[GUFSC] Microsoft to offer Linux software?

[Fábio Rodrigues de la Rocha]

http://www.cnn.com/2002/TECH/biztech/12/10/meta.linux.reut/index.html
             Tuesday, December 10, 2002
Posted: 8:54 AM EST (1354
             GMT)

             SEATTLE, Washington
             (Reuters) -- In a major
             strategy shift, Microsoft
             Corp. will introduce
             software based on the Linux
             open source operating
             system in 2004 for Web
             services and server software,
             market researcher META
             Group predicted on
             Monday.

             Microsoft, which denied that
             it had any plans to develop
             software for Linux, is facing a
             growing threat from the open
source software standard as it
             gains share in the corporate
server market used to manage
             networks and data.

             META Group predicted that Linux
will be used on nearly
             half of new servers by 2007, up
from its current share of 15 to
             20 percent, making it difficult
for Microsoft to ignore Linux
             as a platform for its database,
Web hosting and e-mail server
             applications.

             "We believe that, beginning in
late 2004, Microsoft (and its
             partners) will begin moving some
of its (to-date) proprietary
             application enablers (e.g., .Net
components) to the Linux
             environment; this will gradually
include the major Microsoft
             back-office products, such as
SQL Server, IIS, and
             Exchange," META Group said.

             Group: Microsoft will lower
prices

             In a further shift, META Group
said that Microsoft will also
             re-price or separate its Windows
server operating system "so
             that it can be favorably
compared against 'free' Linux."

             "I'm unaware of any efforts at
this time to move any products
             onto Linux," said Peter Houston,
senior director at
             Microsoft's server group, adding
that there were no plans to
             detach or re-price its Windows
server operating system.

             "We have made a bet on Windows,
and we believe that
             customers are getting value from
the bet we made," said
             Houston, "and we're going to
continue doing what we've been
             doing for customers."

             Linux advocates argue that Linux
offers better security,
             flexibility and innovation
because its underlying code, or
             blueprint, for programs remains
open to evaluation and
             scrutiny.

             Microsoft, which has grown into
the world's largest software
             maker by selling proprietary
software that cannot be copied
             or modified freely, said it is
not opposed to open-source
             software, and points out that
its source code is available to
             approved partners and
educational institutions on a limited
             basis.

             Microsoft faced a similar
situation a decade ago when its
             nascent server software was
competing head-to-head with
             market leader Sun Microsystems
Inc. , but Microsoft did not
             choose at the time to write
software for Sun's proprietary
             version of Unix.

             Linux use grows

             Now Linux, essentially a free
version of Unix, is eating away
             at Sun's share of the business
server market.

             Sun, a hardware and software
maker, is now selling
             computers running Linux, a
strategy that was also embraced
             by International Business
Machines Corp.

             Redmond, Washington-based
Microsoft has toned down its
             criticism of Linux recently,
after an internal strategy
             document said that some of its
arguments against open
             source software has "backfired."

             Instead, Microsoft has stressed
that its software is more
             affordable when considering the
total cost of using Linux,
             including ongoing personnel and
administration costs.

             Microsoft fights back

             A recent Microsoft-sponsored
study by researcher IDC
             concluded that servers based on
Microsoft's Windows 2000
             were cheaper to own and operate
when used for networking,
             storing and sharing files,
printing and security, while Linux
             servers were cheaper to operate
when used for Web hosting.

             "The IDC study shows that the
upfront cost is a small part of
             the total cost to the customer,"
said Microsoft's Houston.

             META Group's report also came to
the same conclusion,
             saying that Linux's total costs
of ownership were likely to be
             higher for mainstream server
applications.

             "IT organizations must evaluate
platform costs from a
             total-cost-of-ownership
perspective," META Group's report
             said.