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

Jul 09, 2003, 21:00 (19 Talkback[s])
(Other stories by Mary Jo Foley)

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"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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