Marketing Memos

April 13, 2006

Chinese Linux by Default?

The unholy masters of Chinese society recently decreed that no PC
manufactured in China can be shipped without "a legal operating system."

Ignoring for a moment that many people would like a bare-bones PC, and the
relative insanity of such

autocratic edicts
, we can look forward to one unintended consequence —
greater exposure of Linux to the masses.

Chinese PC manufactures are allegedly omitting operating systems because most
in-country buyers want to install pirated copies of Microsoft Windows. 
Since

Bill Gates needs a few extra billion to cover personal expenses
, the intent
of the edict is to prevent piracy.  But the Microsoft Tax on new PCs is
steep enough that the average Chinese consumer will avoid paying the price.

Enter Linux.  Since a Linux distribution (such as
Fedora or

OpenSuSE
) can be installed for nada and thus meet the legal objective. 
The manufacturer may well expect their customers will install Windows over top
of Linux, but there will be two other audiences:

  • People who purposefully want a Linux PC/server (which helps them promote
    Linux)
  • People who will be exposed to Linux and not make the switch

Microsoft is in no fear of losing massive market share to desktop Linux in
China from the one event.  But it is another camel nose under the tent, and
adds one more wedge in the market.  Gates might have been better off
accepting a little piracy to maintain brand familiarity.

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