[LINK] Microsoft Warns SEC of Open-Source Threat

James Morris jmorris@intercode.com.au
Tue, 4 Feb 2003 11:21:58 +1100 (EST)


  By Peter Galli

  Microsoft Corp. may in the future be forced to lower its software
  prices as a result of the growth of open source, the company cautioned
  in its latest filing with the Securities and Exchange Commission.

  In its latest 10-Q quarterly filing, Microsoft said that the
  popularization of the open-source movement continues to pose a
  significant challenge to its business model.

  This threat includes "recent efforts by proponents of the open source
  model to convince governments worldwide to mandate the use of open
  source software in their purchase and deployment of software products.

  "To the extent the open source model gains increasing market acceptance,
  sales of the company's products may decline, the company may have
  to reduce the prices it charges for its products, and revenues and
  operating margins may consequently decline," it said.


James Morris