November 6, 2000

MS software profits down - blame Linux?

Author: JT Smith

From LinuxToday: A lot of people in the Linux community don't want to hear anything about what's happening with
Microsoft; but the truth is that anything remotely resembling "world domination" will only be achieved, by
Linux, "over Microsoft's dead body" -- that's the way MS is playing the game.

I've been waiting for the past two years to write a story about Linux putting a serious dent in Microsoft's
bottom line. If Linux is going anywhere at all, eventually it has to show up in Microsoft's revenues. I have
no doubt at all that Linux is going somewhere, so I've seen it as only a matter of time before MS would
put out that historic quarterly report that showed its profits shrinking -- or at least growing at a rate far
enough below the 30% per year investors have come to take for granted it would send shockwaves
through the financial markets. This is inevitable, if MS revenues drop much below the market's
expectations -- that's the way the financial community is playing the game.

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