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The Analyst Magazine:
Microsoft vs. Linux : Gaining traction
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The emergence of Linux as an alternative to Windows operating system is changing the nature of competition in the IT industry. It is time now for Microsoft to employ innovative strategies to counter the threat.

Five years ago in 1998, the then President of Microsoft, Steven A Ballmer (Ballmer) referred Linux as `lie-nucks.' Bill Gates often referred Linux as the creation of `hobbyists'. During that time, Linux was just another operating system, a newer version of the existing Unix operating system, which was the work of thousands of anonymous hackers choreographed by a young Finnish student called Linus Torvalds. The most interesting part was that Linux could be downloaded free from the Internet. Most of the people associated with Information Technology (IT) industry who were skeptical about the success of Linux, never thought that one day it would become a serious rival to Microsoftthe Goliath of the software industry.

Five factors have helped Linux to emerge as the alternative to Microsoft's operating system. First, due to the recessionary condition prevailing in most of the economies in the world, companies are under immense pressure to reduce their costs including their IT infrastructure costs. Linux is a free software, which according to Professor Eric von Hippel, MIT Sloan School of Management means, "a user may obtain a copy at no cost and then legally stuff its source code, modify it and distribute it to others also for free." A software author uses his or her own copyright to guarantee those rights to all users by affixing to the code a standard licensing notice, such as the General Public License (GPL). "Instead of spending millions of dollars on expensive high-performance computers, Linux users spend a fraction on the hardware and operating system and use the savings to create very powerful specialized software.

 
 

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