[aclug-L] Re: XP vs linux - Innovator's dilemma

[James Violette <jviolette@xxxxxxxxxxx>]

Hi,

This topic illustrates the Innovator's Dilemma, described in the book of the
same name.  This link gives a good review of the book:

http://www.edweek.org/ew/ewstory.cfm?slug=40hill.h19";

Essentially, the Innovator's Dilemma recognizes that any existing technology has
its customers it serves and customers it ignores.  A disruptive technology
addresses the needs of ignored customers, in a way that cannot be replicated by
the existing technology.  Initially, the disruptive technology is inferior in
all standard measures,  but the new way it approaches the issue builds up a
customer base.  Most often a disruptive technology has a much lower cost
structure than the existing technology.  Eventually, the disruptive technology
starts to measure up to the existing technology, but with added features and
lower cost structure.

Businesses dependent on the existing technology are burdened with a high cost
structure.  When those businesses try to switch to the disruptive technology,
they most often fail because the lower revenue streams are unable to support the
embedded higher cost structure.  On the other hand, new companies emerge that
have cost structures aligned with the revenue streams of the disruptive
technology.

So... applying this concept to Windows and Linux: Linux is starting to provide
comparable functionality in the operating system world, without the
redistribution/licensing restrictions.  In addition, the Linux revenue model is
based on packaging and end application support, rather than initial licensing
fees.  Companies that rely on Windows licenses will most likely need to change
their revenue models and employee skill sets or be overtaken by new companies.
Of course while this is happening, Windows licenses are becoming more and more
restrictive to protect Microsoft's existing revenue stream, as predicted by the
Innovator's Dilemma. These reseller businesses are boxed in by a tug of war
between existing technology and disruptive technology.  According to the
Innovator's Dilemma the lower cost structure wins, except in the high end of the
market where customer support is king.

James

Ryan Hunt wrote:

> Tell those people who are having problems to join this list, with a free
> operating system its our responsibility to provide free tech help when we
> can :-)
>
> And stay away from XP, XP is to 2k as ME is to 98. We all know ME was a step
> down from win98se
>
> -Ryan
>
> ----- Original Message -----
> From: "Ironrose" <amccadden@xxxxxxxxxxx>
> To: <discussion@xxxxxxxxx>
> Sent: Monday, September 24, 2001 11:24 PM
> Subject: [aclug-L] Re: XP vs linux
>
> >
> > As it was explained to me is that it is hard to be competitive in the
> computer hardware business.  The
> > store doesn't buy in bulk enough to get the really good discounts.  By the
> time you buy the product
> > from your vender and it get shipped to you, the price has already dropped
> ~10% and you have lost some
> > of your profit.  A small portion of the profits comes from selling
> software and every little bit
> > helps.  The only software that we get a good deal on is the M$, but we
> have to abide by M$ strict
> > guidelines so that we can continue to be a M$ reseller.  To promote
> another OS makes too many waves to
> > M$.  We have had to dramatically change our computer upgrade specials
> because of the new M$ licensing
> > --  4 or more upgrades or changes in the box requires the customer to
> purchase another OS.  Because of
> > this we suggest that customer buy a new pc rather than upgrade the old
> one.  We also don't support any
> > other OS, Apple-Mac or Linux.  The managers don't want us to encourage any
> users to try an OS that we
> > aren't able to help them with.  We need to sell our services, as well as
> hardware and software.
> >
> > Some of the customers have tried to install linux and had either
> difficulties or didn't like it,
> > usually because that didn't know how to configure PPP or how to install
> software.  I was helping
> > customers on the front counter, but I am restricted to 10minutes or less
> to solve the problem.  I
> > don't have enought time after work to help everyone that wants it.  It was
> frustrating to the
> > customers as well as myself.  I am trying to learn more about Linux myself
> and some day I would like
> > to work in a linux -- instead of M$ environment.  ~Ironrose
> >
> > Nate Bargmann wrote:
> >
> > > On Mon, Sep 24, 2001 at 09:27:59PM -0500, Ironrose wrote:
> > > > very well when I talk about linux....lost revenues and all that crap.
> I hope that I don't end up
> > > > losing my job over this.  ~Ironrose
> > >
> > > Would be a shame to lose one's job by providing customer Service, which,
> > > I assume, Nat Comp would like folks to believe they provide.
> > >
> > > - Nate >>
> > >
> > > --
> > >  Wireless | Amateur Radio Station N0NB          | "We have awakened a
> > >  Internet | n0nb@xxxxxxxxxxxxxxxx               | sleeping giant and
> > >  Location | Bremen, Kansas USA EM19ov           | have instilled in him
> > >    Wichita area exams; ham radio; Linux info @  | a terrible resolve".
> > >              http://www.qsl.net/n0nb/           | - Admiral Yamomoto
> > > -- This is the discussion@xxxxxxxxx list.  To unsubscribe,
> > > visit http://tmp2.complete.org/cgi-bin/listargate-aclug.cgi
> >
> > -- This is the discussion@xxxxxxxxx list.  To unsubscribe,
> > visit http://tmp2.complete.org/cgi-bin/listargate-aclug.cgi
> >
>
> -- This is the discussion@xxxxxxxxx list.  To unsubscribe,
> visit http://tmp2.complete.org/cgi-bin/listargate-aclug.cgi

-- This is the discussion@xxxxxxxxx list.  To unsubscribe,
visit http://tmp2.complete.org/cgi-bin/listargate-aclug.cgi