The OLPC and Intel Dispute
Thursday, January 10th, 2008The recent dispute between OLPC and Intel over Intel’s involvement with the XO laptop has again brought the issues of the OLPC project much attention.From reading around the topic over the last week, there seem to be several points which are worthy of consideration, many of which have not been clarified by either OLPC or Intel.
The author wrote an article about the XO on 29th November 2007, and this new article aims to take stock of the situation a month and a half later, with the events that have recently occurred.

The Classmate PC
Firstly, a look at the Intel and OLPC debacle.
Intel partnered the OLPC project in July 2007, after months of conflict between the two developers. The addition of Intel to the project meant that the company joined the other 11 companies (inc. google and AMD) who were already partners. From a BBC article in July, it appeared that the intention was for Intel to keep selling the Classmate PC, OLPC to keep selling the XO with the AMD chip, but to have the back up servers using Intel technology, and consideration be given by OLPC to using Intel chips in the XO’s. There was also mention that new software developed would be XO and Classmate compatible. OLPC were quoted in the same BBC article as saying ‘I think we will end up with a family of products that run across a wide variety of needs. Intel will be part of that mix.’
At the very beginning of January 2008, Intel withdrew its support from the OLPC project.
The OLPC rationale, as said by Nick Negroponte, the head of the OLPC project, for this decision was:
‘The biggest single reason was that [Intel] were directly selling their Classmate laptop as opposed to having it be a reference design [for the XO].’ (source)
One of the events mentioned most frequently in support of OLPC, is that a salesperson for Intel in Peru apparently made derogatory remarks about the XO, in an attempt to stop the government buying XO’s and encourage them to buy Classmate PC’s instead.
Therefore, OLPC say that one of their other reasons for having a problem with Intel’s actions is that Intel were criticising the XO to promote the Classmate. If that is the case, it does seem underhand on the part of Intel, and likely goes against the agreement made.
‘OLPC head Nicholas Negroponte has lashed out at the company accusing them of being self-serving and undermining the OLPC programme.’ (source)
However, it appears, and has been mentioned on several articles, that this issue of defamation occurred (or at least has been accepted to have occured) in one case, with one salesperson, in one country. As Negroponte himself said in reference to the boss of Intel:
‘He’s got 100,000 people and he can’t control all of them.’ (source)
So perhaps judgement of Intel’s actual intentions to contradict any agreement in this manner should be withheld, as there appears to be no proof of this as yet.

The XO laptop
Intel’s rationale for the split, as explained by an Intel spokesperson, was that “OLPC had asked Intel to end our support for non-OLPC platforms, including the Classmate PC, and to focus on the OLPC platform exclusively. At the end of the day, we decided we couldn’t accommodate that request.” (source)
Having looked at explanations given by both sides, the issue of the Classmate PC, and competition itself, are seemingly the causes of the problem.
There seems to have been a difference in OLPC and Intel’s views as to how Intel were going to deal with the Classmate PC once the partnership had been made. Without knowing exactly what the agreement stated, it is hard to know what was actually agreed, however it is clear that there was at the very least either misinterpretation, or outright breaking of the agreement on at least one side.
From the BBC article from July 2007 quoted earlier, the impression given was that Intel would continue as before with its sales approach to the Classmate PC. There would be benefits to both sides in terms of cross-compatible software, and potentially Intel chips in the XO as well as the back up servers using Intel technology.
However, Negroponte’s statement quoted earlier, that the Classmate should have been used as a reference design rather than Intel ‘directly selling their laptop’, seems to contradict this.
OLPC’s request that Intel end support for it’s own product the Classmate PC, also appears to directly contradict this.
In summary of this point, the author wonders what OLPC actually thought Intel would do. Did they think Intel would forfeit profit from the Classmate PC and not be ‘self-serving’. Negroponte’s quote mentioned earlier that OLPC ‘thought [they] could move towards [the Classmate PC] being a reference design’, seems significant with the word ‘thought’. Does this mean that Intel never agreed to this for definite? The question seems to be, in short, did OLPC expect Intel to not act like a business?
It does not become apparent from researching around this topic, how exactly OLPC and Intel thought that the partnership could work. The mix of business and not-for-profit is unusual in a situation where both are competing. If we consider what would happen in a business to business situation, the partnership would never have happened. If we consider two not-for-profit enterprises, they would probably collaborate, because they could help each other. However, in this case, OLPC seem to have expected help from Intel, and expected to not only give nothing in return, but also that Intel would sacrifice their aims (of profit) for the OLPC cause.
In terms of the competition between the two, this issue again proves extremely contradictory. Firstly, the two clearly are competitors, otherwise this problem would never have arisen in the first place, and the reasons given by both sides for the split, whilst somewhat different both acknowledge that it was because of competition.
Negroponte again contradicted himself after he stated a few months ago:
‘From my point of view, if the world were to have 30 million” laptops made by competitors “in the hands of children at the end of next year, that to me would be a great success. My goal is not selling laptops. OLPC is not in the laptop business. It’s in the education business.’ (source)
This appears to be in contradiction to his recent approach of asking Intel to stop selling the Classmate PC.
As Negroponte said:
‘When I questioned [Intel] about selling laptops directly, Paul Otellini himself would say that one size doesn’t fit all. And we agree with that, of course. That wasn’t the issue. They cannot compete with OLPC and be a partner.’ (source)
So, although there appears that there was no part of the agreement that stated that Intel could not promote or sell the Classmate PC, OLPC knew they could not be both a competitor and a partner. So exactly what was Intel’s approach supposed to be?
In terms of this issue, perhaps the comment from Paul Otellini that one size doesn’t fit all, was misinterpreted by Negroponte when he stated that it meant that they were not competitors. Whilst consumers clearly choose products for different needs or wants, it does not mean that the products are not competitors. Just because the XO has an ideology of constructivist learning, does that mean that consumers will put the two in different categories? Or does it actually mean that consumers will still look at the product and it’s tangible benefits, over the intangible and theoretical education differences.
It seems to the author that perhaps one of the problems with the OLPC is that whilst they are correct that their approach (constructivism) would be beneficial especially in developing world countries (as it emphasises the users particular social situation (culture, language, logic etc) and encourages collaboration), they are not selling an idea in reality, they are selling a product. And they are selling a product that resides in a hugely competitive market (as discussed in an interesting nextbillion.net article), ruled by giant corporations, ruled by profit. What the author means by ‘in reality’ is not that OLPC are not trying to sell an idea, they clearly are, but that markets are ruled by consumers, not sellers, and maybe an idea that is not status quo in terms of education is not going to feature as a priority when considering one laptop versus another in a society where bridging the digital divide is generally considered a priority. Intel clearly supports the bridging the digital divide initiative, with its World Ahead program of Accessibility, Connectivity, Education, and Content, and it’s clear update and support system for their product.
In conclusion, it seems that the partnership was destined to fail, and that there are just too many differences in the way the two developers work. However, the author does sympathise with Intel (apart from the alleged underhand defamation of the XO), and considers that maybe the OLPC’s ideology based approach needs some sort of reality check on its integration of ideology into reality, without which it seemingly will not reach it’s potential.
If OLPC want to help education through their ideology, that is a good thing and the author does believe that the approach of constructivism could work. However, perhaps OLPC need to consider that the product first needs to be able to compete with the existing products in their market, to allow infiltration of their product. This would allow people to actually understand through first hand experience why the approach is beneficial, rather than OLPC relying on people to trust the theory of constructivism, and the XO interpretation of it, neither of which the buyers or users likely have experience or knowledge of.
Related articles of interest:
Wiki on Constructivism theory
New York Times article ‘Intel Quits Effort to Get Computers to Children’
Nextbillion.net article ‘Next Billion Customers? Intel’s Already a World Ahead’
Nextbillion.net article ‘Reality Check for the $100 laptop’



