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Synthesist.net: Advice to Microsoft Regarding Commodity Software

Feb 15, 2003, 02:30 (15 Talkback[s])
(Other stories by David Stutz)

"If Microsoft is unable to innovate quickly enough, or to adapt to embrace network-based integration, the threat that it faces is the erosion of the economic value of software being caused by the open source software movement. This is not just Linux. Linux is certainly a threat to Microsoft's less-than-perfect server software right now (and to its desktop in the not-too-distant future), but open source software in general, running especially on the Windows operating system, is a much bigger threat. As the quality of this software improves, there will be less and less reason to pay for core software-only assets that have become stylized categories over the years: Microsoft sells OFFICE (the suite) while people may only need a small part of Word or a bit of Access. Microsoft sells WINDOWS (the platform) but a small org might just need a website, or a fileserver. It no longer fits Microsoft's business model to have many individual offerings and to innovate with new application software. Unfortunately, this is exactly where free software excels and is making inroads. One-size-fits-all, one-app-is-all-you-need, one-api-and-damn-the-torpedoes has turned out to be an imperfect strategy for the long haul.

"Digging in against open source commoditization won't work--it would be like digging in against the Internet, which Microsoft tried for a while before getting wise. Any move towards cutting off alternatives by limiting interoperability or integration options would be fraught with danger, since it would enrage customers, accelerate the divergence of the open source platform, and have other undesirable results. Despite this, Microsoft is at risk of following this path, due to the corporate delusion that goes by many names: 'better together,' 'unified platform,' and 'integrated software.' There is false hope in Redmond that these outmoded approaches to software integration will attract and keep international markets, governments, academics, and most importantly, innovators, safely within the Microsoft sphere of influence. But they won't..."

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