Dell goes Ubuntu; "Windows tax" is $50 according to pricing

Dell goes Ubuntu; “Windows tax” is $50 according to pricing

Dell has released the configurations and pricing for their desktop Linux …

Jeremy Reimer – May 25, 2007 9:33 am | 0

When Dell put up its IdeaStorm community-feedback site, the company was surprised by the strong response in favor of shipping personal computers with Linux. The PC company then announced that it would offer Ubuntu Linux on select systems, and as of yesterday, they are taking orders.

Ubuntu Linux is now available on the XPS 410n high-end desktop system at $849 (compared with $899 for the same machine with Windows installed), the E520n desktop at $599, and the E1505n notebook at $599. For now, the Ubuntu systems will only be available to customers in the United States. Availability is expected "in the coming weeks" according to an announcement given on May 1, but Dell.com lists a shipping time of three to five days.

The Dell Linux XPS 410n will have the same hardware as its Windows-based brother: an Intel Core 2 Duo E4300 with 1GB of RAM and a 250GB SATA hard drive. They will come with the standard Ubuntu distribution, which includes a whole plethora of free applications such as the Firefox web browser, and OpenOffice.org productivity suite, but no "crapware." Dell plans on including partial open-source or closed-source drivers if there is no equivalent open-source drivers for the hardware, which includes Intel wireless networking cards and Conexant internal modems. Dell is recommending that Linux users purchase Dell printers that support PostScript printing.

Dell spokeswoman Anne Camden told Ars that on average, prices for the E520n desktop and E1505n notebook will be about $50 less than comparably-equipped offerings with Windows, although one does note that it is possible to buy a E520 desktop with Windows Vista installed for as little as $369 (it isn't yet clear how configurable the Linux options will be). The E520s are considered "entry-level" desktops, while the XPS 410 is a higher-end model targeted at gamers and enthusiasts.

So it turns out that not including Windows saves the consumer $50 from the regular list price. This amount is not too far off from what a large OEM like Dell would pay for a volume discount for Windows Vista Home Basic (the regular OEM price is about $95). Many value PC sellers try to make up for the cost of a Windows license by bundling demo and trial versions of software such as AOL (affectionately known as "crapware"), for which they receive money from software companies looking to increase their distribution levels. Dell is no exception to this practice, although on their web site it allows customers to select the option of not including various applications.

Better yet, Camden also told Ars that Dell is going to include a special "deinstaller" application on its PCs in the future that will make it easier for new users to uninstall unwanted applications. Still, one has to admit that purchasing a Dell with Windows and then downloading a free copy of Ubuntu would be more value for money, assuming that the Windows license was worth more than $50 to the consumer: Linux fans may disagree on that last part.

The issue of Linux installs brings back memories of discussions about the "Windows Tax" that have been going on ever since Windows was first preinstalled with computers. Back before Microsoft got into antitrust trouble, the company often sold discounted bundling licenses that required payment for every computer sold, regardless of whether or not it came with Windows (or any operating system) installed. The company was forced to sign a consent decree that ended such practices, and it was only because of that legal action that it became fiscally realistic to sell computers with alternative operating systems.

Eric Raymond once famously predicted that when the price of PCs dropped to below $300 that Microsoft would "cease to exist" because nobody would pay an extra one-third of the cost of a computer in order to get Windows. That didn't happen, largely because of the price incentives given by software companies as described above. Whether or not Linux bundling will put pressure on Microsoft's OEM pricing remains to be seen, but it can't hurt.