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Survey: Smaller companies eye open-source as Microsoft alternative

More than half of those surveyed said Microsoft focuses mainly on its own interests

By Stacy Cowley, IDG News Service
July 16, 2003 12:00 PM ET

IDG News Service - Some price-sensitive small and midsize businesses are turning to Linux and other open-source products as a lower-cost alternative to Microsoft Corp.'s ubiquitous business software, Jupiter Research found in a recent study.
Surveying several hundred businesses with fewer than 1,000 employees, Jupiter found that 19% are using some form of Linux on their desktop computers. Six percent said they use OpenOffice, an open-source suite of productivity applications, with an additional 3% reporting plans to deploy it in their next fiscal year, according to Joe Wilcox, a Washington-based Jupiter Research senior analyst.
The sticker shock associated with Microsoft products and the increasing ease of accessing open-source software are leading small-business owners to try products like the free OpenOffice and Red Hat Inc.'s Linux distribution, Wilcox said. Small businesses often buy their software at retail outlets, and when Red Hat's Linux distribution is on sale next to the latest version of Microsoft's Windows operating system for a quarter of the cost, the price difference can lead thrifty shoppers to test the cheaper option.
"At the very smallest end of the market, the buying pattern of businesses is very similar to that of consumers. They're more willing to experiment," Wilcox said. "They're very price-conscious, and the [logistical] impact of bringing Linux into a company with three employees or five employees is pretty minimal compared to bringing it to an enterprise with thousands of employees."
As Microsoft looks to win more business from the small and midsize enterprise market, it also faces obstacles in the way it's perceived: 52% of those surveyed by Jupiter said Microsoft is focused mainly on its own interests, and just 4% said the company is focused on customer interests.
"Small businesses don't feel that Microsoft is addressing their needs. When you look at the fragmentation of the market, they may also be telling Microsoft the same thing in their buying," Wilcox said.

Reprinted with permission from Story copyright 2014 International Data Group. All rights reserved.
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