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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."

42 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.

      --
      - /* dead coders leave no comments */
    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.

    3. 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!

    4. 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

    5. 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.
    6. 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...
  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. 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
  4. 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.
  5. 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.

  6. 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 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?)

  7. 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 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
  8. 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.

  9. 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.

  10. 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.

  11. 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 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.

  12. 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.

  13. 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)
  14. 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
  15. 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.

  16. 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.

  17. 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.
  18. Coincidence? I think now! by chickenbak · · Score: 5, Funny

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

  19. 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.

  20. 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.

  21. 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.

  22. 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.
  23. 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
  24. 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.
  25. 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).

  26. 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.

  27. 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.