“Despite the enthusiasm for Linux, Microsoft will maintain its
dynasty in the client operating environment (COE) market for the
foreseeable future. In fact, in 1999 Microsoft Windows NT
Workstation revenue growth was larger than the overall market’s
increase. According to IDC, NT Workstation revenue grew by $1.6
billion while the overall market grew by only $1.53 billion due to
product declines that offset Microsoft’s growth.”
“Undoubtedly, there is a lot of excitement surrounding Linux,
but so far this technology has failed to ignite a broad revolution
against the Microsoft- dominated desktop world,” said Al Gillen,
research manager for IDC’s System Software research. “Revenues from
sales of Linux remain a single droplet compared with the sea of
cash that the Windows COE products generate.”
“IDC models show that Windows products generated approximately
87% of revenues in the COE market during 1999. By 2004, NT
Workstation and Windows 2000 Professional will account for just shy
of 85% of all COE revenues, while residual Windows 9x product sales
will account for much of the remainder, leaving little room for
competitive products. IDC believes Linux will continue to make
inroads into the market, but not enough to alter the market
segmentation significantly. COE revenues generated from Linux
and other Open Source environments will increase from $36.9 million
in 1999 to $93.3 million in 2004.”