Business Week: Microsoft: How Vulnerable?

Thanks to John Wolley
for this link.

“It’s faltering in court. Its crucial Win2000 system is two
years late. And its rivals are ready”

“Back in its earthbound days, Egghead Software Inc. (EGGS) was a
Microsoft Corp. (MSFT) disciple. Not only did it sell hundreds of
thousands of copies a year of Microsoft’s Windows, Word, and Excel
programs in its 150 stores, but Egghead ran its business on the
software, too. But last Nov. 21, Egghead left the fold. It
completed its move to a cyberspace-only business, taking on the
name Egghead.com Inc. At 4:45 a.m., in the company’s offices in
Vancouver, Wash., a technician switched on the new Web site–one
powered not by Windows software but by Sun Microsystems Inc. (SUNW)
computers and software. ”We held our breath. Fifteen minutes
later, we broke out the champagne,” says Egghead Chief
Technologist Tom Collins.”

“You can bet the executives at Microsoft were the ones left
gulping for air. Egghead had decided that Microsoft’s Windows NT
software was simply not up to the task of running its Web

“But Linux could turn out to be Microsoft’s Vietnam. The
eight-year-old variant of Unix is designed by a guerrilla army of
volunteers who distribute it for free. And official versions can be
bought for just $50 from companies that sell service and support.
Computer executives began taking Linux seriously when it captured
17.2% of the server market last year. ‘Suddenly, Windows NT isn’t
the thing that’s taking over everything,’ crows the software’s
creator, Linus Torvalds. ‘The tide has shifted.'”