Microsoft report acknowledges Linux threat
Microsoft report acknowledges Linux threat
Sep 07, 2004: Proof that Microsoft is concerned about the growing presence of open source software can be found in the software giant's latest filing with the U.S. Securities and Exchange Commission.
In the report, the company predicts the increasing popularity of "noncommercial" software, together with sluggish PC unit growth, will significantly affect its results.
Microsoft states that while its share of server units grew modestly in the financial year 2004, Linux distributions grew slightly faster.
"The increase in Linux distributions reflects some significant public announcements of support and adoption of open source software in both the server and desktop markets in the last year. To the extent open source software products gain increasing market acceptance, sales of our products may decline, which could result in a reduction in our revenue and operating margins."
The statement rather contradicts Microsoft's usual public pronouncements about Linux, which it tends to dismiss as insignificant. It would seem that privately, its view is somewhat different.
The report also reveals the markets that Microsoft will be targeting in the coming year, with a battle looming in the search market with the likes of Google and Yahoo. It will also be looking to build on the success of its Xbox games console by increasing its presence in the consumer market.
Related Article: