Linux users to Microsoft: What 'balance sheet liability'?

By Eric Lai

November 21, 2006 12:00 PM ET

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Those risks appeared to become realized in 2003, when The SCO Group, a former Linux distributor-turned licenser, began suing both Linux vendors such as IBM and Red Hat Inc. and ex-customers, such as AutoZone Inc. and Daimler-Chrysler, for infringing upon its copyrights.

But SCO has made little progress in its lawsuits. Meanwhile, many open-source vendors, including Hewlett-Packard Co., Red Hat, SUSE and others, quickly responded by offering indemnification against potential lawsuits as part of their standard support packages to customers. Others, such as IBM, have long maintained indemnification was unnecessary.

"We don't offer indemnification because customers rarely, if ever, ask for it," an IBM spokesman said.

Either way, "Linux' success tends to suggest that buyers for the most part don't look on Linux as something risky," Haff said.

And Microsoft's assertions might be even backfire. "There were some applications I had been thinking about moving to a Microsoft platform, but this has now totally alienated me from Microsoft," Strasnick said.

What do you think about Ballmer's statements? Will this impact your Linux plans? Share your opinions on the Sound Off blog.

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