Operating systems

HP to do it right by doing it itself?

1 comment | 3I like it!
September 5, 2008, 12:28 PM — 

One of the weird things about the Mac-PC rivalry is that "Mac" and "PCs" aren't necessarily two items that can be seen in direct opposition within the same category. The first big Mac advocate in my life -- a friend's mother and IT pioneer -- swooned over the two Steves but always admonished me that a Mac was as much of a personal computer as anything IBM put out. And in fact the PC makers that are in the same basic personal computer market with Apple nevertheless have a completely different business model, since their hardware runs an OS -- the thing that in the end the users really spend most of their time interacting with -- made by someone else.

But what do you do when that OS is becoming widely hated, as Vista is? Well, a fascinating article in BusinessWeek offers a peek behind the scenes at HP, where this problem is causing a bit of panic. Apparently they're throwing together a "customer experience group" that will try to make Vista better (but how?)
or maybe even create a customized Linux distro (without annoying Redmond?). And of course Apple, the only PC maker not selling Vista boxes, is a big driver behind this, as their OS is widely regarded as not being terrible, and yet this is not a problem that HP can really fix.

I have no illusions that Apple's OS will always be better than Microsoft's, having lived through the dark days of the late '90s; but at least when Apple is falling behind in the OS race, it can do something about it. The other PC makers are just stuck.

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I like it!
Comments

Kudos to HP! I have not seen

Kudos to HP! I have not seen press discussion of the incredible support problems HP experienced following Xmas sales of Vista-loaded PCs. The support load was so extreme, in Canada the Customer Support system crashed and was off-line for much of a week. The C/S rep I finally reached admitted (off-the-record, of course) that over 80% of all support calls were Vista-related. The tech candidly admitted to incredible frustration within the tech support group due to lack of support from Microsoft to help them in supporting their own customers. The Nerds-On-Site tech I called in next claimed his firm had the same experience - "at least 80% of calls are Vista-related, and all for new hardware". He said the firm had negotiated a metered distribution license with Microsoft enabling them to install XP on new Vista systems, & he claimed they expected to make a fortune with it.

The wonder is that HP has seen fit to try to do more than the rest of the industry. All other manufacturers have disavowed both responsibility & ability to help users deal with Microsoft's problem, or they've said effectively nothing. They must be smarting, since PC manufacturers are required by Microsoft to provide front-line support for both PC & operating system. Meanwhile, for all the bad press, Microsoft isn't hurting. Software users may scream, but Microsoft's customer isn't the user, its the PC manufacturer. Those manufacturers are cowed into silence - public silence, at least - by the power that Microsoft wields over them.

What to do if you are a user? We've learned a lesson, and we've rolled back to XP: its stable, supports existing investments in peripherals, doesn't push hardware inflation (works well in 1 GB RAM) & doesn't inflate retraining & support costs. We've installed Classic Menus for Office to bypass the inane & inefficient new command structure in Office 2007 (Google this if you don't have it: best cheap software investment you'll make this year!). ANd we curse the arrogance of Microsoft, and the dangers of having one firm effectively own the market, however much we all want standardized software. So we've devoted hardware & staff resources to thoroughly investigate the viability of both Linux and Open Office software as a hedging strategy. This news about HP will encourage us to keep purchasing their hardware.

What to do if you are a manufacturer? HP - & Dell, Lenovo, Toshiba, etc. - need to recognize there's a new opportunity to grow market share in a mature & static market. Business users increasingly recognize that the natural tendancy of the marketplace to wish to standardize software also encourages the winner, once they dominate, to grow arrogant. Business users, not just cranky individuals, will increasingly be willing to hedge against business risk by reducing dependence on one operating system supplier.

Market Opportunity: PC manufacturers can gain market share - especially business market share - by committing to support both Windows and Linux. There'll be additional support costs & aggravation, but there is business opportunity too. If users could buy a machine that came with dual-boot installed and support for both environments, they'd pay a little more for the flexibility & perceived safety. They'll certainly be more likely to try an alternate OS if they find hardware suppliers supportive, or at least no longer hostile. Apple is using this pitch to grow retail market share, but there's still a significant cost premium for Apple hardware. The pitch might resonate with business if additional support or transition costs could be potentially offset somewhat by reduced hardware costs.

Why change might happen now? Market conditions - the economic slump - may overcome the Linux chicken-&-egg problem: business wouldn't buy Linux until it had sufficient market share to obtain 3rd-party support; manufacturers wouldn't offer it until customers demanded it. With profits down, businesses look to control costs, limit new investment, get more out of existing infrastructure. But Microsoft is forcing transition to Vista by setting a deadline for XP support, so businesses must support two operating systems anyhow and ultimately replace all existing PCs that aren't Vista-capable.

Until someone gets off the pot & offers dual OS support, PC market share will stay largely static, and Microsoft will lack motivation to care much about user concerns. BTW, when someone introduces a significant change like this, it can destablize the market briefly & buy them increased market share, until their competitors realize they have to follow suit, at which point the market stabilizes again. Only the first player wins new market share (examples: automated banking machines for Citibank; build-to-order for Dell; centralized hubs for FedEx). Trust HP to see the opportunity & actually seize it.

Unless they let someone else get there first.
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