Asus and Microsoft Smacking Netbook Linux? And You're Surprised?

A few people have recently sent me links to articles, such as this one, here on ZDNet UK, which report that Asus and Microsoft are joining forces to reduce the demand for Linux in the netbook market. These correspondents claim surprise that Asus, which was just recently a booster for Linux on netbooks, should have now switched sides, and be seen to be backing Microsoft.

I can't say I share this surprise. At no point did Asus switch sides.

To Asus, Linux was nothing more than a means to an end; namely, find some mechanism to make a lower-cost, small-form-factor portable PC possible. Microsoft wouldn't come to the party, either on morphing Windows to fit such a small-form-factor device (Microsoft was instead pushing Vista up that Sisyphean hill at the time), nor on price ("What, drop the price on Windows to make a cheap laptop possible? Are you nuts?").

So, Asus did something clever: they reached for Linux, which they could morph into a viable desktop environment, suitable for something like the original Eee PC, and which would also reduce their product bill-of-materials by a substantial amount, by avoiding the OEM Windows licence fee.

The Asus Eee PC was a rocketing success, perhaps the most successful new PC launched this decade. So much for desktop Linux not being viable for the masses.

If Asus had had their way, however, they would have shipped with a customised and super-cheap version of Windows. They calculated that if they could make the Eee product a success, Microsoft would come kowtowing to them, rather than the traditional power relationship of mid-tier vendors like Asus kowtowing to Microsoft.

So yes, in short, Asus used Linux as leverage cluebat, to ensure that Microsoft came to the pricing party with Windows.

And, as you can tell, it worked.

Microsoft dropped the OEM price for XP by some (to them) alarming percentage. Even more damagingly, the success of the Eee, necessitating the resuscitation of Windows XP to fill a hole that Vista could not, seriously wrong-footed Microsoft in the process - so much so that it was probably the biggest single reason for Vista losing market momentum and becoming the perceived dud that it is now.

So, here we are today.

Asus has guaranteed access to cheap Windows. It's essentially making 'netbooks' at inflated (ie, notebook) prices - none of its netbooks since the 701 model sold at a lower price. So, what's Asus market-position difference between now and 18 months ago, when it, like Acer and any number of mid-tier PC makers were Microsoft's biggest boosters, shipping nothing but PCs running Windows? Not much. So, you see, Asus never switched sides.

In reality, firms like Asus (and Acer, et al) were never, ever, pro-Linux. I'm surprised that people thought they were.

In general, the less brand-name power a PC vendor has. the more pro-Microsoft it is, as it can bank on Microsoft's brand. This is why it's much easier for IBM and HP to be pro-Linux than Lenovo and Asus.

The Asus gameplan has worked out quite well. The only thing that can derail it now are real, low cost netbooks. You know, like the dozens coming on the market later this year, all running Linux or Android on ARM CPUs...