For Microsoft, Market Dominance Isn't Enough

chemstar writes "Last summer Orlando Ayala, then the top sales executive at Microsoft Corp., sent an e-mail titled 'Microsoft Confidential' to senior managers laying out a strategy to dissuade governments across the globe from choosing cheaper alternatives to the ubiquitous Windows operating system. Ayala's e-mail told executives that if a deal involving governments or large institutions looked doomed, they were authorized to draw from a special internal fund to offer software at a steep discount, or free, if necessary. Steve Ballmer, the Microsoft chief executive, was sent a copy of the e-mail. The memo, which focused on system software for desktop computers, specifically targeted Linux, a still small but emerging competitor. "Under NO circumstances lose against Linux," Ayala said." Perhaps that's because, as roomisigloomis writes, "Seems that MS' licensing practices are working against the company," pointing out this article which "suggests that open source, Linux and other software is actively being sought."

Comments

So?

[TheAwfulTruth]

Linux has been doing this for years!

Give it away free, easiest way to cut into other's market share. Netscape and IE BOTH did it (Netscape was NEVER not available for free, atleast it never was to me)

You can't really complain about someone picking up on your /own/ tactics. What if MS were to start giving the OS away free to everyone? (Like Sun has started doing in a limited way) What would you say then?

"You can't do that! Because, uh... were doing that and then we wouldn't be able to compete.. er..."

And if Linux is allowed to have lobby groups and SIGs that lobby educational and government entities on the suposed benefits of using "Open source only", why not Microsoft doing the opposite? I mean you have to expect it! Instead we get more whining.

Linux has set up a huge and market dangerous precident by giving away so much functionality for free. If that's the way Sun (partially already), Microsoft (also partially already) and Apple all go over the next few years, where will that leave Linux?

When you set up unorthodox battle rules, don't be suprised when your enemy follows your tactics...