Roughly 30 percent of Netbook sales in Melbourne — Australia’s second-largest city — involve customers requesting Linux rather than Windows, according to Geek Central, a fast-growing solution provider that serves the region. Here’s the scoop and its global implications, from The VAR Guy.
The VAR Guy, as you may have heard, left the states to visit Australia this week. While wandering around Melbourne on October 26, The VAR Guy stumbled into Geek Central. The 13-year-old company has three upscale retail locations in the area, servicing consumers while also offering on-site IT support to small businesses.
Geek Central’s store had numerous Netbooks — those low-cost sub-notebooks — on display. Fact is, Netbooks are everywhere in Melbourne, with most local retailers carrying Asus’s Eee PC.
Now for the twist: Initially, Geek Central only carried Windows XP-based Netbooks. But customer demand for Linux-based Netbooks was overwhelming, according to Mike — a Geek Central mate who gave The VAR Guy the scoop.
Within weeks of adding Linux Netbooks to Geek Central’s product portfolio, the results were startling. Roughly one-third of the Netbook sales involved Linux rather than Windows, according to The VAR Guy’s local source.
The Bigger Picture
At first glance, Netbooks are not a big channel opportunity or a big concern for Microsoft. But take a closer look. Already, Microsoft concedes Netbook sales are putting the pinch on Windows profits.
Crikey, mates: Microsoft faces a no-win scenario on Netbooks. The company must either price Windows super-low, or risk more Netbook customers embracing Linux.
And mark The VAR Guy’s words: Netbooks will push into the IT channel, especially as devices for increasingly mobile sales forces and executives who want the power of PC applications without carrying around full-size notebooks.
In fact, Netbook sales are “on fire,” according to TechRadar.com. Hmmm. Does Microsoft smell smoke?
The VAR Guy and the Nine Lives Media Inc. editorial team are blogging live from Australia October 26 through 31, while participating in a series of local managed services conferences. Note: The VAR Guy is updated multiple times daily. Don’t miss a single post. Subscribe to his newsletter, RSS and Twitter feed.
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Linux Mag says that over 40% of the sub-notebooks run GNU/Linux.
BTW, I left another comment on a previous article and it must have entered moderation.
Roy: The VAR Guy dug it out of moderation. Sorry for the delay but it’s dinner time in the land down under and a great Aussie steak was awaiting The VAR Guy.
What about Radio Rentals sales in Australia?
I wouldn’t say “demand”. Instead, there is simply a better sale rate with Australian marketers than others.
Funny. I wonder if Dell and the others will get the message?
quote::I wonder if Dell and the others will get the message?
don’t make me laugh. There’s no demand for Linux in Australia, according to Dell sales staff I’ve talked to.
Hi VAR Guy and welcome to my hometown! Yep, I read you here in Melbourne too!
Thanks for the heads-up about the Linux netbooks. Our local Linux User Group has been lamenting that they are only available in a few retail locations (much easier to find online though). Good to see retailers now openly promoting them.
Hope you have a good time in my great city! Feel free to contact me if you like
Hamish
Melbourne, Australia
Hamish: The VAR Guy is heading off to Sydney, Australia today. Sorry he didn’t have a chance to meet you in Melbourne. He was amazed by the city and its residents. Hopefully, The VAR Guy will return to Melbourne.
All the main retail outlets that sell netbooks in Hobart only appear to stock Win XP versions (apart from the Eee 701). I had to buy my Linux Eee 901 online and had to wait a couple of weeks for delivery. I’m very happy with it – works really well. So it seems that you have to go out of your way to get the Linux versions of these machines. Sort of a self-fulling prophecy – people aren’t exposed to the possibility of Linux so they don’t know it exists, so they don’t try, etc… The Eee 701 was very successful even though it was initially just Linux-based. ASUS allegedly said when they announced the retail Win XP only deal for Eee 900 and above machines – something along the lines of: “we have a relationship to maintain”. We know all know who that relationship is with, don’t we?
I’m in Chiangmai Thailand presently. The note books here are about 50-50 Linux vs XP. A notable exception is Benq which is only available with Linux.
Agh, Dell. They need to get out of bed with Microsoft. I’m sick and tired of all the large companies and retail outlets being given ‘incentives’ by Microsoft to not stock the Linux laptops – or at least to not have them displayed in their shop here in Australia.
Its a sad state we’re in. Hopefully this will all be changing in the near future.
Socceroos: Give Dell some credit. They had the nerve to preload Ubuntu the same year Microsoft launched Vista. It was the right move, but it took guts.