Is Microsoft losing growth to Linux?

Open-source software gave Microsoft a one-two punch this week, with the European Union and an African nonprofit educational organisation showing preference for Linux systems.

The European Union awarded on Thursday a US$249,000 contract to UK-based system-integrator Netproject to study the feasibility of moving the information systems of several member countries' governments to the Linux operating system from Microsoft's Windows OS.

Microsoft's expensive licensing terms and its push for customers to speed their software upgrade cycles are driving the European Union's interest in open-source solutions, said Eddie Bleasdale, Netproject's CEO. Describing a meeting with representatives from several EU member countries, Bleasdale said Microsoft's current licensing terms had governments looking for other options.

"Everybody in the room said that they could not deal with the cost of moving to Microsoft's latest products," Bleasdale said.

Adding insult to injury, SchoolNet Namibia, an organization providing computing resources to that sparsely populated country, has turned down a Microsoft offer to put Windows systems in their schools and decided to stay with its Linux systems. In a very public letter, the organization lambasted Microsoft for a plan that would give the schools a US$2,000 break on Office software but make them pay US$9,000 for Windows XP.

"The real issue for schools is not the cost of proprietary software licensing, but the challenges and costs of deployment, maintenance and skilled human resources," Joris Kamen, founding executive director for SchoolNet Namibia, stated in a letter to Microsoft's East and South Africa regional manager. "Conventional Microsoft products have rapid product cycles and quick obsolescence, along with expensive long-term maintenance and support implications."

The two incidents are the most recent in a backlash against Microsoft's push to sell its latest versions of Windows and Office products.

Last May saw many Microsoft customers balk at signing up for the company's new subscription-based licensing. Under the software giant's new program, customers would be forced to pay either an annual fee of US$29 per desktop or an annual subscription fee for the right to upgrade their Microsoft software to stay up to date--instead of paying for upgrades at will, as before.

Although Microsoft wouldn't comment directly on the Namibia incident, Peter Houston, senior director for the Windows server product management group, did say the company's latest product push hasn't won the company many friends.

"It would be hard to say that things like our new licensing haven't made customers look at Linux," Houston said.

"I guess one of the challenges is that as a customer, you are faced with all sorts of information, and the question is what do you trust," Houston added. "A lot of this gets proved over time, and customers are being asked to make a bet on whether Linux will win out."

In March, Peruvian Congressman Edgar David Villanueva Nunez wrote a letter to Microsoft countering the company's attacks against a bill in Peru that could advocate the use of open-source software by the country's government.

In the United Kingdom, the group responsible for making technology recommendations to the UK police has pushed the use of Linux as a way to cut the cost of software ownership by as much as 65 percent, according to a Netproject study.

And in California, open-source advocates have proposed legislation, the Digital Software Security Act, that would force government agencies to only use software that didn't have restrictions on it.

The changes have Microsoft, and some policy organizations funded by the company, on the offensive against open-source software.

For one, Microsoft's Houston takes issue with any cost-of-ownership study that puts open-source software ahead of Microsoft's products.

"If you are going to use Linux, there is a high services component," he said. "You are going to have to pay for that systems integration."

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Talkback 2 comments

    The last line should have read ...Anonymous -- 04/11/02

    The last line should have read.....

    "If you are going to use MicroSoft, there is a high services component," he said. "You are going to have to pay for that systems integration."

    Microsoft's time for being the ...Stephen Kuhn -- 06/11/02

    Microsoft's time for being the "only game in town" is bound to end eventually anyways - nothing lasts forever - especially monopolistic companies. They have literally forced themselves upon the world with marketing - as did AOL - with a product that wasn't quite ever what they promised.

    Overall TCO of a linux system is by far cheaper in the long run than is an MS based system - if it is a matter of "retraining" your tech staff, then so be it. If the tech staff is unable to deal with the retraining, then were they really as good as you thought they were in the first place? (Or they thought they were?)

    Any network admin or tech that is worth their weight would have no problem in learning a "new way" or a new system - it's generally the nature of why they got into this business in the first place.

    Microsoft gets very defensive and literally grasps at straws continuously over the "open source" world - mainly because the public can literally design what they want WHEN they want/need it - instead of having it already thought out and planned for them.

    Microsoft has steered the OS game long enough and it's time that *NIX systems retake the game.

    I'd have my druthers to work on a *NIX based network/system than an MS based system as at least I know it's more secure, more stable and overall more cost-effective.

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