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Microsoft bullish on server market

Johannesburg, 12 Aug 2005

The server market is becoming a two-horse race between Microsoft and Linux, as both groups are increasing their market share in SA and globally, says Microsoft South Africa MD Gordon Frazer.

Speaking at the start of Microsoft`s Summit 2005 at Sun City yesterday, Frazer stressed that it is a misconception that Microsoft is losing ground to Linux in terms of server sales.

Microsoft`s Windows platform server sales, he said, have last year shown a 3% higher growth rate than the overall x86 industry standard server market, but Linux platform servers have exhibited a similar growth.

"This means that both Linux and Microsoft are increasing their market shares, squeezing out Novell and OS2," Frazer stated.

"Do we have an edge? I don`t know. It`s a very competitive market."

Microsoft does not foresee a slowdown in the server market, but added that he expects both Microsoft and Linux "to cross the line".

He added that there remains niche areas where Linux and Microsoft have an advantage over one another, which is evident in the shift in Microsoft`s product mix.

"There is a perception that there is a move towards Linux among small businesses because of lower cost. This is not true due to the complexity of Unix technology," Frazer said.

He said that the IDC prediction, that Linux`s market share is set to grow five-fold by 2006, is not true.

"The reality is starting to set in - there are cost benefits in relation to certain platforms, but there is no free software for life."

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