RE: [SLUG] Windows update

From: Ken Elliott (kelliott4@tampabay.rr.com)
Date: Sat Sep 25 2004 - 15:12:29 EDT


>>Microsoft was the first to pioneer OEM bundling at large profit margins.

I don't understand your point. The statement was made that Microsoft
invented "software-as-a-product", and I have to disagree with that.

As far as the OEM thing, CP/M was sold to OEMs in 74. There was plenty of
third party software for HP computers and calculators before that. In 1972,
MCS sold OEM licenses to ComputerVision, Berber Scientific and McDonnell
Douglas. But your statement could be considered accurate if by "large
profit margins" you mean "large volumes of money".

But I will agree that Microsoft was the first successful _mass_marketer_ of
pre-packaged software for other companies hardware. But some of that was
being in the right place at the right time and not screwing it up. Gary
Kildal messed up Digital Research's shot when IBM came to discuss licensing
CP/M as the OS for the IBM PC. So I can't say MS "invented" the concept,
any more that putting wheels on a toaster would be considered inventing
wheels.

>>Microsoft does _not_ make most its money on the retail shelf.
>>They make most of their money at the OEM.

Sure, but I don't understand what that has to do with the point.

I suspect this is one of those threads we should let die.

Ken Elliott

=====================
-----Original Message-----
From: slug@nks.net [mailto:slug@nks.net] On Behalf Of Bryan J. Smith
Sent: Saturday, September 25, 2004 7:27 AM
To: slug@nks.net
Subject: RE: [SLUG] Windows update

On Fri, 2004-09-24 at 17:53, Ken Elliott wrote:
> Sorry, but there were many software companies selling
> software-as-a-product long before Microsoft. I don't believe we can
flatter them such.

Microsoft does _not_ make most its money on the retail shelf.
They make most of their money at the OEM.
Microsoft was the first to pioneer OEM bundling at large profit margins.

They go back to 1975 on doing that with Altair.

-- Bryan

P.S. Heck, even before that, with "Traf-O-Data," they were trying to jack
up the margins on firmware for traffic lights. ;-ppp

-- 
Bryan J. Smith                                  b.j.smith@ieee.org 
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