James Banogon

Microsoft is afraid of Linux

Posted on August 5, 2009 in Technology

Microsoft has long taken too lightly Linux as a desktop challenger. But latest filing with the Security and Exchange Commission has the company acknowledging for the first time that Linux signifies a major threat to Windows.

News indicate that in Microsoft’s latest yearly filing with the SEC, it listed for the first time Ubuntu’s producer Canonical, and Linux distributor Red Hat as competitors to its Client division, which makes most of Windows. In the past, Red Hat was listed but merely as a competitor to its Business and Server & Tools divisions.

In its annual filing, Microsoft advises that Linux is a risk to Windows, particularly in up-and-coming markets and for netbooks. It also notified that Apple is a risk, but it’s said that before. The big news is the addition of Linux. Here is what the filing states:

Client faces strong competition from well-established companies with differing approaches to the PC market. Competing commercial software products, including variants of Unix, are supplied by competitors such as Apple, Canonical, and Red Hat. Apple takes an integrated approach to the PC experience and has made inroads in share, particularly in the U.S. and in the consumer segment. The Linux operating system, which is also derived from Unix and is available without payment under a General Public License, has gained some acceptance, especially in emerging markets, as competitive pressures lead OEMs to reduce costs and new, lower-price PC form-factors gain adoption. Partners such as Hewlett-Packard and Intel have been actively working with alternative Linux-based operating systems.

The filing goes on to include that Windows in addition is vulnerable by platforms and devices that might cut back demand for PCs. And it comments browser alternatives that may possibly hurt it as well. Here is what the filing states:

The Windows operating system also faces competition from alternative platforms and new devices that may reduce consumer demand for traditional PCs. Competitors such as Apple, Google, Mozilla, and Opera Software Company offer software that competes with the Internet Explorer Web browsing capabilities of Windows products. User and usage volumes on mobile devices are increasing around the world relative to the PC. OEMs have been working to make the Google Android mobile operating system more compatible with small form-factor PCs or netbooks.

It is noted that Google, Apple, Opera, and Android are new in this segment; in the previous year only Mozilla was listed.

Now Microsoft recognizes that it is in for a hard-hitting encounter with the new contenders, and that its cash cow is endangered.

Tags: android, apple, canonical, google, linux, microsoft, mozilla, opera, red hat, security and exchange commision, ubuntu, windows