Ron Schenone

Does Microsoft Fear That Its Cash Cow Is In Danger?

Posted by on Aug 5, 2009 | 5 Comments

In a filing with the SEC Microsoft has listed the dangers it faces from other companies and in particular cites Linux as a threat. This seems contrary to what Microsoft publicly states in which the company says that Linux is not a real threat. But in the SEC filing the company confirms the following:

Client faces strong competition from well-established companies with differing approaches to the PC market. Competing commercial software products, including variants of Unix, are supplied by competitors such as Apple, Canonical, and Red Hat. Apple takes an integrated approach to the PC experience and has made inroads in share, particularly in the U.S. and in the consumer segment. The Linux operating system, which is also derived from Unix and is available without payment under a General Public License, has gained some acceptance, especially in emerging markets, as competitive pressures lead OEMs to reduce costs and new, lower-price PC form-factors gain adoption. Partners such as Hewlett-Packard and Intel have been actively working with alternative Linux-based operating systems.

And this:

The Windows operating system also faces competition from alternative platforms and new devices that may reduce consumer demand for traditional PCs. Competitors such as Apple, Google, Mozilla, and Opera Software Company offer software that competes with the Internet Explorer Web browsing capabilities of Windows products. User and usage volumes on mobile devices are increasing around the world relative to the PC. OEMs have been working to make the Google Android mobile operating system more compatible with small form-factor PCs or netbooks.

What is really of interest is the fact that last year Microsoft only listed Mozilla as a threat. But times have changed and the company is under fire from many fronts. It should be interesting to see what happens in 2010 when Google comes out with its own operating system.

Also of interest is the threat that Microsoft sees from netbooks.

Comments welcome.

Source.

  • tubejay

    cool find. it’s great to follow up an old idea with new evidence. it is an old idea though, (not a refuted one, either.) the halloween documents are internal microsoft memos leaked to the public that show linux is a real threat to microsoft-

    at least they believe it is, and intend to fight it- not embrace it, as long as they can. something to keep in mind every time you read a story about how suddenly microsoft is doing something for linux. i don’t trust them more than strangers with candy.

  • Ryan Farmer

    They take what they can get.

    Before Linux emerged as a threat and back when Apple had like 1% of the market for desktop computers, MS listed them as a competitor to keep the government off their back.

    They also listed Netscape Navigator as a threat long after AOL bought and ruined the company, but before Mozilla came into its own.

    When the SEC asks Microsoft if they have competition, suddenly pride doesn’t pay.

    The difference in this case is that Apple, Linux, Firefox, and Google really are flanking them. At least they’re not lying anymore, hehe.

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  • http://ictheworld.wordpress.com Hotrao

    I think that in a world like ours dominated by hysteric search for results, especially on a financial point of view, Microsoft has put hands ahhead. Linux, in my opinion is not an immediate threat, but it’s gaining market shares (or at least isn’t loosing them), and so are Firefox and other softwares doing.

    And this could be difficult to understand for financial anaysts.

    I interpret Microsoft filings as a warining more than a real problem.

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