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In Microsoft annual report (regarding 2006):
http://www.microsoft.com/msft/reports/ar06/staticversion/10k_fr_bus_07.html

- - We believe the license-based software model has had substantial
benefits for users of software
- - A number of commercial firms compete with us using an open source
business model
- - These firms do not have to bear the full costs of research and
development for the software
- - A prominent example of open source software is the Linux operating
system
- - we believe our products provide customers with significant advantages
in security and productivity, and generally have a lower total cost of
ownership than open source software
- - the popularization of the open source software model continues to pose
a significant challenge to our business model
- - continuing efforts by proponents of open source software to convince
governments worldwide to mandate the use of open source software in
their purchase and deployment of software products
- - To the extent open source software gains increasing market acceptance,
sales of our products may decline, we may have to reduce the prices we
charge for our products, and revenue and operating margins may
consequently decline
- - We are devoting significant resources toward developing our own
software-as-a-service strategies
- - Our competitors range in size from Fortune 100 companies to small,
specialized single-product businesses and open source community-based
projects
- - Open source software vendors are devoting considerable efforts to
developing software that mimics the features and functionality of our
products
- - Throughout the world, we actively educate consumers about the benefits
of licensing genuine products and obtaining indemnification benefits for
intellectual property risks, and we educate lawmakers about the
advantages of a business climate where intellectual property rights are
protected
- - In March 2004, the European Commission determined that we must create
new versions of Windows that do not include certain multimedia
technologies, many of which are required for certain Web sites, software
applications and other aspects of Windows to function properly, and we
must provide our competitors with specifications for how to implement
certain communications protocols supported in Windows
- - The availability of these licenses may enable competitors to develop
software products that better mimic the functionality of Microsoft’s own
products

My take:
So, _now_ Linux is a risk? Still, you don't understand opensource
development.
License-based is better for your customers, but you'd still want SaaS.
Security and productivity lower TCO, is it ? Security where?
You'll have to compete with everyone, not only the big players.
Please define "actively educate consumers" on the benefits of licensing
genuine products.
So there're 'certain' technologies that you own which are required for
web sites. Right! It's called bad design.

- --
Vitor Domingos
Paradigma.pt
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