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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."

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

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

    2. 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.
  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.
  3. 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.
  4. 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....
  5. 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.

  6. 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+).

  7. 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.

  8. 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.

  9. 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.

  10. 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.

  11. 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
  12. 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.

  13. 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.

  14. 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.
  15. Coincidence? I think now! by chickenbak · · Score: 5, Funny

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

  16. 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.

  17. 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.
  18. 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.

  19. 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.