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Why Windows Must (and Will) Go Open Source

Attila Dimedici writes "Charles Babcock of Information Week published an interesting article suggesting that Microsoft will have to at least to some degree take Windows open source if they want to stay in business. He suggests that the money to be made from the things MS builds on top of Windows (Office, Server, SQL Server, Exchange, Sharepoint, etc.) is so much greater than what can be made from Windows itself that MS will have to give up the revenue stream from Windows in order to maintain these other, more valuable, revenue streams."

15 of 555 comments (clear)

  1. Nonsense by eln · · Score: 5, Insightful

    Having to give the OS away for free in order to sell the apps only makes sense if you don't already have a stranglehold on the OS market. Sure, MS has gotten some bad press lately but they still enjoy the overwhelming share of the OS market, and that isn't likely to change anytime soon.

    The fact that they are not making a lot of money selling Vista does not mean people are moving away from MS in droves...they're just sticking to an older MS product for now. MS is still entrenched as simply the way people expect computers to work, and it's going to take a much longer series of much larger screwups from Microsoft to change that.

    1. Re:Nonsense by BorgAssimilator · · Score: 5, Insightful

      I tend to agree. Granted, they're going to have to change something or they'll _eventually_ fall behind. It'll take a while though... They may even need to reduce the cost of the OS at some point. However, that being said, I don't think they'll ever _need_ to open source any of it to stay in business.

      Disclaimer: I'm not a business expert and the above statement could just be coming out of my ass.

      --
      "Intelligence has nothing to do with politics!"
      -Londo Mollari
    2. Re:Nonsense by Mozk · · Score: 5, Insightful

      I'd like to point out that open source does not have to mean free.

      --
      No existe.
    3. Re:Nonsense by Joce640k · · Score: 5, Insightful

      Most people don't "buy" Windows. They buy a PC and it just happens to be installed.

      Until they're aware that they're paying for it then it makes no difference whether or not it's free.

      If things get rough Microsoft can drop the price to $20 and nobody will care either way.

      In short: Article fails.

      --
      No sig today...
    4. Re:Nonsense by againjj · · Score: 5, Insightful

      Exactly. I read the article as follows:
      1) MS does not get nearly as much revenue from a copy of Windows as it does from a copy of Office. (This is per copy revenue, not total, and besides, even if it is smaller, it doesn't mean it is insignificant.)
      2) People are turning away from Windows because they do not like to pay for Windows, at least on the business desktop or in the server room. (Come on. Price is not the only reason for choosing an OS. Not even cost is.)
      3) Ergo, Windows will need to be free(gratis) in order to keep market share. (What? Why? There are other ways to get/keep market share than competing on price. Windows is a nice case study.)
      4) Windows needs market share so that MS can sell apps. (Why? They can't make apps for other operating systems?)
      5) The author can't see why MS will make Windows free(gratis) without also making it free(libre). (What? Where on earth did that come from?)
      Conlusion: Windows is going to go open source!

      The premises are shaky, the logic is faulty, assumptions abound, and even if it were all true, MS is not necessarily going to be logical!

    5. Re:Nonsense by Adam+Hazzlebank · · Score: 5, Insightful

      I'd like to point out that open source does not have to mean free.

      And free does not have to mean open source. The article gives several reasons why MS might want to give Windows away but no compelling reasons why it should make it open source. Closed source isn't just about getting paid for software it's about control. They control the APIs and all the little gotchas that make producing a windows clone difficult. If Windows was fully open sourced, I'd bet we'd have a fully working Wine within months. At that point MS Windows just becomes "another Windows API implementation". You could say "so what!? they just start targeting the windows API for Linux, it's an even bigger market!". The problem is that controlling the API gives MS unique advantages. Exchange integrates tightly with active directory MS get to add features to the operating system API simply to make their apps work better. If the API is open they don't get to do that and in general they get pushed toward open standards rather than proprietary ones. No more "you can't get feature X,Y and Z unless you use Outlook", no more lockin.

    6. Re:Nonsense by jmorris42 · · Score: 5, Insightful

      > 1) MS does not get nearly as much revenue from a copy of Windows as it does from a copy of Office.

      More precisely, the take from Windows is destined to trend towards zero. Netbooks are only part of the problem. The only barrier to sub $200 desktops is the price of an OEM copy of Vista. You never want to be "the only barrier" when talking about opening up a new lower price tier, especially in a down economy because all the pressure is on vendors to find a way around the barrier and gain an advantage over the chumps who didn't. Especially small hungry vendors looking to take a chunk out of Dell, HP, etc. Of course exactly the same argument will eventually be made about Office, SQL Server and all the rest. The existence of Open Source drives per unit pricing towards zero.

      But for the short term the origional article has a point, Windows revenue is nice but it's ability to drive the larger revenue streams is more important.

      Once HP broke the unwritten rule and displayed multiple operating systems in the same dropdown menu, with prices beside each option, the was cast. Windows will soon be going for near $0.

      > 2) People are turning away from Windows because they do not like to pay for Windows, at
      > least on the business desktop or in the server room.

      Not exactly. It is the difficulty of maintaining the per copy licensing in a virtual world that is also a problem. But price is a factor, as noted above. So long as people either thought Windows was "free" in that it was an invisible and non-negotiable part of the price of buying a PC the price wasn't an issue. That is no longer true.

      > 3) Windows will need to be free(gratis) in order to keep market share.

      It won't have to be zero instantly but the price must be very low and heading towards zero. When a PC was $2,000 the cost of DOS/Windows was easilly borne. As the price plummets to where Windows is easilly the most expensive component it becomes an unstable situation. The smart thing would be for Microsoft to get ahead of the curve and try to control the process.

      > 4) Windows needs market share so that MS can sell apps. (Why? They can't make
      > apps for other operating systems?)

      With the sole exception of Office for the Mac they have zero record of doing it successfully. That has to scare the piss out of em.

      > 5) The author can't see why MS will make Windows free(gratis) without also making it
      > free(libre). (What? Where on earth did that come from?)

      Ask Sun. They did it a good five years too late and look at em. Microsoft could learn from that mistake.

      My advice to Microsoft would be to submit to what must be and doing so while there is time to control the process. Don't do it all at once, attack the biggest problems first.

      Stage One: Shared Source. Us RMS Pure types often forget that source code can be published under a normal copyright. So publish the source to Windows, stick it in the standard MSDN stuff. This gives developers many of the advantages of working on Linux, they can Use The Source when the published docs disagree with the actual code. Move all development to a public repo, available only to MSDN subscribers of course. This lets them see the direction the code is going, download development snapshots, etc. Accept contributions of code, but only with a copyright assignment. Be sure to loudly credit outside contributors.

      Binaries wouldn't change much, but discount slightly reduced function copies ruthlessly to keep the netbook and budget PC markets from slipping away. 70% market share on netbooks is a disaster in the making.

      Stage Two: Release free binaries. Not Free mind you, just free copies for 'non-commercial use', then free but unsupported (service contracts and per incident support available) when the OEM market demanded the move.

      Stage Three: GPL. Move the source to the GPL (or other strong copyleft license) keeping the requirement for copyright assignment on contributions. This allows a more fun

      --
      Democrat delenda est
  2. Re:And nobody will care... by Ethanol-fueled · · Score: 5, Insightful

    The world is moving away from x86 arch

    Like Apple did?

  3. Re:And nobody will care... by AuMatar · · Score: 5, Insightful

    What planet are you from? PPC is dead. Sparc is dieing. Embedded is owned by ARM almost as completely as x86 rules the desktop. Intel attempted to kill x86 with IA-64, only to see it fail miserably to AMDs x86-64. Hell, x86 is even making inroads in embedded systems. A few very high end specialty devices like game consoles are doing other architectures, but that's about it. If anything the x86 stranglehold is stronger than ever.

    --
    I still have more fans than freaks. WTF is wrong with you people?
  4. "open source," but not open?? by bcrowell · · Score: 5, Insightful

    title of article: Why Windows Must Go Open Source

    Fourth sentence of article: "[...]Windows will never become an open source project in the same vein as Linux[...]"

    Sixth sentence of article: "[...]I'll concede that some Windows source code probably will never see the light of day."

    I think what he really wants to say is that the cost of Windows has to approach zero. That's completely different from being open source. It's the classic "free as in speech" (or as in freedom) versus "free as in beer."

    I think it should be fairly obvious that MS can't open-source the whole OS. For one thing, I doubt that they own the copyright of every single line of code in Windows, and they've surely had to license a gazillion patents, make deals involving trade secrets, etc. Look at the situation with Linux and GPL 2 versus GPL 3 -- even if Linus changed his mind and wanted to make it GPL 3, it can't happen, because you won't get thousands of programmers to agree. With Windows it's bound to be even more complex.

    Okay, so let's imagine that the price of Windows becomes zero dollars. So what? Then the US would be like China, just another country where everybody runs Windows and nobody pays for it. You'd still have banks telling you their web interface only works with IE. You'd still have people with hard disks full of documents that are in proprietary formats, preventing them from switching to Linux. Things like video encoders and color management would still be patent encumbered. The main effect would probably be to boost MS's market share, and that would probably allow them not just to sell more copies of Office, etc., but to abuse their monopoly more effectively for competitive advantage. That's essentially what the author of the article is talking about by the time he gets to pages 2 and 3.

    And is anyone under the illusion that every version of Windows would cost zero dollars? No way. They'd very carefully set up a tiered system of price-differentiated versions of Windows in order to maximize their profits. Then it's like drug dealing: the first hit is free. This is what they're already doing in the third world, turning a blind eye to pirated versions of Windows because it helps to make those countries dependent on MS. The article says preinstalled Win XP is about $34 worth of the price of a new computer, and $34 is close enough to zero that I'd say that we're essentially already in that regime.

  5. Here's how Micrsosoft will make Windows OSS by argent · · Score: 5, Insightful

    They'll do it by redefining open source. After all, they can wrap a proprietary file format up in XML so that instead of being a bunch of undocumented blobs in a binary stew they're a bunch of undocumented blobs in an XML stew, and manage to convince people to say things like this...

    The proprietary file formats that have protected Microsoft apps have been offset by Office Open XML, the default format for Office 2007 and now an international standard.

  6. Re:Instead of pure open source... by Sunshinerat · · Score: 5, Insightful

    I do not think that MS is able to release Windows as Open Source. Most likely there is too much stuff in it that cannot be opened up (same issue as Sun had with Java).

    If there was a day where Windows would be free, it would be free without source.

    But honestly, I do not think that is going to happen. Free Windows comes with any new PC (consumer perception), so why throw a perfectly good revenue stream.

    --
    Load New Commander (Y/N)?
  7. Re:MS Linux by icebraining · · Score: 5, Insightful

    If they release their apps for Linux, all the other Linux resellers would have them! All Linuxes (including MS's) would be in the same boat and then companies like RedHat could really fight MS's dominance in the OS market.

    No, the worst thing they can do to Linux resellers is keeping the current business model.

  8. Re:The year of the Linux internet appliance by Tweenk · · Score: 5, Insightful

    Backward compatibility is Windows' biggest strength - perhaps its only strength compared to the competition. And Linux will never have it, because it's creators don't want it, or don't understand why it's important, or just don't care.

    1. This is just FUD spread by people who want to ship binary drivers for Linux. Application level compatibility is actually quite good. For example you can still run GTK 1.x apps on modern Gnome desktops.
    2. Backward compatibility mostly matters for legacy proprietary apps. Since there aren't too many of those for Linux, this issue is not an important factor in Linux adoption.
    3. Stable kernel ABI would actually be harmful for Linux, because manufacturers wouldn't be as willing to release open-source drivers. Right now they do mainly because it takes considerable manpower to maintain a closed-source driver.

    --
    Those who would give up liberty to obtain working drivers, deserve neither liberty nor working drivers.
  9. Price IS important by Anonymous Coward · · Score: 5, Insightful

    I recycle old computers for various social organizations that dont have any money and money IS important to them, just like it is for the people who come to the food bank where I work on weekends.
    Money is not important to you but in many countries it is. Heck, in your own country it is.

    Just this winter, I had a single mother of two whose kids go at my son's school ask me about the costs of software since she heard I knew computers. She told me she could afford a second hand computer but that the prices of Windows, Office and Norton more than she can budget for. I let her use my backup laptop for a week to see how she liked OO instead of Office on her laptop and she was amazed that for $120 I was able to find her an Intel 2.66Ghz desktop that would run Gnu-Linux nicely.
    She's not poor by any stretch but she still has to count her money carefully and a few hundred bucks is a big deal.

    Try to think of people who arent in your financial situation when you say no one looks at price or cost.
    We do pretty well but I hate spending money when I dont have to.