China DOS Union

Microsoft: Linux Enters the PC Market, Seriously Affecting Growth
Source: eNet Silicon Valley Power
　　On Wednesday local time, Microsoft CFO John Connors said that if Linux breaks into the desktop market, it will greatly affect Microsoft's future growth.

　　Although Microsoft controls almost the entire personal computer market through its Windows operating system, in the server market it is still facing a strong challenge from the Linux operating system.

　　He said in a Web broadcast at a high-tech industry symposium held by Credit Suisse First Boston that, from the perspective of company growth, if Linux enters the desktop market, it will bring us a great deal of difficulty.

　　Unlike Microsoft's proprietary software such as Windows and Office, Linux allows users to freely copy and modify it. Because the upfront costs associated with Linux are relatively low, companies have already started adopting it for some more advanced computing tasks, but it has not yet made any major breakthrough in the desktop market — that is, Microsoft's “back yard.”

　　Companies such as Red Hat and Xandros are challenging Microsoft's monopoly in the desktop market by launching Linux with user-friendly interfaces, enabling users to conveniently send and receive email, surf the web, and run applications on Linux desktops.

　　Connors said that Microsoft still believes the PC market will maintain moderate growth, and expects this year's growth rate to remain at “the low single-digit level.”

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