Well it is official, free software is affecting Microsoft's projections.
http://microsoft.shareholder.com/redesign/EdgarDetail.asp?CIK=789019&FID=1193125-07-170817&SID=07-00
Just one part from the above in the "Risk Factors"
Challenges to our business model may reduce our revenues and operating
margins. Our business model has been based upon customers paying a
fee to license software that we developed and distributed. Under this
license-based software model, software developers bear the costs of
converting original ideas into software products through investments in
research and development, offsetting these costs with the revenue
received from the distribution of their products. In recent years,
certain “open source” software business models have evolved into a
growing challenge to our license-based software model. Open source
commonly refers to software whose source code is subject to a license
allowing it to be modified, combined with other software and
redistributed, subject to restrictions set forth in the license. A
number of commercial firms compete with us using an open source business
model by modifying and then distributing open source software to end
users at nominal cost and earning revenue on complementary services and
products. 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. Although we believe our products
provide customers with significant advantages in security, productivity,
and total cost of ownership, the popularization of the open source
software model continues to pose a significant challenge to our business
model, including 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.
I found the above link via this blog.
http://larrythefreesoftwareguy.wordpress.com/2008/03/25/its-official-microsofts-concerned-about-gnulinux/
Keep pushing open source software into the business in place of
Microsoft Office.
--
Robin Laing
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