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Nicholas Negroponte, founder of the OLPC project  (Source: www.olpcnews.com)
More Intel and OLPC drama drags out

OLPC' mission is to provide needy children with laptops, but the focus of public attention on the project these days is on its temperamental relationship with CPU chipmaker Intel. 

First OLPC decided to split with Intel due to Intel's insistence on developing its own small form factor, low cost computer dubbed "The Classmate PC."  Then OLPC's founder Nicholas Negroponte changed his mind and reached out to Intel, and the two restarted their relationship.  Intel even was set to unveil a new low voltage processor at CES 2008, to compete with and possibly replace AMD's Geode processor in the next generation OLPC products.

However OLPC again demanded Intel drop its Classmate PC work, or risk removal from the project.  Intel decided to quit the OLPC's Board of Directors, effectively quitting the project yet again. 

Now in a scene familiar to anyone who's been in an off-again-on-again relationship,  OLPC again reversed course and said it would welcome Intel back with open arms should the chipmaker return.  OLPC also refuted Intel's public statements that it had threatened the chipmaker to get it to drop the Classmate PC.  OLPC completely denies these allegations, saying it supports the Classmate PC initiative.

Nicholas Negroponte in an interview stated, "It was very unfortunate what happened with Intel, and I hope there's a way of rebuilding it in the future because there's no interest in OLPC pushing Intel out. It just is not in our interest. Our goal is to get this to as many children as possible."

He said Intel's statements were misleading and that OLPC's hands are clean. 

"The picture that painted was one of OLPC being anti-competition, which is ridiculous. We'd like to see as many laptops out there as possible and kids have the widest choice possible," he stated.

Agnes Kwan, an Intel manager, stated that Intel was willing to discuss terms of renewing their partnership.  However she clearly stated that the bad blood between Intel and OLPC remain unresolved, alluding to internal OLPC grumblings about the Classmate PC program.

OLPC, while a noble concept, faced significant struggles in 2007.  It originally aimed to release extremely low-priced $100 laptops for children in developing nations.  However, costs skyrocketed to the point, where the current cost has almost doubled to over $188. 

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Some more info
By Amiga500 on 1/10/2008 10:16:18 AM , Rating: 2
A few people could probably do with reading this:

http://www.nytimes.com/2008/01/05/technology/05lap...

SAN FRANCISCO — A frail partnership between Intel and the One Laptop Per Child educational computing group was undone last month in part by an Intel saleswoman: She tried to persuade a Peruvian official to drop the country’s commitment to buy a quarter-million of the organization’s laptops in favor of Intel PCs.

In Peru, where One Laptop has begun shipping the first 40,000 PCs of a 270,000 system order, Isabelle Lama, an Intel saleswoman, tried to persuade Peru’s vice minister of education, Oscar Becerra Tresierra, that the Intel Classmate PC was a better choice for his primary school students.

Unfortunately for Intel, the vice minister is a longtime acquaintance of Mr. Negroponte and Seymour Papert, a member of the One Laptop team and an M.I.T. professor who developed the Logo computer programming language. The education minister took notes on his contacts with the Intel saleswoman and sent them to One Laptop officials.

So Intel do the dirty and the OLPC group are being painted as the bad guys here?




RE: Some more info
By masher2 (blog) on 1/10/2008 10:22:55 AM , Rating: 5
> "Unfortunately for Intel, the vice minister is a longtime acquaintance of Mr. Negroponte "

That sounds like a conflict of interest right there. Passing on sales offers from one potential vendor, back to a different one, and one you have a personal relationship with? That'd get you fired in any decent corporate environment.

Again-- if OLPC truly is dispassionately interested in seeing these children get the best resources possible, why would they care if Intel gets the sale, rather than them? Instead of acting like a non-profit agency, OLPC seems excessively worried about "competition".


RE: Some more info
By Amiga500 on 1/10/2008 11:15:43 AM , Rating: 4
Yeap, it does appear to be a conflict of interest. Doesn't change the fact that Intel tried to get the buyer to renege on a previous agreement though does it?

As you well know, increased production will drive down the cost of the OLPC computer.

Intel can churn its classmates out at a loss for years - heck, it could give them away to 2nd/3rd world countries for free if it really wanted to.


RE: Some more info
By masher2 (blog) on 1/10/2008 11:22:05 AM , Rating: 5
> "Doesn't change the fact that Intel tried to get the buyer to renege on a previous agreement though does it?"

And what's wrong with that? Its the job of salespeople to sell their own product. If their product really is better for the people of Peru, their education minister has a duty to buy it. Assuming there was no formal contractual commitment to OLPC, I don't see anything wrong here.


RE: Some more info
By tallcool1 on 1/10/2008 12:15:46 PM , Rating: 4
quote:
Intel saleswoman, tried to persuade Peru’s vice minister of education, Oscar Becerra Tresierra, that the Intel Classmate PC was a better choice

If Intel was onboard with the OLPC project at the time this occurred, then thats kinda underhanded IMHO. If they where never a part of OLPC, then I would just call it fair business.


RE: Some more info
By mindless1 on 1/10/2008 2:18:26 PM , Rating: 2
Yes, this reeks of Intel being just interested enough to try to get info on the project to compete against it.

IMO, Intel is looking at this like a business venture instead of a way to help the kids. We know how these things work, the low entry cost is never the whole picture it's just a sales pitch. Unfortunately for OLPC, they too had rising costs working against them but frankly Intel needs to see how bad this looks on them and if they can make a contribution, that really should have been part of the OLPC program.

If Intel wants to market their low cost notebook just leave the OLPC markets alone till the OLPC project has run it's due course.


RE: Some more info
By TomZ on 1/10/2008 2:43:46 PM , Rating: 2
quote:
If Intel wants to market their low cost notebook just leave the OLPC markets alone till the OLPC project has run it's due course.

So less choice for buyers is better for them? How did you arrive at that?

No, let's encourage more competition - it creates better buying opportunities, even between hippie non-profits and suit-coat wearing corporates. At the end of the day, the customer will decide what is best for themselves.


RE: Some more info
By mindless1 on 1/12/2008 12:34:23 PM , Rating: 2
You seem terribly confused, this is not a typical business, marketing scenario. Rather it is one where a lot of charity is being given to end up with something benefitting children (hopefully, though this is a separate argument).

No the nonense about competition and better buying opportunities does not apply here. What is needed is a universal platform not a hodgepodge of many different types of basic systems. There are the support, repair, software and many other issues. Ultimately the ideals of what a vast economy with end users having money to support are not what applies in the OLPC target user group.

IF Intel had liked to lead on this program or it had been based around Intel hardware, that might have worked fine as well providing it still met the criteria.

At the end of the day as you say, the customer is not deciding what is best for themselves because the customer is not the user in this case.

It's real simple, either help the program or at the very least don't hurt it. A lot of people are trying to do the right thing and it would be stupid to waste this opportunity for needy children regardless of how much or little difference it ends up making, as the difference is something we can only see later.


RE: Some more info
By Oregonian2 on 1/10/2008 3:14:17 PM , Rating: 1
Intel was part of the OLPC only for 6 months or some such.


RE: Some more info
By Oregonian2 on 1/16/2008 2:31:45 PM , Rating: 2
Intel joined in July 2007:

http://www.infoworld.com/article/07/07/13/Intel-jo...

And quits at the end of 2007

http://www.xbitlabs.com/news/other/display/2008010...

My memory of six months was correct.

Just wanted to be sure.


RE: Some more info
By Oregonian2 on 1/16/2008 2:38:51 PM , Rating: 2
Point being, btw, that it's not like Intel has been with them from the beginning and had abandoned all of their own projects in order to have their initiatives be only under rule of the organization. It was a quickie, so they as an independent supplier of computers to the poor still was the same as it ever was.


RE: Some more info
By 16nm on 1/10/2008 11:35:07 AM , Rating: 3
quote:
Intel can churn its classmates out at a loss for years - heck, it could give them away to 2nd/3rd world countries for free if it really wanted to.


I would think they would be investigated and probably fined for doing that.


RE: Some more info
By Master Kenobi (blog) on 1/10/2008 11:36:20 AM , Rating: 2
Yea, I think it would get hit with Dumping or Predatory Business Tactics.


RE: Some more info
By TomZ on 1/10/2008 11:59:52 AM , Rating: 2
I'm not sure about that - after all, OLPC is selling their stuff at cost or maybe at a slight loss. Seems like the same thing to me.


RE: Some more info
By Master Kenobi (blog) on 1/10/2008 12:22:07 PM , Rating: 2
OLPC I believe is classified as a non-profit organization. Intel is classified as a corporation.


RE: Some more info
By TomZ on 1/10/2008 1:11:35 PM , Rating: 2
That's purely a tax distinction - non-profits have to still follow the same laws as corporations, AFAIK.


RE: Some more info
By Master Kenobi (blog) on 1/10/2008 1:27:56 PM , Rating: 2
Not on the international level......


RE: Some more info
By eye smite on 1/10/2008 1:34:35 PM , Rating: 2
Is this really shocking anyone though. Intel has always been underhanded in their business dealings and strong armed their way with partners for a long time. It doesn't surprise me at all that they have unscrupulous and unethical people trying to undercut deals of others for them.


RE: Some more info
By TomZ on 1/10/2008 1:51:53 PM , Rating: 1
I don't see that - all I see is a business and/or salespeople agressively pursuing a sale. That's normal for most businesses. I don't see anything unethical or underhanded.

Maybe you just don't like successful businesses for whatever reason.


RE: Some more info
By JustTom on 1/10/2008 11:52:43 AM , Rating: 2
quote:
Intel can churn its classmates out at a loss for years - heck, it could give them away to 2nd/3rd world countries for free if it really wanted to.


Heck, they can afford to give people $10 for taking them, it doesn't mean they are.

From the NY Times article.

quote:
In a telephone interview Friday, Mr. Tresierra said that his government had asked Intel for a proposal for secondary-school machines, and it had responded with a proposal offering the Classmate PC for primary grades.


So it seems Intel was approached to possibly provide laptops for the secondary school market and the saleswoman tried to sell them units for the primary school market at the same time,yawn big deal.

The thing I found most interesting from the Times article was this...
quote:
The relationship first frayed seriously in October, he said, when an Intel salesman gave a Mongolian government official a side-by-side comparison of the Classmate PC and the XO.

Intel's mistake is it had no business being in the OLPC group, not that it is competing with it. And frankly, since the classmate machine costs almost twice as much as the OLPC machine I am not sure there is room for both to exist.


RE: Some more info
By Master Kenobi (blog) on 1/10/2008 10:30:23 AM , Rating: 2
Because the OLPC Project is a sham. Anyone who seriously thinks giving laptops to people who don't even have a respectable school system will somehow help the kids learn better are suckers. The medium doesn't matter, its the teachers and the programs in place to educate that matter.


RE: Some more info
By FITCamaro on 1/10/2008 10:35:56 AM , Rating: 2
Don't forget parents to encourage the kid to get an education.


RE: Some more info
By Amiga500 on 1/10/2008 11:17:24 AM , Rating: 2
I think the idea of the OLPC is to provide an electronic book that is useful primarily as an educational tool, and only useful as a computer.

*Apparently books are being burnt for starting fires in many of the countries in question. :-(


RE: Some more info
By SilthDraeth on 1/10/2008 11:22:57 AM , Rating: 2
America does not have a respectable school system. I didn't respect it when I went to school, and now I work in the IT department for a school district, and I respect even less. Schools are supposed to be about the children, but the school only seems to care about how much money the children bring to the school.

One example, a nurse was doing head lice inspections at a school, and they had had to send home like 1/3rd of the students. (School is in a lower income town, and district.) The nurse got told to stop the examinations, because if any more students got sent home, the school would lose way to much money.

I mean what heck is that about.


RE: Some more info
By TomZ on 1/10/2008 12:02:00 PM , Rating: 2
That's a broad generalization you're making there. There are lots of fine schools in America, as well as some that are not "fine." On average, our schools are good but there is clearly room for improvement.


RE: Some more info
By stmok on 1/10/2008 6:28:27 PM , Rating: 2
quote:
Because the OLPC Project is a sham.


Yeah, I'm starting to get that feeling.

I bet, the original goals of the project will disappear as time goes on.

It would be better just to use that money for developing a sound infrastructure for communities and education, than on a Fisher-Price toy.

At least it played an influence in the Western world. Devices similar to it are popping up in the last few months. (ASUS, MSI, Everex, etc, etc)


RE: Some more info
By Roy2001 on 1/10/2008 10:53:27 AM , Rating: 4
A frail partnership between Intel and the One Laptop Per Child educational computing group was undone last month in part by an Intel saleswoman:
------------------------------------------------- --
A $350 laptop to compete with $100 laptop? No way! OLPC fails not because of classmate PC.


Soap Opera
By TomZ on 1/10/2008 9:55:10 AM , Rating: 2
Is this some kind of Soap Opera, or what?




RE: Soap Opera
By aharris on 1/10/2008 9:57:53 AM , Rating: 2
No kidding.

I'm getting all teary-eyed just reading about it.


RE: Soap Opera
By FITCamaro on 1/10/2008 10:05:05 AM , Rating: 5
I'm indifferent. I think laptops are the last thing children in Africa and other 3rd world countries need.


RE: Soap Opera
By Master Kenobi (blog) on 1/10/2008 10:16:35 AM , Rating: 2
Yea, I went to schools here in the states that tried to incorporate use of Laptops and other tech into every function of the education system, needless to say it was a disaster at best. The students didn't learn any better or worse than using text books. Frankly, as an IT Engineer who is knee deep in all things technical and electrical, I find books are just fine. I have an entire shelf of Technical Reference books from Oracle to Shell. Sure I use a computer for 80% of my waking hours but books still get the job done, sometimes better since I don't have to sift through tons of inaccurate or false information on a topic that one finds on the internet. Internet 2.0 has only made the situation worse.

I'd rather invest money into their agricultural and utilities infrastructure and setup trade schools to educate people on farming and how to install/run utilities like eletricity, lumbing, etc... in their country rather than standard non-specialty schools that we have here in the states. That way they have basic math, writing, speach skills, and learn a skillset to employ them and make them productive to their economy.


RE: Soap Opera
By iVTec on 1/10/2008 10:27:51 AM , Rating: 2
I don't think thw OLPC was primarily intended for the poor,starving,skinny and belly-swollen children we often see at Unicef videos...:)

Children in developing countries that live a decent life,go to school e.t.c. is more like it...To help governments (that can't afford it) equip schools with computers,that's the point...


RE: Soap Opera
By defter on 1/10/2008 11:11:47 AM , Rating: 2
But you would need laptop for every child to equip schools? You know, kids can share computers in a school...

Besides, children who live a decent live in developing countries can easily afford using computer in internet cafes or their parents can buy a low-end PC for them.


RE: Soap Opera
By iVTec on 1/10/2008 12:14:26 PM , Rating: 2
Still,there are kids that can't afford to buy a laptop...even a cheap one...Regardless of the country,it's a nice deed,giving free OLPCs to those who can't afford it...Of course there will be some criteria,depending on which someone receives an OLPC...Not ALL the children will have one obviously...


RE: Soap Opera
By tmouse on 1/10/2008 3:07:16 PM , Rating: 3
Unfortunately this is not true. The places you describe would not need things like hand cranks ect. The idea is "nice" the reality and implementation is stupid. A laptop for each child is just dumb. The vast majority will never get to the recipients; most of the rest will probably break down and not be repairable, be sold and reported stolen ect. This is simply a flawed idea from the start, it does seem all warm and fuzzy at first glance but really look into it it’s just doomed. The money spent would be better used to improve the basic needs in the poorest countries. In the next tier a few box units to set up computer literacy classes are all that is needed, most children will simply have no need what so ever ( there is simply no employment for them in their own countries).The basic economies need to be improved then you increase computer use not the other way around. The brightest will leave their countries, there will simply be nothing else for them to do, it’s not evil, and it would be just common sense for them to better their lives and the lives of their children. This will not help the countries at all. Economies must grow in stages you cannot go from a subsistence agricultural system to an information technology one by introducing computers. There is money and the potential for fame driving the egos pushing this "fuzzy feeling" do nothing concept. I have no problems with haves helping the have not’s but this is not the way.


RE: Soap Opera
By iVTec on 1/11/2008 11:19:47 AM , Rating: 2
I agree with u to some extent,but this is a different topic...We both know that if there was no OLPC project,the money would've gone to the development of another device or technology,not to feed the poor...So,it's better than nothing...

Of course there is pure "business" behind all these...But what isn't business nowadays?If we can combine business with common welfare,why not do it?:)


RE: Soap Opera
By ttowntom on 1/11/2008 2:56:23 PM , Rating: 2
The money here to buy these is coming from the governments of Peru, Nigeria, etc. If they don't buy laptops, they might actually buy something useful for the poeople.


RE: Soap Opera
By pugster on 1/10/2008 10:02:55 AM , Rating: 1
Intel is just jealous because it can't get 'intel inside.'


RE: Soap Opera
By FITCamaro on 1/10/2008 10:08:07 AM , Rating: 2
Lawyer: "OLPC. Is the person who tried to get inside you present today?"

OLPC: "Yes"

Lawyer: "Will you point him out for us."

OLPC: *points to Intel*

Intel: "SHE'S LYING! I NEVER TOUCHED THAT B*TCH!"


Odd..
By masher2 (blog) on 1/10/2008 10:04:31 AM , Rating: 3
If OLPC truly is interested in helping the world's needy children receive computing resources, why wouldn't they support Intel's efforts to develop their own low-cost laptop?




RE: Odd..
By Visual on 1/10/2008 10:20:24 AM , Rating: 2
well they apparently do.
i guess it is actually the reverse here. and it really makes sense for intel to want OLPC to fail - it is using AMD cpus and it is competing with their classmate stuff, at a significantly lower price too.


RE: Odd..
By helios220 on 1/10/2008 10:20:43 AM , Rating: 2
I personally am skeptical of most of these projects lofty claims that they exist to help the world's needy children. They come off like these great saviors. While some intentions may be good, do the companies involved in these projects not also make money, or at least stand to make money further down the line?

It seems to me like this is all nore more about product placement in what may potentially be emerging markets rather than any true charity. It seems more about money to me than helping anyone at all, but maybe I'm way off.


RE: Odd..
By nofranchise on 1/10/2008 11:09:10 AM , Rating: 1
As I understand it, the problem is that Intel want to profit from it... I can kinda follow NN on that, but does he have to be so whiny?

Also - why Intel doesn't just give in to NN and start selling the Classmate at break even I don't understand - I believe there would be huge media/PR benefits - especially in this time of turmoil for the company.

And lastly - the OLPC was never intended for children who are starving. This is about intuitive learning aimed at countries who are struggling to catch up to the western world where computers play an enourmous part in everything from work, education and even social affairs. At least thats what I get about the concept.


RE: Odd..
By Master Kenobi (blog) on 1/10/2008 11:35:35 AM , Rating: 2
quote:
As I understand it, the problem is that Intel want to profit from it... I can kinda follow NN on that, but does he have to be so whiny?

Of course they want to profit from it, that is typically what businesses do.

quote:
Also - why Intel doesn't just give in to NN and start selling the Classmate at break even I don't understand

Because Intel is a corporation, they have a bottom line, and investors that want to see a profit. Giving away laptops at break even prices wouldn't go anywhere.

quote:
I believe there would be huge media/PR benefits - especially in this time of turmoil for the company.

Yea sure there would be some media/PR benefits, but that isn't something Intel particularly cares about right now. They have a good public image for delivering solid products. I'm not sure what turmoil your talking about. Intel is posting record profits while AMD is getting its rear end handed to it across the board. If anyone needs good PR and a solid customer it would be AMD. Intel is doing just fine. If you look at the Specs of the Intel Classmate and the OLPC, the Classmate has it beat by miles.


RE: Odd..
By MandrakeQ on 1/10/2008 6:39:27 PM , Rating: 2
OLPC can't succeed if it is unable to bring down the cost of its laptops. If Intel wants to add a large profit to the final cost, this will undermine the primary goal of the whole project.

You are right, though, Intel doesn't need the positive PR. That's why I don't know why they even bothered joining OLPC in the first place. They can continue selling their classmate PC at whatever price they feel is adequate, and leave the OLPC alone.


Some advice
By crystal clear on 1/10/2008 1:31:27 PM , Rating: 2
Nicholas Negroponte should meet Hector from AMD to learn a few tricks of the trade.

# Financial engineering & survival techniques.

# Like Hector go to Dubai & meet the sheikh & pick up some funds to survive.

# Come out with full page Adverts like Hector did in the past,complaining about the Intel monster.

# Go to the E.U.commission that ripped off a few millions from Microsoft & now wants to do the same to Intel.
Ask for their help in getting a few millions as subsidies like AMD recvd from the E.U. in the past.

# Make promises like AMD does in their roadmaps/to the press & not deliver,then come up some excuses of regret.

I can go on with more of this ...to cut it short -

"Go to Hector from AMD & take his advice,he is an expert on such things"

Some joke..........




RE: Some advice
By Ringold on 1/10/2008 9:18:45 PM , Rating: 2
Go to Ruiz and take his advice?

Why stop there? Just plain take Ruiz! AMD shareholders won't miss him at all. :P


Game over for OLPC.
By Roy2001 on 1/10/2008 10:43:37 AM , Rating: 2
We all know that OLPC is not as simple as you hand ultra low cost PC's to kids in poor countries and your job done. $100 is still a big mount. You have to support it.

All in all, food and basic edcation are MORE important than a laptop. OLPC is dead, IMO.




"If you look at the last five years, if you look at what major innovations have occurred in computing technology, every single one of them came from AMD. Not a single innovation came from Intel." -- AMD CEO Hector Ruiz in 2007











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