Editor's Note: Adding Color to the Oleo
Avoiding the M$ Tax

Kevin Reichard
Thursday, May 25, 2000 01:33:31 PM
Earlier this week I was in Los Angeles on
business, and I happened to pick up the Los
Angeles Times. On the back page of its business
section was a full-page ad for Fry's Electronics,
a large retailer on the Left Coast. If you're
unfamiliar with the company, Fry's is a place for
serious geeks; the firm's ads are filled with
listings of components and toys for those who
love putting together their own hardware
configurations.
What made the ad noteworthy was a large listing
in the upper-left corner for a new system--or
rather, the bare bones of a new system.
Basically, the ad was for a box with a
high-end graphics card, power supply, motherboard,
and CD-ROM drive; you needed to add your own hard
drive and RAM. The price was $299. (No, don't
bother asking me for a Web address for the
system: Fry's doesn't sell via the Internet and
doesn't have a commerce site.)
In addition, the ad featured a large Tux
penguin, proclaiming that the system included the
Linux operating system. That was it: no Microsoft
operating system was included.
Think about it: why would someone sell a
bare-bones system without a hard drive and with a
copy of Linux? That's right: while I haven't
confirmed this with anyone from Fry's, my
assumption is that by selling the system sans
hard drive and in an unassembled form, Fry's and
the system manufacturer are sidestepping any
onerous Microsoft agreements that basically
place a M$ surcharge on any system shipped.
Weird workarounds in response to industry
protectionism is nothing new: in the old days,
oleomargarine manufacturers were banned from
shipping yellow oleo that looked like butter, so
instead they shipped oleo and yellow food coloring
separately and consumers were forced to
physically add the color to the oleo. (This was
actually the compromise: when oleo first
appeared, many states mandated that oleo ship
with pink food dye so it wouldn't look at all
like butter.) We still have vestiges of this
protectionism: many states limit oleo sales to a
pound or less.
Now, obviously, it will take some creativity
to work around M$ and create a level playing
ground for Linux vendors, and today's
announcement that Judge Jackson is considering a
three-way split of Microsoft is good news indeed.
But it's only the beginning: until the onerous
requirements that have marked Microsoft contracts
with PC vendors are eliminated, we're all forced
to either a) pay Microsoft for a OS that we don't
need, b) buy guerilla systems like the one
offered by Fry's, or c) work with Linux-only
resellers like Penguin Computing and VA Linux,
who aren't subject to a Microsoft tax.