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Microsoft tactics push India toward Linux
Jun. 30, 2008

One of India's 28 states plans to distribute 100,000 Linux laptops to students there. It sounds like Tamil Nadu's volume purchasing agent decided to use Linux exclusively after being put off by Microsoft's bundling tactics for academic users.

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The laptops will be purchased in volume by Electronics Corporation of Tamil Nadu (ELCOT), which works as a volume purchaser for students in the state. Tamil Nadu is the Southern-most of India's 28 states, and home to the technology center of Chennai (formerly known as "Madras"). ELCOT says it will purchase more than 100,000 laptops this year, selling them to Indian students for about $800, a considerable mark-down compared to retail value, it says.

In evaluating laptop hardware, ELCOT claims to have two primary tests. One is a "fire walk test" that requires laptops to survive being stood and walked upon by 175-pound people. The other -- hopefully easier to pass -- requires that they fully support Linux.

ELCOT says it solicited a bid from Microsoft, proposing to pay $12 for a copy of a Microsoft operating system. However, Microsoft reportedly responded with an offer to sell Windows and Office bundled together at an "academic discount" price of $57. ELCOT says it declined, because, "Any such bundling could result in serious exploitation of the consumer."

Few in the U.S. computer industry -- and fewer in the U.S. computer press -- recall that similar bundling behavior with its Internet Explorer browser and Windows 98 operating system resulted in Microsoft being convicted under anti-monopoly laws in 2001, after Clinton-appointed Attorney General Janet Reno brought charges. Many at the time expected the Redmond Giant to be split into multiple units, such as Windows, Office, Internet Explorer, and Slate and other media properties. However, Microsoft was able to negotiate a relatively mild settlement under Bush-appointed Attorney General John Ashcroft.

Though it could be sour grapes at having its unbundled OS proposal scuppered by Microsoft, ELCOT now says it recommends only Linux. On its website, the organization says, "ELCOT has been using SUSE Linux and Ubuntu Linux operating systems on desktop and laptop computers numbering over 2,000 during the past two years and found them far superior as compared to other operating systems, notably the Microsoft Operating System."

Ironically, ELCOT will also bundle the VirtualBox hypervisor, enabling users of its laptops to boot other OSes -- such as Windows -- within their Linux environments, without rebooting.

At the same time, ELCOT reserves the right to change its mind. "Microsoft India is yet to provide the revised offer ([of $12 per copy] for its operating system and debundling its current offer to fix the price of its office suite and anti virus software). Once we receive Microsoft's revised offer which is acceptable to ELCOT, we would get back to you with our offer for Microsoft products."

More details can be found on ELCOT's New Student Laptop page.


-- Henry Kingman


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