Microsoft $ impacted by Linux’s Free Beer

From the ‘why buy the cow when you can get the milk for free?‘ files:

Microsoft has listed in its 10-K, open source software and specifically Linux as one of the risk factors that could negatively impact Microsoft’s revenues.

This shouldn’t be a surprise, but it’s interesting to look at the specific language and the specific companies that Microsoft calls out.

business model has been based upon customers paying a fee to license
software that we develop and distribute,” Microsoft states in the 10-K. “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. Certain “open source” software business models challenge our license-based
software model.”

For it’s operating system business Microsoft’s 10-K specifically called out ‘variants of Unix’ among which it includes, Apple, Canonical, and Red Hat.  Notice how Novell is not mentioned?  There are similar omissions when it comes to the partners disclosure.

News Around the Web