Microsoft on the Offensive Against Open-Source Rival

Computerworld - REDMOND, Wash. -- Microsoft Corp. CEO Steve Ballmer took on Linux in a big way last week during the company's annual meeting with the financial analyst community. "Too much abuse has gone on for too long," he said.

That rough approximation of a Robert DeNiro line in the 1976 movie Taxi Driver was delivered after Ballmer laid out a series of what he categorized as "facts"—including analyst reports and security advisories—intended to cast doubt on the notion that the open-source operating system is cheaper, more secure and able to be patched more quickly than Windows.

The Microsoft CEO also described as "hogwash" the theory that the world is moving to services and that commercial software will disappear.

"Will the software business be bigger five years from now than it is today? Or will the work of people for free be as good as the innovation and value that the commercial companies create?" Ballmer asked. He responded by saying that he's "enthusiastic" about innovation, particularly in regard to Microsoft's integrated product set and "next-generation" collaboration system, and about Microsoft's ability "to charge positive prices for software five years from now."

Ballmer also questioned IBM's strategy of offering its WebSphere application server on Linux. "Will IBM tell you the road map for Linux? Can they respond to your request for a new feature? No, they can't do that. They don't control Linux," he said.

"Does IBM fix Linux problems the way IBM stands behind and fixes the MVS operating system? Of course not," he continued. "Does IBM indemnify the intellectual property in Linux the way it indemnifies the intellectual property in every IBM software product? ... The answer is certainly no."

Gaining Ground

Linux's momentum clearly isn't lost on company executives. Microsoft Chief Financial Officer John Connors disclosed internal estimates showing that Linux server shipments had grown 23% during the fiscal year that ended June 30, while Microsoft's Windows servers experienced growth of 7.7%. Windows still held a commanding 53.1% market share, compared with 16.7% for Linux, according to the company's figures.

"I'm not happy that we grew share and Linux grew their share a little bit more at the server level last year," Ballmer said. But he countered that Microsoft has logged important wins involving customers that migrated from Unix and Linux, including Safeway Inc., LexisNexis Group and Hard Rock Cafe International Inc.

Ballmer also pointed to a report from Gartner Inc. that he said shows Windows XP has a lower total cost of ownership than Linux and one by IDC citing Windows' cost advantage over a five-year period.