A Hewlett-Packard PC with Linux?
According to a recent story in BusinessWeek, Hewlett Packard has been exploring the possibility of using something other than Windows Vista for some of its computers. The article has some denials from HP spokespersons, but their denials seem weak and uncertain in wording, so odds are, they’re correct in some form or another.
Apple and Mac computers are grabbing increasing market share; at least some of Apple’s new sales are coming at the expense of companies like HP and Dell. It has to be frustrating to Windows OEMs like HP that they don’t really control the complete user experience the way Apple does. HP has a history of wanting to control the user shell more closely, so that loss of control must really irritate them at times.
The idea that HP might create its own operating system from scratch is crazy (and expensive and unnecessary), so they had no problem denying that rumor. Part of the article, confirmed by HP, was about their efforts to “innovate on top of Vista”, in HP’s words. That could simply be some tack-on applications, or added functionality at the BIOS level for certain functions, but I have a hard time believing that would solve a lot of consumer problems. It may even create a whole new set of compatibility issues.
The big question is whether HP is pondering the use of Linux on its consumer PCs. This is territory already explored by the successful Asus Eee PC. That tiny notebook offers both Linux and Windows — but it’s Windows XP. Microsoft has made it clear that XP is OS-non-grata its future plans, so the Linux option may be HP’s best alternative. This would turn the whole OS/PC world pretty much upside down, and MS would be none too happy to see one of its biggest partners defect to Linux.
There are plenty of Linux distributions that HP could use, so the engineering effort could boil down to making sure that high-quality Linux drivers are available (sometimes not a given). HP could push most of that work down to their chipset suppliers such as Intel and NVidia. Sure, they’d want to brand their Linux user interface with some sort of custom HP look, but that shouldn’t take long and wouldn’t cost much, more than likely. Some Linux gurus would probably volunteer testing and ideas for nothing, just to see it happen.
HP has tried to be a good partner with Microsoft in the past, and hasn’t always been rewarded with much loyalty for the effort. One example came to light in a lawsuit where MS told HP execs that Vista would require high-end video hardware, and HP accelerated a redesign of their product lines to support the new chipsets Vista needed. Then, Microsoft backpedaled and said that less-capable video chipsets, the ones in HP’s soon-to-be-defunct products, could be labeled “Vista Capable.”
Microsoft has some options to keep HP consumer products Linux-free. Microsoft will probably use the carrot of a price break or marketing money, similar to the way Intel appeased OEMs with the Intel Inside program. In essence, Microsoft can price Vista or XP in a way that “pays” HP to not use Linux. That may ultimately be an offer HP can’t refuse. Either way, MS needs to step up and do something it appears, or an HP box with Linux may become reality.
Windows Home Server - Will consumers bite?
What Is Windows Home Server?
Once again the creative team at Microsoft sees a need and moves to fill it. The Windows Home Server system is the newest product in Microsoft’s attempt to further saturate the consumer market. Windows Home Server is a customized OS (built on the Windows 2003 Server Base) which runs on as a standalone (and headless) server.
The WHS system is marketed towards the non-technical user as a one stop solution to consumer needs such as nightly backups, file sharing and remote access. WHS was created to run autonomously and with very little end-user configuration. Install and go. The headless comment above refers to the fact that WHS does not require any keyboard or mouse input. All system management is done via a web browser to the pre-installed management console. It allows you to connect all of your home’s computers to one single computer functions as the main server for gathering data, virus checks, and backup duties.
Microsoft hopes to bring many of the functions of a small business or datacenter into the consumer home, with no knowledge or effort required. Microsoft has tried (with some success) to get into the consumers living room and out of their computer desk in the past (remember the WebPC) and of course the Xbox. Most of the big technology firms forecast large market share developing in home networked ‘appliances’ (sounds fancier then PC right?). Most see WHS as Microsoft’s latest attempt at winning a chunk of that market.
We’ll see if the consumers bite.
Who Can Benefit From It?
Anyone who has multiple PC’s in the home can benefit from Windows Home Server. Trying to share files, back files up or monitor virus activity across 4 or 5 different computers can be a chore if they don’t share the same network. WHS runs automatically and without user intervention. End-User Friendly (at least that is what we’re are told).
What Are It’s Features?
* File Sharing - now you can move files effortlessly throughout your home from computer to computer without using E-mail or some other clunky way of doing it.
* BackUp Files/Programs - Backing up files is a snap now because the Windows Home Server takes a ’snapshot’ of each connected computer’s hard drive and stores it; if that data is subsequently lost it can be quickly restored. Since this feature is automatic, you do not have to constantly back up your files manually. This is one of the main selling points of the WHS system.
* Recovery of mistakenly erased files/media via the Volume Shadow Copy Service - if you’ve ever mistakenly erased something and then wanted it back, you can recover it quickly with Windows Home Server.
* Remote Access from Inside the Home Or Outside - Not only can you access any computer on the network that is inside the home, you can access all the computers on the network from outside the home as well. Windows Home Server offers a SSL based interface that functions like a web browser. Just like logging onto a webpage on the world wide web, you can access your home’s computers from anywhere and download or upload data.
* Security Awareness - Windows Home Server can track the health of all the PC’s on the network, monitoring each PC’s virus status and the functionality of the firewall. It will alert you of any virus threat on any of the computers, or any attempts to compromise the firewalls.
* Centralized Printing/Fax/E-Mail services - With Windows Home Server, fitting files on a disk in one part of the house to take it to another part of the house to the PC connected to the printer/fax machine is a thing of the past. Now every PC in the house can send and receive printing jobs, faxes, and email all to one central location.
How Much Does It Cost?
That depends on if you want to buy just the Windows Home Server software, or buy it already loaded onto a central hub computer. Buying just the program on CD-Rom will cost you from $150 to $200 (depending on which retailer of course). When you go to Microsoft’s homepage regarding Windows Home Server and look to purchase it, they take you to this page:
http://www.microsoft.com/windows/products/winfamily/windowshomeserver/buy.mspx
There, they give you a list of 8 retailers who are mostly selling computers (ie. Appliances) to function as the central server with the Windows Home Server software already loaded onto it. You can buy the program separately, but you have to hunt for it. Microsoft seems to prefer you buy it already loaded onto a computer from one of their partner retailers.
Do I Have To Update/Upgrade All My Home’s Computer’s To Use Windows Home Server?
Nope. It’s built on the same codebase as Windows Server 2003 Service Pack 2. It will run on both Windows XP and Windows Vista OS’s. Windows Home Server requires no extra upgrades or purchases to run on your PC as long as you have a current XP or Vista installation.
What Are The Requirements To Run Windows Home Server?
You need to have the following minimum specifications to run the program:
* 1.0 GHz Intel Pentium 3 (or equivalent) processor
* 512 MB RAM
* 80 GB internal hard drive as primary drive
* 100 Mbit/s wired Ethernet
Are Big Changes Coming To EBay?
January 23rd was a big day at EBay; Whitman publicly announced her coming departure, and the EBay Board of Directors voted unanimously to appoint John Donahoe to replace her.
Donahoe has been in charge of EBay’s Marketplace Business Unit since March 2005. In the 3 years since he arrived the revenue and profit of the unit, which accounts for more than 60% of the service’s total earnings, has more than doubled.
No stranger to management, he sits on the Board of Trustees for both the Stanford Graduate School of Business and Dartmouth College.
He’ll need to hit the ground running, as Whitman doesn’t leave small shoes to fill. How effective has she been at what she does? Time Magazine called her one of the world’s most influential people, which isn’t surprising when you take into account Forbes Magazine listing her estimated worth at $1.4 billion last year.
Since becoming CEO of EBay in March of 1998, Whitman guided a small company headquartered in San Jose California with less than 50 employees into an international phenomenon that today runs a global business consisting of over 11,000 employees and earned net revenues of $7.67 billion in 2007.
Talk about having a full plate. Not only has Whitman been managing EBay into an international corporate giant the past decade, she’s also on the Board of Directors for Proctor & Gamble as well as DreamWorks Animation, the movie studio responsible for such hits as Shrek and it’s sequels, Over The Hedge, Madagascar, The Prince of Egypt, and Chicken Run. In fact, before she ever worked at EBay she made her way up to management through both Proctor & Gamble and the Walt Disney Company.
Whitman will remain as a member of EBay’s Board of Directors.
Seeking to allay concerns over the change of management, Whitman released a statement to the press, in which she commented: “During
the last three years, John and I have worked very closely together to arrive at this day, and we’ll continue to work together through the transition. I’m extremely confident in John’s skills and the abilities of John’s veteran management team. eBay and its millions of users are in great hands as they head into the future.”
Why would the highly successful CEO of a company that earned gross revenues of over $7,000,000,000 in the last year suddenly decide to step down?
Such a move makes sense now because it’s hard to see how EBay could go anywhere but down from the plateau to where Whitman has guided it. Several sources mention rumors that the reason Whitman is stepping down now instead of later is because she intends to run for Governor of California in 2010. Two years would give her plenty of time to build up her political machine and prepare to run as a candidate.
What does all this mean for people who depend on EBay’s services? Can EBay buyers and sellers expect any changes to the on-line auction house giant now that there has been a change of CEO’s?
The only changes Donahoe has discussed publicly thus far were experimenting with new pricing frameworks that would cause more of the items listed on EBay to be purchased for a fixed price rather than from bidding on auctions. He also mentioned dropping the rates charged to to the sellers for listing their items on EBay’s website.
These changes may not be welcomed by Ebay investors as warmly as sellers. But in the eyes of the users they should be welcome. In recent years ebay consumers (both buyers and sellers) have bridled over cost increases and fees. The user base has degraded a bit due to these increases. Combine these losses with the missteps made by management in buying Skpye (which Ebay is rumored to be shopping to buyers) and it becomes clear that some change is needed.
Both moves seem geared to increase consumer use of the service, as buyers can be confident in obtaining an item being offered for a fixed price since no one can log in at the last minute and outbid them as the auction is expiring, and lowering the rates for listing items for sale will encourage regular sellers to post even more items with the service.
Several market watchers noted that EBay didn’t show the same robust growth after the aqquisition of Skype, an internet telephone service for which there were high expectations.
Looking at the growth the company has enjoyed the past 10 years, other market observers think after such long, dramatic growth such a dip in profit is nothing to be concerned about.
Taken as a whole, Whitman has handed off a company to her successor that has been outstandingly successful, and based on what he’s done in the short time he’s been there, there’s no reason to expect any major changes or negative impact from this development.


