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IT-Director: Linux to get the drop on Microsoft?Apr 12, 2000, 17:08 (3 Talkback[s])
(Other stories by Unicorn)
"Montreal has been hosting Linux Expo 2000, where the Linux companies are aiming to bolster their image. The recent antitrust ruling has weakened Microsoft, leaving an opportunity for Linux to gain ground. But the Linux companies have seen sliding stock prices recently. Are they in a position to push Linux forward in the face of a weakened Microsoft?"
"First, let's consider how much Microsoft has been affected by the antitrust ruling. Given the judge's earlier statement of facts, the ruling shouldn't have been a surprise. Nonetheless, it seemed to bring home to markets the problems that are being created through Microsoft's intransigence. The company has already pushed its model about as far as it can. The judge took the view that Microsoft had operated by dominating one market, then using proprietary hooks to move on to another. There is wide agreement that this process could not continue much longer, as it has become too much of a threat to innovation and competition in the software market...."
"The pure Linux companies do not have business models that look capable of sustaining huge valuations. It was inevitable that there would be disappointments for investors. That does not mean they have no future. On the contrary, they have an important role in what is still a vibrant sector of the market. It's just that their role is not as important as investors hoped. At least as important are the major corporations such as IBM that have decided to back Linux as a serious operating platform. They continue to provide enterprise scale support for Linux, and the recent launch of Linux for the IBM System/390 has been extraordinarily successful."
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