Do you ever wonder how PC makers can profit from a selling $399.00 laptop? Did you know software vendors pay PC makers big bucks to load up your low-cost Windows PC with trojan horses and/or spyware disguised as “trial software”? Well, I have a story to tell you about my experience in a conference call that sheds light on this clandestine industry looking to mislead you and squeeze every penny they can from you.
What compelled me to blog about this subject started with a conversation I had with a woman about a PC decision. I was speaking with a colleague of mine recently regarding the purchase of a laptop. It is no secret that I am a Mac user and I admit to my bias right up front. I suggested a Macbook for her purchase and it amazed me that the myth of the Apple premium still prevailed in the minds of non-techie consumers.
My colleague somewhat dismissed my recommendation based on her belief that Apple computers cost more than Windows PCs for the same functionality and even cited a Microsoft commercial she recently watched on TV that proved her point. I debated whether to actually engage in this conversation with her or advise her on a Windows PC purchase and let the Mac discussion go. But, I recently had an experience with the inside workings of the PC maker market that literally made me ill and I had to share it with her and I feel I need to share it with you, too.
About three months ago, I was invited to a conference call with a MAJOR antivirus software company and another MAJOR content delivery company who has push technology products that enables marketeers to “push” communicate with users via the Window’s system tray and the applications themselves. Examples include trial software like antivirus, spyware and data back-up tools that are pre-installed on your brand new Windows PC. After a period of time, you get messages popped to you when you boot your computer reminding you to sign up online, that your computer needs protection or that your trial period is about to expire. Other examples include CD/DVD burning tools, games and photo/multi-media programs.
What was alarming about this discussion was that both MAJOR players were seeing how they could leverage the push technology to “grab” more market share in selling subscription services and upgrades by being “more aggressive” in the messaging and exploiting consumer fear over security concerns and data loss. Essentially pushing messages that tell the user that their computer is “at risk.” They were seeking higher “conversion rates” using on the fly push messaging technology to instill fear in the their users. They also made no bones about the “trojan horse nature” of what they were trying to do and laughed about the irony of the meeting topic. Yuk!
Essentially, this was a discussion about installing active, live spyware on the users Windows PC to promote anti-spyware and anti-virus software. Keep in mind that both parties on this conference call were MAJOR players in the space.
Another thing I learned is each of these vendors pay PC makers a fee to pre-install their “software” on low-end Windows PCs and laptops. This is one way PC makers are able to get prices down on the hardware they sell to consumers and why you find that Dell will sell the identical computer for less to a consumer than a small business. Essentially, software vendors subsidize the end cost of a Windows PC by paying the PC for preloading their “crapware” on your Dell or Toshiba.
This accepted business practice is outside Microsoft’s circle of control because they do not control the user experience or the hardware/software relationship (as Apple does). What winds up happening is that the Windows consumer ends up with unsecured, bloated, slow and inoperable equipment. And, the PC makers expose their customers to the seedy underbelly of the gotcha scam artists of the affinity marketing wing of software companies looking to extract more and more money from their installed customer base. All of this is without regard to productivity, innovation and the user experience.
I sincerely hope Microsoft goes after PC makers who exploit their customers this way. But, it is an age old practice that has billions in revenue on the line. So why buy an Apple instead? This is not allowed in the Apple developer world–when you buy an Apple computer, the cost is not subsidized by spyware and your computer will work just as good in a year as it did when you bought it. Sure, the initial cost may appear to be higher, but the actual end cost is likely less because you won’t need to pay for antivirus subscriptions or the GeekSquad to clean up your 30 day old Dell. If you must have a Windows computer, pay the extra money for a business level system that does not have preinstall crapware on it. If you just don’t like Apple, consider Umbuntu as an alternative. Like Apple, spyware is a “no-go” for Umbuntu or other Linux based OSs.
By the way, my colleague ended up with a Dell, but she bought the small business configuration for more money than a Macbook. LOL.
~DK
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