When you have to kill a man it costs nothing to be polite - Winston Churchill
THE VOLE'S attempt to force students in India's state of Tamil Nadu to buy Microsoft Office has backfired and they'll be getting laptops running Linux instead of Windows.
Electronics Corporation of Tamil Nadu (ELCOT), India's southernmost state, acts as the volume purchasing agent for the state's student population. It says it will buy more than 100,000 laptops this year and sell them to students at a discounted price of about $800.
ELCOT says it asked Microsoft to submit a bid to sell it copies of Windows for its student laptops. It expected to pay about $12 per copy for Windows, a price that's not out of line with the deals Microsoft has reportedly made with other volume purchasers for academic use in developing countries.
Microsoft declined to offer ELCOT a bid for the Windows OS alone. Instead, the company only offered to sell Windows and Office bundled together for an 'academic discount' price of $57. ELCOT says it rejected Microsoft's offer because, "such bundling could result in serious exploitation of the consumer."
ELCOT now says it recommends Linux. The organisation's website says that it has been "using SUSE Linux and Ubuntu Linux operating systems on desktop and laptop computers numbering over 2,000 during the past two years and found them far superior as compared to other operating systems, notably the Microsoft Operating System."
Like other PC volume buyers, ELCOT knows that it has software alternatives available, including not just operating systems but also office applications software, some of which implements open standards and is available at no cost, including Open Office and others, even web browser-driven online applications available over the Internet like Google Apps.
By trying to dictate terms and to force ELCOT to accept MS Office software it didn't want, it certainly appears that Microsoft has lost a sale and 100,000 users this year alone. ยต
See Also
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Linux-Watch
Isn't that IRONIC, SINISTER, DESPICABLE?

ELCOT first go to M$; But, they already know that the can get Linux for FREE... "(which they already have been using during the past two years and found them far superior as compared to other operating systems, notably the Microsoft Operating System.)"

Then, M$ denies ELCOT offer of $12 a copy for Window$. "ELCOT says it rejected Micro$oft's offer because, "such bundling could result in serious exploitation of the consumer."

It's great that such things happen to Sucker$ like this... ELCOT should have never gone there in the first place.
When Are We all going to Learn?
About mid 2005, When SP1 finally stabilized this Machine, I found NON Enumerated Linear code, NOT So Worth Effort. So Ordered LINUX Boxes Built, There Built by Entirely Different Consortium of Chip & Processor Venders, Latter Migrating to Combo Platforms of Linux/microsoft thru chipset 5XX.

Why? LINUX Teaches UNIX Code by Default. If You Want To Learn Computing, AND WHO DOSN'T,you Need Linux or better, straight UNIX.

So Indias' getting GOOD Chance To Help Educated Citizens Move Up with Code Base That is Very Long Term, TELCO.

Similar to 1998, When Disclosing Work I Did inventing XML Platform at George Mason University(In 1985/6) & How its Built On concept of Removing Identifier Markings, microsoft, Another One of My Ideas from Early 1960s'(While in earliest of Preperation stages, very PreMicrosoft, Gatesable, Ballmerable,et.al from Home)gave power in 1998 Still Had Punche
to Encourge Dropping Hyper Text Mark Up Language, Due to SLOW Text(NOT Gaming) Base & In Just FEW Months XML Was Announced, Taking about 4 Years To Complete.

I Wish theINQ had Such Powers, Yet Alas, We're NOT Speaking Quality, Its Mere Exploit Money Bags, Bag. Or should I Say Rag, Yet Fun Rag.
Linux Be Glad, Your Monies will PAYOff 1,000 times More With Unix/Linux for Students as Peer Into WHATS Hardware Building & Software Hacking.
TS drashek
So what happened here?

Probably ELCOT wanted to use OpenOffice to save some $45 per Laptop. Microsoft didn't like to lose the Office money bundled it with Windows and told them it's all or nothing.

And nothing was selected.

Microsoft gambled and lost that round. It'll be interesting to see whether those Laptops really will run Linux or if Microsoft makes another offer.
Your missing the point of MS software.
If people learn about computers then they will be able to use them efficiently. They will be able to use their computers to do what Leo could do nearly 50 years ago - computerise their business!
If you computerise your business then you dont need $700 worth of software on every desk.
MS software is there to dumb you down and provide an easy route to your funds for them.
If your plumber demanded monies so your curtains (drapes) were compatible with your boiler you'd laugh at him. MS encourages the attitude of paying them for an incomplete curtain hanging protocol.
This really shouldn't be surprising to anyone... Windows (non server variants) has been sold at a massive discount to pull people into office. Office is the money maker, Windows is the 'gateway drug' so to speak. If anyone took a serious look at unadulterated books... Sigh... They would notice that MS's operating system 'division' would be in the red or break even at best; while office is the cash cow... IE pushes windows, DirectX, same deal; own the OS and push all the other bits at high prices. 

Office and Windows go together like Console games and console.. Same business plan... cept its not really working anymore. 
Trust me Chris!

None of these laptops will run Linux eventually. All of them will run Windows-- but pirated, non licensed
@Ram, trust me. All these laptops will continue to run Linux... and most of them will run pirated Windows. Bcos ELCOT is bundling virtualization software and a host of open source goodies with this laptop. Infact you can buy this $700 PC purely for the software bundled, without compromising on hardware. It is core2duo with 2gb.