law.  We can outdesign, outmaintain any proprietary product if the service provided by that product is popular enough.  The GPL makes some battles easier to fight, but even without the GPL, our philosophies would win out in the end.  Even in the face of active code theft by the proprietary camp.
The Death of Windows
Fri Mar 23 09:49:03 -0700 2007
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One thing you overlooked. Commoditization is impacting non-free OSes doubly with the parallel commoditization of hardware. With the OLPC, DTX standard, and a broad variety of similar sub $200 PCs which are "good enough" for browsing, office applications, basic multimedia, etc. Windows is simply not an option since the cost of the OS exceeds that of the hardware.  Within several years, the average user will connect with computers using a sub $100 laptop with linux flashed into it, that they bought in a blisterpack container at walmart or target. The present PC will remain as a server and firewall for home networks.
The Death of Windows
Fri Mar 23 11:45:07 -0700 2007
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> Windows is simply not an option since the cost of the OS exceeds that of the hardware.

You ignore the payments the PC vendor gets from preinstalling 3rd party apps on Windows machines (Norton, AOL, ... etc). This makes the cost of Windows close to (and maybe less than) free for PC manufacturers.
The Death of Windows
Fri Mar 23 12:40:52 -0700 2007
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Did you ignore the fact that the PC being referred to is UNDER $200? Nobody is going to sell hardware *and* include a recent OS for under $200. The last desktop I bought was $230 and included everything but an OS.
The Death of Windows
Sun Mar 25 19:02:55 -0700 2007
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But when under $200 computers start becoming popular Microsoft would probably put out an OS for them.  Microsoft isn't stupid enough to let a large market go unnoticed. 
The Death of Windows
Fri Mar 23 11:42:05 -0700 2007
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A good article Charles, and I agree with you in the long-term, but it will take much longer than you think (and we hope) it will. Here's why:
1) A Dell PC with Windows is cheaper than a Dell PC with Linux. I believe the reason for this is that all the pre-installed software ,(Norton, AOL, ... etc) that companies pay to have Dell install, drives down Dells overall cost in selling a PC that runs Windows. So when Dell sells Windows I believe Windows becomes less than free for them, which is cheaper than Linux.

> Walmart is the king of the retail commodity.  Their entire business model is driving products to the commodity level and selling as many as possible.  This is why DVD players used to be $1,000 but are now $19.
2) Well, sort of, but the Walmarts of the world are only a small part of this. The price drop is primarily on the wholesale side, not the retail side. It's due to drop costs in manufacturing and development. The initial high price is supporting the R&D and manufacturing plants that went into the development. That R&D is no longer needed for later units. Anyway, even though I'm arguing this point it's irrelevant, as Linux was always free (as in beer) and this price has nothing to do with the amount of products sold or the competition.

3) You ignore games. There are a lot of Windows gamers out there, not everybody mind you, but Linux doesn't cut it when it comes to gaming on the PC.

4) I tried Wine a year or so ago. It was a pain-in-the-butt to initially configure. Maybe things have changed but there is no way that complexity will (or should) be accepted. That said, the Linux method of installation (Synaptic for me) is vastly superior than even Windows software installations, but there is still an issue for installing apps that are not part of a distribution's repositories.

The Linux community has been chanting "Windows is doomed" for years, and yet there is not much to show for it. Whenever Linux wins a big desktop deployment it gets publicized and I think "great", but then I think "well doesn't the fact that we have to publicize a deployment say something about how irrelevant Linux is on the desktop?". If Microsoft publicized all it's big deployments we'd probably be inundated with dozens of press releases from them daily.

Your commentary also ignores the developing world, and the demand in governments worldwide for open document formats which are both very important in the adoption of Linux by the mainstream. The snow-ball will start at some point, and it may be starting now, but until we see a rise in Linux deployments statistically I remain skeptical that the time has come.


PS: I run Linux on the desktop both at home and at work so am no MS fanboy, but articles like yours while maybe true in the long term I think are still overly optimistic.
The Death of Windows
Fri Mar 23 14:05:03 -0700 2007
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Well, I ignored some points because I looked at how long the article was getting and figured I better stop somewhere.  Better these points be brought up in discussion, like now.

1) There is nothing stopping Dell from adding all those little add-ons to a Linux install.  Linspire does it, with a personal firewall, anti-virus and parental controls.  In fact, I'd count on seeing this if Dell does Linux.

3) Sigh... I know.  But WINE is getting better, considering it can run World of Warcraft, and Cedega is targeting that market.  I expect this to be solved by a four-prong attack:
  1. Emulators, like WINE and its off-shoots (Cedega & CrossOver) being embedded in Linux distros.
  2. Transparent virtualization, sort of like a game on a Live CD but can be installed.  It runs in a total sandbox.
  3. Native games.  OpenGL is Sony's choice for the PS-3 and Apple's for OS X.  It is a powerful model and combined with OpenAL can deliver outstanding games.  Keep an eye out for Enemy Territory: Quake Wars coming out of iD by summer.  There will be a native version for Linux.  (www.enemyterritory.com and www.splashdamage.com).
  4. Game consoles.  There are now only 2 games I play on my PC (FreeCiv and America's Army), the rest have migrated to an X-Box.
WINE was included automagically with my Kubuntu install, though I've yet to test it.  I use very little Windows software.

Open Document Formats have nothing, really, to do with Linux.  If Microsoft wanted, they could implement ODF in a heartbeat.  The cost of computing in developing countries is a big issue, though.  This goes right to the heart of OS cost.  When computing falls below $100 for a system, you don't have any room for an OS that costs, well, anything.

Rapid growth in developing nations will drive Linux and FOSS adoption.  It is possible to write your own translations for just about any FOSS package, and get them adopted by the maintainer in days.  That just isn't possible with closed software.

And for the record, I'm thinking 2012 or so before it all falls into place.
The Death of Windows
Fri Mar 23 20:39:38 -0700 2007
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I hope your timing is right, because that's about when I'm hoping to be going into professional work in my new field (you know, after I finish the education part...), and I'm not looking forward to stepping back into a windows world.

But you'll forgive me if I don't trust prophets...

The Death of Windows
Sat Mar 24 10:01:10 -0700 2007
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I read the article, and had a couple of counterpoints.

"Walmart['s]... entire business model is driving products to the commodity level and selling as many as possible.  This is why DVD players used to be $1,000 but are now $19."

Walmart will still happily sell you a DVD player that's more than $19. You can get kitchen appliances for $10-$20 (blenders, mixers, etc), but "better models" are available for more money. It's very easy to imagine Linux running $20 commodity devices, but Apple and Microsoft on higher-end models.

"I was able to successfully do my taxes when I told Konqueror to lie about the UserAgent string and claim to be Netscape on Windows 2000. "

That's not good enough for Joe and Jane Six-Pack. It has to "just work" every time -- or be obvious why it doesn't. Even "above average" folks don't always get it; just ask anyone working in a white collar company doing helpdesk.

"Windows has won the OS war, but soon the war will end and Linux will rule the peace that follows."

Assuming that the data formats are Linux compatible, the web browsers are Linux compatible, and Linux isn't shut out by DRM.

One other thing worth mentioning is resources. Microsoft has a lot of cash in the bank, and no debt. Consider this: if Microsoft somehow went from "profitable" to "losing a billion dollars a year" there's a good chance the company would still be around for the rest of our lives.

Likewise, MS has enough resources to be effectively considered unlimited. Brute force methods are easy to imagine. Vista uptake too slow? Offer a $200 rebate on new computers. A billion dollars would encourage half a million households to upgrade. Xbox NextGen not selling? Offer rebates. Or just send freebies to a few million households.

It's more likely they'd be subtle. Marketing, lobbying, "donations" to non-profits and schools, partnerships with large corporations, etc will all go a long way to keeping them entrenched. DRM and patents can build fences that Linux may never be able to cross.

Can Linux "win"? I like to think so, but never forget that Microsoft is about control, not profit. And they have the resources to around for a long, long time.
The Death of Windows
Sat Mar 24 11:16:02 -0700 2007
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I must not have been clear about needing to adjust the user string on Konqueror to do my taxes.

That was last year.  This year, with Firefox, it went thru without any such trickery.  I was illustrating the progress that was made.