Gates Opening for Linux???????

["Shiv Kumaar" <shivkumar@satyam.net.in>]

META predicts Microsoft will offer Linux software

By Reed Stevenson

SEATTLE (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.

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.

COST A NON-ISSUE

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.

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.

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.