Microsoft Thanks Ubuntu For Increasing XP and Vista Sales

It’s great that Linux is finally getting the exposure it deserves, thanks to Dell, but the question still remains: how is Dell profiting from its Ubuntu offering?

We know that the net margin for Dell, as a whole, is around 5% [the true profit made on revenue]. While we can compare this number to the industry standard, it does not tell us anything about the margins Dell pockets on its commodity PC and Notebook lines.

Per system, it is rumored to be around 2% or less and to be razor-thin and ever decreasing.

Considering that Dell pays $25-$45 per OEM volume XP/Vista license and profits $45+ from the “Desktop Real Estate” provided by Windows, where is the profit made when a Ubuntu system is priced less than it’s Windows counterpart?

Surely not with the upgrades that are either lacking or similarly priced [that sometimes cost more].


The profits made on selling Ubuntu systems at cost, or even at a loss, is with the free publicity Dell is generating for itself via major news and social network sites around the net regurgitating on this deal literally every few days. This in turn generates traffic and sales on profitable items, such as the Windows systems, for Dell.

7 thoughts on “Microsoft Thanks Ubuntu For Increasing XP and Vista Sales”

  1. There’s nowhere for M% to go but DOWN. With Apple’s new release of OSX/new intel Macs and Dell’s with Ubuntu, M$ is pretty much cornered.

  2. Microsoft could not offer the same liberty for software creators – as Linux does.

    Why all big Hollywood studios like to use editing / compositing linux software -> 5, 6 times faster than OSX, 10 times faster than Windows.

    Windows is for consumer market. Linux come from the mainstream (please read “heavy-duty” computing), and now is intended to replace unsecured $MS products on the consumer area, what’s so hard to understand ?. These days, this transformation is moving fast.

    Why you think governs, municipalities – especially in Europe – drop Windows away – because is good ?. They had money, no problem – even they will spend more with personal training for Linux – why? -> because for the governmental activities, and for public domain business Windows is proven insecure (with all that patching policy).

    We live now the end of the monopolistic, unfair, insecure gray era in favor of a community driven age with open standards. Customers must to dictate about their needs NOT other few peoples that think they know what the customers may need.

    It’s a social movement – is not an anti Microsoft movement.
    They had a lot of time to prove a system that bring an user centric development process, security, scalability, etc. Too much time they don’t hear the voice of the customers, now is too late.

    With Vista they fail. In fact their attitude about peoples (consumers) lead them to fail. If $MS wanna live, they need humanoids on top level structures – brave peoples with light on their eyes – hand in hand with future and with rest of us. We go to the future, is $MS problem if they will go on the same direction or not.

    About acclaimed innovations:
    I found Microsoft under the earth level (except C# – the really true “new thing”). Vista Aero – what a shame compared with my Ubuntu Desktop. I have a brilliant (usable) 3D interface [with a gazillion of possible customizations ] – on the same old Ati 9600, with the same 2.4 Ghz CPU [no multitreading].

  3. As an above poster hints at, there’s really no way for Dell to improve Windows sales by improving their own sales. The people who might be convinced to buy Dells aren’t buying them instead of Macs, or buying them instead of building their home-made Linux box, or buying them instead of not buying a computer, they’re buying them instead of buying Compaqs or Lenovos—Windows machines.

    I spend most of my Internet time on political sites rather than tech sites. That’s part of why this blog is so unconvincing to me—it reeks of spin. Spin is usually used to mask fear or desperation; when it’s obvious, it’s painful. This is better spin than what Joe on the block might come up with, but it’s still pretty shallow.

    Which is kind of interesting—I thought people with investments in Microsoft might be a little bemused by Linux, but I really didn’t think it was at the point yet where they have started to actually feel threatened, like this is a war. Thank you. I’m much more optimistic about Linux’s future now.

  4. Good launch, ubuntu and in general linux distribution is the future; i live in Cameroon here, we have a true movment towards open source software, i use Lucid Lynx and i have a complete satisfaction( very fast, the LED of my CPU don’t become crazy, my ubuntu workspace is a paradise, certain time when i have nothing to do , i open my desktop just to see this magnific creation. After the very bad prestation of vista, it ‘s a lie to tell Microsoft Thanks Ubuntu For Increasing XP and Vista Sales.

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>