Is Linux What Dell Needs?
7:33 pm March 13th, 2007 by Sal Cangeloso
Despite years of success Dell has fallen on hard times. The company who practically reinvented the way people buy computers has been under-performing and investors are worried. The company has been losing market share and no longer has the edge it once had over competitors like HP and Gateway.
There has been much talk about Dell taking steps to make up lost ground by selling computers that use Linux for their operating system. This is something many people are interested in but unfortunately not something that will turn around the company.
As a Linux user (on a few but not all of my systems) I know how great it would be for Dell to offer preinstalled Linux computers. Because many Linux distributions have no licensing fees associated with them the cost of the computer could potentially be cheaper and because Linux is extremely stable, generally has modest processing requirements, and has an incredible online support community, Dell users (even though new to Linux) stand to gain much. At least in theory…
In practice things could be very different. Potential customers could be very confused (and angry) when they realize that their system is not compatible with Windows, the only operating system they have probably ever used. Also people might be taken aback when they see Dell is seemingly charging a premium for Windows machine. This is of course supposing that Dell could actually lower the price of a Linux system because of it lack of a Windows license. This is possible, over time, but there is a very good chance that the increased support staff and training associated with each additional Linux distribution offered will increase the cost of systems up to or past the price of their Windows counterparts.
Right now Dell has their n Series, computers available with no operating system installed. Not a bad idea, because it avoids licensing fees and gets around the OS support issue, but this is not a permanent solution to the Linux question and leaves support and compatibility issues up to the end user.
What it comes down to is a similar issue that got Dell into this mess in the first place. As the price of the average computer system they sell drops, Dell is less able to profit from that sale. One reason is due to shipping- as prices slip the percentage of the total purchase that shipping takes up rises. This means that Dell’s lack of retail outlets, once a strength is now a major weakness. The same goes for the operating system because as the price of the total computer drops the software becomes relatively more expensive. A side point to this is that the company already operates on slim margins (and with tough price competition) so the inability to profit from the operating system will also hurt. If this was all not enough, the addition of Linux could be even more of a problem because it would present an option besides Vista, something that many people once saw as being a major boon to computer manufacturers because of all the systems that would have to be upgraded to run it.
So while offering desktop Linux preinstalled on a system would definitely win the support of the tech-savvy and computer enthusiasts it is not a solution to Dell’s woes. It is a great way to draw attention away from other problems and it is something that has to be considered in the future, but now is not the time as it is something that would only affect a small percentage of consumers and not enough of Dell’s core small and medium business buyers.
You said:
“Potential customers could be very confused (and angry) when they realize that their system is not compatible with Windows, the only operating system they have probably ever used.”
I don’t see this as an issue; the simplest fix is to say “This system is not compatible with Microsoft Windows”.
I think Dell could go a long way toward helping the Linux community by offering systems that are equipped with Linux friendly hardware, particularly chipset, ethernet, wireless, and video that is well supported under Linux. Then users could order a Dell to install Linux with a high degree of confidence that a popular distro will work. NO Broadcom wireless cards!
The customer complaint about Windows compatibility could be solved simply by having the customer purchase his own copy of Windows if that is what he wants. After all, they ARE ordering the system for Linux, so they should know what they are asking for!
By the same logic – ppl who buy macs would be sending them back by the truckload – because they dont run windows apps ??
But that doesnt happen. Please explain ?
I don’t see this as an issue; the simplest fix is to say “This system is not compatible with Microsoft Windows”.>>
Dear Jeff, who will buy computer with label ‘ Not compatible with Microsoft Windows’ ??? Really, WHO?
Sincerely, Dandy.
Dell better wake up fast on the Linux front. They are not alone in this big World. Carrefour, the second retailer worldwide, and closing the gap with Wallmart at fast pace, is already selling PCs with Linux preinstalled (Ubuntu to be more precise) and 64 bits AMD processors at “bargain prices”.
Suddendly people can get used to buy hardware at Carrefour and forget about Dell. Then what?
This is the second article to use this “it might confuse and anger customers” meme. I don’t know where it came from…
And the idea that Linux is not very compatible with Windows are erroneous. Linux can use most of the same peripherals, read Windows partitions, even many run Windows programs. In a world where Microsoft has actively tried to not be compatible, Linux is an example of how all operating systems should be.
Dell’s slump has nothing to do with selling Linux or Windows. People are forgetting that Dell is a hardware company, and Dell needs to focus on selling hardware, not on selling Windows as it’s focus is now.
Dell’s problems boil down to it’s Windows centric, rather than hardware centric sales model, which has lost it business customers. This is because although Windows is still dominant on their desktop PCs, most businesses now use Linux somewhere in their office – for print/file/mail servers, and for general purpose shared access desktops. These businesses want to buy hardware that is fully supported with drivers for both Linux and Windows so at to allow use of the hardware by both Windows and Linux OSes, and redeployment of PCs if required. Such businesses won’t buy simply won’t buy Dell’s Windows only lemons even if the majority of their PCs run Windows. Instead they go to others that do offer better Linux driver support, and can offer them a one stop shop for both Windows and Linux. In other words they may install 100 Windows PCs, two Linux desktops, and a Linux server, but they don’t buy 100 Windows PCs from Dell and the two Linux desktops and Linux server from someone else – they buy everything from someone else including the Windows desktop.
It is all about providing the choice business customers require, which Dell doesn’t do. It is not about the numbers of Windows vs Linux PCs Dell sells, it is about the total number of PCs Dell sells compared to it’s competitors.
Preloaded Linux PCs aren’t really necessary except to show explicitly that Dell’s hardware does support Linux drivers. All that is required is the Linux driver support and an OS-less computer. Most of the Linux customers will be business customers, and most will re-install a different variant of Linux anyway.
As far as confusing Windows with Linux is concerned, all Dell needs to do is to make it clear to customers that “Linux is for advanced business and educational users only and is unsupported directly by Dell”, and that “Customers must rely on community support for Linux”.
I don’t even know if Dell’s problem is necessarily a hardware related issue… My personal thoughts seem to be more along the lines of customer support. As a sysadmin I hate to actually have to make that call or send a tech email to their support to fix an issue I have with a server or desktop. Only to be told to update my BIOS or do MS updates when the darn box was working with out any changes all the way up until the point that I needed to talk to them.
Like most of you I personally prefer Linux and if I could I would turn my whole company into a complete Linux shop. But, the reality is that if I order a server or desktop from Dell I am going to blow the OS it came with away anyhow, probably like most other admins… So for them to sell a box with any type of OS is really kind of a big what ever.
Fix the guy on the other end… Make him/her more knowledgeable and willing to help. Drop the “I understand your frustrations” type comments and that should make some headway.
Just my personal thoughts
Why is it important what Dell needs?
It is a commercial company, no more no less — this should be their own trouble what they need. As a customer I only need one thing – a system without Windows as I only like to pay for what I need. If they install Linux or not, I do not care — it takes about 2 hours to have Ubuntu or Fedora up and running with the FULL set of software I need. And I need more than just mail, internet and office: I need all the dev tools and some I install from source, I need xara and inkscape, I need grip, mp3 support, ALL-video supprot with VLC etc etc. And finally, we have about 4 different Dell Workstations in our lab — all running Linux while shipped with Windows, there is no problem with that, so what’s the point?
Now you will say that an average Joe cannot do that, install and configure Linux, on his own. Exactly, correct! But why would you or me care, until we are making money out of it. Let Novel, RedHat, Canonical, Linspire CEO’s etc care about how to attract an average Joe. What I actually afraid is that if Joes are attracted, the productivity and reliability of the system will be decreasing towards eye candies that I for example do not need. And in fact, the fewer average Joes Linux has the better it is for all your community support forums. Why is every one so obsessed with proving to every one else that he/she needs Linux? I am happy with this system, currently Ubuntu Feisty, half a year ago was Fedora, and I do not really care if an average Joe joins me in sharing this happiness.
The reason for Dells most recent financial woes has nothing to do with hardware and everything to do with Microsoft Vista.
Dell was ready to start shipping Vista way before their competitors and had incurred a lot of expenses retooling to support that. When Microsoft wouldn’t let them ship ahead of their competitors, they screwed Dell big time. Just imagine how much Dell could have made if they were the only ones shipping Vista for some period of time. It wouldn’t make me buy one, but it would have influenced a lot of Windows sheeple out there, I’m sure.
As for shipping Linux confusing customers, that is bogus. Dell just needs to keep their Linux systems segregated from their Windows systems just like they do with the N-series now. And if someone is stupid enough to wander off the Windows track accidently and order a Linux PC instead, then just charge/refund them the difference in cost and ship them a Windows factory image restoration CD/DVD for their hardware and be done with it.
Offering GNU/Linux preloaded is not as easy as it seems to be.
The cost of the OS is already almost irrelevant – OEM copies of Windows cost very little per machine and even that cost is subsidised by Microsoft and other “partners” offering a load of crapware.
All Dells come preloaded with a significant amount of crap-ware that subsidise its cost. All of the crap-ware runs on Windows. These will of course go away with pre-installed GNU/Linux. Which means the subsidies go away. Which in turn means higher prices for buyers.
And there is the added cost of support to be considered. Dell will certainly need to collaborate with any one distribution to provide this support. This will raise the cost of the system as well.
And each of those stickers on the machine (”Windows Vista ready”, “Intel Inside” etc.) subsidise the cost of the machine. On the other hand, a “GNU/Linux ready” sticker would raise the cost to Dell – they’d have to certify the hardware and pay for the stickers themselves.
At the end of the day, the easiest option by far will be to offer GNU/Linux compatible (certified) hardware – from information available rather than by paying for certification – with no OS installed. This will off-load the cost of installation, support etc. to the buyer.
And even then, because of the lost subsidies, such a machine will cost marginally more than an equivalent machine with Windows and a bunch of subsidising crapware installed.
Good article, but I am afraid not carefully written. Article is full of self-contradictory logics, things we call “oxymoron” statements; as well as ambiguous and unclear sentences. Seems the writer had a deadline from M$ to write something against Dell’s inclination to Linux. Of course, Dell’s woe will not end if it starts to ship Linux installed systems, but I am sure that Dell’s attachment to Windows/Microsoft can ensure its doom in the pc/laptop market.
Why does Dell’s performance surprise anyone? Dell helped to make the computer a commodity item. Now that anyone can buy any number of different brands of computer there is nothing special about a Dell. (Aside from the fact that it often has some weird gizmo in it that just never quite works right – not with WinDos, not with Linux.)
You are right in that selling Linux preinstalled only caters to a small percentage of users, but it could very well lead to more sales of windows machines as well…
I’m working as a system consultant, I’m not using Dell for my customers (even though I have the opportunity to buy them for reduced prices from Dell) but this could very well change if I could start buying my Linux systems from them!
I for one would be very very friendly towards any company to be the first to ship available, cheap computers with Linux preinstalled, I would most likely start buying my Linux boxes from them and if you’re used to one kind of hardware you tend to stick with it, so if I liked the Linux boxes I probably would start buying my Windows boxes the same place…
My point is that I am one of those, as you point out, very few who cares wether they ship Linux or not, but that could mean 10-20 Windows boxes sold a month in addition to the 2-3 Linux boxes I would buy a month
I think there are more like me out there, so the net effect of selling Linux would, I think, be greater than the number of boxes sold with Linux.
Yes!, Dell started the whole ‘I’ll price you out of business thing’ in the first place. No sympathy here. Sorry they shot themselves in the foot.
Pay me I’ll build you a non-proprietary PC built to last and improve upon. I use to say that before Dell put me out of business.
Linux is what WE need, I’m not volunteering for Dell, but for Linux sure.
Heck if you want to learn how to build a PC, I’ll build yours for free + parts of course. It’s if you need them and leave it up to me, that’s involves a modest fee for assembly.
How is Linux not compatible with Windows? You can open and save in Office format, use a VPN, remote desktop, use the restricted media formats(if desired), etc. I have checked work email from home. What can’t I do?
Just went to the Dell Site.
They do sell N series computers preinstalled with Linux.
Hey guys, thanks for all the comments! This is definitely a very interesting subject.
I think G Fernandes (7 comments back) got the closest to what I was trying to say. I would love for Dell to start selling desktop Linux systems and from a computing standpoint (how I normally look at things) it would be a very smart move, but from a financial standpoint I don’t see it as helping them out right now. The point I was trying to raise is that Dell is losing serious ground right now and needs something to get them back on their feet. Unfortunately Linux is not it, at least in the way they have been talking about it.
I would love to see them pushing Linux extremely hard to their SMB buyers for workstations, but the retraining and tech support needed for the move would be considerable.
“Potential customers could be very confused (and angry) when they realize that their system is not compatible with Windows, the only operating system they have probably ever used.”
The author’s logic here is clearly flawed. Such customers wouldn’t order Linux pre-installed on their systems the first place.
I think you (and DELL) miss a point here. A very important point.
You think DELL’s ability to sell Linux able computers should drop prices. I don’t agree.
I thing the bright move here is the next one:
Put a select list in dell online shop :
No linux filtering
Show only hardware that runs with kernel 2.6.10
Show only hardware that runs with kernel 2.6.14
Show only hardware that runs with kernel 2.6.18
Show only hardware that runs with kernel 2.6.20
And then a check box:
X Don’t show hardware that needs linux propietary drivers.
And then improve your database to include that info.
Last change: Make it able for all computers to remove the operating system from being bought.
And here comes my point:
It will be desirable to pay a little bit more for a system that you certainly know is going to work with your OS that go to Carrefour and buy the same system 50$ cheaper but with the possibility that some hardware doesn’t work on Linux.
Even if you never used linux and you anyway buy Windows with it.
What do you guy’s think of this:
http://hardware.seekingalpha.com/article/29688?source=feed
Dell teaming up with Apple?!
People who think that most people will not need windows, are living like a frog in the well!
Let the linux pre-installed machines replace the ones which are sold with no OS.
A machines which comes with a spanking new OS, which plays music and all the nice glitter, at no extra cost, will be a pleasure to have, even for a newbee.
BUT, the option of installing Windows should be left open, and the user should also be advised on how to go about it. Maybe 10 GB of partition could be left for it in anticipation.
AND (very important) a linux boot CD should be provided to make a new bootloader once the newly installed Windows has stupidly overwritten the MBR.
Why sales are slumping isn’t because of what OS it can come with and as commented above, they do have the option of installing Linux with the N series CPU’s.
It always comes down to customer service. Since I run a part time CPU repair center out of my home, I sometimes have to deal with their phone support and when some of their pre-installed SW that origionally came with the system doesn’t work on a restore and they want you to format the drive a second time and reimage the drive, or check for virus’s or update your BIOS, it just leads me to believe that they are throwing out easy answers to tougher questions.
What makes them MONEY isn’t the hardware. It’s the services that people pay for AFTER they buy it. I mean, IBM wouldn’t be around if back in the 80’s they didn’t supply their customers with GREAT service! We would all be using Macs or Amiga systems instead, because back then IBM’s werent the latest and greatest, or the best priced system, but why customers bought it because they KNEW someone would be there to help them through their computer needs if something wasn’t working right.
When it comes down to it, every failing business has failing service because they skimp out on their investments such as people that know alot about their system. When they hire some DeVry rejects to man their help desk systems well… you get what you pay for. Companies can buy the latest and greatest, but if you don’t invest in a good staff, then you’re just getting what you paid for. Dumb.
linux needs to be on a dell… but more importantly how do you get one of those vehicles that are pictured at the top of this post?
-C
Maybe the solution would be for Dell to offer dual-booting machines. Dell would still be getting its kickbacks from Microsoft, customers who would want Windows, would boot into it and it would be a gentle introduction to Linux by booting into it at startup and it would satisfy those who want to use Linux. A transition mechanism.
That’s a cool idea Rich, though I don’t know if Microsoft would be as amenable towards the subsidies if a dual boot was involved… Also there would not be much impetus for people to starting using the Linux OS if they are already accustomed to Windows.
BTW, I think it could run into the same issues as Apple’s Boot Camp in that many people would rather solve this through virtualization instead of dual booting.
I must agree with the fact that it is only neccessary for Dell to prove the ability to fully support with drivers Linux OS. I dualboot on my XPS Win and Kubuntu with no problem and the power of the system on kubuntu is truly fascinating. Magnificent! And I am complete newbie for Linux. You cannot imagine how much time it took me to install new nVidia driver:) But it’s cool, I enjoy it!
i think that linux would definatly turn dell around windows is a hassle compared to it linux also would free much room for the hard drive and having that much more free space making more speed i think its genius
Dell hasn’t been listening to their customer until now. to be on the top for some time got to their heads thinking they were always right, like cheating on the special offer I surf their web site many times as I saw special offers but for some reasons only the first page were showing their special offer and was then dispearing through the order process. And this was not a mistake, I tried many times and the same thing happen… I even send them emails about the problem, but they ignored them… since then I stop going to their site, how can you trust dishonnest people…