Microsoft Threatened by Open Source?

      by Wyatt Walter

In Microsoft’s annual report released yesterday, it talks about the threat of open source software to its business model. Obviously Microsoft still has a huge hold on the market, but their hold seems to be declining. The document outlines a number of threats to its business model including software piracy, competition, security vulnerabilities, and delays in product release schedules. Microsoft seems to be taking the threat of open source software much more seriously than it has admitted in the past. They admit that a lot of companies and open source projects that work on one particular piece of software seem to be doing very well against them. They even go so far as to call open source software “intense competition”. Of course, they also take the typical cheap shots at open source software saying that they usually “mimic[s] the features and functionality of [their] products”. They say they will be developing versions of their products with “basic functionality that are sold at lower prices than the standard versions”. Great. As if Microsoft licensing wasn’t confusing enough.. The report also blames a bad economy for struggles in sales. This seems to be a small victory for open source software. As open source advocates and implementers, we seem to have Microsoft on its heels a bit. Brick-and-mortar software sales as Microsoft has been selling for years is on its way out and SaaS is coming which seems to favor open source, especially when combined with a bad economy. Microsoft is entering the game, but has entered slightly late.

Filed under Uncategorized : Comments (0) : Aug 7th, 2008

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