Ballmer openly recognizes Linux threat

Ballmer admits that the Open Source competition is ‘heating up’. He couldn't be so close to the truth.

peaking specifically of Linux during an event earlier last week, Ballmer and Microsoft in general have now approached the Linux ‘problem’ from a more rationale perspective rather than using the usual Fear Uncertainty and Doubt tactics.

Linux and the Open Source philosphy is unlike any other competitor that Microsoft has encountered. The cost of procurement of Open source products is zilch. Understanding this, Microsoft chose to attack Linux on the total cost of ownership.

The fragmented nature of Open Source applications means that Microsoft is spending more of its time on defending itself and fending off challenges at the expense of innovation of its products.

Steve Ballmer however was generally satisfied with the performance of its company in the corporate segment although, in the hindsight, this is where Microsoft may be suffering the most.