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Microsoft Software Linux

Microsoft Names Linux its Number Two Risk 485

Jorkapp writes "Microsoft has officially moved Linux up to the Number 2 Risk to the company (With Economic Environment at No. 1). Bill Gates has taken the threat very seriously, and has identified Linux and non-commercial software as 'out there and very pervasive.' In response, Microsoft has dropped the price of Windows CE and opened the embedded OS to developers. This will not only allow developers to view and modify CE, but also distribute software incorporated to the modified code."
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Microsoft Names Linux its Number Two Risk

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  • by n0nsensical ( 633430 ) on Saturday July 19, 2003 @10:17AM (#6477906)
    Isn't Microsoft just making more and more people aware of Linux and how good of a Windows replacement it's becoming? Seems sort of counter-productive to give your #2 threat a lot of free publicity. Doesn't seem like the sort of thing a huge company would tell the public. But hey, I'm not complaining.
    • by Anonymous Coward
      With the advantage of a near-total monopoly all M$ really need do is start producing good software. Linux exists and is successful because M$ produces crapware.
    • by RestiffBard ( 110729 ) on Saturday July 19, 2003 @10:39AM (#6478051) Homepage
      MS didn't tell the public. MS told /. and maybe Wall Street. The public still only knows that "Linux is some computer thing that geeks really like." I swear that's a direct quote from a non-geek, public friend of mine.
      • Publicity==Publicity (Score:5, Interesting)

        by n0nsensical ( 633430 ) on Saturday July 19, 2003 @10:44AM (#6478077)
        Good point, but still, I remember an article on the front page of the business section of the USAToday about Linux a while back. Not exactly my favorite news publication, but obviously there were a huge number of non-geeks reading about Linux vs. Microsoft that day. You never know who's going to pick up the story.
      • by harley_frog ( 650488 ) <harley_frog AT yahoo DOT com> on Saturday July 19, 2003 @12:33PM (#6478721) Journal
        This maybe true, but considering that InformationWeek carried the headline, it won't be long before TechTV gets wind of it, then CNN, Fox, CBS, etc. Next thing you know, some software executive, who may either never heard of Linux (unlikely) or gave it little to no though, reads the article and starts to investigate further into Linux. This could possibly lead to feasibility into writing programs for Linux. Not that I expect the big software firms to become Linux converts, but there may be some who will.

        For example, working for a small, university library, I have to deal with a small budget in a shrinking economy. I would love nothing better than to switch over to Linux. However, we still have a few programs that we rely on that requires Windows. Now, if our vendors were to write their programs for Linux, then the switch would be a real possibility. A pipedream? Maybe, but then again a lot of things started out the same way and are now not only a reality, we have come to depend upon them (e.g. computers, cell phones, etc.)

        Oh, and I just can't leave this post without something funny, and considering the wording of the topic, it screams for this one.

        Number One, I order you to take a Number Two. -- Beavis

        • The thing is though, Linux has been around for ten years and well known in Tech circles for at least that long. I'm not some über-hacker and I've known of Linux since the 1.0 days. If there is a Tech firm out there that doesn't know Linux I can't imagine that MS calling Linux threat number 2 will make companies jump to develop for Linux.

          If you want software for a company all you can use to cause it's development on Linux is demand with money. "I have a need for your software but we're on Linux now.
      • With Linux coming as standard on cheap PCs it will soon be noticed by a lot more people. Trouble is it will stick in the mind of some people as being a cheap OS.
    • by badnews ( 571848 ) <wjh@prv8.net> on Saturday July 19, 2003 @11:05AM (#6478194) Homepage
      Isn't Microsoft just making more and more people aware of Linux and how good of a Windows replacement it's becoming? Seems sort of counter-productive to give your #2 threat a lot of free publicity. Doesn't seem like the sort of thing a huge company would tell the public.

      That is why free software is only #2 on Bill's list.

    • UNIX replacement. (Score:5, Interesting)

      by SHEENmaster ( 581283 ) <travis@uUUUtk.edu minus threevowels> on Saturday July 19, 2003 @11:15AM (#6478258) Homepage Journal
      Yes, many Linux distros are good desktop OSes. It's important to realize that the UNIX aspects of it are why we geeks use it.

      I'd rather have Linux with no dos/windows/macintosh emulation on a nice UltraSparc than Lindows on a PC, even if that latter had a perfected fork of Wine installed.

      I think that Microsoft knows they can't best Linux in the server market, where buyers are more educated. They are more afraid of losing bundling with the smaller PC companies. How many people are running a $199 Walmart C3 with an illegal copy of Windows?

      As for the Windows CE source, where is it? If they expect us to pay money to work on their code for them, they are sadly missing the beauty of OSS.
      • by mystran ( 545374 )
        Personally, I think it's better to give source when someone buys the software, than not give it at all. I know several cases where a product (usually a library) was chosen because full source was included in the deal.

        Actually, even GPL allows that kind of distribution. I can sell you GPL'ed code (and source) and not give you the source if you don't buy it, since I'm not distributing the product before you buy it :)

        If one limits the redistribution, then it's no longer Free Software. I'd like to know what

    • I've noticed that companies that tend to mention their competitors at all are typically not doing so hot. A great example is Burger King. Back a few years ago they had a big ad campaign talking about how their new fires were going to get McDonald's worried ebcause in "taste tests, more people preferred Burger King's new fries over McDonald's fries". Well, McDonald's hasn't changed their formualtion as far as I know and Burger King isn't touting their old "new fries". I think this means that the Linux cr
    • by Anonymous Coward on Saturday July 19, 2003 @11:29AM (#6478341)
      n0nsensical :"Isn't Microsoft just making more and more people aware of Linux and how good of a Windows replacement it's becoming? Seems sort of counter-productive to give your #2 threat a lot of free publicity. Doesn't seem like the sort of thing a huge company would tell the public. But hey, I'm not complaining. "

      Microsoft made Netscape their # 1 threat back in 1996...and as they say, the rest is history and so is Netscape :)
      Look what happened to them.

      Microsoft also zeroed in on Palm back in 1998. Today, Microsoft has gone from 0% share to some 32% and rising share in the pda market, meanwhile Palm OS share has been falling every single year sine.

      As for Linux, figures from Netcraft this week are shwoing Windows 2003 taking share from linux in the web server market, with some 8000 linux servers having switched to Windows 2003 already!

      I wouldn't be so pleased if I were you.
      From what I have seen , Microsoft has trained its guns on linux but good. Watch out!
      • by Dan Ost ( 415913 ) on Saturday July 19, 2003 @02:09PM (#6479277)
        But you know the migration from Linux to WS2003 probably wasn't a technical
        decision. Some VP probably decreed it and the techs had no choice but to
        comply.

        I would only start worrying if it turns out that the migrations were,
        in fact, due to technical decisions.

        The Register had a link to the netcraft uptime summary of Colt's
        internet facing server that migrated from Linux to WS2003. Since
        migrating, the machine hasn't had an uptime of more than 4.45 days.

        Just thought someone might find that interesting.
    • Could this be the start of an embrace-and-extend campaign?

      Until '94, Gates thought that the world would be connected by MSNet and that the Internet would fade away. When he realized he was wrong, they began implementing extortionware/IP.

      Maybe they will offer some of their key technologies on Linux, but only if the user loads some type of software drm module. I dunno, just speculating.
    • Given that Microsoft is publically held, it's management will disclose information on competitive threats to the shareholders. Those filings are all public. They can try and spin it however they like, but claiming that Linux doesn't threaten their desktop OS monopoly wouldn't pass the reasonable man test.
    • by Eric Damron ( 553630 ) on Saturday July 19, 2003 @02:50PM (#6479511)
      Wasn't it Gandi who said: "First they ignore you, then they laugh at you, then they fight you, then you win."

      They did ignore Linux, they have made fun of Linux, now they're fighting.
  • by Anonymous Coward on Saturday July 19, 2003 @10:17AM (#6477907)
    Linux is part of the "economic environment". It might make more sense for Microsoft to combine a bunch of things as "#1: Our Outdated Business Model". I'll just hold my breath for that to happen.
    • by AndroidCat ( 229562 ) on Saturday July 19, 2003 @10:33AM (#6478012) Homepage
      So true. Munich spent more for Linux, but for that money they got customization, training and support-- a hidden cost of going the Microsoft route. If there were no alternatives to Microsoft, the economic environment wouldn't matter much, would it?
      • If there were no alternatives to Microsoft, the economic environment wouldn't matter much, would it?

        That is actually a very good point but I would take it one step further. The economuc environment and saturated market are THE reasons for Licensing 6.0. Licensing 6.0/Software Assurance is an attempt by Microsoft to maintain an economy of scale in a stagnating market. They know that without Licensing 6.0 they will be unable to invest as much time and work into the further development of Windows.

        Along comes Linux.... Now Licensing 6.0 doesn't look so hot to the corporate customer. Nor does product activation, etc. There are parts of these practices that actually *detract* from the use value of the software. So regardless, Windows becomes more expensive as time goes on.

        So the real problem is that Linux restricts Microsoft's reactions to the economic times in ways that no other competitor can.
  • Great humor (Score:4, Funny)

    by seinman ( 463076 ) on Saturday July 19, 2003 @10:18AM (#6477911) Homepage Journal
    Coincidentally, when I clicked the view comments link, a large advertisment for Linux.com appeared under the article.
  • Mr. Torvalds, Mr. Cox, Mr. Stallman.

    I lay the blame solely on you!

    (Good Job, and thanks for everything!)
  • Wow.. CE? (Score:5, Funny)

    by aerojad ( 594561 ) on Saturday July 19, 2003 @10:18AM (#6477917) Homepage Journal
    How nice of Microsoft. That's like someone asking for a steak and being given in-flight peanuts. Maybe a glass of water, too.

    It's a start, I guess.
  • by Loundry ( 4143 ) on Saturday July 19, 2003 @10:18AM (#6477918) Journal
    1. They ignore you
    2. They laugh at you
    3. They fight you <----- YOU ARE HERE
    4. You win
    • Actually the article refers the no. 1 risk as:

      The Economy!! How can the economy be a 'risk'??

      Okay I see... Economy bad--> People find MSware expensive --> People start to think --> discover MS is lousy despite all Gartner reports --> read Slashdot --> get to learn about this thing called Linux --> adopt it...yes!

      All risks lead to Linux!!

      -
      • The Economy!! How can the economy be a 'risk'??

        Okay. Let me explain it to you.

        The economy is starting to show signs of getting somewhat better. This is bad, because people will begin to spend money again. This means some money will be spent on computer upgrades. This means that vendors of non-Microsoft products might see an improvement in their business. This is bad.

        When the economy is bad, this is good for Microsoft. Microsoft can weather the storm just fine. But vendors of competitive pr
    • 1. They ignore you
      2. They laugh at you ----- WE ARE HERE
      3. They fight you
      4. You win

      Notice the top posts here are "Funny"
  • by rusty0101 ( 565565 ) on Saturday July 19, 2003 @10:19AM (#6477921) Homepage Journal
    ...to the products that Microsoft actually does well at.

    If Microsoft would stick to hardware, such as keyboards, mice and joysticks, elements that Linux and the Open Source movement, and Free Software Foundation has no interest in, Microsoft would soon realize that their only competition is Logitech.

    -Rusty
    • by jkrise ( 535370 ) on Saturday July 19, 2003 @10:29AM (#6477990) Journal
      If Microsoft would stick to hardware, such as keyboards, mice and joysticks, elements that Linux and the Open Source movement, and Free Software Foundation has no interest in, Microsoft would soon realize that their only competition is Logitech.

      Actually this is not funny at all - I'd say Insightful.

      Let's realise that Linux is successful 'cos MS divided the h/w folks, and that led to competition and commodity pricing, at the same time market aggregation.

      In a way, MS not getting into h/w is good for Linux. OTOH if they make a modified XBox, say XXBox (what about XXXBox :->) and put Palladium on it, that could cut off Linux entirely, since this XXBox would be $150 for h/w and s/w would be $50 per year!

      Be careful what you pray for!
      -

      • by roystgnr ( 4015 ) <roy&stogners,org> on Saturday July 19, 2003 @10:56AM (#6478148) Homepage
        Let's realise that Linux is successful 'cos MS divided the h/w folks, and that led to competition and commodity pricing, at the same time market aggregation.

        Of course, this is also why MS is successful; if they had tied themselves to a single hardware vendor who was therefore also capable of selling with fat profit margins and little competition, many more of us would be using Macs right now.

        OTOH if they make a modified XBox, say XXBox (what about XXXBox :->) and put Palladium on it, that could cut off Linux entirely, since this XXBox would be $150 for h/w and s/w would be $50 per year!

        They've already got the equivalent of Palladium on the XBox, and it's already been cracked. The XXBox would be cracked too, as will Palladium for the PC. In order to make Palladium work, even if they had magic reverse engineering proof hardware, Microsoft would need to only sign software that is 100% free of exploitable errors. I doubt they could write software like that themselves, much less expect everyone else in the world to write it, if they still expect to sign other companies' software to maintain a facade of market competition.
      • by DickBreath ( 207180 ) on Saturday July 19, 2003 @12:02PM (#6478537) Homepage
        Microsoft only makes profits on two things. Niether of them hardware.
  • Needs more detail (Score:5, Insightful)

    by sql*kitten ( 1359 ) * on Saturday July 19, 2003 @10:20AM (#6477932)
    Microsoft has officially moved Linux up to the Number 2 Risk to the company (With Economic Environment at No. 1). Bill Gates has taken the threat very seriously, and has identified Linux and non-commercial software

    What he actually said was "Linux and non-commercial software" (emphasis mine). The question is, what is the greatest threat to MS - Linux vs Windows? Or maybe it's NetBSD versus WinCE. Or SAP/DB vs SQL 2000. Or Java vs .NET. I don't think he meant Open Office vs MS Office, tho'.

    There's a lot more to "non commercial software" than just one OS kernel, you know. Also remember that Linux is a bigger threat to Unix vendors than it is to MS, because the barriers to migration are lower. I would be very surprised if Sun didn't consider "Lintel" to be its #1 threat.
    • by jkrise ( 535370 )
      Also remember that Linux is a bigger threat to Unix vendors than it is to MS, because the barriers to migration are lower

      Frequently as this BS is put out I find it hard to believe. Why should Linux be a threat to Unix. Let's take Solaris. Why would someone buy a Sun system? 'cos many folks write s/w for it - great CAD/CAM s/w, telco s/w, graphics etc..... there's a lot of stuff avbl for Solaris on a cafeteria basis. Same with IRIX (film and video) and HP-UX.
      Not with Linux. You gotta go hunting for folks t
    • Re:Needs more detail (Score:5, Interesting)

      by Frater 219 ( 1455 ) on Saturday July 19, 2003 @10:42AM (#6478066) Journal
      There's a lot more to "non commercial software" than just one OS kernel, you know.

      There sure is. Not only that, but "Linux" -- or rather, the universe of free-software Unix-like components -- is not entirely a noncommercial space. It contains a lot of commercial competitors to Microsoft, such as Red Hat, Zope Corporation, IBM, and so forth -- it isn't just volunteers hacking code for fun. It's these commercial competitors -- not a bunch of random hackers -- who will eat Microsoft's lunch if they get the chance.

      ("Commercial" is not the same as "proprietary". There is plenty of commerce possible, and existent, in the world of free software.)

      Also remember that Linux is a bigger threat to Unix vendors than it is to MS, because the barriers to migration are lower. I would be very surprised if Sun didn't consider "Lintel" to be its #1 threat.

      It doesn't have to be that way. Because the portability barriers between GNU/Linux and Solaris are low, customers can migrate easily, yes -- but so can good code. For instance, Apache is often thought of as "Linux software" by people who don't know very much, but it also ships with Solaris.

      Sun has to compete more closely with free-software systems than Microsoft does ... but Sun can also benefit much more easily from free-software innovation than Microsoft can.

      (Of course, portability is not the only reason for this; ideology is, as well. One of the planks of Fundamentalist Gatesism is that free software doesn't do anyone any good. And they call us fanatics?)

      • Re:Needs more detail (Score:4, Interesting)

        by sql*kitten ( 1359 ) * on Saturday July 19, 2003 @10:49AM (#6478105)
        Sun has to compete more closely with free-software systems than Microsoft does ... but Sun can also benefit much more easily from free-software innovation than Microsoft can.

        That is an excellent point.

        One of the planks of Fundamentalist Gatesism is that free software doesn't do anyone any good. And they call us fanatics?

        Oh, Gates has no problems with "free as in beer" - look at IE, for example.
    • by acroyear ( 5882 ) <jws-slashdot@javaclientcookbook.net> on Saturday July 19, 2003 @10:47AM (#6478099) Homepage Journal
      The question is, what is the greatest threat to MS - Linux vs Windows?

      Its LAMP vs. IIS/ASP/MSQL. Microsoft's standard web-server line and the Apache/P[erl|hp|ython]/MySQL combo are both relatively equal in capabilities, support, and stability. Its the one area where Free is more than worth it, FAR more.

      Then there's the web admins' impressions. People aren't taking Microsoft seriously when they try to make inroads into the J2EE/Oracle domain with .NET when they can barely keep pace with such low-end free software.

      In order to take on the web heavyweights like BEA, IBM, and Oracle, they need to show that they're better than the low-end free stuff like MySQL and Apache. And they aren't succeeding in that. Thus, Linux and friends is the current threat...its a threat to the future they REALLY want to control.
  • We are now up to Gandi's "They will fight you" stage of revolution.
  • First risk: Prospects who believe anything they read from the press, including Slashdot!

    -
  • Cool (Score:5, Interesting)

    by FrostedWheat ( 172733 ) on Saturday July 19, 2003 @10:21AM (#6477942)
    Free publicity :)

    Tho I personally believe Microsoft's biggest threat are themselves. They sometimes do make cool stuff (Media Player 6.4) but then quicky ruin it (Media Player 7+).
    • Re:Cool (Score:3, Informative)

      by phoxix ( 161744 )
      They sometimes do make cool stuff (Media Player 6.4) but then quicky ruin it (Media Player 7+).

      You can get a similar version of Windows Media Player 6.4 by typing mplayer2 at the run dialog box.

      Sunny Dubey

  • by archen ( 447353 ) on Saturday July 19, 2003 @10:22AM (#6477951)
    I wonder how long it's going to take Microsoft to figure out that it's not Linux that's the threat, it's open source. Linux is fine, but what do you DO with Linux? Linux is just a platform (like BSD), the other things you do like run a webserver, file server, database all require some sort of software (Apache, Samba, PostgreSQL). Most of the really good software packages aren't specific to Linux.
    • > I wonder how long it's going to take Microsoft to figure out that it's not Linux that's the threat, it's open source.

      Err, how about when Linux zealots realize that MS is just playing to their vanities. Where exactly is the great Linux desktop rollout? Sure, there are inroads to the server-side of things, but Linux is also pushing out Solaris, not just NT.

      Why would MS list linux as their #2 threat is they don't mean it? It answers a couple important questions:

      1. Why do your products cost so much
  • I thought Steve Balmer was. With all hi running and jumping, you'd think he'd be a short to long term disability risk if he hurt himself.
    • Re:Eh? (Score:2, Funny)

      by Trigun ( 685027 )
      Or slipped off the stage into the front row.
      There goes MS's board of Directors. Next week the interns sit up front.
  • by anttik ( 689060 )
    Both are making lists of their worst enemies.

    Luckily Microsoft just can't use real weapons to beat them. They will have to make better products for cheaper price.

    Competition is good if there's no weapons involved.
  • by Lawrence_Bird ( 67278 ) on Saturday July 19, 2003 @10:24AM (#6477963) Homepage
    for a very high % of business users (80%? 90? 99?) the only justification left for using windoze is the Office suite. OpenOffice is getting closer every day to being a true replacement, and as IT and department managers come to realize this, Linux on the desktop inside the corporation may become reality. The savings for most companies will be hard to ignore, allowing them just to purchase sloth products for those who truly need the OS to run non MSFT applications. But that means secretaries, administrators, middle managers and the like can be switched. Does one really need XP and WinWord to write a memo?

    I predict that very soon MSFT will have to lower substantially the cost of Office, further eroding its margins. Better start cashing in Bill.
    • by kannibal_klown ( 531544 ) on Saturday July 19, 2003 @11:01AM (#6478171)
      You're assuming General Use of desktops. Sure, Joe Sixpack at company Z that just writes memos all day could use redhat and open office. But in companies that do a lot of research, they have a lot more invested in windows. They have third-party solutions that only run on windows, and in most cases all of their in-house apps are for windows. As another poster mentioned, it's the general momentum Windows has in the market. People write a lot software for it that isn't cross-platformable. "Switching" (be it Linux or Apple) would entitle not just using Open Office, but re-writing all of our own code, trying to find specialized products to handle our research, paying out for these new contracts, etc. There's more to corporate computing than Word. For example, at my pharmacutical company, we use a combination of Solaris and Linux for our servers. But ALL of our desktop stuff is Windows only. All of our third-part apps are windows, everything we write inhouse is windows, etc. One example is ActivityBase. ABase is a software package that handles most of our experimental data. It uses Oracle as a backend (so the backend could technically be Linux), but the frontend is Windows. The frontend is particularly important, becase it allows the scientists to interact with the system. The frontend is written in a mixture of VC++ and VB, and is IMMENSE. It's WAY too large to rewrite in Java or some other cross platformable language. And there's NO WAYA the company would even bother considering it. Likewise, there are few solutions such as this in Linux at this point, and if there were they would not be so feature free. If we were to switch, while the data would still be accessible 'cause it's in Oracle, we would have to find an alternative to ABase that is full of such features and PAY OUT THE ASS for it. A consulting company or vendor isn't going to charge LESS because it's Linux. Sure, accounting and secretaries can switch, but research (for the most part) can't. Too many companies are too invested. Either they use windows, or they sell software for use only with windows.
    • by sql*kitten ( 1359 ) * on Saturday July 19, 2003 @11:13AM (#6478238)
      I predict that very soon MSFT will have to lower substantially the cost of Office, further eroding its margins. Better start cashing in Bill.

      Microsoft profit up 26% [newsday.com]. No sign of any eroded margins there!
  • Windows CE (Score:3, Interesting)

    by Anonymous Coward on Saturday July 19, 2003 @10:24AM (#6477964)
    By even giving away Windows CE, they lose nothing. It is highly outdated, but by getting hardware manufacturers to stick to the MS line of products, their monopoly is secured. Is a device running WinCE more or less likely to ever have Linux drivers?

    ---
    1-800-759-0700
  • Problem 1 and 2 (Score:5, Interesting)

    by Stonent1 ( 594886 ) <stonentNO@SPAMstonent.pointclark.net> on Saturday July 19, 2003 @10:25AM (#6477969) Journal
    Considering how MS deals with problems, it can't possibly win.

    1. MS can't buy the economy
    2. MS can't buy Linux
    So traditional MS strategies don't work.
  • I'm quite surprised that Linux isn't #1 on the list of threats. I don't think Microsoft has too much to worry about individual use of Linux, but rather companies switching to Linux to avoid paying the hefty licensing fees. And I don't think lowering the price of CE will help much. As I stated, the threat's with companies getting fed up with licensing.

    I don't think opening the source code will help much either. It costs a lot to get the code, you aren't allowed to recompile it, and you're probably boun

  • by Idou ( 572394 ) * on Saturday July 19, 2003 @10:27AM (#6477980) Journal
    "What people tend to forget is that there are gatekeepers in the open-source community, too"

    This is subtle but very, very important. Open Source "gatekeepers," like Linus, only get the job of gatekeeper because they are the most popular. And there is nothing stopping anyone else from releasing their own version and taking over the project. However, non-Linus releases must COMPETE with Linus' releases for MINDSHARE based on MERIT. This is truly an evolutionary process.

    MS is simply the gate keeper because they have a monopoly. There is no competition based on merit, no evolution takes place. If MS is the default gate keeper, what you contribute automatically belongs to them. Congratulations, you are now the most poorly paid employee at MS.

    • by jkrise ( 535370 ) on Saturday July 19, 2003 @10:45AM (#6478087) Journal
      What people tend to forget is that there are gatekeepers in the open-source community, too

      Actually, only the Open Source community has gate-keepers. The closed source giants have toll booths instead - a one-way traffic. And if you don't like the picture, you can't get your money back as well.
      -
    • by Homology ( 639438 ) on Saturday July 19, 2003 @11:25AM (#6478315)
      You'll also find another, not so subtle, difference:

      Microsoft doesn't let anyone but itself re-compile the code to Windows

      I may freely build my Open Source executables, along with any changes I've made to it.

      If re-compiling Windows where an option, the DRM and Palladium would not be possible.

  • os x? (Score:5, Insightful)

    by squarefish ( 561836 ) * on Saturday July 19, 2003 @10:28AM (#6477987)
    I'm curious is they are batching apple in with this in any obscure way.

    I think apple is a much larger threat to M$ now than they've ever been do to os x and the attraction of developers they've been able to aquire over the last few years.

    I switched six months ago and have been encouraging a lot of others to do the same.

    I'm also curious what the next big app. that directly threatens M$ will be- I'm sure keynote was just a starter!
    • Re:os x? (Score:5, Insightful)

      by Trigun ( 685027 ) <<xc.hta.eripmelive> <ta> <live>> on Saturday July 19, 2003 @10:37AM (#6478036)
      OSX is not cutting into their bread and butter like Linux is. Linux has poised itself to take over the datacenter with its SMP support and Oracle and IBM backing. It is poised to take over the CAD systems with its clustering ability. It is poised to take over the e-mail servers with the exchange replacements already mentioned here(the names elude me right now).
      The fact that Linux is setting itself up as the 'middleware' of all OSes is really what makes it so dangerous. When you buy an NT server, you buy NT workstations. When you buy an Apple server, you buy Apple workstations. When you buy a linux server, you buy whatever the hell you want.

      That is why it is so dangerous.
  • No matter what approach Microsoft takes, I don't see it taking a major blow to Linux. Short of open sourcing Windows, all they are doing is reducing the difference, but the fundamental differences still exisit. Either Linux is NeXT and will take over the world or it is just for us geeks. Only time will tell which of the many theories about linux and how it fits in with the market share are correct.
  • by Noryungi ( 70322 ) on Saturday July 19, 2003 @10:37AM (#6478041) Homepage Journal
    And the flames rose higher and higher, and a million emails were fired in anger...

    Script kiddies and geeks, UN*X gurus and bearded free-software prophets all sharpened their r00tkits and compilers and started beating louder and louder on the war drums...

    Gee, I love the smell of FUD in the morning... It smells like... like... Victory! =)

    [and all of this is said with tongue firmly in cheek, of course!]
  • by nnnneedles ( 216864 ) on Saturday July 19, 2003 @10:38AM (#6478042)
    It's interesting to note that Windows can't become that much more advanced. It seems to me that it has reached a point were there isn't that much use in upgrading anymore. Like the word processor or web browser there aren't that many innovations people are longing for. Personally, I still use Win2k and I am quite happy with it. Given a choice, I even prefer it over XP.

    At the same time, all Linux has to do is play catch up (becoming more user-friendly and so on) to seriously threaten Windows in the next few years. Being free, it is quite competitive.

    I can only see Linux gaining territory in the future, while Windows has everything to loose. If Linux attains a critical mass where game developers start making games for it, I will probably switch. And I bet I wont miss Microsoft one bit.

    Bill Gates has all the reasons in the world to feel threatened. I mean nobody expects to pay for any of the software you download anymore. The market is becoming increasingly eroded as it only takes one good free alternative for everybody to choose that one over the one that costs money..

    • by lpret ( 570480 ) <lpret42@NOspAm.hotmail.com> on Saturday July 19, 2003 @11:28AM (#6478338) Homepage Journal
      First off, there is never a plateau in technology. Although boats were quite efficient in the 18th century, there are always better ways to build boats -- and even more ways to make them obsolete. The same can be said with an operating system and interface -- it will always be able to be changed and improved on.

      Second, I can't believe you say you like Win2k better than WinXP. Perhaps in a geeky "I like to do everything for myself, no help please" type of way, but for the general user (and the people who buy computers nonetheless) they want to be able to just plug their new digital camera in and Windows to be able to install the correct drivers and even pull up the correct program to download their pictures.

      In terms of usability, Microsoft needs to play catch-up to Apple, but Linux needs to play catch up to MS. In terms of security, etc. Microsoft (if implemented correctly, ie. not everyone is given admin rights!) is par for the course. I will guarantee that if Linux were the market leader, you'd see large amounts of virii for Linux as well. Many times it's the admin who doesn't update/secure it properly who's to blame -- not the OS.

      I agree with you mostly, but there will never be a plateau in technology. Not until my computer's name is HAL.

      • by uncadonna ( 85026 ) <`mtobis' `at' `gmail.com'> on Saturday July 19, 2003 @12:31PM (#6478710) Homepage Journal
        First off, there is never a plateau in technology.

        Well, maybe so, but there are limits to how effective any code base and methodology can be. There are reasons to suspect that the Microsoft approach will soon or has already reached a point of diminishing returns in terms of value added per unit effort. It can always be made better, of course, but that doesn't mean it can always be made better fast enough.

        Even if true, this doesn't mean Stallmanesque pure open source will win either. I think a hybrid model (see OSX) may be the best. The point is less about morality or motivation, and more that Microsoft's high-pressure release-first fix-later approach has left it with a huge, bloated, unrepairable code base.

        Look again at your analogy. You can add motors to your 18th century boat and make it faster, but it's not going to win a race head-to-head against a modern speedboat designed and built with modern methods and materials.

        I can't believe you say you like Win2k better than WinXP.

        I have seen my mother-in-law try to switch to XP from W98 to manage her photography hobby. The switch seems to have gratuitously confused her. In the end she is marginally less effective. As for me, when I get roped into support tasks for her, I have to deal with a smarmy and aesthetically revolting UI.

        Even leaving aside the licensing and spyware aspects, I for one definitely strongly prefer older version of Windows to XP, and have no plans to move any of my Win9x boxes to any current Microsoft OS, nor to purchase any Intel boxes with any version on XP on them in future. I have occasion to run Win95, Win98, Red Hat, and Debian, but mostly I use OSX, sometimes with a Win98 VirtualPC.

        By the way I have nothing against decent MS software. Excel is nice, and if it weren't a security risk Outlook, (which has some great features to outweigh its cluttered design) would be very appealing. I recommend MS Entourage on OSX + Palm as the best PIM combination at present, despite the many things I like about iCal. On the other hand I think MS Word is garbage and a curse on humankind. It cannot be repaired. The underlying data structures are too broken.

    • Yep! It's called Monopoly. 99% market penetration. The funny thing about monopoly is that once everyone has one, it's not new and shiny anymore--and they pay too much. The company in this position goes from being "cool" to being "annoying" we don't really look upon our electric compainies with awe and wonder anymore do we? all we see is that they still want our money.

      In a down economy, the next cool thing better be cheap! and online! and be really useful! ...did I mention cheap...

      Remember Bill ma

    • It seems to me that it has reached a point were there isn't that much use in upgrading anymore.

      Good point. People upgraded from Windows 95/98 to Windows 2000 and marvelled at how stable it was in comparison. Wouldn't it be ironic if Microsoft finally fixing the largest stability bugs became the #1 driver behind people not upgrading anymore? "Why should I buy Windows 2003 when Windows 2000 doesn't crash anymore?"

      (Note: as a techie, I don't think Windows 2000/2003 is exceptionally stable. It still pale
  • by surprise_audit ( 575743 ) on Saturday July 19, 2003 @10:43AM (#6478073)
    This will not only allow developers to view and modify CE, but also distribute software incorporated to the modified code.

    WinCE may or may not be close, source-wise, to actual Desktop Windows of any flavor, but doesn't this raise the spectre of copyright violation? If WinCE source becomes easily available, Microsoft will soon be able to run around accusing all kinds of Open Source projects of stealing their stuff. Never mind that none of it may be actually useful... Just the possibility of being able to stall OSS projects might be enough to persuade Microsoft to start down the same road as SCO.

  • by AndroidCat ( 229562 ) on Saturday July 19, 2003 @10:44AM (#6478080) Homepage
    "Dancing Steve" Ballmer has to be on that list somewhere. What's his number? [infoworld.com]
  • by chickenbak ( 613182 ) on Saturday July 19, 2003 @10:47AM (#6478098) Homepage
    The CFOs name is John Connors, coincidence, I think not! Time to Terminate boys.
  • Not just Linux! (Score:3, Insightful)

    by Junks Jerzey ( 54586 ) on Saturday July 19, 2003 @10:50AM (#6478111)
    Linux and non-commercial software as 'out there and very pervasive

    Remember, there's open source software available for Windows. Quite a lot of it actually. Open office clones are more of a threat than an operating system kernel (which is what "Linux" is).
  • Times are Changing (Score:3, Interesting)

    by 3seas ( 184403 ) on Saturday July 19, 2003 @10:56AM (#6478146) Homepage Journal
    Due to technological advancements, better ways of doing things, old industry is being flushed out.

    This includes proprietary software. (isn't that what MS is saying?)

    It also includes flushing out the old music industry and more...

    So much has been integrated into a larger system of "old business" that as one industry reacts to change other industries tied in integration are as well tugged on.

    Note that it's the software industry that tugs on the entertainment industry....

    The wave being caused by open source (OSI definition - not MS's definition) is being felt further than just the old software industry.

    Economic Environment....

    Don't nobody tell MS that there list is incorrect, they will eventually figure it out, when they no longer can ignore their old ways are not working, cause everyone else knows it.

    Guess this tells us what MS's next line of irrationality is going to be with the politicians.

    "To save our (double speak meaning MSs personal economy) economy you have to outlaw Open Source and then sentance all criminals to have to use our software. A matter of homeland security, you understand...??"
  • by BenjyD ( 316700 ) on Saturday July 19, 2003 @11:03AM (#6478182)
    For me, this kind of thing is my Number 2 reason for liking free software (Number 1 obviously being, well, freedom).

    Free software sets the level for what people can do without help from companies. So, if a company wants to sell me some software, it has to demonstrably do something that I can't do for myself (with free software).

    By forcing companies like Microsoft to lower prices, rethink strategies etc, free software improves condition in the industry, even for those that don't use it.
  • by 73939133 ( 676561 ) on Saturday July 19, 2003 @11:04AM (#6478192)
    Microsoft is attempting to spin the situation even in admitting defeat, by referring to Linux as "non-commercial" software.

    Open source software is, of course, "commercial" software: it's at least as good as closed source software, it's used by many commercial enterprises, and it's sold commercially.
  • Large forces and trends ultimately win; like the desire to be free. MS has simply begun to recognize that the inputs required to overcome the market's natural forces will soon exceed the outputs. this is partly due to an increasing realization that consumers have become satisfied with existing technology.

    what will MS do? they have hundreds of very talented programmers, incredible distribution & support capacity, not to mention $30 billion in cash. after all, customers simply want the outputs of all that technology.

    if MS would embrace OpenSource as another input to its products and add credibility and customer service they would have an incredible value proposition.

    i predict an MS-Linux release in 2-3 years.
  • by henriksh ( 683138 ) <hsh@freecode.dk> on Saturday July 19, 2003 @11:11AM (#6478230) Homepage

    What people tend to forget is that there are gatekeepers in the open-source community, too," he said. "It's not a free-for-all. On every one of the open-source projects, there are two or three people who are the gatekeepers. And you have to make a pretty good case, accurate and technically astute, to get them to allow changes. That's how it should be."

    This is FUD intended to align "Shared Source" with Free Software/Open Source. The main difference is of course, that if you disagree with the so-called "gatekeepers" (what a weird analogy), you can just take the source code and run (make a fork).

    You can not do that with "Shared Source". And Microsoft knows that. And most of us here know that. But Microsoft hopes that many people will not see the difference (or won't care).

    Microsoft's strategy is scaringly obvious.

  • Number 1 Risk? (Score:3, Insightful)

    by macgyvr64 ( 678752 ) on Saturday July 19, 2003 @11:13AM (#6478234)
    Their number 1 risk should be their own security holes.
    *cough* Slammer *cough*
    Then Linux.
  • by DohDamit ( 549317 ) on Saturday July 19, 2003 @11:14AM (#6478252) Homepage Journal
    and to know that Microsoft thinks that Linux is more threatening than you by a long shot. How sad.
  • by FearUncertaintyDoubt ( 578295 ) on Saturday July 19, 2003 @11:44AM (#6478431)
    It gives Linux a legitimacy, essentially certified by Microsoft, that is desperately needed. Walk into a CIO's office now, and show him this, and he will think, hey, if Microsoft is scared of it, it must be pretty good.

    Essentially, Microsoft has had to make the concession in order to rally their own troops to fighting Linux aggressively. To continue saying, Linux is worthless and not a real credible answer, is to look like you have your head in the sand. The Munich deal made them realize that Linux is no longer being used to just squeeze a better deal out of MS, but people will actually implement it if MS doesn't come up with a good deal up front. I think that is what surprised them: they probably never believed that Munich was serious about putting in Linux.

    They've simply been hoping that this point would never come, when they had to actually acknowledge Linux as a serious competitor (and not just for anti-trust reasons; they would call a Vic-20 viable competition in order to get DOJ to leave them alone).

  • by seismic ( 91160 ) on Saturday July 19, 2003 @12:12PM (#6478600)
    In the article they state the number one risk is the state of the economy, and the number two risk is open source.

    I would argue that Microsoft's number one risk is actually the free spread of information over the internet. This is something that can not be controlled (yet).

    In the old days IT decisions were made with very limited information. Possibly Gartner group published recommendations, maybe from reading trade journals that were several months out of date.

    A popular saying was "well nobody got fired using [insert company here] products". It was all about risk management. Go with the biggest baddest company, and at least you're protected in some way if things blow up. That was the theory.

    With easier access to information folks are realizing that this theory doesn't always hold true. When the latest windows/exchange/internet explorer vulnerability is unleashed, now you're just part of the bigger collective that is screwed.

    It becomes harder for companies to do damage control when the facts spread quickly and undergo so much analysis by people not on their payroll.

    When the internet functions as a self regulating corporate BS filter, then it becomes the biggest single threat to Microsoft.
  • by securitas ( 411694 ) on Saturday July 19, 2003 @12:29PM (#6478702) Homepage Journal


    This story needs to be put in context with recent developments and crowing about Windows being chosen over Linux. The biggest story out of this surprising admission is that analysts and large organizations are starting to recognize the value proposition of Linux and Open Source, as described in the rejected post below. The most telling comment is in the quotation in boldface, which lends support to Mitch Kapor's predictions [slashdot.org].

    Microsoft Ranks Linux its Number Two Threat

    While most media are focusing on Microsoft's growing sales [nwsource.com] and Microsoft Windows Server 2003 replacing Linux servers [zdnet.co.uk] based on the June 2003 Netcraft survey [slashdot.org], (also at SMH [smh.com.au], but disputed by the Register [theregister.co.uk]) there's a more interesting story to Microsoft's latest earnings report and conference call. Speaking about the top five risks for Microsoft, CFO John Connors [informationweek.com] said, ''The general economic environment is risk and driver number one. Linux and non-commercial software is risk number two [techweb.com].'' The recent Munich win for Linux [slashdot.org] is partly credited for making Microsoft take Linux and OS software seriously [slashdot.org]. Said one analyst about future threats, ''People are underestimating Linux on the desktop. They're going to be surprised at how quickly Linux's threat will be an issue on the desktop.''

  • by Jadrano ( 641713 ) on Saturday July 19, 2003 @12:53PM (#6478818)
    As far as private computers at home are concerned, I wouldn't expect a significant part of the population to switch from Windows to GNU/Linux. OS X is a much stronger competitor of Windows in that area. It seems that mostly people with a special interest in IT and OSS are using Linux (often, they know several operating systems). Sometimes, they can convince "normal" computer users they know to use Linux, as well, but I don't believe that this way of spread can result in a massive rise of the number of Linux users.
    One important reason is that the difference in price doesn't matter so much for private users. Of course, Linux is free, but most users - and "normal computer users even more so" - usually want to have a convenient up-to-date distribution on a DVD or CDs, and if you buy new versions from time to time, Linux won't be much cheaper any more.

    That is, of course, very different for companies and institutions, even if they always buy the latest version of their distribution, they can use it for an unlimited number of computers. Therefore, I think it can be expected that more companies and institutions will use Linux (of course, some can't because they use specialised software developped for Windows, but many can), cities like Munich or Schwäbisch Hall are a show what might happen in many other places, as well. Then, many people will get to know Linux at work, and because they get used to it, many of them will also use it at home and recommend it to others, and educational institutions will have to deal with Linux "because that's what you will be likely to see at work".

    I think that if Linux is going to take over a significant share of the desktop, it is probably going to happen in such a way. The grassroot movement for Linux is quite strong, but I don't think it can reach more than a few per cent of the population if companies and public organisations choosing Linux to save money don't play their role.
  • by SubliminalLove ( 646840 ) on Saturday July 19, 2003 @01:03PM (#6478876)
    Although the average slashgeek likes to jump down Microsoft's throat over everything they do, isn't this sort of move exactly what should happen? Aren't things like lowering prices and opening source code some of the long-argued benefits of Linux competing with Microsoft?

    Kudos to Linux!
  • by LibertineR ( 591918 ) on Saturday July 19, 2003 @01:12PM (#6478954)
    Those of you who think Microsoft is making a mistake by publicising Linux are really stupid, or at best, lacking understanding in the reasons that Microsoft is where they are today.

    If there ever was a time to ENCOURAGE comparisons between Windows and Linux, THAT TIME IS NOW. You need to consider the audience, people. The audience is NOT GEEKS. It is all of those under-trained, under-skilled folks who still need a computer to do something for them with a minimum of input or instruction.

    Microsoft wants those people looking at Linux TODAY, not a year or two from now, when Linux is much better, or when skill sets have improved to make it less difficult to do a proper install.

    For every battle against Linux that Microsoft loses today, they will win 20-30 others, because lets face it, the bulk of the people who use computers, both in business and in a personal setting are blithering idiots compared to those of us who know how to use and extend Linux.

    Microsoft is brilliant(as usual) in encouraging people to start making comparisons NOW as opposed to later, because if people are turned off by the complexities of Linux now, they are unlikely to revisit the issue anytime soon. Once Microsoft has their dollars, the battle is over for at least a decade.

    Some of you folks need to go out and buy "The Prince", and learn a little about winners and losers.

    • by Ridgelift ( 228977 ) on Saturday July 19, 2003 @02:42PM (#6479470)
      Microsoft is brilliant(as usual) in encouraging people to start making comparisons NOW as opposed to later, because if people are turned off by the complexities of Linux now, they are unlikely to revisit the issue anytime soon. Once Microsoft has their dollars, the battle is over for at least a decade.

      Home users don't care who Microsoft thinks is a threat. Only corporate people do, and they're not the ones who deal with the complexities of computers. I've been selling and supporting IT solutions to small and mid-size businesses for over 7 years, and customers do understand that Linux is the best value out there.

      Maybe the /. crowd isn't as stupid as you think they are.
  • by Minna Kirai ( 624281 ) on Saturday July 19, 2003 @02:48PM (#6479501)
    Now that Microsoft has admitted that Linux is one of their primary threats, we can attempt to deduce their opinion of the SCO-IBM lawsuit.

    Fact 0: Microsoft could buy SCO for a single day's worth of revenue.
    Fact 1: SCO claims that without their permission, nobody can use Linux.
    Fact 2: Microsoft knows that Linux is one of their biggest threat to profits.
    Fact 3: Microsoft has not bought SCO.

    The natural conclusion of these facts is that Microsoft feels SCO's claim has no merit, and will be struck down in court. Rather than buying SCO and expediting the court-case so that Linux can be quashed immediately, they've chosen to sit back and allow the unsettled allegation to stir up uncertainty and dissuade potential Linux adopters.

    Note: this doesn't mean that Microsoft considers it impossible for SCO to win the case- only that they don't think there's a high probabilty of victory. They benefit from allowing the FUD to continue for as long as possible before the dice are rolled in court. In fact, there's another way they benefit from holding off the verdict: if some companies deploy Linux and then have their operations interrupted by C&D orders in the wake of an SCO victory, it will discourage future corporate adoption of all kinds of Open Source software.
  • by ubiquitin ( 28396 ) * on Saturday July 19, 2003 @03:22PM (#6479769) Homepage Journal
    It isn't Linux itself that Microsoft is scared of: it is deployment of services across a network that linux enables. This means that the LAMP (apache mysql php) approach is really what concerns them.

    Does "business value" mean having a bunch of point-and-clickers take over your IT department? It takes a sixth-grade education to get through a Windows Server 2003 patch upgrade. Know how to click "OK" and you've got the job!

    What Microsoft is missing is this: unix sysadmin skills have real value, a value tied up in automating business processes. Investing in off-the-shelf boxed products so you don't have to invest in quality skilled IT people is short-sighted.

    Get it straight from the horse's mouth: Microsoft Lessons [gregfolkert.net]
  • by Qbertino ( 265505 ) <moiraNO@SPAMmodparlor.com> on Saturday July 19, 2003 @05:37PM (#6480662)
    "Microsoft will take some considerable encouragement at the number of sites that have switched from Linux," NetCraft said in the report.

    But the server arena isn't really the one to watch how Microsoft reacts to Linux, said Cherry.

    "People are underestimating Linux on the desktop," he said. "They think it's all about the servers, and how Microsoft responds there. They're going to be surprised at how quickly Linux's threat will be an issue on the desktop. Linux will get to be 'just good enough' for the desktop faster than people think."

    Maybe that will make Microsoft bump Linux to the top of its risk list.


    This is what I've been saying since I first saw screenshots of Enlightenment back in 1998. The moment I, sitting in Front of Windows95 and some ancient Explorer, saw [enlightenment.org]
    this, I knew M$ would lose in the end. Software wins by widespread use. Widespread use is achieved by public awareness. And, believe me, public awareness is *not* achieved on servers, no matter how much the difference is. Public awareness is achieved on the Desktop. That's the bottom line.
    Having seen previews of KDE 3.2 at the LinuxTag I conclude: Not only has GNU + Linux gained momentum but it is close to reaching critical mass.
  • by Jugalator ( 259273 ) on Saturday July 19, 2003 @08:53PM (#6481545) Journal
    I think the poor "economic climate" for Microsoft and the "Linux threat" might be connected to each other. People switch to various Linux-based servers and sometimes even for desktop usage since they find Linux "good enough" and perhaps cheaper as well, in the long run as well. And with the current economic climate, price is important and so is the "good enough" factor. A poor economic climate might speed up the Linux adaption and I'm not really that surprised to see Linux that high on the list simultaneously as the "economic climate", since I'm seeing those as connected. Not saying that people will switch back to Microsoft when/if the climate improves, but the Linux adaption might slow down a bit.

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