02.02.07
Intel-Dell Kickbacks Lead to Thinking About Exclusionary Contracts Affecting Linux
We would like to use this space to announce—or at the very least share—what I believe to be breaking news. Let us discuss an issue which indirectly involves Novell. It is also one that involves a broader scope.
The famous trio that is Dell, Intel and Microsoft seems tighter than ever, owing to the trial in Iowa, among other factors. Evidence of kickbacks are resurfacing. Dell, which has just welcomed Michael Dell (he takes the throne again), sinks in deep mud rather quickly.
Investors sue Dell on payments from Intel: WSJ
An investor lawsuit seeking class-action status accuses Dell Inc. of improper accounting in its relationship with chip giant Intel, according to a media report published Thursday evening.
[…]
The suit alleges that Dell received at times as much as $1 billion a year in “secret and likely illegal” kickbacks in the form of “e-Cap” or “exception to corporate average pricing” payments” from Intel to ensure that Dell used no other chip supplier, according to The Journal.
Here are some stories which could serve as partial and incomplete proof that Dell, Intel, and even Microsoft have been excluding their competitors. They have also cut Linux out of its ‘air supply’, as Microsoft once referred to it, over the many years (the links at the bottom).
On Intel-AMD-OEM(Dell) affairs:
- E.U. investigators want formal charge against Intel: report
- EU antitrust experts seek charges vs Intel-source
- Intel profit down 39% as price cuts, spending crimp margins
- Henri Richard: AMD’s bad guy
- AMD spells out what it wants from Intel
- AMD claims key victory in Intel antitrust suit
- AMD says court seeks data from Intel in antitrust case
- Court tells Intel to hand over foreign documents in antitrust case
On Microsoft-Linux-OEM(Dell) affairs:
- Dell’s secret Linux fling
- Jury Hears Microsoft Competition Suit
- Microsoft’s Dirty OEM-Secret
- Microsoft ‘killed Dell Linux’ - States
To Novell — be aware who you’re messing with.
Jim Allchin, who has just retired from Microsoft, said it best:
Here’s part of what Allchin said about how to deal with the competitive threat from Novell then:
“We need to slaughter Novell before they get stronger….If you’re going to kill someone, there isn’t much reason to get all worked up about it and angry. You just pull the trigger. Any discussions beforehand are a waste of time. We need to smile at Novell while we pull the trigger.”
Highlight: Novell was the first to acknowledge that Microsoft FUD tactics had substance. Novell then used anti-Linux FUD to market itself. 
Highlight: Xandros let Microsoft make patent claims and brag about (paid-for) OOXML support. 
Highlight: Linspire's CEO not only fell into Microsoft arms, but he also assisted the company's attack on GNU/Linux. 
Highlight: Microsoft craves pseudo (proprietary) standards and gets its way using proxies and influence which it buys. 
Highlight: The invasion into the open source world is intended to leave Linux companies neglected, due to financial incentives from Microsoft. 
Analysis: Xen, an open source hypervisor, possibly fell victim to Microsoft's aggressive (and stealthy) acquisition-by-proxy strategy.