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Microsoft Acknowledges Linux Threat To Windows

angry tapir sends along coverage from Good Gear Guide of a recent Microsoft !0-K SEC filing: "Microsoft for the first time has named Linux distributors Red Hat and Canonical as competitors to its Windows client business in its annual filing to the US Securities and Exchange Commission. The move is an acknowledgment of the first viable competition from Linux to Microsoft's Windows client business, due mainly to the use of Linux on netbooks, which are rising in prominence as alternatives to full-sized notebooks. ... 'Client faces strong competition from well-established companies with differing approaches to the PC market,' Microsoft said in the filing. 'Competing commercial software products, including variants of Unix, are supplied by competitors such as Apple, Canonical, and Red Hat.'"

23 of 348 comments (clear)

  1. This Is News??!!! by Anonymous Coward · · Score: 5, Insightful

    A throwaway line in a 10-K report which nobody reads or takes seriously is given a front page news story on slashdot??

    Are you guys really this desperate to drum up the anti-Microsoft pagehits?

    1. Re:This Is News??!!! by wampus · · Score: 4, Insightful

      Are you guys really this desperate to drum up the anti-Microsoft pagehits?

      Posted by kdawson on Tue August 04, 20:46

      In short, yes.

    2. Re:This Is News??!!! by dna_(c)(tm)(r) · · Score: 4, Insightful

      Which still comes back to the fact that Slashdot just isn't important enough for Microsoft to waste time or money astroturfing.

      They advertise here.

  2. Antitrust avoidance by pasamio · · Score: 5, Insightful

    This isn't an acknowledgement of Linux, its something to use as ammo to prove that they don't have a monopoly. Don't get the warm fuzzies over Microsoft acknowledging Linux because its just marketing and politics.

    --
    I always wondered where this setting was...
    1. Re:Antitrust avoidance by Dachannien · · Score: 4, Insightful

      Very good point. The true indicator of Microsoft considering itself to have real competition is when it starts pricing its products competitively.

    2. Re:Antitrust avoidance by lamadude · · Score: 5, Insightful

      A monopoly does not necessarily mean that you have no competitors.

    3. Re:Antitrust avoidance by RedK · · Score: 5, Insightful

      In the real world and for anti-trust legislation, you aren't required to have 100% market share to have a monopoly. The fact is, Microsoft were found to have one, and they aren't in a much different position now, as far as Windows installed based goes.

      --
      "Not to mention all the idiots who use words like boxen."
      Anonymous Coward on Monday August 04, @06:49PM
    4. Re:Antitrust avoidance by Nerdfest · · Score: 4, Insightful
      They are so like children.

      We are not ... you big poopy-head.

    5. Re:Antitrust avoidance by GuyverDH · · Score: 4, Insightful

      The real kicker is what can the company try and coax/cajole/force other companies / people to do based on their desire/want/need to get their product.

      In the case of M$ Winbloze, they had the gall (and it worked) to demand that computer manufacturers buy 1 license of their product for every computer they sold, regardless of the O.S. it was distributed with.

      They did this with a plethora of other currently existing and now extinct computer manufacturers.

      They then continued to grab anything that they thought could entice users, and bundle it into the operating system. gui text editors, word processors, games, disk degragmentation, disk compression, networking, to name just a few...

      They buddied up to software houses, talking about improving their products, only to release their own competition of said products within a fairly short development cycle.

      They stole websites and product names from other companies, by threatening lawsuits, just so they could use the name. (A quick search can find at least one - look for a product with M$ main OS name, and defender in it)

      They embedded their own borked web browser, then made the automatic update/patch processes only work with theirs, disallowing any 3rd party browser from being used to simplify fixing/patching their OS.

      They took international standards and bastardized them, and released them as their own, under their own lock and key product names / tools - usually breaking them utterly.

      They ran roughshod over the international standards boards across the world to force (in any way they could) their standard down everyone's throats, without it even really working, or having a truly definitive definition of said standard.

      Those and literally thousands of other examples are the reason that a company like M$ can be considered to be monopolistic regardless of the number of competitors they have.

      --
      Who is general failure, and why is he reading my hard drive?
    6. Re:Antitrust avoidance by yoyhed · · Score: 3, Insightful

      Regardless of whether you are making good points, you really lose credibility with shit like "M$ Winbloze". Just so you know.

      --
      WHO NEEDS SHIFT WHEN YOU HAVE CAPSLOCK/ DAMN1
    7. Re:Antitrust avoidance by arizonagroovejet · · Score: 4, Insightful

      They embedded their own borked web browser, then made the automatic update/patch processes only work with theirs, disallowing any 3rd party browser from being used to simplify fixing/patching their OS.

      Having the user install updates to their operating system via the web browser is such terrible idea that I think it's actually a good thing you can only do it with Internet Explorer.
      Installing operating system updates via web browser means you have to give the web browser the ability to modify parts of the operating system. I'm sure I don't have to explain why that's not good. Also it trains users to expect things in their web browser to ask them for permission to install things on the machine and since a lot of users will simply click on pop up messages without reading them properly just to get rid of them, well, you can see where I'm going with that I'm sure.

  3. Re:Shareholder trust advice by blackraven14250 · · Score: 4, Insightful

    I think it can serve both purposes, if played right.

  4. Forget Linux, cloud computing is their next enemy by Anonymous Coward · · Score: 3, Insightful

    In 2003 Microsoft wanted everyone to have a 'trusted computer' to make sure the owner couldnt fuck with the proprietary software. of course many software companies and Google realised that wasn't going to happen so they decided to push SaaS and have everything run remotely through a horrible, JavaScript laden web interface.

    but i tell ya its better than the alternative MS was pushing. still because the good old enemy that is MS is being cut down to size does not mean it's a good idea to give up on free desktop-based client software. Web apps and other remote apps are not the best way and certainly not the most efficient method but it is the new way of making money from software.

    As the owner of a webb app you have total control over when it is accessed, you can see everything clients are doing, you can put as many ads on it as you like and nobody will slate you for distributing 'adware' or 'spyware'. As long as you do everything server-side you have almost 0 chance of your stuff being pirated. This is better than DRM, its better than trusted computing and all without the invasive 'get out of my PC' sentiment associated with Microsoft's client-side type of security

  5. It's not just political posturing by HangingChad · · Score: 5, Insightful

    It's not just posturing for the SEC this time. Talked to one of our vendors back east this afternoon and his mom liked his netbook so much he bought her one, then his dad wanted one, then another one for his step-mom. That's bad news for Microsoft for two reasons: One, Linux really is competitive on low-end hardware. The combination of Linux, Gmail, GoogleDocs and online services gives netbooks functionality that makes the OS less significant.

    And, two, Microsoft can't demand their normal margin on a netbook OS. The cost of the unit is so low MS is forced to price their product lower. That's hurting revenues and that trend will only continue to accelerate. Windows 7 will run on netbooks, but not particularly well. Windows Mobile isn't going to gain them any market share and they can't sell XP on netbooks indefinitely.

    The netbook trend caught MS flat-footed and they threw XP at it to fill the gap while they scramble around to try and find a solution. But there isn't one this time. Microsoft built their market at the top end of the scale, not in the appliance market. Their software isn't made to run on low-end hardware, they have no appliance market strategy.

    This time, I think they're entirely justified of being afraid of Linux.

    --
    That's our life, the big wheel of shit. - The Fat Man, Blue Tango Salvage
  6. Re:Variant of UNIX according to their sockpuppet, by DesScorp · · Score: 4, Insightful

    "Microsoft loves to describe Linux as a 'UNIX variant'."

    Microsoft is right. Linux is Unix. It's why I started using it. Can it legally be called Unix? No. But if it walks like a duck, etc, it's a duck. Linux is after all a clone of Unix. It's Unix in all but name. A clone of a dog isn't a cat after all... it's a copy of a dog. Comparing Unix and Linux to DOS and XP isn't a good comparison. The former is an OS and a copy of that OS. The later is an earlier OS and it's evolutionary descendant, and XP is more of a nephew to DOS than a son, considering that NT was conceived as a different OS than DOS... it was just built to be largely compatible with DOS.

    --
    Life is hard, and the world is cruel
  7. Re:Linux as leverage against Microsoft. by wampus · · Score: 3, Insightful

    It's rather worriesome. I don't really have an answer why.

    Because no one outside of the faithful really care. Why would vendors waste time advertising something that is irrelevant to 99% of consumers? At best, for business sales Linux is more of a bullet point than a feature to be trumpeted.

  8. Netbooks are not as powerful by betterunixthanunix · · Score: 3, Insightful

    The last thing anyone needs is a netbook that is running an OS that was intended for a full-power PC. The latest Ubuntu, Fedora, OpenSuse, etc. all ship with features and software that expect lots of memory and CPU time -- not something you are likely to have on a netbook. What should really happen is for the distro maintainers to create their own netbook spins, which cut out a lot of the features that are unneeded on a netbook and slim down the OS.

    --
    Palm trees and 8
  9. Re:According to UNIX.org by _merlin · · Score: 4, Insightful

    It matters because as long as GNU/Linux isn't standardised, and can subtly change behaviour between releases, you don't have a stable platform to target. If you're developing against the UNIX 03 specification, you know that your application will behave as expected on any of these systems. Stability and standardisation means a lot when supportability is a major consideration.

  10. And yet, the latest EEEpcs are all Windows-only by rolfwind · · Score: 3, Insightful

    lately. Since February.

    I wish to buy (not have to install) a linux one. But I can't. Just the old models had linux.

    (Which is why Asus lost a sale from me.)

  11. Yawn... by SwashbucklingCowboy · · Score: 4, Insightful

    This is NOT news. You'll find this in every such filing going back for years people...

  12. monopolies by falconwolf · · Score: 3, Insightful

    What is the standard companies are measured against to determine if they are monopoly or not? 90% market share? What ever 'feels' about right? How can one avoid crossing anti-trust laws if one cannot know when they will apply or not?

    It is not illegal to be a monopoly, what is illegal is to abuse monopoly position.

    Falcon

  13. Re:Linux as leverage against Microsoft. by Anonymous Coward · · Score: 3, Insightful

    Frankly, Linux is inside routers, set top boxes, embedded devices, PMPs, mobile phones (WebOS and Android are linux), and runs more than half the internet servers and the majority of the worlds top supercomputers and datacentres. Yet none of these companies are wearing the Linux badge, you don't hear Palm, Google, IBM, Linksys, Cisco evangelising Linux all over the TV and radio.

    This is to be expected and, possibly, welcomed. IBM promotes "IBM Solutions/Partnering". Google promotes "Ad Sense" or "Chrome". You pay to promote your trademarked names. Do BP, Shell, Exxon, or Mobile promote "chemistry" or "hydrocarbons" or, even, "oil". No, not even "oil". They promote their branded forms of energy that clean engine gunk with a rainbow in the background. It has been said you could liquify (pun alert!) Coke and simply the brands alone would be enough to rebuild the company in a few years. Coke does not promote "high fructose corn syrup". As linux takes over it does so as part of somebody's branded solution: Tivo, Tom Tom. Something you can sell!

    Why should this be welcomed? You can sell Linux too! And I don't mean you need to become Redhat but you do become an expert at providing software solutions to small and medium business' problems. Or extend the software for customized solutions. As inhouse work (even if you are a contractor), you won't even need to release code aside to people who pay your fees. Neither the CEO nor his cute secretary will care that Linux is under the hood (they will care about low or no licensing costs). Would you rather tell them that this is just Linux and it is 100% free and they could do it for themselves if they weren't such fucking morons? The same might be said for heart surgery or real estate. People who don't know what Linux is don't want to know what Linux is and when you explain it to them they might feel appreciably smarter or more well informed but they want - they need - to get back to that $600 Dell or $1000 Apple that scratches their itch out of the box. BSD got into that Apple now Linux needs to get into that Dell. Nobody cares what BSD is.

  14. Real threat? by uffe_nordholm · · Score: 5, Insightful

    Apart from the obvious "Linux is a threat to us and therefore we are not a monopoly" I think Microsoft may very well percieve Linux as a threat to them, but for slightly less obvious reasons.

    The major reason that Linux is a threat to Microsoft is that it is (usually) free, and nobody can compete with free in the long run. Given enough time, Linux would eventually conquer the desktop. But it would be decades, if not centuries. If nothing else, Linux's small presence on the market means that Microsoft cannot raise it's prices too much, or people will start seriously looking at the alternatives. And if they discover the alternatives are good enough (or better then Windows) for no money (or very little money) the game will be up for Microsoft.

    There is a more threatening aspect of Linux though. It is not one that matters every day, but in the long run Microsoft must deal with the fact that a lot of "Linux" is a community. A community of users and developers spread around the globe cannot be purchased and shut down as if it were a competing company. Suppose Microsoft purchased Cannonical and shut it down. They have not really gained anything, since they can't stop the individual developers from continuing their work, even if it is in their spare time.

    Even if Microsoft started buying all companies that released a Linux distro, they cannot win: once it becomes obvious that to become a millionaire you just have to release a Linux distro, new distros will be popping up so fast that rabbits will reproduce slowly, by comparison.

    I think the only way for Microsoft to keep "winning the game" against Linux is to constantly produce better and better software for lower and lower prices. Since Linux's market share seems to be growing, Microsoft is already under pressure to not raise their prices too high, and this pressure will increase several times over with increasing market share for Linux.