Who Are Microsoft's Competitors?


      The company's annual report, released on Friday, offers its perspective on who it competes with and where.
      Truth be told is the motto for SEC filings. Microsoft has little reason to lie to the SEC, and no sane executive would want to in this era of long jail terms. Point: Microsoft's annual report delivers a generally FUD-free perspective.

      Microsoft identifies competitors for each of its product divisions: Business, Client, Entertainment & Devices, Online Services and Server & Tools.

      Like other years, Linux remains a chief Microsoft competitive concern on the desktop and server.

      
            Windows Client
            "The Linux operating system, which is also derived from Unix and is available without payment under a General Public License, has gained some acceptance as competitive pressures lead PC OEMs to reduce costs," the annual report reads.

      Recent Linux desktop offers from Dell and Lenovo are evidence of the effort to "reduce costs." That said, no OEM is going to offer something nobody is going to buy, either. There is at least limited Linux desktop demand. But no Microsoft Office for Linux means no real competitive threats. US trustbusters called this Office-to-Windows connection the "applications barrier to entry."

      Microsoft has rightly placed other concerns: "The Windows operating system also faces competition from alternative platforms and new devices that may reduce consumer demand for traditional personal computers."

      According to IDC, manufacturers now ship more than 1 billion cell phones a year. That compares to a worldwide PC install base of about 1 billion units. Microsoft should be concerned about alternative platforms, particularly in emerging markets where the first Internet-capable device people buy is likely to be a cell phone.
      
            Server & Tools
            Microsoft is much more concerned about Linux on the server, which should be the case:

      "Nearly all computer manufacturers offer server hardware for the Linux operating system. Linux's competitive position has also benefited from the large number of compatible applications now produced by many leading commercial software developers and non-commercial software developers. A number of companies supply versions of Linux, including Novell and Red Hat. Server virtualization platform providers based on Linux, such as VMWare, represent another means by which Linux competes with the Windows server operating system."
      Microsoft specifically calls out Linux server virtualization, which it should with the number of IT organizations consolidating servers. Continue At Source


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