Linux Fear – Admitted by Microsoft

Microsoft has not been genuine about its concern of Linux as a competitor till now but recently in its filing with Security and Exchange Commission the company has admitted for the first time that Windows has a significant threat from Linux.

TechFlash in its report stated that Microsoft accepted Canonical from Ubuntu and Red Hat from Linux as strong competitors in its Client division; that’s what was listed by Microsoft in its recent filing with SEC. TechFlash added that previously Red Hot was admitted as competitor but only to Server & Tools and Business divisions.

According to annual filing, Microsoft warned that Linux is a big threat to Windows for netbooks and emerging markets. It also treats Apple as a threat but that’s said before also. Addition of Linux is big news. The filing by Microsoft says:

The different approaches to the PC market from well-established companies are making it difficult for client (Microsoft) with strong competition. The competitors like Apple, Canonical and Red Hat are creating competition in the field of commercial software products which includes variants of UNIX. Apple has been able to make inroads in consumer segment’s share especially in US with its integrated approach for PC experience. The Linux operating system has achieved some acceptance since the operating system derived from UNIX is available for free under General Public License. The competitive pressure in the emerging markets for lower price PC to reduce cost has helped Linux acceptance. Hewlett-Packard and Intel have partnered and are working actively with Linux-based operating systems alternatively.

The filing further adds that platforms and devices threaten Windows that may reduce demand for PCs. The browser alternatives have also negative impact on Windows. The filing has this to say:

TechFlash points out that last year Mozilla was only listed in the browser section but this year Google, Apple, Android and Opera are added to this list of browsers.

The big conclusion is that Microsoft has a tough battle ahead in the days to come and there is danger for its cash cow.