Is Microsoft concerned about the threat Linux poses to its entrenched position in the IT market? Apparently not, given the statements made at public events and trade shows, but the cracks are starting to show and Microsoft may be more apprehensive than it would like to let on.
Take the chopping and changing licensing rules that Microsoft is presenting to the world. First the company tries to lock in as many users as possible with long-term volume licensing agreements, then it bends the rules slightly, locally, to allow smaller customers to pay off their software over three years, still locking them in for as long as possible.
Obviously by now the software maker must realise its hard-line approach to securing new customers has created a number of enemies.
Alastair Otter, Journalist, ITWeb
On the surface, it may seem relatively innocuous, but the one rather obvious target I can see is that the company is eager to tie up as much of the market as possible, as quickly as possible. This comes at a time when the open source alternative to its software offerings is becoming increasingly appealing to financially-strapped businesses.
Now we hear the news that Microsoft is telling its sales reps to keep an eye open for users looking to switch over to Linux or other open source alternatives. Called Open Value, the scheme is apparently part of the Licensing 6.0 agreement and allows sales representatives to offer huge discounts on Microsoft software to any company making too big a switch to open source. As much as 50% discount apparently, which would make a considerable difference to most small companies, given the cost of software today.
Of course this could also be viewed as aggressive marketing.
For a deeper look into Microsoft`s views of Linux, take a look at the so-called Halloween memos. The most recent one is a leaked memo from a Microsoft internal strategy meeting in which the response to Linux is debated and makes for interesting insight.
Most interesting is the high-approval rating Microsoft believes Linux has and the fact that a third of respondents in a survey conducted by the company say one of the main reasons to switch to Linux is because it is simply an alternative to Microsoft.
Obviously by now the software maker must realise its hard-line approach to securing new customers has created a number of enemies. It concedes as much, saying in the memorandum that "messages that criticise OSS [open source software], Linux and the GPL [general public licence] are NOT effective. Messaging that discusses possible Linux patent violations, pings the OSS development process for lacking accountability, attempts to call out the `viral` aspect of the GPL, and the like are only marginally effective in driving unfavourable opinions around OSS, Linux and the GPL, and in some cases backfire."
To be fair though, it is understandable that Microsoft is nervous. I would also be anxious if growing opposition forces, represented by the likes of Sun and IBM and a foot-soldier-count of millions of disgruntled Microsoft software users, threatened my company. In fact, if Microsoft wasn`t just a little nervous, I would be very concerned.
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