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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.'"
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.
Shut up! You don't know what you're talking about. Obama's made of kittens and sparkles, held together with HOPE... and more sparkles! If anything bad happened this week, it's Linux's fault!
I like to place meaningful quotes in my sig, so people will know that I know what meaningful quotes are.
Comment removed based on user account deletion
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.
Also, if you look at the trend in Microsoft Windows "market share" estimated by people like Net Applications, you can see that the decline of Windows started long before the housing bubble deflated. They were still being rated at 96% of the market in 2004 and 2005 and have been in what looks like continuous decline ever since. Granted, it's not much of a decline yet, only 7% or so according to Net Applications, but it does serve as evidence that Microsoft's troubles did not start with the economic crisis, the economic crisis may have compounded their existing troubles though.
Gentlemen! You can't fight in here, this is the war room!
..Or most people being perfectly content with XP
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.
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.
Yeah, it couldn't be because there is a massive economic crisis going on. It's all Linux.
Microsoft is getting beaten down by Apple at the high end and by Linux on the netbook space. Obviously, I don't mean that people are buying linux netbooks. Hold your horses there. But MS's bargaining position has changed because of linux. They could have said in 2002 that netbooks should cost $600, because of the $200 windows copy. But that does not apply anymore. They sell XP for $28-$32. This is a huge relative loss to what they were making.
And at the high end, Apple is all over it. Take a look at bestbuy. It is rare to find a $1000+laptop, Apple notwithstanding. Or take a look at Amazon's best seller list, only to find hordes of netbooks and macbooks, perhaps with a 1 in 20 Vista machine.
To make matters worse (for MS), if these high-end phones and proposed tablets such as the techcrunch one come to life, they won't be using windows. Nothing below $300 can afford windows, even at $32.
Finally, MS's stock price has been walking sideways for years and years and years. They cannot bring the best talent in the basis of money or stock options alone. This is not the year of linux on the desktop. But its presence is being felt in the markets undergoing disruptive innovation, like the netbooks.
The current crop of netbooks are powerful enough to run Vista. They don't run Vista because Microsoft has special netbook pricing for Windows XP. A reduced-price version of XP is a good move for Microsoft in that it stemmed the tide of Linux adoption, but it has signaled lower margins for Microsoft.
If the netbook version of Windows 7 doesn't come with a reduced price then Linux is likely to make up some ground on these devices. If the netbook version of Windows 7 does come with a reduced price, then Microsoft will still continue to see lower revenue. Either way competition from Linux hurts Microsoft. As the extreme low end of the spectrum becomes more and more powerful (and useful) Microsoft is going to be under increased pressure to sell Windows for less.
Of course, Windows 7 could make up some ground on the high end. I suppose it is possible that Windows 7 will be so cool that the release of Windows 7 will reverse the trend on the high end towards Apple's products, but I don't see that happening.
"Windows 7 isn't leaner. It just feels a bit better, and then that is only because it is being compared mainly to Vista."
You wouldn't know it from the press lately... Might as well rename 7 to Microsoft Obama.
And I think that can be directly traced to them losing their way and ignoring their core markets. One of MSFT's biggest customers have always been business. From the littlest SOHO to the largest enterprise MSFT has been right there making boring as hell backwards compatible low resource business OSes. But then with Vista they suddenly take a giant turn into left field and completely blow off their core market to get into a multimedia pissing contest with Apple.
I mean it is no wonder you have so many sites like this and this showing step by step how to turn Win2k8 server into a desktop. It is because MSFT has abandoned their business users to try to compete with Apple in the multimedia space. Which frankly is insane as Apple has this little thing called the iPod that pretty much gives them the lock on the multimedia space, not to mention the hip factor, and the amount of money they make off of business licenses and support contracts is worth FAR more than the niche they are trying to muscle their way into.
Mark my words, and the MSFT shills can mod me down all you want, but the biggest threat to MSFT is MSFT. They are neglecting their core markets, they are flailing around from one idea to another like the company has ADHD, and by trying to stuff everyone on the planet into this giant bling bling multimedia OS they are screwing over one of their biggest customers, the business users. I mean, is there anyone here with a straight face that can say Vista was made for business? The thing practically screams HTPC! It is like they fired all their business and accounting guys and put some marketing drone in charge of the whole company. And worse, the drone wants to be as cool as Apple so bad it hurts.
Mark my words, if they do not get some common sense and make another business OS then companies like Red Hat will be more than happy to take a shot at those customers. If they want a single codebase, fine and dandy. Make a "Win2k10 Pro" out of Win2K8 server and leave Win7 for the home users. But I truly believe that Win7 will bomb, just as hard if not harder than Vista. And when it does all those corporations that have been ignored for two OS releases will start to look for alternatives.
ACs don't waste your time replying, your posts are never seen by me.