"CRN: On the face of it, one could conclude
that interest in Linux is the market's way of telling Microsoft
that Windows pricing needs to change. What message do you think the
market is trying to send?
"TAYLOR: I would actually look at a similar
construct but a different answer. You have to ask one of two
questions. Is it either a) Windows is priced too high, or b) are we
offering the right product at the right price point? We position
Windows server as a multifunction server that does a variety of
things. So in some ways, we've got a McDonald's No. 5 super-size
offering that costs $2.99 and someone just wants a Diet Coke that
costs 99 cents. So do we cut the entire super-size No. 5 down to 98
cents, or do we try to find a way to just give somebody the Diet
Coke if that's what they want?
"From that perspective, there are a couple of interesting
phenomena happening. As companies try to monetize Linux--i.e. Red
Hat--the Red Hat enterprise server and their advanced server costs
as much or more than Windows server, if you want it to be supported
with security and everything else. If you model our security and
our support and everything else, they actually cost more. It's not
so much Linux monolithic vs. Microsoft. But it's Novell SUSE with
one price point, one set of functionality; Red Hat enterprise
server with one price point, one set of functionality; and Windows
server. When you understand what you are paying for and where, then
you see the relative price pressures come into play..."
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