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Computerworld Australia: Analysis: Linux Marches On

Aug 05, 2003, 04:00 (1 Talkback[s])

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"Linux's bark is turning into a bite for Microsoft. As a result, the software giant is stepping up to protect itself and keep corporate customers from turning to the open-source operating system to satisfy server and desktop needs.

"The company says Linux, which gained double-digit market share in the past 12 months, is its No. 2 challenge behind the slumping economy. That assessment--together with Microsoft's efforts to smooth customer discontent over its costly and complex annuity licensing program and the impending expiration of nearly one-third of its customer licensing contracts--means the company could suffer customer defections and lost revenue.

"One of the vendor's next high-profile battles, according to sources, is DaimlerChrysler AG. The automaker is said to be squirming under Microsoft's annuity licensing plan and contemplating replacing some of its Windows server infrastructure with Linux. DaimlerChrysler officials would neither confirm nor deny the possibility of such a move..."

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