Cross-marketing opportunities

Be Incorporated appears to be gaining popularity as a way for computer makers to build an ultra-cheap computer without paying the "Microsoft tax." This week, Microworkz and later iDot announced cheap machines running BeOS from Be Incorporated. America Online is discussing cross-marketing opportunities with Microworkz_s iToaster, the company_s Be box. Meanwhile, at the other end of the price spectrum, AST Research this week announced Be-based multimedia machines with 550-MHz Pentium IIIs for $1,999. The strategy mirrors that of some makers of inexpensive computers based on the Linux operating system, which can be obtained at no charge. The Linux Store chief technical officer John Wise has said the $85 cost for a license of Windows is second only to the cost of the hard disk when his company builds its inexpensive Linux machines. In general, Windows is one of the rare elements of a PC that has not plummeted in price over the past two years.