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PCWorld: Is Microsoft Afraid of Open Source?

Feb 07, 2003, 01:00 (17 Talkback[s])
(Other stories by David Legard, Stacy Cowley)

"Microsoft said that it may have to reduce the prices it charges for its products, and revenue and operating margins may consequently decline if the open-source movement continues to gain market acceptance.

"But an analyst who closely follows Microsoft said that while Microsoft genuinely perceives the open-source software movement as a threat, it is unlikely to respond by adjusting its pricing any time soon.

"'Microsoft's response [to the open-source movement] up until now has been nonmonetary,' said research director Rob Helm of Directions on Microsoft, in Kirkland, Washington. 'It's loosened up access to source code, made more efforts to support the government market, and created online communities that mimic those that support open-source development projects...'"

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