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Microsoft Names Linux its Number Two Risk

Jorkapp writes "Microsoft has officially moved Linux up to the Number 2 Risk to the company (With Economic Environment at No. 1). Bill Gates has taken the threat very seriously, and has identified Linux and non-commercial software as 'out there and very pervasive.' In response, Microsoft has dropped the price of Windows CE and opened the embedded OS to developers. This will not only allow developers to view and modify CE, but also distribute software incorporated to the modified code."

19 of 485 comments (clear)

  1. By publicizing this... by n0nsensical · · Score: 5, Insightful

    Isn't Microsoft just making more and more people aware of Linux and how good of a Windows replacement it's becoming? Seems sort of counter-productive to give your #2 threat a lot of free publicity. Doesn't seem like the sort of thing a huge company would tell the public. But hey, I'm not complaining.

    1. Re:By publicizing this... by RestiffBard · · Score: 4, Insightful

      MS didn't tell the public. MS told /. and maybe Wall Street. The public still only knows that "Linux is some computer thing that geeks really like." I swear that's a direct quote from a non-geek, public friend of mine.

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    2. Re:By publicizing this... by badnews · · Score: 5, Insightful
      Isn't Microsoft just making more and more people aware of Linux and how good of a Windows replacement it's becoming? Seems sort of counter-productive to give your #2 threat a lot of free publicity. Doesn't seem like the sort of thing a huge company would tell the public.

      That is why free software is only #2 on Bill's list.

  2. Really, 1 and 2 are the same thing by Anonymous Coward · · Score: 5, Insightful

    Linux is part of the "economic environment". It might make more sense for Microsoft to combine a bunch of things as "#1: Our Outdated Business Model". I'll just hold my breath for that to happen.

    1. Re:Really, 1 and 2 are the same thing by AndroidCat · · Score: 5, Insightful

      So true. Munich spent more for Linux, but for that money they got customization, training and support-- a hidden cost of going the Microsoft route. If there were no alternatives to Microsoft, the economic environment wouldn't matter much, would it?

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  3. Needs more detail by sql*kitten · · Score: 5, Insightful

    Microsoft has officially moved Linux up to the Number 2 Risk to the company (With Economic Environment at No. 1). Bill Gates has taken the threat very seriously, and has identified Linux and non-commercial software

    What he actually said was "Linux and non-commercial software" (emphasis mine). The question is, what is the greatest threat to MS - Linux vs Windows? Or maybe it's NetBSD versus WinCE. Or SAP/DB vs SQL 2000. Or Java vs .NET. I don't think he meant Open Office vs MS Office, tho'.

    There's a lot more to "non commercial software" than just one OS kernel, you know. Also remember that Linux is a bigger threat to Unix vendors than it is to MS, because the barriers to migration are lower. I would be very surprised if Sun didn't consider "Lintel" to be its #1 threat.

  4. this is why MSFT is not a stock to own by Lawrence_Bird · · Score: 5, Insightful

    for a very high % of business users (80%? 90? 99?) the only justification left for using windoze is the Office suite. OpenOffice is getting closer every day to being a true replacement, and as IT and department managers come to realize this, Linux on the desktop inside the corporation may become reality. The savings for most companies will be hard to ignore, allowing them just to purchase sloth products for those who truly need the OS to run non MSFT applications. But that means secretaries, administrators, middle managers and the like can be switched. Does one really need XP and WinWord to write a memo?

    I predict that very soon MSFT will have to lower substantially the cost of Office, further eroding its margins. Better start cashing in Bill.

    1. Re:this is why MSFT is not a stock to own by kannibal_klown · · Score: 4, Insightful

      You're assuming General Use of desktops. Sure, Joe Sixpack at company Z that just writes memos all day could use redhat and open office. But in companies that do a lot of research, they have a lot more invested in windows. They have third-party solutions that only run on windows, and in most cases all of their in-house apps are for windows. As another poster mentioned, it's the general momentum Windows has in the market. People write a lot software for it that isn't cross-platformable. "Switching" (be it Linux or Apple) would entitle not just using Open Office, but re-writing all of our own code, trying to find specialized products to handle our research, paying out for these new contracts, etc. There's more to corporate computing than Word. For example, at my pharmacutical company, we use a combination of Solaris and Linux for our servers. But ALL of our desktop stuff is Windows only. All of our third-part apps are windows, everything we write inhouse is windows, etc. One example is ActivityBase. ABase is a software package that handles most of our experimental data. It uses Oracle as a backend (so the backend could technically be Linux), but the frontend is Windows. The frontend is particularly important, becase it allows the scientists to interact with the system. The frontend is written in a mixture of VC++ and VB, and is IMMENSE. It's WAY too large to rewrite in Java or some other cross platformable language. And there's NO WAYA the company would even bother considering it. Likewise, there are few solutions such as this in Linux at this point, and if there were they would not be so feature free. If we were to switch, while the data would still be accessible 'cause it's in Oracle, we would have to find an alternative to ABase that is full of such features and PAY OUT THE ASS for it. A consulting company or vendor isn't going to charge LESS because it's Linux. Sure, accounting and secretaries can switch, but research (for the most part) can't. Too many companies are too invested. Either they use windows, or they sell software for use only with windows.

  5. Flawed logic or FUD? by Idou · · Score: 4, Insightful

    "What people tend to forget is that there are gatekeepers in the open-source community, too"

    This is subtle but very, very important. Open Source "gatekeepers," like Linus, only get the job of gatekeeper because they are the most popular. And there is nothing stopping anyone else from releasing their own version and taking over the project. However, non-Linus releases must COMPETE with Linus' releases for MINDSHARE based on MERIT. This is truly an evolutionary process.

    MS is simply the gate keeper because they have a monopoly. There is no competition based on merit, no evolution takes place. If MS is the default gate keeper, what you contribute automatically belongs to them. Congratulations, you are now the most poorly paid employee at MS.

    --
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  6. os x? by squarefish · · Score: 5, Insightful

    I'm curious is they are batching apple in with this in any obscure way.

    I think apple is a much larger threat to M$ now than they've ever been do to os x and the attraction of developers they've been able to aquire over the last few years.

    I switched six months ago and have been encouraging a lot of others to do the same.

    I'm also curious what the next big app. that directly threatens M$ will be- I'm sure keynote was just a starter!

    --
    Creationists are a lot like zombies. Slow, but powerful and numerous. And they all want to eat our brains.
    1. Re:os x? by Trigun · · Score: 5, Insightful

      OSX is not cutting into their bread and butter like Linux is. Linux has poised itself to take over the datacenter with its SMP support and Oracle and IBM backing. It is poised to take over the CAD systems with its clustering ability. It is poised to take over the e-mail servers with the exchange replacements already mentioned here(the names elude me right now).
      The fact that Linux is setting itself up as the 'middleware' of all OSes is really what makes it so dangerous. When you buy an NT server, you buy NT workstations. When you buy an Apple server, you buy Apple workstations. When you buy a linux server, you buy whatever the hell you want.

      That is why it is so dangerous.

  7. Re:Linux no threat... by jkrise · · Score: 5, Insightful

    If Microsoft would stick to hardware, such as keyboards, mice and joysticks, elements that Linux and the Open Source movement, and Free Software Foundation has no interest in, Microsoft would soon realize that their only competition is Logitech.

    Actually this is not funny at all - I'd say Insightful.

    Let's realise that Linux is successful 'cos MS divided the h/w folks, and that led to competition and commodity pricing, at the same time market aggregation.

    In a way, MS not getting into h/w is good for Linux. OTOH if they make a modified XBox, say XXBox (what about XXXBox :->) and put Palladium on it, that could cut off Linux entirely, since this XXBox would be $150 for h/w and s/w would be $50 per year!

    Be careful what you pray for!
    -

    --
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  8. Has Windows reached a plateau? by nnnneedles · · Score: 5, Insightful

    It's interesting to note that Windows can't become that much more advanced. It seems to me that it has reached a point were there isn't that much use in upgrading anymore. Like the word processor or web browser there aren't that many innovations people are longing for. Personally, I still use Win2k and I am quite happy with it. Given a choice, I even prefer it over XP.

    At the same time, all Linux has to do is play catch up (becoming more user-friendly and so on) to seriously threaten Windows in the next few years. Being free, it is quite competitive.

    I can only see Linux gaining territory in the future, while Windows has everything to loose. If Linux attains a critical mass where game developers start making games for it, I will probably switch. And I bet I wont miss Microsoft one bit.

    Bill Gates has all the reasons in the world to feel threatened. I mean nobody expects to pay for any of the software you download anymore. The market is becoming increasingly eroded as it only takes one good free alternative for everybody to choose that one over the one that costs money..

    --
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  9. Re:Cool by TopShelf · · Score: 4, Insightful

    Quite the contrary - they ran up the bank account during a time when they were open to huge potential legal liability. Now that this is behind them, they're looking to pay out dividends to their shareholders. I wouldn't be surprised if they use some of the cash to gobble up a good-sized software firm as well (Peoplesoft? Siebel? One of the supply chain players?).

    --
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  10. spinning even in defeat by 73939133 · · Score: 4, Insightful

    Microsoft is attempting to spin the situation even in admitting defeat, by referring to Linux as "non-commercial" software.

    Open source software is, of course, "commercial" software: it's at least as good as closed source software, it's used by many commercial enterprises, and it's sold commercially.

  11. Microsoft's strategy by henriksh · · Score: 4, Insightful

    What people tend to forget is that there are gatekeepers in the open-source community, too," he said. "It's not a free-for-all. On every one of the open-source projects, there are two or three people who are the gatekeepers. And you have to make a pretty good case, accurate and technically astute, to get them to allow changes. That's how it should be."

    This is FUD intended to align "Shared Source" with Free Software/Open Source. The main difference is of course, that if you disagree with the so-called "gatekeepers" (what a weird analogy), you can just take the source code and run (make a fork).

    You can not do that with "Shared Source". And Microsoft knows that. And most of us here know that. But Microsoft hopes that many people will not see the difference (or won't care).

    Microsoft's strategy is scaringly obvious.

  12. May I have some of what you're on? by lpret · · Score: 4, Insightful
    First off, there is never a plateau in technology. Although boats were quite efficient in the 18th century, there are always better ways to build boats -- and even more ways to make them obsolete. The same can be said with an operating system and interface -- it will always be able to be changed and improved on.

    Second, I can't believe you say you like Win2k better than WinXP. Perhaps in a geeky "I like to do everything for myself, no help please" type of way, but for the general user (and the people who buy computers nonetheless) they want to be able to just plug their new digital camera in and Windows to be able to install the correct drivers and even pull up the correct program to download their pictures.

    In terms of usability, Microsoft needs to play catch-up to Apple, but Linux needs to play catch up to MS. In terms of security, etc. Microsoft (if implemented correctly, ie. not everyone is given admin rights!) is par for the course. I will guarantee that if Linux were the market leader, you'd see large amounts of virii for Linux as well. Many times it's the admin who doesn't update/secure it properly who's to blame -- not the OS.

    I agree with you mostly, but there will never be a plateau in technology. Not until my computer's name is HAL.

    --
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  13. Just how many idiots are there on Slashdot? by LibertineR · · Score: 5, Insightful
    Those of you who think Microsoft is making a mistake by publicising Linux are really stupid, or at best, lacking understanding in the reasons that Microsoft is where they are today.

    If there ever was a time to ENCOURAGE comparisons between Windows and Linux, THAT TIME IS NOW. You need to consider the audience, people. The audience is NOT GEEKS. It is all of those under-trained, under-skilled folks who still need a computer to do something for them with a minimum of input or instruction.

    Microsoft wants those people looking at Linux TODAY, not a year or two from now, when Linux is much better, or when skill sets have improved to make it less difficult to do a proper install.

    For every battle against Linux that Microsoft loses today, they will win 20-30 others, because lets face it, the bulk of the people who use computers, both in business and in a personal setting are blithering idiots compared to those of us who know how to use and extend Linux.

    Microsoft is brilliant(as usual) in encouraging people to start making comparisons NOW as opposed to later, because if people are turned off by the complexities of Linux now, they are unlikely to revisit the issue anytime soon. Once Microsoft has their dollars, the battle is over for at least a decade.

    Some of you folks need to go out and buy "The Prince", and learn a little about winners and losers.

  14. This shows that the SCO lawsuit will fail by Minna+Kirai · · Score: 5, Insightful

    Now that Microsoft has admitted that Linux is one of their primary threats, we can attempt to deduce their opinion of the SCO-IBM lawsuit.

    Fact 0: Microsoft could buy SCO for a single day's worth of revenue.
    Fact 1: SCO claims that without their permission, nobody can use Linux.
    Fact 2: Microsoft knows that Linux is one of their biggest threat to profits.
    Fact 3: Microsoft has not bought SCO.

    The natural conclusion of these facts is that Microsoft feels SCO's claim has no merit, and will be struck down in court. Rather than buying SCO and expediting the court-case so that Linux can be quashed immediately, they've chosen to sit back and allow the unsettled allegation to stir up uncertainty and dissuade potential Linux adopters.

    Note: this doesn't mean that Microsoft considers it impossible for SCO to win the case- only that they don't think there's a high probabilty of victory. They benefit from allowing the FUD to continue for as long as possible before the dice are rolled in court. In fact, there's another way they benefit from holding off the verdict: if some companies deploy Linux and then have their operations interrupted by C&D orders in the wake of an SCO victory, it will discourage future corporate adoption of all kinds of Open Source software.