Ready for Chrome operating system?
I think it will hurt Microsoft in the long run.
Apple is directing it attention to the low-volume high-end market. With a higher average price Apple does not have to sell as many machines to be profitable. Market share can be misleading. To have 5% of the computer market may seem small, but if that 5% is the most profitable 5% of the whole market it can be quite large in revenue. ( http://bit.ly/7Q0tHR )
Microsoft is not selling computers, it's selling licences for software. Microsoft whole business model is based on high volume sales trough OEM PC builders. Most of these are currently selling cheap PC's, and the average price seems to be dropping more and more. To sell an US$ 100 Windows with an US$ 500 PC is an whole lot easier then to sell the same US$ 100 Windows with an US$ 250 pc. ( http://bit.ly/8u4tKr )
A large part of Microsoft's income comes from Enterprise sales. Here the buyer is not the user, often only a few simple apps will run on these machines. Here too the prices are coming down on average and in this market some kind of unix (often Apple, Sun, etc) has a large part of the high-end seats leaving the mid- and low-end seats to Microsoft. (incl. stuff like ATMs and cashier terminals).
Google is now entering the market with a new idea. Chrome OS is not intended for generic machines, it will only run on special Chrome machines; Most likely based on Intel Atom or even ARM cpus. It will not be able to run Windows. It will however be a state-less machine, all data will be in the cloud (on the internet), so it's low maintenance and easily replaced. ( http://bit.ly/8gFqo4 )
Apple will most likely continue to grow, taking a larger and larger part of the high-end market. The prices at the mid and low-end will continue to drop putting pressure on the bottom line. The chrome OS machines will nibble aways at the bottom of the market lowering Microsoft's volume and most likely something like Chrome OS will find its way into the enterprise market because of its low maintenance model.
This will then leave Microsoft with a lower volume on an lower OS market share (30-50%) all of which in a less profitable part of the market with no way to force itself into new markets like it's used to. At both the high-end and the low-end it will be unix running the show, forcing Microsoft to make Windows more unix friendly.
It may take a generation. The next generation will grow up with the internet on their chrome os machines or similar non-windows machines from the first day they go to school; Not used to Windows they will feel no need for it later, except perhaps for games. To them Windows will always seem oddly strange/alien.
At the same time other computer makers (current OEMs) will see the example of Google and will start to make their own OS (based on Linux [like chrome OS] or BSD [Like Mac OS X]) for their own machines. We already see this happening. In time they will become good at this and start to sell more and more computers without Windows to a new generation not used to Windows. ( http://bit.ly/5h1uUH http://bit.ly/5CbEOa )
That's true.
90% of all profits in grocery stores comes from 10% of what they stock...all high profit margin goods...luxury items.
So, if you make a store catering in that 10% of goods, you could make money because everything you sell is profitable where the average store carries bargain basement goods to get shoppers in and hope that enough buy the high-profit items.
That's true.
90% of all profits in grocery stores comes from 10% of what they stock...all high profit margin goods...luxury items.
So, if you make a store catering in that 10% of goods, you could make money because everything you sell is profitable where the average store carries bargain basement goods to get shoppers in and hope that enough buy the high-profit items.
Correct, however a good deal of that 90% is what draws customers into the store. They want milk and eggs.
Notice how the milk, eggs and other essentials are always at the back? Its so people have to walk by as much of the rest of the stuff as possible. Twice in fact.
And the most expensive items are at eye level. Consider the honeycombs cereal. Its at eye level for kids. The nut 'n Honey is at grown up level. The puffed wheat? Right at the bottom or way at the top. Its cheap.
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davidred wrote...
I installed Ubuntu once and it completely destroyed my paying relationship with Microsoft.
While I may get a computer with chrome OS or some other cloud computing OS in the future, I'll always have at least 3 traditional computers in my closet, even if they're old clunkers by the time cloud computing gets popular... and they will only leave me over my dead body.
Because its online, you no longer have control of your hardware and you no longer have control of your personal files. Changes can be made without your consent, and people can see things you dont want them to, if someone with malicious intent breaks in. Even worse, I know for a fact that once cloud computing takes off - and it will, thanks to arm-based netbooks and their rock bottom price tags - whoever owns the popular cloud based OS or service will start charging subscription fees. You dont own your files, your word processor, etc. You pay X amount per hour/month. And I will not be willing to pay those fees. Or, I will, but I would use the old dying machines I still have control over for anything I dont feel like sharing with the world.
They will have solid state drives.
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davidred wrote...
I installed Ubuntu once and it completely destroyed my paying relationship with Microsoft.
I would not mind having some cheap (essential requirement) web-terminal to a cloud...
Just as long as I can connect to my own cloud running on servers that I manage myself, running (web)apps that I made myself.
Also, If I understand it correctly the Chrome OS will have a X Windows Server; Maybe these machine could be used a X terminals?
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