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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.'"
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?
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...
It's more of an indication that they want to discharge their obligations in reporting threats to their business from competitors. The stock exchange and rules for publicly traded securities require this sort of disclosure to holders of a company's stock. I think it's purely a matter of adhering to their obligations for honest reporting to the people who own them. NTSHMA.
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Watch this sort of announcement very, very carefully. Microsoft loves to describe Linux as a 'UNIX variant'. In both its basic kernel and its accumulated software bundles, it's as valid as calling Windows XP "DOS". (For those new to Microsoft history, XP is actually a Windows NT descendant, which is in many ways descended from VMS and many of its fundamentals stolen by David Cutler from DEC, where David wrote much of VMS and was hired to work on NT.)
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
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.
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"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.
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I hate to say it, because I'm a linux fanboy, but Linux on netbooks has more or less failed. Manufacturers like Asus dropped the ball by shipping too many Linux machines with screwed up configurations (and also with the crappiest Linux distros available). MS also recognized the threat and entered the ring fighting. The result is that most retailers are pushing netbooks with Windows, and most people buying netbooks are buying them with Windows. Maybe this will change if ARM-based netbooks really take off, but I suspect it will be the same story all over again.
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From the article:
Yeah, there are lots of pointless legal disclaimers in 10-K filings to cover respective companies' own asses.
It's not the first time that Microsoft has acknowledged Linux as a threat to their business model. It might be the first time they have put it in their 10-K report, but I don't consider legal disclaimers in an annual SEC filing to be newsworthy.
Has anyone read the Red Hat, Inc. 10-K report. Anyone take the time to count the number of competitors, listed by name, in there? Now ask yourself, is that newsworthy?
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I am not surprised to see this kind of release. After all, they need to hold on to that monopoly position on the desktop to keep their server business afloat.
What was interesting was the complete lack of any mention of Novell's SLED product. Remember, that MS and Novell are in cahoots to put servers out there running both Windows Workstation 2008 and SLES. In fact, I distinctly remember Ballmer last year mentioning "suzie" in one of his speeches at the Visual Studio 2008 launch event.
Oddly enough, also, there's no mention of a distribution running KDE. Both Ubuntu (which I use now on my laptop) and Red Hat are GNOME-based distros by default. SLED (and openSUSE) are also becoming more GNOME-centric. (I know you can put KDE on any of these, and I run KTorrent as well as KRDC in my desktop.)
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It seems Dell, ASUS HP and others have invested in shipping linux based machines partly as something to threaten MS with. Simply put, Linux doesn't sell PCs (yet), Windows does. Watch TV, you'll see Microsoft and Apple ads but you won't see a damn thing about linux. TV, Print and Radio validates the product to consumers.
Add in the the evergreen problem: Windows PC tax is more or less the same regardless if it is a $200 netbook or a $3000 overkill gaming rig. You think PC/Laptop manurfaturers like having only one choice of OS? It's a liability.
Frankly all the OEMs are probably pissed at having their bottom lines hurt by Vista too.
Linux offered something they could bludgeon MS with and demand a discount. Result, MS really did come up with cheaper OEM licences and are even producing Windows 7 starter, but only after Linux gained some traction in the netbook arena.
Google sees the oppurtunity to pimp it's cloud services by doing Chrome OS, which is going to fill the need of PC makers to have yet better tools to apply leverage against microsoft.
I'm not convinced that Linux will ever squash Windows, the test of this being possible will be seen in the smartphone arena. Can Android conquer the iPhone? If it does then I'd believe Linux becoming the no 1. OS within a decade.
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.
It's rather worriesome. I don't really have an answer why.
After logging in slashdot still does not take you back to the page you were on. It's been that way for 20 years.
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.
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Linux is not Unix. It's a close approximation. For one, the base APIs are not fully POSIX compliant. Right there is a big hurdle to being Unix. If someone were to pony up the cash for certification (RedHat, Novell, Cannonical), there are issues yet to be fixed before it can be called UNIX, so it's not just a question of certifying it.
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Anonymous Coward on Monday August 04, @06:49PM
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.
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.)
This is NOT news. You'll find this in every such filing going back for years people...
I know everyone's really excited that their imaginary enemy has finally validated their existence as a threat but let's be more realistic here. If there's anything remotely interesting about this filing, it's that android and the upcoming Chrome OS is not mentioned at all.
To me it seems more like a message of disrespect to google, a more realistic competitor, than anything...
I read the script, and I think it would help my character's motivation if he was on fire. -Bender
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.
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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.