Dell helping Canonical become profitable

When the Dell/Ubuntu deal was first announced, many people speculated on the financial impact to Canonical. The behind-the-scenes details are still not available, but I was able to glean some information from the Dell website as I customized an Ubuntu machine.

As you can see below, Dell is selling support contracts through Canonical. They are offering terms ranging from 30 days to 1 year of support. If you compare the Dell prices to the official Canonical support prices, you will find that one year of support costs $250 direct from Canonical, and $275 if you buy it bundled with your Dell machine.

I wonder how much of that $275 goes to Dell, and how much goes to Canonical. At first glance, you might guess that the $25 increase could be Dell's cut for selling the support contract for Canonical. But Dell is also going to be providing hardware support, so I expect more than $25 is going to Dell. Even so, I expect the amount of revenue coming to Canonical via Dell will dwarf any previous amounts that Canonical has been receiving. Good for you Mark!

*******************************************
Dell provides hardware support only. Software support is available through Canonical and Linux Community.

Ubuntu Desktop Edition version 7.04 [Included in Price]
May delay your Dell Dimension E520N ship date
Ubuntu Desktop Edition version 7.04 with 30 days of Starter support [add $65 or $2/month1]
May delay your Dell Dimension E520N ship date
Ubuntu Desktop Edition version 7.04 with 1 year of Basic Support [add $125 or $4/month1]
May delay your Dell Dimension E520N ship date
Ubuntu Desktop Edition version 7.04 with 1 year of Standard support [add $275 or $8/month1]
May delay your Dell Dimension E520N ship date

*******************************************

Comments

  1. Anonymous5/24/2007 11:44 PM

    What does it matter for you how much each company will get in each one support contract?
    Let they make their money and everybody will win with it, including you. Do not make it a 'commertial play' around the favarable moment.

    ReplyDelete
  2. Anonymous6/14/2007 12:20 PM

    Hello,
    I'm the web-master of Free Penguin,
    I've seen your space and I like it, congratulations!
    If you want we could link each other with a banner o with a simple link.

    My web-site is www.freepenguin.it

    I'm waiting for your reply!


    Free Penguin - Free as in Freedom

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