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Why Microsoft Should Use Its Nvidia Option
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Andrew Hornback
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Andrew Hornback,
User Rank: Apprentice
8/27/2012 | 2:16:43 AM
re: Why Microsoft Should Use Its Nvidia Option
I doubt that this will ever happen...

Let's look at the Supercomputing market for a minute. What's the basic operating system that runs on the big iron like Blue Waters? Linux, unless I'm seriously mistaken. So, Microsoft would put itself in a position to be powering some of the most powerful installations in the world, but would not have an operating system capable of running on them? That sounds like a PR nightmare waiting to happen.

Let's look at it from another perspective - Microsoft starts growing itself as a hardware producer and following the Apple paradigm. Suddenly, you're presented with the idea of two of the largest tech giants in the world creating their own monopolistic utopias: Apple products only run properly with other Apple products and Microsoft products only run properly with other Microsoft products. I'm thinking DoJ involvement, I'm thinking anti-trust filings... I'm thinking this won't happen...

Unless Microsoft agrees to divest portions of nVidia upon the purchase of the company, and even then, that could get very, VERY sticky for Redmond.

Andrew Hornback
InformationWeek Contributor
S. Kyle Davis
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S. Kyle Davis,
User Rank: Apprentice
8/26/2012 | 3:30:41 PM
re: Why Microsoft Should Use Its Nvidia Option
And what about Intel? Intel is one of Microsoft's biggest champions and best partners. Perhaps Intel's ultrabook campaign hasn't saved the PC, but it has been a huge stopgap. I don't see this happening. Sorry.
moarsauce123
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moarsauce123,
User Rank: Ninja
8/26/2012 | 1:54:04 PM
re: Why Microsoft Should Use Its Nvidia Option
Putting out a bid is not the same as using the option. MS can only use the option if someone else is offering and since there are no offers on the table this is a moot point. Besides that, buying only nVidia will only provide for a fraction of stuff MS would need to get heavily into the hardware business. Given how many challenges Dell, HP, and AMD face, doing hardware on a scale that Microsoft would need is tough. In order to make it worthwhile Microsoft would need to not only buy nVidia, but also a manufacturer with established distribution channels such as Acer or Asus. I don't see that happening any time.
Nash1945
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Nash1945,
User Rank: Apprentice
8/24/2012 | 11:47:37 PM
re: Why Microsoft Should Use Its Nvidia Option
It makes sense, but it'll never happen. It's CEO, Jen-Hsun Huang, will never let anyone else take control of his baby. He founded the company. Unlike other tech start-ups, Nvidia WAS NOT built with the goal of getting bought out. The clause was left there to as a poison pill which serves both MS's and Huang's interests.


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