Friday, August 29, 2008

Microsoft To Counter Open Source With 'Basic' Software Line

The software vendor plans to develop versions of its products with "basic functionality" to be sold at lower prices than its standard offerings.

In response to rising competition from open source software that's community developed and often given away for free, Microsoft said it plans to develop versions of its products with "basic functionality" to be sold at lower prices than its standard offerings.

Once the sole domain of self-styled computer geeks, open source software, such as Linux, is now used in products offered by a growing number of large tech companies, such as Google, IBM, and Motorola. Those companies believe they can earn more revenue by selling add-ons and services around the software than they could by charging for the software itself.

Microsoft says it's a growing threat to its commercial software business.
"Open source software vendors are devoting considerable efforts to developing software that mimics the features and functionality of our products," Microsoft said in its annual report, filed last week with the Securities and Exchange Commission.

Indeed, IBM last year introduced Lotus Symphony, a free desktop suite that provides much of what's found in Microsoft's pricey Office package. IBM says that hundreds of thousands of users have downloaded Lotus Symphony, which is built on the open source package, since its debut.

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1 comment:

Anonymous said...

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