Linux's Role In Microsoft's Decline
nerdyH writes "As early as last quarter, Microsoft admitted that Linux and netbooks were eating into its fat profits. Recently, it came home, with the software giant announcing its first-ever layoffs. LinuxDevices interviewed Linux Foundation Director Jim Zemlin on Linux's role in Microsoft's misfortunes. Zemlin sums it up pretty well: 'Companies can offer their own branded software platform based on Linux. If Microsoft is getting 75 percent margins, you would like some of that high-margin business, too.'"
As early as last quarter, Microsoft admitted that Linux and netbooks were eating into its fat profits. Recently, it came home, with the software giant announcing its first-ever layoffs.
Yeah, it couldn't be because there is a massive economic crisis going on. It's all Linux.
Not a typewriter
Of course the Linux guy will say Linux. And the Apple guy Apple. So on and so forth. And there is probably a mixture of truth to all that.
But it would be interesting to get that internal memo.
Except for ending slavery, the Nazis, communism, & securing American independence, war has never solved anything.
Comment removed based on user account deletion
Making $4 Billion in one quarter isn't much a decline. Looks like layoffs were induced by greed, so that executives stocks options go up. It would be interesting to see if some of those 4000-5000 employees use linux as a platform for a technology startup.
On the bright side if I were laid-off I'd have plenty of time to juggle.
I think most of their lost profits are from people negotiating lower prices because of the Linux alternative, not so much that people are actually choosing Linux.
From TFA... Actually the first question in TFA.
Q1 -- Jim, thank you for your support in talking with LinuxDevices today. Do you think it was really Linux that hurt Microsoft? Or was it the emergence of netbooks? XP seems to ship on most, but Microsoft isn't making much money selling XP for low-cost PCs [story], are they?
A1 -- When an OEM negotiates a price agreement with Microsoft, they now have a viable alternative. It changes the negotiating relationship. It's a combination of Linux, missteps by Microsoft, and not enabling Vista for a low-power, long battery-life device.
I wonder if you can be modded insightfull for "insights" from the article? No one reads them anyway...
Not to mention the fact that if companies *did* start selling machines with their own flavors of Linux I'm sure they'd quickly spiral into garbage. Think of the crapware on budget PCs. Now imagine an entire OS bastardized, branded and sold to the highest bidder. I could see custom manufacturer Linux distros quickly becoming a total nightmare.
You are using English. Please learn the difference between loose and lose; they're, there, and their; your and you're.
Microsoft isn't losing because of Linux, it's losing because of Microsoft.
Essentially, if MS dominated the industry by creating the BEST product, then they wouldn't have a problem. Their problem is simply that their target customer isn't willing to be abused any longer. That and the of years of abuse have pushed millions of victims to contribute to the creation and improvement of alternatives to Microsoft.
Sometimes the best solution is to stop wasting time looking for an easy solution.
Linux doesn't need any marketshare in order to do damage to Microsoft.
Just the fact that it's out there as a bogeyman is enough.
The ressurection of XP on netbooks is a good enough demonstration of this effect.
A Pirate and a Puritan look the same on a balance sheet.
Well, I run Linux exclusively, on my desktop at home and my laptop for work. This is probably not the best forum to declare that nobody is using Linux on the desktop.
Also, installing applications and dealing with dependencies are absolutely among Linux's strongest features over Windows, and always have been.
i have been looking a lot at netbooks online, at best buy and at staples and microcneter, and it is hard to even find a linux netbook - I seriously doubt this has caused any significant harm to MS
But, be glad to see some actual sales data
Anyway, the whole idea that linux is better or cheaper then MS is not true for the avg user,
Yes, Linux marketed as a distro can do better. The good thing is that very soon, we'll have KDE with a business friendly license. What I would like Linux programmers to do is to get their act together and solve problems that continue to plague the Linux ecosystem.
These come to mind:
1: Multimedia. There are so many back-ends to choose from, each with problems of their own. The associated front-ends are even worse both in functionality and bloat.
2: Polish. It seams that by default, Linux distros are less polished by default. In fact, I can say they are ugly by default. This does not help.
3: Bloat. KDE is wonderful but suffers from bloat. GNOME is kind of OK, but it's interface looks ancient and lacks the functionality of modern systems.
My 2 cents.
Well but that's my point. The percentage of people I "meet" online that use Linux is astonishingly high. Yet in person I've never seen it in practice. And the few Linux people I have met first online and then in person really didn't use Linux anymore than I did - which amounts to having it installed in a VM or on a spare box.
In regards to dependancies and app installs, sudo apt-get might be more logical for you than say dragging an application into a folder as you do on the Mac or double-clicking an installer executable on Windows but that doesn't mean its relatable to the average user.
Linux has a Sane Desktop environment: Its called KDE. It conforms to FreeDesktop.org standards.
Linux has actually TWO Sane mans of Installation. RPM, DEB. (Sorry Gentoo Users, Portage doesn't cut it.)
Under absolutely no circumstances should ANY Linux application be "installed" by typing ./configure; make; make install. Those steps are for DEVELOPERS and MAINTAINERS only to MAKE packages (RPM, DEB.)
Couple things. RPM and DEB need a standard and understood hierarchy. DEB wins out here. There is less variability in the configuration of DEB, and a great deal of variability in RPM (SUSE, Mandriva, Fedora.) This creates problems that could be solved if someone created a "Unified RPM standard". As far as the RPM and DEB differences are concerned, its my opinion that dpkg and RPM should be interchangable on both systems without having to "convert" from Alien. For example, if I am a Mandriva user, and Ubuntu has something I want, I should be able to set up dpkg and rpm to understand each other and retrieve the DEB Packages from Ubuntu.
There do need to be improvements in SDL, SDL is getting stale.
Another issue is Upstream maintainers. Upstream coders are coding some of these applications with bizzare and stupid configurations that don't work well with EITHER Package manager and all they provide is a tar ball. And then you look at their Windows build, and in some cases its easier to install the Windows Build in Wine. Thats unforgivable.
However, I think that what we are seeing right now is not the outright resistance to Linux. Its not that Linux sucks, its just that Adobe, and Quicken, and several of these ISVs have strictly Anti-Linux policies. Its kinda the same thing as when you see these heavily DRMed web sites that Are Windows+IE only because they rely on IE DRM, and have a written policy against Linux OR Mac.
The fact is, they hate Linux, not because it sucks, not because its hard to write applications for, its that THEY HATE LINUX. Its not rational, its not anything there is a reasonable excuse for. They just hate Linux and they want to see Linux die.
Microsoft Revenue/Growth
Year Revenue %Growth
2005 39,788 -
2006 44,282 11%
2007 51,122 15%
2008 60,420 18%
Red Hat Revenue/Growth
Year Revenue %Growth
2005 196 -
2006 278 41%
2007 400 43%
2008 523 30%
Red Hat is growing much faster than Microsoft, but Microsoft has 115x more sales.
Windows 95 was not MS's first "serious entry into the OS market".
MS-DOS was a very "serious entry" into the OS market, as was windows 3.0, 3.1, and NT. In fact, I still support an old NT 4 server that predates the release of Windows 95.
Please don't let your inexperience confuse you. Millions of offices ran on Novell, DOS, Lotus, and Wordperfect long before Windows 95 came along.
Sure those early operating systems weren't anything compared to the UNIX workstations of the day, but neither were the computers they were running on.
Also, you don't seem to realize that there is nothing that says that an OS has to have certain features to be a good OS.
MS-DOS was a very good OS for standalone workstations where only one user was going to be interacting with the system and only running one application. The early PC's were not really capable of much more anyway, so DOS did what it was intended to do, and did it well enough at the time.
Even though I hate to admit it, Microsoft has brought far more to the industry than you give it credit for. I wish that someone had provided some viable competition all these years to force Microsoft to innovate a bit more, but they pushed the industry fairly well for a monopoly. They didn't really have to, they could have stretched their releases apart by years more than they did and made even more money. Upgrades have never been a big money maker for MS, it's bundling with new pc's they depend upon anyway when people are replacing their computers every couple of years.
Sometimes the best solution is to stop wasting time looking for an easy solution.
You do realize that the iPod and iPhone are embedded devices, right?
I think Microsoft will still dominate market share until Google makes an OS based on FreeBSD. Until then, Microsoft's biggest competitor is itself because while their software is over-priced, most people just keep reusing their old XP disk rather than trying to learn something new. Linux doesn't have the marketing power required to take on Microsoft no matter how good the software is. I'm not a fortune-teller, but if I were, this would be my prediction.
Linux's mere existence has always had a competitive influence on Microsoft. However, it wasn't until recently that Linux was truly a competitive threat as a desktop for end users. Heck, I've been using Linux on my desktop since 1995, but I haven't really believed it was a viable replacement for Windows for normal folk until fairly recently (and then only in fairly specific situations).
It's hard to argue that Linux doesn't represent a threat now, however. After all, Microsoft resurrected Windows XP and sold it at a steep discount as a specific reaction to Linux adoption on the low end. If Linux didn't Asus and the other netbook vendors wouldn't really have had any choice but to either spec out their netbooks to fit Vista, and sell them at a price point where Vista makes sense.
On a much broader scale Linux and Free Software have been limiting how much Microsoft can charge for software since its inception. This is most visible on the server end, where Linux has a great deal of traction, but it is also visible in areas like development tools, embedded software, etc. As Free Software becomes more visible as competitors to Windows and MS Office Microsoft is going to find it increasingly difficult to defend it's ridiculously high profit margins on these items. At which point Microsoft is likely to become just another software development company instead of the 800 pound gorilla that we all know and love.
Microsoft isn't reporting billion dollar losses.
Microsoft is reporting a bare 2% growth in revenues, to $16.6 billion dollars in its second quarter.
Microsoft is debt free, with tens of billions in liquid reserves and Exxon-Mobil grade corporate credit.
The last I heard, OpenOffiice.org was down to 24 full time developers.
Sun is hurting.
There are others who have made big commitments to Linux and open source who are hurting.
Before the geek crows too loudly about Microsoft's "dilemma" he might usefully rate his own chances of survival.
Give me an example of what was alternatives that IBM ignored when it chose MS-DOS for the IBM PC. And why they were better (for the target market) than MS-DOS.
I can only think of one OS that was truely better at the time for personal computing, and that was OS-9 (not Mac OS-9)... but I'm not sure that it could have been ported to the Intel 8080 as it was written entirely in assembly and wasn't ported to any other processors until 2 years later in 1983 and not to Intel until 1989.
Sure there were tons of interesting things happening in the personal computing OS space in those days... but when IBM went shopping, there were not really that many choices that would have made good business sense. CP/M would have been the best choice, as it was the most popular... but they wouldn't sign the papers IBM required... hence the reason Gates bought QDOS (a CPM like OS) and renamed it MS-DOS in the first place.
So technically there was nothing for intel processors that was better, and the only os that made better business sense wouldn't sell... that left MS-DOS.
I will agree that MS could have greatly improved on MS-DOS and didn't, favoring compatibility over capability... but don't forget that tons of software of the time was proprietary so it didn't make sense to break compatibility to favor features.
I think if anything, it's IBM's fault for coming into the scene before a decent OS had been ported to intel processors. Hell QNX was only a year later and put DOS to shame... but in technology, it rarely pays to wait.
Sometimes the best solution is to stop wasting time looking for an easy solution.
The bill is about decentralization of the Federal Government. You probably hope that it means that the federal government will stop abortions and make us all pray in school. Sorry. That's not what it is about. It is about returning power to the states and allowing states to have their own moral agenda. Since the USA is a federation of states, the idea is that people are still free to move from states with whom they disagree about moral conduct and into states where they agree. Some people actually still believe in states' rights, Ron Paul is one of them. I wish people would educate themselves on the notion of what it means to be a federation of states.
Just callin' it like I see it.
I'm no business analyst, but obviously Linux (the netbook market in particular) is severely cutting into the profits of computer giants like Microsoft, Apple, Intel, and IBM. If you needed a sign for the year of Linux, this is it!
Well, I've got a circa-1998 333MHz Pentium II processor with 128 MB of memory running my file server at the house. If it wasn't for Linux, I'd have replaced it a loooong time ago with some of that new fancy-shmancy Intel stuff. Now it sits there for months between reboots and hardly draws any power. And when that goes, I've got an 800MHz beastie waiting in the wings to take over.
Nope, Linux hasn't hurt Intel at all.
DT
Is this thing on? Hello?
Wouldn't a federation of states also include the right of a state to leave the federation?
https://en.wikipedia.org/wiki/Inverted_totalitarianism