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Posted in Finance, GNU/Linux, Microsoft at 3:46 am by Dr. Roy Schestowitz
“Before I turn and talk about how all of that then can amount to growth, I do want to talk a little bit about the fact that there are risks in our business. We have risks, people love to talk about them. Challenges: People talk about the challenge we have from open source software. Yes, we do, and we’re focused in on it.”
–Steve Ballmer, 2005
Summary: The impact of GNU/Linux on Microsoft’s profitability becomes more evident
Microsoft’s stock collapsed after very disappointing results that were partly caused by Free software and GNU/Linux. All of these are issues that we addressed before and last night a reader brought to our attention this article about Microsoft’s shrinking margin.
=> collapsed | very disappointing results | partly caused by Free software and GNU/Linux | ↺ this article about Microsoft’s shrinking margin
CEO Ballmer is increasingly willing to accept lower margins in exchange for higher overall profitsMicrosoft has long enjoyed Olympian profit margins, using its monopoly power to maintain prices on its software even in tough times. But now, amid a terrible downturn and rising competition, CEO Steven A. Ballmer is shifting to a scrappier approach. He is cutting prices on a variety of fronts, from flagship Windows and Office products to newfangled Internet services.
It is no secret that Microsoft would rather give Windows for free than lose market share to GNU/Linux. According to some, Microsoft would even pay people/companies to use Windows, but this is not a sustainable strategy. █
=> no secret that Microsoft would rather give Windows for free than lose market share to GNU/Linux | some | this is not a sustainable strategy
“It’s easier for our software to compete with Linux when there’s piracy than when there’s not.”
–Bill Gates
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