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States and DoJ Divided On Microsoft Antitrust Success

Posted by samzenpus on Tue Sep 04, 2007 07:46 AM
from the all-better-now dept.
Rob writes "Computer Business Review is reporting that the US Department of Justice and five States have declared themselves satisfied with the antitrust enforcement efforts taken against Microsoft despite a further seven States maintaining they have had 'little or no discernible impact in the marketplace.' While the US DoJ and five States — New York, Louisiana, Maryland, Ohio, and Wisconsin (The New York Group) — reported that the final judgments have succeeded in increasing competition to the benefit of consumers, seven States making up the California Group are not convinced."
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  • by BadAnalogyGuy (945258) <BadAnalogyGuy@gmail.com> on Tuesday September 04 2007, @07:49AM (#20463003)
    Are you more able today to buy a computer without a Microsoft OS than you were 4 years ago?
    • by gatzke (2977) on Tuesday September 04 2007, @07:56AM (#20463057) Homepage Journal

      Your questions is ridiculous.

      You always have had choices. Mac has always been there. There have always been linux shops that sell hardware. More expensive and less support, but you could do it.

      How do you define "more able" to buy something? Price? Availability? Support? Number of vendors?

      MS bundles products, closes interfaces, and forces new version upgrades. This is an abuse of monopoly power.

      IANAL, but MS was declared a monopoly back around 2000. I don't think a judge ever declared them to no longer be a monopoly, so I assume that ruling stands.

      http://www.ecommercetimes.com/story/2479.html [ecommercetimes.com]
      • by Ed Avis (5917) <ed@membled.com> on Tuesday September 04 2007, @08:18AM (#20463229) Homepage
        He didn't ask whether it is possible to buy a non-Microsoft PC. Of course it has always been possible. He asked how easy it is. This is a quite legitimate question, even if as you point out it includes several different factors such as price and number of vendors.

        It's documented that Microsoft has entered into restrictive contracts with OEMs so they pay per PC sold, whether or not it includes Windows. Also that Microsoft has threatened vendors (e.g. IBM) with an increase in the price they pay for Windows and used this as a tool to stop vendors from including competitors' software they don't like. Some of these restrictive deals were replaced with similar ones that look better on paper but are much the same in practice (e.g. paying a Microsoft tax on each PC of a certain 'model' that was sold, so if a vendor wants to exclude Windows they must print new name badges and manuals). A simple injunctive remedy IHMO would be to require that Microsoft sell Windows licences at the same price to all vendors, and that the licence be paid for only if Windows is included with the PC.

        You are quite right about the bundling of products etc. That is another example of monopoly power. It doesn't make the complaint about Microsoft preventing OEMs from offering Windows-free PCs any less valid.
        • The injunctive remedy is interesting and appropriate. Yes, it is interfering with business - but monopolies get to be interfered with, at least if we want a functioning market. And pricing Windows as a commodity would be good, overall.

          Eivind.

        • Re: (Score:3, Insightful)

          He didn't ask whether it is possible to buy a non-Microsoft PC. Of course it has always been possible. He asked how easy it is. This is a quite legitimate question, even if as you point out it includes several different factors such as price and number of vendors.

          But, the question implies that the "average user" is shopping around to get a Linux PC. As the major vendors have shown, when they offer it as an option, it rarely sells. The price benefit certainly isn't there (an average cost drop of about $5
    • Re: (Score:3, Insightful)

      You always could. Apple has been selling PCs since before most slashdotters were born. Noone is forcing you to buy a windows pc. The issue isnt whether or not non-windows computers are avaiable. The issue is whether or not MS is unfairly using its dominant consumer OS position to gain market share in other applications.
    • Actually, most definitely, yes. Apple has captured a much greater market share (particularly in laptops) than they had before the anti-trust stuff. And Linux has captured a level of popularity that I never would have expected (never would have expected to see a company like Dell selling it as an option on their systems).
      • Is that a measure of how much more easily you can by a non-Windows PC, or a measure of how much more mightily strongly people want a non-Windows PC?

        Between MS stagnation, price hikes, security and other high-profile bugs, and the growing (if still low) sophistication/informedness of PC buyers, plus Apple's tremendously popular brand (mostly boosted by iPods and iTunes), is MS any less a monopoly abuser? Or are they just keeping down an overwhelming percentage of a much larger demand, so the non-MS growth wo
    • Re: (Score:3, Insightful)

      That's not the question, though. The question is, is Microsoft still engaging in anti-competitive practices? Are they continuing to leverage their monopoly with Windows and their monopoly with Office to reinforce each other? Are they leveraging those monopolies to force users to adopt other Microsoft products? Do they have APIs in Windows/Office/Exchange that they aren't really making public in order to stifle competition? Are they continuing to use their own proprietary standards, protocols, and file-f

      • I complain about Adobe occasionally. I complain about companies whose products I think are bloated whether they are a large or small company. I couldn't give a toss if a company has a monopoly as long as they are providing a worthwhile service/product at a reasonable price. Nobody would care about MS being on top if they didn't bring out bollocks like Vista. Honestly I thought they had finally started sorting things out with XP, it's hilarious how bad the reception of Vista has been. I was worried that ever
  • Ah ha! (Score:5, Insightful)

    Well, now we know which states Microsoft has the most paid lobbyists in.

    Seriously, I don't see how the antitrust suit has had much bearing on Microsoft's behavior. They continue to act like a monopolist. Prices for Microsoft operating systems have actually gone UP, not down (despite prices for virtually everything else in their industry dropping) and their market share hasn't changed significantly in anyway -- when it has changed, it's been due to superior and/or cheaper products, such as all-in-one file servers with embedded OS, Linux, or improvements in Apple's Mac OS X.

    • Re: (Score:3, Insightful)

      Not exactly shocking to hear that California (where Apple is based) is not satisfied with the Washington-based MS's anti-trust efforts. Sad to be that cynical, but these things almost always boil down to politics over substance.
    • Prices for Microsoft operating systems have actually gone UP, not down (despite prices for virtually everything else in their industry dropping)

      The suggested retail price for Windows 3.1 in 1992 was $149.95

      Microsoft Announces Worldwide Availability of Windows 3.1 [google.com]

      Vista Home Basic Full Version [amazon.com] is $183 at Amazon.com and $139 at Royal Discount Technologies [royaldiscount.com]

      Windows is approaching one billion users on the desktop - one Windows PC for every 6.5 people on the planet. Microsoft Antitrust Settlement Is a Success [eweek.com]

      • Re:Oddly enough... (Score:5, Insightful)

        by speaker of the truth (1112181) on Tuesday September 04 2007, @08:08AM (#20463135)

        Yes they still do certain things, but many things have changed.
        And yet you haven't mentioned what they do differently.
          • Well then you could provide us a list of wrongdoing from the past, let's say, a year?

            • Re:Oddly enough... (Score:5, Insightful)

              by Eponymous Bastard (1143615) on Tuesday September 04 2007, @08:40AM (#20463451)
              Would you count tampering with ISO approval process for OOXML to standardize something only they can implement as furthering their monopoly? Suddenly they can keep locking in documents from government bodies that require an ISO standard file format

              Seriously, this has been on /. all week
            • Re:Oddly enough... (Score:5, Informative)

              by ozmanjusri (601766) <aussie_bob@ho t m a i l.com> on Tuesday September 04 2007, @08:51AM (#20463565) Journal
              Well then you could provide us a list of wrongdoing from the past, let's say, a year?

              I'll start.

              1. Claiming Linux violates 235 patents.
              2. Introduce OOXML to spike ODF, and stacking ISO
              3. Subverting Massachusetts to prevent adoption of ODF there.
              4. Novell-Microsoft agreement
              5. Preventing alternative desktop search engines.
              6. Introducing Silverlight to spike Flash
              7. Introducing XPS to spike PDF
              8. Refusing to open APIs and protocols despite EU decision.
              9. Breaking all of their own "12 tenets' before they even got started.
              There's more, but that's a good start.
              • A R G H!!! (Score:5, Funny)

                by mattgreen (701203) on Tuesday September 04 2007, @09:24AM (#20463865)
                Whenever I read a story about MS I'd always feel something change within me. It was a sort of nervous tremor, a rush of energy over me. However, it would be gone as quickly as it came. Normally, I don't think too much about it. But after reading this list, I was thrown into a blind fury, consumed by unadulterated rage the likes of which I have never unleashed from my mother's basement. Raising my fist high, I stabbed in the general direction of Redmond with a force of approximately 4.76lb of sheer brutality. The resulting shockwave from my outburst surely disrupted the evil Redmond campus, if but momentarily.

                Brothers, we must join together. Let us never forget the list of endless sins that this company has perpetuated. Egregious, dastardly sins that would make their grandmothers cry when they heard them. We must continue to fight this war! Our main offensive shall be the posting of vehement rants on community-driven websites, such as Slashdot. The sheer number of these pointed essays shall bowl over our enemies in no time! This is a battle of numbers: do not feel the need to invoke mighty weapons of logic at every turn! And, also remember, your own stories of woe relating to Microsoft are worth as much, if not more, than logical arguments.

                I trust you will not let me down.
              • The humanity! The sheer horror! I can't believe they're not standing next to Chemical Ali, most surely their crimes are far worse than his. Pfft, killing a few people. Bah. That pales in comparison to this mighty list.

                Ahahaha. Seriously, dude, you should be embarassed. As I read this, one phrase came to mind "...and get to the bad part?".

                • > Apart for 2b and 8 ( which are debatable at best), the rest seem to be normal
                  > business activites which any other for-profit organisation would undertake.

                  Perhaps, perhaps not. In any case, individuals and corporations which have been tried and convicted for criminal behavior don't enjoy the same freedom of action as those who have not.
                  • "corporations which have been tried and convicted for criminal behavior don't enjoy the same freedom of action as those who have not."

                    You've managed to gloss over anti-trust's largest problem: defining criminal behavior. Actions that are perfectly legal below a certain threshold (size, market share, popularity) run the risk of being arbitrarily declared illegal after the fact.
                    • I agree. And, that's why the majority of anti-trust remedies call for behavior changes. However, after a company, like Microsoft, has been under the anti-trust microsope for 15 years or so, they should have a good idea of what does and doesn't constitue anti-trust violations. There are, however, always going to be new issues (like suddenly, claiming Media Players are anti-trust issues).

                  • Yes, I agree. Corproations that have been tried and convicted of criminal behavior shouldn't enjoy the same freedom of action as those who have not.

                    Now, what does that have to do with Microsoft? They have not been tried or convicted of any criminal activities. Perhaps you're confusing civil actions, ie a lawsuit, with a criminal trial. The former is two private parties (or the government acting as a private party) asking a court to rule over a dispute using laws to determine the 'winner'. The only outc
                • Re:Oddly enough... (Score:5, Interesting)

                  by rtb61 (674572) on Tuesday September 04 2007, @10:09AM (#20464383) Homepage
                  OK. Lets add blatant lying about xbox fault rates, and defective design in order to extend their monopoly. Then just a few weeks ago paying off one of the studios to drop blu-ray. Then there are all the WGA lies about it working in the face of continual failures. Then the advertising about performance and stability of vista just a few weeks before they supply a performance and stability service pack. Add to that cheating on their taxes by off shoring patent royalties. Lets see, there are the crazy claims that M$ can use GPLv3 code with out being bound by GPLv3. Also there was the mother of all adware patents that uses "context data" from your hard drive to show you advertisements and "apportion and credit advertising revenue" to ad suppliers in real time. There was also that whole blatant blue jay patent theft thing.

                  Yeah, I know that's not a full year, in fact I got sick of searching /. just back to july, if you want to find the rest of the disgusting B$ behaviour coming out of redmond for the nine months prior to that look for yourself ;).

                  • Since when does Microsoft have a monopoly in video game consoles? And since when is lying about defect rates even illegal? Perhaps something related to Sarbanes-Oxley or the SEC, but not anti-trust wise.

                    Further, Microsoft is merely backing HD-DVD, they don't own it. And HD-DVD certainly isn't a monopoly either.

                    By the way, Microsoft did the right thing with the Blue-Jay thing. They invalidated their own patent. But, since you ahve an axe to grind, I suppose you'll use anything you can get. Valid, or no
  • by Anonymous Coward on Tuesday September 04 2007, @08:02AM (#20463103)
    For Microsoft it's just a business decision. If the fines for not complying are smaller than the loss they would face by complying, then they won't change anything and just pay the fine. This has happened in Europe, where they had to pay hundreds of million of dollars and elsewhere.

    This is just another example how much power they wield and how _corrupt_ some states in the US (and ofc elsewhere) are.
  • by clang_jangle (975789) on Tuesday September 04 2007, @08:04AM (#20463117)
    The nature of our current government makes a mockery of the FTC and anti-trust regulations. How can we reasonably expect anti-trust regulation from a federal government which is almost entirely composed of corporate henchmen?
    • Re: (Score:3, Informative)

      You're between a rock and hard place. If you believe that Firefox usage is up, and that other players have significant say in the media player business, then you're buying that the world is more competitive than it was 8 or 9 years ago. And you agree with the "corporate henchman" at the DoJ.

      If you believe market share should be the only indicator of whether injunctions have worked, and you won't be satisfied until Microsoft has some percentage (let's say less than 50%), then it really won't matter what h
      • I firmly believe the only reason that Microsoft still has dominance in the desktop OS market is because people are comfortable with the software that runs on their OS, and they stick with it.

        Microsoft still forces PC makers to only selling Windows PCs. If they try to sell PCs with non-Windows OS they are denied any discounts on MS products. This lowers the profit margins on a PC by a lot.

        Unless you're up for government mandating that all citizens stop using MS Office, or playing games on their computers,
        • Steps should be taken to break the monopoly and give customers more choice.

          How, exactly, does the government preventing people from using a line of products from a manufacturer give the customers more choice? I'm all for, potentially, forcing Microsoft to pay for some advertising for some other options to their ubiquitous office and media applications, but forcing people to stop using them...
        • Microsoft still forces PC makers to only selling Windows PCs. If they try to sell PCs with non-Windows OS they are denied any discounts on MS products. This lowers the profit margins on a PC by a lot.

          Linky? I'm sure you have evidence for this?

          That is exactly what the government should do. If a company is abusing a monopoly, they should be made to suffer financially until their behaviour changes. Steps should be taken to break the monopoly and give customers more choice. If MS doesn't like it they shou

      • I firmly believe the only reason that Microsoft still has dominance in the desktop OS market is because people are comfortable with the software that runs on their OS, and they stick with it.

        MS Office is the main reason people continue to use Windows. That's why Microsoft is so desperate to get OOXML made standard by ISO. They need to maintain their office document lock-in in order to maintain their desktop OS marketshare. If ODF takes over, then people would have choices about what office software to use, and they would all be able to read and write documents created with other office suites and applications. Then people could choose other platforms to run those applications on. That wou

  • by wombatmobile (623057) on Tuesday September 04 2007, @08:28AM (#20463341)

    Microsoft's continued abuse of its monopoly for operating systems is clearly apparent in its failure to implement web standards in IE.

    Smaller browser vendors with vastly less funding have made giant strides in their implementations of CSS, SVG, mathml and DOM. Microsoft has done as little as possible to implement those standards, but somehow has found the resources and the rationalization to implement SilVerliGht, which is a stolen, bastardized clone of SVG.

    Unlike 10 years ago, the world has moved past its reliance on Microsoft to embrace other vendors products willingly. No wonder IE's market share continues to fall precipitously.

    • "Unlike 10 years ago, the world has moved past its reliance on Microsoft to embrace other vendors products willingly. No wonder IE's market share continues to fall precipitously."

      So then you agree with the DoJ and the 5 states that the thing they did vis-a-vis Microsoft worked? Good, glad to have that settled.

      All of you whiney fan-bois and grrls should take a step back and realize what it is you are admitting when you say the stupid things that you say. If the things MS makes are 'defectivebydesign', th
      • If MS can't innovate, can't implement standards, can't make stable systems, then some other system will win. If closed source is such a bad model, then some other system will win.

        The problem is that for the longest time, Microsoft has been the standard. Now that there are other possible standards out there that are becoming available, Microsoft is doing all it can to corrupt the process and prevent countries, states and other organizations from adopting and implementing those standards, using any means at its disposal, legal or illegal, ethical or unethical.

        • "Microsoft continues to use its o/s monopoly to skew the browser market by bundling IE with every copy of Windows. The fact that IE's market share is falling only proves how unsatisfactory consumers find Microsoft's offering."

          So then, the whole DoJ thing vis-a-vis microsoft is either working or unneccesary? Or you want it both ways?

          Anywhile, what killed Netscape was trying to move into the browser/email/swiss-army-knife market. What a pig! Every modern OS distro comes with a browser. Phones have the
      • The option is obvious of course. To adhere to standards they haven't stolen. Or are you trying to claim that Microsoft hasn't been tampering with the standard approval process?
              • Re: (Score:2, Insightful)

                "First, it criticizes Microsoft for ignoring or failing to implement standards. Then, it criticizes Microsoft for participating in the standards process and implementing standards."

                Nowhere does anyone criticize Microsoft for implementing standards because they simply haven't implemented standards .

                The OP criticizes Microsoft for implementing a "bastardized clone" of a standard, which is not the same thing as a standard. It is the obverse of a standard.

                When browser vendors all implement the s

      • Following standards without messing with the standardization process (though participating in it as an ethical member), of course.

        Or, barring that, sitting down and dying. If they can't be a responsible corporate citizen - which I'd prefer - they should die. Even if that requires that they just get shut down by the government.

        Eivind.

  • by tbannist (230135) on Tuesday September 04 2007, @08:37AM (#20463421)
    Really the Department of Justice deliberately bungled the law suit, and now they have no choice but to claim it's a success till the bitter end. The last thing they want is yet another investigation into official mismanagement and White House interference in a anti-trust case. Immediately after Bush was elected they pulled all senior DoJ staff off of the case and left only a few inexperienced lawyers (from that Bible School they're so fond of hiring from) on the case.

    They had Microsoft up against a wall, and then suddenly they were best buddies with Microsoft and nothing had ever really been wrong in the first place. It was sickening and another black eye for the United States, but if at any point the DoJ admits that it's unsastisfied with the results, it opens up an old can worms for the house or the senate to investigate.
    • Re: (Score:3, Insightful)

      They had Microsoft up against a wall, and then suddenly they were best buddies with Microsoft


      Elections have consequences.
  • Well. (Score:3, Interesting)

    by Renraku (518261) on Tuesday September 04 2007, @09:06AM (#20463695) Homepage
    Who do you turn to when the courts and states themselves are playing corporate favoritism? Can you sue the state, or is it time to bring out the soap box/ballot box/ammo box?
  • by jkrise (535370) on Tuesday September 04 2007, @09:26AM (#20463889) Journal
    I think extreme situations require extreme measures, and it is clear that the anti-trust control measures are not only ineffective; they are actually a suit of armour for Microsoft to further abuse their monopoly power. The world has close to a billion PCs now; that's a huge number given there's about 6 billion people. If the US will not act, and the EU will not be allowed to act... bodies like the ECMA and ISO will be subverted; then someone else has to take up the fight to bring justice.

    More worrying than the monopoly is the fact that the PC burns much more power and is inferior as a platform compared to even small devices like cellphones, game devices and appliances. The failure of the OOXML fast track process shows that there is still hope, if only the whole world can act in concert. I suggest some measures to bring speedy correction in the PC industry:

    1. Any component of the PC that does not conform to published, patent unencumbered standards must be taxed - this includes processors, video cards, winprinters, winmodems, audio devices, DRM chips, TCPA engines, kernels, hypervisors, operating systems, word processors etc. etc. The tax must be high enough to deter unscrupulous mfrs. to dictate their 'default' standards and abuse their positions to the detriment of the platform, the consumer and the market. A 30% tax should be levied for starters, and the corpus must be used to fund devleopment of 'free' alternatives in each segment above.

    The recent network 'penalty' while playing system sounds in Vista is a case in point. Could Microsoft have got away with a 'published' audio device and driver architecture under a transparent benchmarking system? Who will compensate for the 'defective' protected media path architecture? Will the h/w mfrs freely replace their buggy cards with better performing ones? Countries other than the US must force them to do so.

    2. Patents must be abolished in the PC industry - it is clear from the unholy MS - Novell alliance that even the biggest firms cannot enforce their patents, and they actually hinder innovation; and encourage cartels. The EU and several other nations do not still recognise s/w patents; the 15 year lifespan for a patent is absurd even in the h/w industry where monopolies can be built up in undre 5 years.

    3. International standards need to be evolved that govern the use of the internet - it is too big and valuable to be subject to the machincations of a toothless US commerce agency. Companies that actively or passively contribute to the abuse of the internet must be punished and / or taxed. For instance, is a particular OS is the platform of choice for botnets, then the mfr. of the OS must fix the problem within a reasonable timeframe, or else open the source so the community will fix it themselves.

    The proceedings in some of the standards bodies on the OOXML vote shows that they can govern the IT industry better than the anti-trust agencies. I tihnk they must be allowed to have a say, now that the US bodies have failed.
  • 1) Microsoft has kept on supplying Windows to computer makers who offer a non-Windows option.

    2) Microsoft has allowed hardware vendors to live who offer non-Windows drivers for their hardware.

    3) Microsoft has not forced hardware and software vendors to exclusively use Microsoft protocols and standards.

    4) Microsoft lets the user install software on their Windows sytems such as Open Office and Firefox that competes with Microsoft software.

    5) Windows users don't have to pay a 'per minute' charge to use their s
  • by Dark Fire (14267) <clasmc@NOSPaM.yahoo.com> on Tuesday September 04 2007, @09:30AM (#20463925)
    Is it possible that the reason that Dell, HP, and Lenovo are now offering desktop PCs with Linux has little to do with Linux and it's merits and more to do with the fact that the antitrust enforcement against Microsoft is about to expire and is up for review/renewal. OEM bullying to lockout competitors was one of the biggest complaints against Microsoft. But since the big 3 desktop PC vendors are selling Linux, the measures slapped on Microsoft have obviously worked and are no longer needed.
  • OEM Madness (Score:3, Insightful)

    by organgtool (966989) on Tuesday September 04 2007, @09:33AM (#20463959)
    What annoys me is how most organizations focus on the inclusion of Windows Media Player and Internet Explorer in Windows despite the bigger antitrust violations that Microsoft has been commiting for years. Probably the worst antitrust offense Microsoft is commiting lies in its OEM license terms for Windows. Companies large and small rely on the huge discount that comes from selling OEM versions of Windows on their hardware, but the license terms prevent those vendors from selling PC's with no operating systems installed on them as well as PC's set up to dual boot Windows along with any other operating system. Yes, I know that FreeDOS has been used to work around the former of those problems, but regardless of the effectiveness of these tactics is the fact that Microsoft attempts to use such anti-competitive practices and the fact that they are always overlooked.

    And on a slightly different note, could the fact that Windows is the only operating system that doesn't have a boot loader with the capability to load other operating systems be considered anti-competitive? Linux has had this feature for many years and even OS X supports dual-booting Windows, but Windows simply overwrites the MBR and renders all other installed operating systems to be unbootable until a recovery disk is used to repair the boot loader.

    And finally, my biggest complaint about the EU and the US DOJ is that they fined Microsoft for including WMP and IE in Windows, but they have made little to no effort to "vote with their wallets" and use other operating systems. If they really found Microsoft's tactics to be anti-competitive, they could back up their statements by at least considering the use one of the many viable alternatives to Windows. Instead, they issue a fine while continuing to use Windows (hypocrites?) and make themselves look like a bunch of greedy grab-asses out to get a piece of the Microsoft pie. EU and US DOJ: actions speak louder than cheap (relative to Microsoft) fines.
    • Companies large and small rely on the huge discount that comes from selling OEM versions of Windows on their hardware, but the license terms prevent those vendors from selling PC's with no operating systems installed on them as well as PC's set up to dual boot Windows along with any other operating system

      The market for the "naked" PC is essentially that of the purchase order in units of 100 to 1000.

      In the home and SOHO markets the OEM system install has been the gold standard in retail for over twenty-fi

      • It is essentially an admission that your primary OS doesn't support all the software you need to do your job.
        Unless you use Linux to do your job, and Windows just for games and other less essential stuff. If you're spending the money for a PC, then you're going to want it to be able to do all the things that you want to do with it. Microsoft makes that difficult at best.
  • .... they are hoisting the "Mission Accomplished" banner as we speak (post).
    • 4. Vista is a buggy, expensive POS. It will become the OS of 90% of personal computers within five years anyway.

      Actualy I don't hold that against them as an anti-trust point. The projection of 90% is maybe a little optomistic. Vista is driving Apple, Ubuntu, and even XP as alternatives to the OS with bugs.

      My dad bought a Mac. I upgraded 4 older machines of mine to Ubuntu. My wife got a Vista Laptop for her Masters classes. I found out the hard way in the first day some of the bugs. It started simply.