Wednesday, June 3, 2009

Isn't it time to separate the bundles?

Something that people might not know, is that when you buy your computer it is bundle combination of hardware; box, monitor, keyboard and mouse, and software; Microsoft Windows(TM), Office(TM), Games etc.

This bundling gives the perception that the software component comes free with the computer when in reality it is provided under an OEM (Original Equipment Manufacturer) agreement. This is an agreement where the supplier gets a significant discount on Microsoft(TM) software under certain conditions. Unfortunately one of those conditions is that they offer Microsoft software on the 'majority' of their computers.

According to the following link: Microsoft OEM, it is as I suspected, that Microsoft uses its strong position in the market to further bolster its market position. It is also a well known fact that Microsoft was charged for criminally abusing its position as a Monopoly.

Imagine going into the Burger King(TM) and saying "Can I have a Whopper(TM) with cheese?" and being told "Sorry we don't do burgers on their own, you need to take the fries and the drink and that will be $7.95." That doesn't happen because the prices are itemized and you know that you burger should cost $4.50, the fries $1.50 and the drink $2.50 (yes you get a better deal with the bundle but that is not the point). However this is the scenario that your faced with when you go to buy your computer, you get offered the bundle and no other options.

There are a variety of Software alternatives available out there and without much thinking I can name at least three, FreeBSD(TM), Open Solaris(TM), and Linux(TM), all of them install and run on your computer without much effort. Most come with a stack of free software that will allow you, the average computer user, to do everything that you need to do with your computer. Otherwise you might just be happy with your copy of Windows XP Professional that you paid for and don't want to upgrade to the next version of Windows yet.

Isn't it time for the ACCC (Australian Competition and Consumer Commission) to regulate computer retailers so that they include the individual prices in their bundles and allow for us the consumer, to reject any component of that bundle, including the software? After all it isn't acceptable with the burger, why should it be acceptable with the computer?

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