Microsoft Watch: Microsoft to Merge U.S. Government, Education Businesses

“The newly merged business will likely be known as Microsoft’s
U.S. public sector unit, as is Hayes’ unified government-education
unit overseas.

“Microsoft’s expected move to combine government and education
comes at an interesting time.

“‘We … see Linux being heavily used in the academic
environment and increasingly being evaluated by government,
particularly overseas,’ acknowledged Microsoft chief financial
officer John Connors in an investment conference speech in June.
‘In certain geographies of the world there is a notion–we think
misguided–that you build a software industry on things that are
free. That’s not likely to happen in our view from an economic
perspective, but that is a view in certain geographies that we’re
working hard to get the story out about how the commercial software
industry works…”

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