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NewsFactor: Behind the Scenes: Microsoft's Server Dominance

Aug 22, 2003, 23:00 (21 Talkback[s])
(Other stories by Vincent Ryan)

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"Despite a gain of 35 percent in Linux-server factory revenue in the first quarter of 2003, to US$583 million, Microsoft still is sitting pretty, according to market statistics from IDC. During the same period, the Windows server market grew about 10 percent to $3.2 billion, (Unix-server factory sales declined about 13 percent, to $4.3 billion.)

"Why has Microsoft been able to hold onto server market share when it is competing against a more secure, lower-cost alternative like Linux? Any number of reasons can be cited--inertia on the part of CTOs, a dearth of applications that run on Linux, an aggressive ad-hoc strategy by Microsoft to thwart defections to open source Latest News about open source--take your pick.

"The real question is how Microsoft is going to hold onto this rather chunky slice of the server pie. Linux already has made inroads against Microsoft at the edge of the network, and the data center might not be far behind..."

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