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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."

114 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 Anonymous Coward · · Score: 3, Insightful

      With the advantage of a near-total monopoly all M$ really need do is start producing good software. Linux exists and is successful because M$ produces crapware.

    2. 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.

      --
      - /* dead coders leave no comments */
    3. Re:By publicizing this... by perlchild · · Score: 2, Insightful

      Maybe, but they're also focusing your attention on "Linux" not on IBM's Linux Solutions, or Compaq's... They still keep the focus on the "independant from big business" part of Linux

    4. 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.

    5. Re:By publicizing this... by Teh+Bungi · · Score: 3, Insightful

      I've noticed that companies that tend to mention their competitors at all are typically not doing so hot. A great example is Burger King. Back a few years ago they had a big ad campaign talking about how their new fires were going to get McDonald's worried ebcause in "taste tests, more people preferred Burger King's new fries over McDonald's fries". Well, McDonald's hasn't changed their formualtion as far as I know and Burger King isn't touting their old "new fries". I think this means that the Linux crowd is more than just the #2 threat to Microsoft. The fact that they are mentioned by name would probably mean we're the #1 threat. Of course due to the public misconception of Linux = All open source software, it's possible that they are trying to use that public perception and devalue it's position.

    6. Re:By publicizing this... by Anonymous Coward · · Score: 4, Informative

      n0nsensical :"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. "

      Microsoft made Netscape their # 1 threat back in 1996...and as they say, the rest is history and so is Netscape :)
      Look what happened to them.

      Microsoft also zeroed in on Palm back in 1998. Today, Microsoft has gone from 0% share to some 32% and rising share in the pda market, meanwhile Palm OS share has been falling every single year sine.

      As for Linux, figures from Netcraft this week are shwoing Windows 2003 taking share from linux in the web server market, with some 8000 linux servers having switched to Windows 2003 already!

      I wouldn't be so pleased if I were you.
      From what I have seen , Microsoft has trained its guns on linux but good. Watch out!

    7. Re:By publicizing this... by Alien+Being · · Score: 2, Interesting

      Could this be the start of an embrace-and-extend campaign?

      Until '94, Gates thought that the world would be connected by MSNet and that the Internet would fade away. When he realized he was wrong, they began implementing extortionware/IP.

      Maybe they will offer some of their key technologies on Linux, but only if the user loads some type of software drm module. I dunno, just speculating.

    8. Re:By publicizing this... by CaptainZapp · · Score: 4, Funny
      You're precisely reflecting my toughts. GNU/Linux (and the entire free software microcosm) is the biggest threat to Microsofts business model. I just can see licensing 8.0.

      Well, mate we know that the economy is in a bind, but if you don't sign up for our new and improved licensing extortion plan it will be mighty difficult to open your DRM protected word documents by January 1, 2007.

      --
      ich bin der musikant

      mit taschenrechner in der hand

      kraftwerk

    9. Re:By publicizing this... by Quasimopho · · Score: 3, Informative

      Given that Microsoft is publically held, it's management will disclose information on competitive threats to the shareholders. Those filings are all public. They can try and spin it however they like, but claiming that Linux doesn't threaten their desktop OS monopoly wouldn't pass the reasonable man test.

    10. Re:By publicizing this... by harley_frog · · Score: 5, Interesting
      This maybe true, but considering that InformationWeek carried the headline, it won't be long before TechTV gets wind of it, then CNN, Fox, CBS, etc. Next thing you know, some software executive, who may either never heard of Linux (unlikely) or gave it little to no though, reads the article and starts to investigate further into Linux. This could possibly lead to feasibility into writing programs for Linux. Not that I expect the big software firms to become Linux converts, but there may be some who will.

      For example, working for a small, university library, I have to deal with a small budget in a shrinking economy. I would love nothing better than to switch over to Linux. However, we still have a few programs that we rely on that requires Windows. Now, if our vendors were to write their programs for Linux, then the switch would be a real possibility. A pipedream? Maybe, but then again a lot of things started out the same way and are now not only a reality, we have come to depend upon them (e.g. computers, cell phones, etc.)

      Oh, and I just can't leave this post without something funny, and considering the wording of the topic, it screams for this one.

      Number One, I order you to take a Number Two. -- Beavis

      --
      It's all fun and games until someone loses the key to the handcuffs.
    11. Re:By publicizing this... by Anonymous Coward · · Score: 2, Insightful

      Microsoft owns a UNIX-on-NT implementation called SFU/Interix.

      If they were seriously interested in "extend-and-embrace", they would upgrade this thing to be ABI-compatible with Solaris x86 and RedHat 9, and bundle it with the default installation of Windows 2003. Then with Windows you get maximum compatibility and all the familiar MS management tools like ActiveDirectory and so on.

      But, they don't seem to want to do it. For a long time they've been fudding that "UNIX is old and obsolete and going away", and I think they'd rather believe that than learn to live with Unix.

    12. Re:By publicizing this... by gilesjuk · · Score: 2, Insightful

      With Linux coming as standard on cheap PCs it will soon be noticed by a lot more people. Trouble is it will stick in the mind of some people as being a cheap OS.

    13. Re:By publicizing this... by RestiffBard · · Score: 2, Interesting

      The thing is though, Linux has been around for ten years and well known in Tech circles for at least that long. I'm not some über-hacker and I've known of Linux since the 1.0 days. If there is a Tech firm out there that doesn't know Linux I can't imagine that MS calling Linux threat number 2 will make companies jump to develop for Linux.

      If you want software for a company all you can use to cause it's development on Linux is demand with money. "I have a need for your software but we're on Linux now. You'd get my money if you ported to Linux otherwise I'll use some other product." That gets their attention.

      --
      - /* dead coders leave no comments */
    14. Re:By publicizing this... by Dan+Ost · · Score: 4, Funny

      But you know the migration from Linux to WS2003 probably wasn't a technical
      decision. Some VP probably decreed it and the techs had no choice but to
      comply.

      I would only start worrying if it turns out that the migrations were,
      in fact, due to technical decisions.

      The Register had a link to the netcraft uptime summary of Colt's
      internet facing server that migrated from Linux to WS2003. Since
      migrating, the machine hasn't had an uptime of more than 4.45 days.

      Just thought someone might find that interesting.

      --

      *sigh* back to work...
    15. Re:By publicizing this... by Metasquares · · Score: 2, Informative

      Thus the lower prices. Now that Microsoft has to seriously compete, they're dropping prices and will probably improve the quality of their software. Capitalism is a rather nice thing when it works.

    16. Re:By publicizing this... by Eric+Damron · · Score: 3, Insightful

      Wasn't it Gandi who said: "First they ignore you, then they laugh at you, then they fight you, then you win."

      They did ignore Linux, they have made fun of Linux, now they're fighting.

      --
      The race isn't always to the swift... but that's the way to bet!
    17. Re:By publicizing this... by Joey+Vegetables · · Score: 2, Insightful

      There are ways to migrate to Linux without abandoning the investment in Windows-based custom software. The simplest is to keep Windows boxes running that software, but access them through VNC or rdesktop. Running under WINE may be a possibility. Sometimes Web-based front ends for custom apps exist, or can be written, and with some care these should run just fine under any OS. And you can get people under Windows running OpenOffice.org, Mozilla, etc. *before* you move to Linux, so when you do switch, the transition will be less painful.

  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?

      --
      One line blog. I hear that they're called Twitters now.
    2. Re:Really, 1 and 2 are the same thing by einhverfr · · Score: 4, Interesting

      If there were no alternatives to Microsoft, the economic environment wouldn't matter much, would it?

      That is actually a very good point but I would take it one step further. The economuc environment and saturated market are THE reasons for Licensing 6.0. Licensing 6.0/Software Assurance is an attempt by Microsoft to maintain an economy of scale in a stagnating market. They know that without Licensing 6.0 they will be unable to invest as much time and work into the further development of Windows.

      Along comes Linux.... Now Licensing 6.0 doesn't look so hot to the corporate customer. Nor does product activation, etc. There are parts of these practices that actually *detract* from the use value of the software. So regardless, Windows becomes more expensive as time goes on.

      So the real problem is that Linux restricts Microsoft's reactions to the economic times in ways that no other competitor can.

      --

      LedgerSMB: Open source Accounting/ERP
  3. Great humor by seinman · · Score: 3, Funny

    Coincidentally, when I clicked the view comments link, a large advertisment for Linux.com appeared under the article.

    1. Re:Great humor by Trigun · · Score: 3, Funny

      Also, do we really need the hyperlink to www.microsoft.com in the article? I think we all know how to get there by now.

      This article is shaping up to be pretty funny.
      RELEASE THE ZEALOTS!

    2. Re:Great humor by Eccles · · Score: 5, Funny

      Also, do we really need the hyperlink to www.microsoft.com in the article?

      It's so we can slashdot Microsoft.

      --
      Ooh, a sarcasm detector. Oh, that's a real useful invention.
  4. Well I hope you're happy! by Trigun · · Score: 2, Funny

    Mr. Torvalds, Mr. Cox, Mr. Stallman.

    I lay the blame solely on you!

    (Good Job, and thanks for everything!)

  5. Wow.. CE? by aerojad · · Score: 4, Funny

    How nice of Microsoft. That's like someone asking for a steak and being given in-flight peanuts. Maybe a glass of water, too.

    It's a start, I guess.

    --

    SecondPageMedia - Wha
    1. Re:Wow.. CE? by AndroidCat · · Score: 2, Interesting
      remember big bad old ibm?

      IBM just needed a ice-water douche to remind them: "Hey, we're a services company. We've always been a services company, and we always will be." Now they can sell/customize/support something that they don't even have to write the core of, bonus!

      Selling all that Big Iron just confused them for a while.

      --
      One line blog. I hear that they're called Twitters now.
  6. Obligitory, of course by Loundry · · Score: 5, Funny

    1. They ignore you
    2. They laugh at you
    3. They fight you <----- YOU ARE HERE
    4. You win

    --
    I don't make the rules. I just make fun of them.
  7. Linux no threat... by rusty0101 · · Score: 5, Funny

    ...to the products that Microsoft actually does well at.

    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.

    -Rusty

    --
    You never know...
    1. 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!
      -

      --
      If you keep throwing chairs, one day you'll break windows....
    2. Re:Linux no threat... by roystgnr · · Score: 4, Interesting

      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.

      Of course, this is also why MS is successful; if they had tied themselves to a single hardware vendor who was therefore also capable of selling with fat profit margins and little competition, many more of us would be using Macs right now.

      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!

      They've already got the equivalent of Palladium on the XBox, and it's already been cracked. The XXBox would be cracked too, as will Palladium for the PC. In order to make Palladium work, even if they had magic reverse engineering proof hardware, Microsoft would need to only sign software that is 100% free of exploitable errors. I doubt they could write software like that themselves, much less expect everyone else in the world to write it, if they still expect to sign other companies' software to maintain a facade of market competition.

    3. Re:Linux no threat... by DickBreath · · Score: 3, Informative

      Microsoft only makes profits on two things. Niether of them hardware.

      --

      I'll see your senator, and I'll raise you two judges.
  8. 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.

    1. Re:Needs more detail by jkrise · · Score: 2, Insightful

      Also remember that Linux is a bigger threat to Unix vendors than it is to MS, because the barriers to migration are lower

      Frequently as this BS is put out I find it hard to believe. Why should Linux be a threat to Unix. Let's take Solaris. Why would someone buy a Sun system? 'cos many folks write s/w for it - great CAD/CAM s/w, telco s/w, graphics etc..... there's a lot of stuff avbl for Solaris on a cafeteria basis. Same with IRIX (film and video) and HP-UX.
      Not with Linux. You gotta go hunting for folks to write packaged/preconfigured s/w to qork with Linux - anfd that's no mean feat.

      OTOH Windoze users present Linux/Open Source coders with a single large market to go after. Thus Linux is a much bigger threat to any platform/OS/ application that has acquired critical mass/ market share. And that's Windows, not Unix.
      -

      --
      If you keep throwing chairs, one day you'll break windows....
    2. Re:Needs more detail by Frater+219 · · Score: 4, Interesting
      There's a lot more to "non commercial software" than just one OS kernel, you know.

      There sure is. Not only that, but "Linux" -- or rather, the universe of free-software Unix-like components -- is not entirely a noncommercial space. It contains a lot of commercial competitors to Microsoft, such as Red Hat, Zope Corporation, IBM, and so forth -- it isn't just volunteers hacking code for fun. It's these commercial competitors -- not a bunch of random hackers -- who will eat Microsoft's lunch if they get the chance.

      ("Commercial" is not the same as "proprietary". There is plenty of commerce possible, and existent, in the world of free software.)

      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.

      It doesn't have to be that way. Because the portability barriers between GNU/Linux and Solaris are low, customers can migrate easily, yes -- but so can good code. For instance, Apache is often thought of as "Linux software" by people who don't know very much, but it also ships with Solaris.

      Sun has to compete more closely with free-software systems than Microsoft does ... but Sun can also benefit much more easily from free-software innovation than Microsoft can.

      (Of course, portability is not the only reason for this; ideology is, as well. One of the planks of Fundamentalist Gatesism is that free software doesn't do anyone any good. And they call us fanatics?)

    3. Re:Needs more detail by acroyear · · Score: 3, Insightful

      The question is, what is the greatest threat to MS - Linux vs Windows?

      Its LAMP vs. IIS/ASP/MSQL. Microsoft's standard web-server line and the Apache/P[erl|hp|ython]/MySQL combo are both relatively equal in capabilities, support, and stability. Its the one area where Free is more than worth it, FAR more.

      Then there's the web admins' impressions. People aren't taking Microsoft seriously when they try to make inroads into the J2EE/Oracle domain with .NET when they can barely keep pace with such low-end free software.

      In order to take on the web heavyweights like BEA, IBM, and Oracle, they need to show that they're better than the low-end free stuff like MySQL and Apache. And they aren't succeeding in that. Thus, Linux and friends is the current threat...its a threat to the future they REALLY want to control.

      --
      "But remember, most lynch mobs aren't this nice." (H.Simpson)
      -- Joe
    4. Re:Needs more detail by sql*kitten · · Score: 3, Interesting

      Sun has to compete more closely with free-software systems than Microsoft does ... but Sun can also benefit much more easily from free-software innovation than Microsoft can.

      That is an excellent point.

      One of the planks of Fundamentalist Gatesism is that free software doesn't do anyone any good. And they call us fanatics?

      Oh, Gates has no problems with "free as in beer" - look at IE, for example.

  9. Cool by FrostedWheat · · Score: 5, Interesting

    Free publicity :)

    Tho I personally believe Microsoft's biggest threat are themselves. They sometimes do make cool stuff (Media Player 6.4) but then quicky ruin it (Media Player 7+).

    1. Re:Cool by geoff+lane · · Score: 3, Funny

      No well run company would get into a situation where they have $40B in the bank.

    2. 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?).

      --
      Stop by my site where I write about ERP systems & more
    3. Re:Cool by phoxix · · Score: 2, Informative
      They sometimes do make cool stuff (Media Player 6.4) but then quicky ruin it (Media Player 7+).

      You can get a similar version of Windows Media Player 6.4 by typing mplayer2 at the run dialog box.

      Sunny Dubey

    4. Re:Cool by AsparagusChallenge · · Score: 2, Insightful

      To tell the truth, their $40B in the bank are one of their problems now.

      The market economy works by circulating money. If these 40B are not circulating they are a burden. Microsoft has, until now, found a way to take the capital and turn it into a good return.

      Now they have saturated the niche. It's becoming harder to get the big returns they (and their shareholders) are familiar with.

      In a perfect world they could simply say "screw the returns" and invest that money on good technological advancements, even ones that don't give a so good return. But on the US economy that's not an option; if they did that the investors would take the money and invest it on something with better returns.

  10. Re:Well, well... by MisanthropicProggram · · Score: 2, Funny
    From the article: Microsoft chairman Bill Gates said in February that he took Linux and its threat to his company seriously, saying the operating system is "out there and very pervasive."

    On one hand, MS is losing sales ... on the other, MS doesn't look like the monopoly that it once was. Maybe this will get some of the DOJ and politcal heat off of MS?

    --

    There is no spoon or sig.

  11. So linux is a threat now? by archen · · Score: 5, Interesting

    I wonder how long it's going to take Microsoft to figure out that it's not Linux that's the threat, it's open source. Linux is fine, but what do you DO with Linux? Linux is just a platform (like BSD), the other things you do like run a webserver, file server, database all require some sort of software (Apache, Samba, PostgreSQL). Most of the really good software packages aren't specific to Linux.

  12. Microsoft is like USA by anttik · · Score: 2, Insightful

    Both are making lists of their worst enemies.

    Luckily Microsoft just can't use real weapons to beat them. They will have to make better products for cheaper price.

    Competition is good if there's no weapons involved.

  13. 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.

    2. Re:this is why MSFT is not a stock to own by sql*kitten · · Score: 3, Informative

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

      Microsoft profit up 26%. No sign of any eroded margins there!

  14. Windows CE by Anonymous Coward · · Score: 3, Interesting

    By even giving away Windows CE, they lose nothing. It is highly outdated, but by getting hardware manufacturers to stick to the MS line of products, their monopoly is secured. Is a device running WinCE more or less likely to ever have Linux drivers?

    ---
    1-800-759-0700

  15. Re:Obligitory, of course- more fun here! by jkrise · · Score: 2, Insightful

    Actually the article refers the no. 1 risk as:

    The Economy!! How can the economy be a 'risk'??

    Okay I see... Economy bad--> People find MSware expensive --> People start to think --> discover MS is lousy despite all Gartner reports --> read Slashdot --> get to learn about this thing called Linux --> adopt it...yes!

    All risks lead to Linux!!

    -

    --
    If you keep throwing chairs, one day you'll break windows....
  16. Problem 1 and 2 by Stonent1 · · Score: 5, Interesting

    Considering how MS deals with problems, it can't possibly win.

    1. MS can't buy the economy
    2. MS can't buy Linux
    So traditional MS strategies don't work.

  17. Surprising by wackoman2112 · · Score: 2, Funny

    I'm quite surprised that Linux isn't #1 on the list of threats. I don't think Microsoft has too much to worry about individual use of Linux, but rather companies switching to Linux to avoid paying the hefty licensing fees. And I don't think lowering the price of CE will help much. As I stated, the threat's with companies getting fed up with licensing.

    I don't think opening the source code will help much either. It costs a lot to get the code, you aren't allowed to recompile it, and you're probably bound by a bunch of other restrictions.

    If I were Bill Gates, I'd be worried sick about it and I would probably have nightmares about giant penguins chasing me with pitchforks.

    --
    /usr/bin/complain > /dev/null
  18. 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.

    --
    Sdelat' Ameriku velikoy Snova!
    1. Re:Flawed logic or FUD? by jkrise · · Score: 3, Insightful

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

      Actually, only the Open Source community has gate-keepers. The closed source giants have toll booths instead - a one-way traffic. And if you don't like the picture, you can't get your money back as well.
      -

      --
      If you keep throwing chairs, one day you'll break windows....
    2. Re:Flawed logic or FUD? by Homology · · Score: 4, Interesting
      You'll also find another, not so subtle, difference:

      Microsoft doesn't let anyone but itself re-compile the code to Windows

      I may freely build my Open Source executables, along with any changes I've made to it.

      If re-compiling Windows where an option, the DRM and Palladium would not be possible.

  19. 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.

  20. Re:Eh? by Trigun · · Score: 2, Funny

    Or slipped off the stage into the front row.
    There goes MS's board of Directors. Next week the interns sit up front.

  21. Doesn't Matter by flamingantichimp · · Score: 2, Interesting

    No matter what approach Microsoft takes, I don't see it taking a major blow to Linux. Short of open sourcing Windows, all they are doing is reducing the difference, but the fundamental differences still exisit. Either Linux is NeXT and will take over the world or it is just for us geeks. Only time will tell which of the many theories about linux and how it fits in with the market share are correct.

  22. You just noticed? by AndroidCat · · Score: 2, Informative

    Watch what comes up with, say, an article about spam. Slashdot has been tailoring ad placement for some time. (Not that that's a bad thing.)

    --
    One line blog. I hear that they're called Twitters now.
  23. And so, the war began... by Noryungi · · Score: 4, Funny

    And the flames rose higher and higher, and a million emails were fired in anger...

    Script kiddies and geeks, UN*X gurus and bearded free-software prophets all sharpened their r00tkits and compilers and started beating louder and louder on the war drums...

    Gee, I love the smell of FUD in the morning... It smells like... like... Victory! =)

    [and all of this is said with tongue firmly in cheek, of course!]

    --
    The right to offend is far more important than the right not to be offended. (Rowan Atkinson)
    1. Re:And so, the war began... by Exatron · · Score: 2, Insightful
      Gee, I love the smell of FUD in the morning... It smells like... like... Victory! =)

      If that's the case, victory needs a shower.

      --
      "I think so, Brain, but 'instant karma' always gets so lumpy." - Pinky
      "Decepticons FOREVER!!!" - Ravage
  24. 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..

    --
    Will code a sig generator for food
    1. Re:Has Windows reached a plateau? by IGnatius+T+Foobar · · Score: 2, Interesting

      It seems to me that it has reached a point were there isn't that much use in upgrading anymore.

      Good point. People upgraded from Windows 95/98 to Windows 2000 and marvelled at how stable it was in comparison. Wouldn't it be ironic if Microsoft finally fixing the largest stability bugs became the #1 driver behind people not upgrading anymore? "Why should I buy Windows 2003 when Windows 2000 doesn't crash anymore?"

      (Note: as a techie, I don't think Windows 2000/2003 is exceptionally stable. It still pales in comparison to most Unices. But compared to Windows 9X it was a big step forward.)

      --
      Tired of FB/Google censorship? Visit UNCENSORED!
  25. Re:In other words by TCQuad · · Score: 5, Informative

    This is just MSFT trying to act all big, oh pshaw, Linux, one can hardly muster a whim about it. Well, it is a tried and true method. I mean, at Coca-Cola back in the day, they barely even considered a little startup called Pepsi. They mocked it internally, thinking that they were the big guy and the "P-cola" would never amount to much. Of course, when it gained steam by targeting a younger audience, they panicked and launched "New Coke". Yeah. I think we know the rest of that story.

  26. cold mean trouble... by surprise_audit · · Score: 3, Insightful
    This will not only allow developers to view and modify CE, but also distribute software incorporated to the modified code.

    WinCE may or may not be close, source-wise, to actual Desktop Windows of any flavor, but doesn't this raise the spectre of copyright violation? If WinCE source becomes easily available, Microsoft will soon be able to run around accusing all kinds of Open Source projects of stealing their stuff. Never mind that none of it may be actually useful... Just the possibility of being able to stall OSS projects might be enough to persuade Microsoft to start down the same road as SCO.

  27. Publicity==Publicity by n0nsensical · · Score: 5, Interesting

    Good point, but still, I remember an article on the front page of the business section of the USAToday about Linux a while back. Not exactly my favorite news publication, but obviously there were a huge number of non-geeks reading about Linux vs. Microsoft that day. You never know who's going to pick up the story.

  28. What number is Steve B? by AndroidCat · · Score: 5, Funny

    "Dancing Steve" Ballmer has to be on that list somewhere. What's his number?

    --
    One line blog. I hear that they're called Twitters now.
  29. Coincidence? I think now! by chickenbak · · Score: 5, Funny

    The CFOs name is John Connors, coincidence, I think not! Time to Terminate boys.

  30. Not just Linux! by Junks+Jerzey · · Score: 2, Insightful

    Linux and non-commercial software as 'out there and very pervasive

    Remember, there's open source software available for Windows. Quite a lot of it actually. Open office clones are more of a threat than an operating system kernel (which is what "Linux" is).

  31. Re:#1 risk by geeber · · Score: 2, Insightful

    How exactly is this insightful? It's a baseless flame and nothing more. Some of their stuff is good (you'll have to pry powerpoint from my cold dead hands) some is crap. The same is true for open source software.

  32. Times are Changing by 3seas · · Score: 2, Interesting

    Due to technological advancements, better ways of doing things, old industry is being flushed out.

    This includes proprietary software. (isn't that what MS is saying?)

    It also includes flushing out the old music industry and more...

    So much has been integrated into a larger system of "old business" that as one industry reacts to change other industries tied in integration are as well tugged on.

    Note that it's the software industry that tugs on the entertainment industry....

    The wave being caused by open source (OSI definition - not MS's definition) is being felt further than just the old software industry.

    Economic Environment....

    Don't nobody tell MS that there list is incorrect, they will eventually figure it out, when they no longer can ignore their old ways are not working, cause everyone else knows it.

    Guess this tells us what MS's next line of irrationality is going to be with the politicians.

    "To save our (double speak meaning MSs personal economy) economy you have to outlaw Open Source and then sentance all criminals to have to use our software. A matter of homeland security, you understand...??"

  33. Who is actually number one? by EvilOpie · · Score: 2, Insightful

    Makes me wonder if Microsoft isn't on their own list of risks. ;-)

    But seriously, the article stated that "The general economic environment is risk and driver No. 1," he said. "Linux and non-commercial software is risk No. 2." That means that the top risk to Microsoft is something they have no direct control over. Now we all know that a company as big as Microsoft DOES have an effect on the economy in some respect, but there's nothing that they're going to do on their own to pull the country out of an economic slump. If there was, they would have done it by now so that people would buy more Microsoft products.

    So that means that out of their list of the top five risks, the #1 risk that they can actually compete directly against is Linux and open source (and other non-commercial) software. Now doesn't that put things in a bit more perspective?

    --
    -Through the server, over the router, off the firewall... Nothing but 'Net!
  34. Re:Number 2 Risk? by Trigun · · Score: 2, Funny

    No, that's just what Ballmer does in his pants everytime an entire city chooses Linux over Microsoft. Hell, if it were my job, I'd be doing that too.

  35. Major point of free software by BenjyD · · Score: 3, Insightful

    For me, this kind of thing is my Number 2 reason for liking free software (Number 1 obviously being, well, freedom).

    Free software sets the level for what people can do without help from companies. So, if a company wants to sell me some software, it has to demonstrably do something that I can't do for myself (with free software).

    By forcing companies like Microsoft to lower prices, rethink strategies etc, free software improves condition in the industry, even for those that don't use it.

  36. 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.

  37. MS threatened by OS - their best option is obvious by literate · · Score: 5, Interesting

    Large forces and trends ultimately win; like the desire to be free. MS has simply begun to recognize that the inputs required to overcome the market's natural forces will soon exceed the outputs. this is partly due to an increasing realization that consumers have become satisfied with existing technology.

    what will MS do? they have hundreds of very talented programmers, incredible distribution & support capacity, not to mention $30 billion in cash. after all, customers simply want the outputs of all that technology.

    if MS would embrace OpenSource as another input to its products and add credibility and customer service they would have an incredible value proposition.

    i predict an MS-Linux release in 2-3 years.

  38. Gatekeepers by muppet · · Score: 2, 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."

    interesting; they assume that no one would ever want to make a modification just for private use. yes, there are gatekeepers in the open software world, but only if you wish to get your changes committed to the "official" distribution. with shared source, since you aren't allowed to compile, the source access gets you diddly squat, whereas with most OSS, you can actually benefit from being able to modify the code. you don't even have to make your changes public if you never distribute that changed program.

    i guess that gives us insight into their model of customers: dumb users with a minority of dumb developers.

  39. 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.

  40. Number 1 Risk? by macgyvr64 · · Score: 3, Insightful

    Their number 1 risk should be their own security holes.
    *cough* Slammer *cough*
    Then Linux.

  41. Actually... by little+alfalfa · · Score: 2, Funny

    I thought Microsoft's products were more #2 than anything else.

  42. Oh to be a DOJ employee... by DohDamit · · Score: 3, Funny

    and to know that Microsoft thinks that Linux is more threatening than you by a long shot. How sad.

  43. UNIX replacement. by SHEENmaster · · Score: 4, Interesting

    Yes, many Linux distros are good desktop OSes. It's important to realize that the UNIX aspects of it are why we geeks use it.

    I'd rather have Linux with no dos/windows/macintosh emulation on a nice UltraSparc than Lindows on a PC, even if that latter had a perfected fork of Wine installed.

    I think that Microsoft knows they can't best Linux in the server market, where buyers are more educated. They are more afraid of losing bundling with the smaller PC companies. How many people are running a $199 Walmart C3 with an illegal copy of Windows?

    As for the Windows CE source, where is it? If they expect us to pay money to work on their code for them, they are sadly missing the beauty of OSS.

    --
    You can't judge a book by the way it wears its hair.
    1. Re:UNIX replacement. by mystran · · Score: 2, Insightful
      Personally, I think it's better to give source when someone buys the software, than not give it at all. I know several cases where a product (usually a library) was chosen because full source was included in the deal.

      Actually, even GPL allows that kind of distribution. I can sell you GPL'ed code (and source) and not give you the source if you don't buy it, since I'm not distributing the product before you buy it :)

      If one limits the redistribution, then it's no longer Free Software. I'd like to know what use is having the source if you can't compile it. There's now way to know if something was added or removed or changed before the compile. I assume they allow recompile of Windows CE though.

      Also, MS is missing the most important part in OSS world. True, there's always someone that says what goes in and what doesn't, but you always have the freedom of forking the project! That's part of why it works. If the original project likes what the fork produced, they can later be merged again.

      I don't consider the price to be the main issue. After all one develops a project one is hoping to use. If there are arbitary limitations to that development, I consider it much more important problem.

      --
      Software should be free as in speech, but if we also get some free beer, all the better.
  44. Better than bad, it's good! by jfabermit · · Score: 2, Interesting
    People are using Linux for the same reason that others are still using Windows 2000 or Office 97," Cherry said. "It's good enough to do they job they're deploying it for."

    Actually, in my physics department, we use Linux, not because it is GOOD ENOUGH (?!?), but because it is the ONLY acceptable solution for what we need to do. For scientific computing, (or security, etc., etc.) it is the best option, not "good enough", and certainly no comparison with outdated programs from MS.

  45. Re:In other words by windex · · Score: 2, Informative

    I still prefer the taste of Dr. Pepper.

    (-1, Irrelevant)

  46. 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.

    --
    This is my digital signature. 10011011001
    1. Re:May I have some of what you're on? by ScrewMaster · · Score: 2, Interesting

      Sure ... coffee with cream and Nutrasweet. And some might say that human progress will end when the computer's name is "Skynet" but that's a discussion for another day.

      I never said that technology (with a capital T) was plateuing ... no sir. Eventually it will but not for many centuries. I meant that Microsoft was plateuing. What has changed in the last few releases of Windows? Answer: not a whole lot. Win98 is Win95 with bug fixes (and not enough of those.) Win2K is just the Win98 GUI laid upon the NT core, and XP is just an extension of that. Whoop-de-do. And the much-vaunted stability of the successor OSes based upon the NT kernel is just duplicating what Novell and the various Unices accomplished long ago (and the latest Netcraft uptime surveys indicate that Microsoft isn't there yet!)

      The problem (for Microsoft) is that for twenty-five years application developers have been refining and polishing software to do what most of us want to do most of the time. And, I might add that that they've gotten pretty good at it. The reason that users and corporations are balking at continually "upgrading" their software is the the cost/benefit ratio of new Microsoft releases is much poorer than it used to be.

      For example, when Windows '95 was released, what was it replacing? Why, Windows 3.1x, of course, that drain-bamaged loosely-named "operating system" whose only reason for existence was to assuage the Mac envy that was growing by leaps-and-bounds among the Microsoft faithful. Win95, on the other hand, offered significant useability enhancements over Win3.1. Let's just say, it was actually usable: to Joe User the difference was like night-and-day. Granted, under the hood it wasn't that different, but from the user's perspective, it was a worthwhile upgrade.

      Furthermore, the long-term Microsoft practice of simply adding dozens (nay, hundreds) of largely useless new features to their applications to make them more marketable is beginning to fail. In other words, feature-bloat and code-creep will carry you only so far. For example, Office 97 already does everything that the VAST majority of users will ever want to do. Consequently, spending significant amounts of capital "upgrading" to, say, Office 2000 is hard to justify, unless your product evaluation cycle indicates that there is some specific new capability that you need.

      That is what I meant by "plateuing". And the effect is becoming more pronounced all the time, as big customers are refusing to swallow Microsoft's forced upgrade policies and buy the latest-and-greatest just because it is available.

      I like Win2K because it does what I need. WinXP has a lot of GUI glitter, but it serves little purpose other than to make it sell better to the uninitiated (who gauge an OS's value based upon the number of colors presented simultaneously) and use more processor time. Keep in mind that I like glitter (that's what I do for a living) but I don't it see as a rationale for selecting an operating system.

      Plus I don't much like XP's license agreement.

      --
      The higher the technology, the sharper that two-edged sword.
    2. Re:May I have some of what you're on? by uncadonna · · Score: 3, Interesting
      First off, there is never a plateau in technology.

      Well, maybe so, but there are limits to how effective any code base and methodology can be. There are reasons to suspect that the Microsoft approach will soon or has already reached a point of diminishing returns in terms of value added per unit effort. It can always be made better, of course, but that doesn't mean it can always be made better fast enough.

      Even if true, this doesn't mean Stallmanesque pure open source will win either. I think a hybrid model (see OSX) may be the best. The point is less about morality or motivation, and more that Microsoft's high-pressure release-first fix-later approach has left it with a huge, bloated, unrepairable code base.

      Look again at your analogy. You can add motors to your 18th century boat and make it faster, but it's not going to win a race head-to-head against a modern speedboat designed and built with modern methods and materials.

      I can't believe you say you like Win2k better than WinXP.

      I have seen my mother-in-law try to switch to XP from W98 to manage her photography hobby. The switch seems to have gratuitously confused her. In the end she is marginally less effective. As for me, when I get roped into support tasks for her, I have to deal with a smarmy and aesthetically revolting UI.

      Even leaving aside the licensing and spyware aspects, I for one definitely strongly prefer older version of Windows to XP, and have no plans to move any of my Win9x boxes to any current Microsoft OS, nor to purchase any Intel boxes with any version on XP on them in future. I have occasion to run Win95, Win98, Red Hat, and Debian, but mostly I use OSX, sometimes with a Win98 VirtualPC.

      By the way I have nothing against decent MS software. Excel is nice, and if it weren't a security risk Outlook, (which has some great features to outweigh its cluttered design) would be very appealing. I recommend MS Entourage on OSX + Palm as the best PIM combination at present, despite the many things I like about iCal. On the other hand I think MS Word is garbage and a curse on humankind. It cannot be repaired. The underlying data structures are too broken.

      --
      mt
  47. Re:In other words by Xabraxas · · Score: 2, Informative
    Yeah. I think we know the rest of that story.

    The rest of the story is that coke still holds a tangible advantage (about 10 percentage points) in the US market while it has about 90% marketshare in the rest of the world. So, while Pepsi may be a big company, Coke still isn't really threatened by it.

    --
    Time makes more converts than reason
  48. That's some of the best marketing Linux ever had by FearUncertaintyDoubt · · Score: 4, Interesting
    It gives Linux a legitimacy, essentially certified by Microsoft, that is desperately needed. Walk into a CIO's office now, and show him this, and he will think, hey, if Microsoft is scared of it, it must be pretty good.

    Essentially, Microsoft has had to make the concession in order to rally their own troops to fighting Linux aggressively. To continue saying, Linux is worthless and not a real credible answer, is to look like you have your head in the sand. The Munich deal made them realize that Linux is no longer being used to just squeeze a better deal out of MS, but people will actually implement it if MS doesn't come up with a good deal up front. I think that is what surprised them: they probably never believed that Munich was serious about putting in Linux.

    They've simply been hoping that this point would never come, when they had to actually acknowledge Linux as a serious competitor (and not just for anti-trust reasons; they would call a Vic-20 viable competition in order to get DOJ to leave them alone).

  49. Windows CE by pimpinmonk · · Score: 2, Interesting

    I don't care what others may say; this is probably the most significant victory for open source to date. I think that Microsoft opening its code to modification and redistribution is unparalleled compared to previous inroads made by open source. True open source evangelists would probably say that although the impact this may make is small, what it says is certainly not; Microsoft has budged in its previously-unyielding attitude toward closed intellectual property.

  50. Re:Obligitory, of course- more fun here! by DickBreath · · Score: 2, Interesting

    The Economy!! How can the economy be a 'risk'??

    Okay. Let me explain it to you.

    The economy is starting to show signs of getting somewhat better. This is bad, because people will begin to spend money again. This means some money will be spent on computer upgrades. This means that vendors of non-Microsoft products might see an improvement in their business. This is bad.

    When the economy is bad, this is good for Microsoft. Microsoft can weather the storm just fine. But vendors of competitive products might go under.

    --

    I'll see your senator, and I'll raise you two judges.
  51. Re:In other words by TCQuad · · Score: 2, Interesting

    The rest of the story is that coke still holds a tangible advantage (about 10 percentage points) in the US market...

    My intention wasn't to say that Linux will destroy M$, but rather that in the final analysis (assuming this well-worn analogy holds true), initial size doesn't necessarily matter and it will come down to a matter of personal preference. And a "tangible" advantage of 10 points is a lot different than a near-complete monopoly.

  52. Has Windows reached a plateau? Yep by mabhatter654 · · Score: 2, Interesting
    Yep! It's called Monopoly. 99% market penetration. The funny thing about monopoly is that once everyone has one, it's not new and shiny anymore--and they pay too much. The company in this position goes from being "cool" to being "annoying" we don't really look upon our electric compainies with awe and wonder anymore do we? all we see is that they still want our money.

    In a down economy, the next cool thing better be cheap! and online! and be really useful! ...did I mention cheap...

    Remember Bill made his money selling STOCK in something cool and using legal contracts to keep the ball rolling. MS as just a software company with profit is a dime-a-dozen [look at what wall street did to IBM with profits!] They have to be cool to justify their stock price or the whole thing collapses.

    Linux doesn't have to do anything but be itself. What it's always been...get the picture.

  53. the number one risk is free spread of information by seismic · · Score: 3, Interesting

    In the article they state the number one risk is the state of the economy, and the number two risk is open source.

    I would argue that Microsoft's number one risk is actually the free spread of information over the internet. This is something that can not be controlled (yet).

    In the old days IT decisions were made with very limited information. Possibly Gartner group published recommendations, maybe from reading trade journals that were several months out of date.

    A popular saying was "well nobody got fired using [insert company here] products". It was all about risk management. Go with the biggest baddest company, and at least you're protected in some way if things blow up. That was the theory.

    With easier access to information folks are realizing that this theory doesn't always hold true. When the latest windows/exchange/internet explorer vulnerability is unleashed, now you're just part of the bigger collective that is screwed.

    It becomes harder for companies to do damage control when the facts spread quickly and undergo so much analysis by people not on their payroll.

    When the internet functions as a self regulating corporate BS filter, then it becomes the biggest single threat to Microsoft.

  54. Re:Did anyone else think this? by bj8rn · · Score: 2, Insightful
    current economic environment=>MS not owning enough of said environment

    Looking at the current state of the economy, I'd say that their concern may rather be that they own too much of the said environment.

    --
    Hell is not other people; it is yourself. - Ludwig Wittgenstein
  55. Context, details, analysts look to Linux's future by securitas · · Score: 3, Interesting


    This story needs to be put in context with recent developments and crowing about Windows being chosen over Linux. The biggest story out of this surprising admission is that analysts and large organizations are starting to recognize the value proposition of Linux and Open Source, as described in the rejected post below. The most telling comment is in the quotation in boldface, which lends support to Mitch Kapor's predictions.

    Microsoft Ranks Linux its Number Two Threat

    While most media are focusing on Microsoft's growing sales and Microsoft Windows Server 2003 replacing Linux servers based on the June 2003 Netcraft survey, (also at SMH, but disputed by the Register) there's a more interesting story to Microsoft's latest earnings report and conference call. Speaking about the top five risks for Microsoft, CFO John Connors said, ''The general economic environment is risk and driver number one. Linux and non-commercial software is risk number two.'' The recent Munich win for Linux is partly credited for making Microsoft take Linux and OS software seriously. Said one analyst about future threats, ''People are underestimating Linux on the desktop. They're going to be surprised at how quickly Linux's threat will be an issue on the desktop.''

  56. Bring on Linux GameOS with OpenX by Quizo69 · · Score: 2, Interesting

    I have said before on Slashdot that if someone like John Carmack were to build a highly efficient (non-bloatware) GameOS based on Linux and write his Quake games for it, there would be an overnight mass exodus from Windows.

    To have an open source OS with REAL major league games support would be nirvana. No memory sucking apps lurking in the background, just a nice clean DirectX style (OpenX perhaps?) API and top notch driver support (proprietary or otherwise but DEVELOPED for open standards).

    Make Ogg Vorbis for audio, OpenGL for graphics etc. part of the OpenX standard.

    And when you're finished playing games, each game exit routine drops you back to a normal GUI desktop environment for your normal computing tasks.

    You could have competing (but OpenX standards based) distros that would try to eek as much performance out of the game kernel as possible.

    Give me that and I'll ditch Windows 2000 tomorrow.

    Quizo69

  57. Re:your sig by leomekenkamp · · Score: 2, Insightful

    Funny thing is that I looked at that website and it reminded me of the reasoning that religious zealots have on the subject of evolution: "You say that all live evolves through evolution, so show me the missing link between monkeys and humans. You cannot, so this proves that God, and not evolution, created man."

    Also, a lot of the quotes (which can quite easily be torn out of their context) are some number of years old. A lot can happen in a few years of scientific research.

    --
    Wenn ist das Nunstueck git und Slotermeyer? Ja! Beiherhund das Oder die Flipperwaldt gersput.
  58. Linux will reach the masses at work by Jadrano · · Score: 3, Insightful

    As far as private computers at home are concerned, I wouldn't expect a significant part of the population to switch from Windows to GNU/Linux. OS X is a much stronger competitor of Windows in that area. It seems that mostly people with a special interest in IT and OSS are using Linux (often, they know several operating systems). Sometimes, they can convince "normal" computer users they know to use Linux, as well, but I don't believe that this way of spread can result in a massive rise of the number of Linux users.
    One important reason is that the difference in price doesn't matter so much for private users. Of course, Linux is free, but most users - and "normal computer users even more so" - usually want to have a convenient up-to-date distribution on a DVD or CDs, and if you buy new versions from time to time, Linux won't be much cheaper any more.

    That is, of course, very different for companies and institutions, even if they always buy the latest version of their distribution, they can use it for an unlimited number of computers. Therefore, I think it can be expected that more companies and institutions will use Linux (of course, some can't because they use specialised software developped for Windows, but many can), cities like Munich or Schwäbisch Hall are a show what might happen in many other places, as well. Then, many people will get to know Linux at work, and because they get used to it, many of them will also use it at home and recommend it to others, and educational institutions will have to deal with Linux "because that's what you will be likely to see at work".

    I think that if Linux is going to take over a significant share of the desktop, it is probably going to happen in such a way. The grassroot movement for Linux is quite strong, but I don't think it can reach more than a few per cent of the population if companies and public organisations choosing Linux to save money don't play their role.

  59. Isn't this a good thing? by SubliminalLove · · Score: 2, Insightful

    Although the average slashgeek likes to jump down Microsoft's throat over everything they do, isn't this sort of move exactly what should happen? Aren't things like lowering prices and opening source code some of the long-argued benefits of Linux competing with Microsoft?

    Kudos to Linux!

  60. 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.

    1. Re:Just how many idiots are there on Slashdot? by Ridgelift · · Score: 3, Informative

      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.

      Home users don't care who Microsoft thinks is a threat. Only corporate people do, and they're not the ones who deal with the complexities of computers. I've been selling and supporting IT solutions to small and mid-size businesses for over 7 years, and customers do understand that Linux is the best value out there.

      Maybe the /. crowd isn't as stupid as you think they are.

  61. MSFT is playing to your vanities by gad_zuki! · · Score: 2, Interesting

    > I wonder how long it's going to take Microsoft to figure out that it's not Linux that's the threat, it's open source.

    Err, how about when Linux zealots realize that MS is just playing to their vanities. Where exactly is the great Linux desktop rollout? Sure, there are inroads to the server-side of things, but Linux is also pushing out Solaris, not just NT.

    Why would MS list linux as their #2 threat is they don't mean it? It answers a couple important questions:

    1. Why do your products cost so much?

    Umm, Linux.

    2. Are you still a harmful monopoly?

    Umm, no way. Linux. Its killing us!

    3. How would you compare OSX to Windows?

    Umm, Linux. Linux is everything, haven't you heard? I don't even know what "ooosssexxx" is. Sounds like porno. Next question!

    etc.

    Microsoft needs a real enemy to play off its "evil empire" image, preferable one that isn't really a desktop threat like Apple. You guys are falling for this hook, line, and sinker.

    Not to mention I still cannot see how opening CE is a "reaction to Linux." Opening advanced server would be a reaction to Linux.

    MS didn't get where it is by playing fair or by telling the truth. This article is no exception.

  62. 20 Minutes into the future... by Geek+of+Tech · · Score: 3, Funny
    And in other news, the Microsoft corperation has just moved itself to number 1 space on its list of greatest threats. According to rumor, MS Chairman, Bill Gates is said to hold position number 2, with Linux weighing in at a distant third....

    --
    Stop the Slashdot effect! Don't read the articles!
  63. 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.

  64. LAMP versus SharePoint by ubiquitin · · Score: 2, Insightful

    It isn't Linux itself that Microsoft is scared of: it is deployment of services across a network that linux enables. This means that the LAMP (apache mysql php) approach is really what concerns them.

    Does "business value" mean having a bunch of point-and-clickers take over your IT department? It takes a sixth-grade education to get through a Windows Server 2003 patch upgrade. Know how to click "OK" and you've got the job!

    What Microsoft is missing is this: unix sysadmin skills have real value, a value tied up in automating business processes. Investing in off-the-shelf boxed products so you don't have to invest in quality skilled IT people is short-sighted.

    Get it straight from the horse's mouth: Microsoft Lessons

    --
    http://tinyurl.com/4ny52
  65. Re:When #2 becomes #1 by 1010011010 · · Score: 2, Informative

    When the economy is in recession, it is shrinking. Because the U.S. economy is not shrinking, it cannot, by definition, be in a recession.

    It's not growing as much as all of us would like, for sure.

    --
    Napster-to-go says "Fill and refill your compatible MP3 player", which is a lie. It's not MP3. It's WMA with DRM.
  66. Re:In other words by windex · · Score: 2, Insightful

    I am very amused this turned into a micro-flamewar while I was gone. I already knew it was owned by the same folks who do 7up. :)

  67. NOT WITH MY MULTI-LAYERED TINFOIL HAT!!!! by Clockwurk · · Score: 2, Funny
  68. The articles last paragraphs are right on! by Qbertino · · Score: 2, Insightful

    "Microsoft will take some considerable encouragement at the number of sites that have switched from Linux," NetCraft said in the report.

    But the server arena isn't really the one to watch how Microsoft reacts to Linux, said Cherry.

    "People are underestimating Linux on the desktop," he said. "They think it's all about the servers, and how Microsoft responds there. They're going to be surprised at how quickly Linux's threat will be an issue on the desktop. Linux will get to be 'just good enough' for the desktop faster than people think."

    Maybe that will make Microsoft bump Linux to the top of its risk list.


    This is what I've been saying since I first saw screenshots of Enlightenment back in 1998. The moment I, sitting in Front of Windows95 and some ancient Explorer, saw
    this, I knew M$ would lose in the end. Software wins by widespread use. Widespread use is achieved by public awareness. And, believe me, public awareness is *not* achieved on servers, no matter how much the difference is. Public awareness is achieved on the Desktop. That's the bottom line.
    Having seen previews of KDE 3.2 at the LinuxTag I conclude: Not only has GNU + Linux gained momentum but it is close to reaching critical mass.

    --
    We suffer more in our imagination than in reality. - Seneca
  69. These threats might be connected... by Jugalator · · Score: 2, Insightful

    I think the poor "economic climate" for Microsoft and the "Linux threat" might be connected to each other. People switch to various Linux-based servers and sometimes even for desktop usage since they find Linux "good enough" and perhaps cheaper as well, in the long run as well. And with the current economic climate, price is important and so is the "good enough" factor. A poor economic climate might speed up the Linux adaption and I'm not really that surprised to see Linux that high on the list simultaneously as the "economic climate", since I'm seeing those as connected. Not saying that people will switch back to Microsoft when/if the climate improves, but the Linux adaption might slow down a bit.

    --
    Beware: In C++, your friends can see your privates!
  70. Excuses Excuses by PorcupineMaster · · Score: 2, Insightful

    If Microsoft openly says that they are worried about Linux regardless of if they are or not, it will make any sneaky businness tactics look like they are simply protecting the company from what they see as a serious threat rather being seen to make sure it doesn't get to a position where it could be.