Bonum Certa Men Certa

GNU/Linux is Shrinking Microsoft's Margins

"Before I turn and talk about how all of that then can amount to growth, I do want to talk a little bit about the fact that there are risks in our business. We have risks, people love to talk about them. Challenges: People talk about the challenge we have from open source software. Yes, we do, and we’re focused in on it."

--Steve Ballmer, 2005



Summary: The impact of GNU/Linux on Microsoft's profitability becomes more evident

Microsoft's stock collapsed after very disappointing results that were partly caused by Free software and GNU/Linux. All of these are issues that we addressed before and last night a reader brought to our attention this article about Microsoft's shrinking margin.



CEO Ballmer is increasingly willing to accept lower margins in exchange for higher overall profits

Microsoft has long enjoyed Olympian profit margins, using its monopoly power to maintain prices on its software even in tough times. But now, amid a terrible downturn and rising competition, CEO Steven A. Ballmer is shifting to a scrappier approach. He is cutting prices on a variety of fronts, from flagship Windows and Office products to newfangled Internet services.


It is no secret that Microsoft would rather give Windows for free than lose market share to GNU/Linux. According to some, Microsoft would even pay people/companies to use Windows, but this is not a sustainable strategy.

"It's easier for our software to compete with Linux when there's piracy than when there's not."

--Bill Gates

Comments

Recent Techrights' Posts

Dr. Andy Farnell on Why Calling Slop or Chaff "Hey Hi" (AI) Harm Us All, Except for "Ten or Twenty Rich Industrialists"
"words to avoid"
Internet Trolls Likely Trying to Distract From the Demise of IBM, Problems With Red Hat
there seems to be trolling online aimed at suppressing discussion
Debian Upgrade Coming Up (Soon)
Yesterday we contacted the datacentre staff about it
Getting Aggressive Suggestive of Loss - Part III - Threats From Burner Accounts Formally Treated as a Crime
Countries that cannot preserve freedom from self-censorship are countries where free press ultimately cannot prevail
24/7 Wall St. Editor-In-Chief and CEO Calls IBM Is "America’s Worst Big Tech Company", Talent is Leaving, Supposedly Strategic Units Culled
21 hours ago by Douglas A. McIntyre
IBM's Debt Increased Over $5 Billion in 3 Months While IBM Laid Off Many in Europe, US, Confluent, HashiCorp, and Red Hat
An increase of $5,000,000,000+ in debt in just 3 months!
 
Links 25/04/2026: Fake GAFAM Valuations (Gripping the Market Based on False Accounting), "Evidence Isn't Just for Research", and "Putin Defends Mobile Internet Outages"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, April 24, 2026
IRC logs for Friday, April 24, 2026
Gemini Links 25/04/2026: 3.4k+ Capsules, Microsoft Layoffs, Call for Nuclear Disarmament, "Internet is Sad and Lonely"
Links for the day
Links 24/04/2026: Zelenskyy Says Ukraine's War Position "Most Stable", Samsung Workers on Strike Due to Pay
Links for the day
Recent Happenings at IBM Reaffirm Rumours About the CEO; He Might be Resigning (or Pushed Out) Soon
If the rumours are true (no, we did not check those tax records for ourselves), it's not unthinkable that IBM is already doing what Apple did months ago
Gemini Links 24/04/2026: Public Reticulum Gateway Node, Smol Computers, and Old E-mail
Links for the day
Links 24/04/2026: Intel Abandoning Computer Freedom (Even Further), Iran Reports That American Software and Hardware Remotely Sabotaged/Hijacked During War
Links for the day
The Great Wonders of Slop "Efficiency"
Thankfully nothing was lost in the transmission and lots of work (datacentre emissions) got "done"
IBMers Expect Another Giant Wave of Layoffs, Talk (and Sing) About the PIPs
The media won't be covering the key facts
Drama at the European Patent Office (EPO) This Week
We'll be covering the EPO quite a lot this weekend and next week
As We Predicted, Francophonie Countries in the EU and Outside the EU Dumping Microsoft for National Security Reasons
We expected Belgium or some other Francophonie place to do so next
Even to Microsoft Insiders It Seems Like XBox Has Already Died or Surrendered to the Japanese Companies
Now the Microsoft layoffs are evident for people to see
EPO Cocainegate Escalates - Part VI - The Strikes Go On and On (Major Strike Today)
We'll be covering this later today in relation to what the Office dubs "ethics"
Absolutely Terrible Journalism About Microsoft Layoffs This Week
7 hours ago by Leila Sheridan
SLAPP Censorship - Part 56 Out of 200: 5RB and Brett Wilson LLP's Copy-Paste Machination for Garrett and Graveley
Here is another straightforward example of their junior barrister overusing copy-paste on his Mac
Getting Aggressive Suggestive of Loss - Part II - Lawyers Are Not "Hired Guns" (and Should Never Act Like Ones)
The matter is being investigated
Nadella is Killing Microsoft. Slop Kills It Even Faster.
A decade from now we'll look back at slop like we look back at skateboards
Huge Microsoft Layoffs Coming Shortly (With Financial Report)
There will be lots of slop layoffs. Be ready. It's a bubble.
Gemini Links 24/04/2026: Data Breaches and Unofficial Gemini Protocol Specification Archive
Links for the day
Microsoft Offers About 10,000 of Its Senior American (Read: Expensive) Workers to be Laid Off
How many slopfarms and media parrots play along?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, April 23, 2026
IRC logs for Thursday, April 23, 2026
SLAPP Censorship - Part 55 Out of 200: Strangled Women, Charged for Strangulation, Cannot Find a Job Now (After Microsoft)
merits public awareness and wider scrutiny
Gemini Links 23/04/2026: Spirituality and Detachment, Shoplifting in the UK, and "Introducing Scout, an iOS Native Gemini Client"
Links for the day
Links 23/04/2026: YouTube Age Limits Expanded and 'Secret' Model With Bug-Finding Hype Campaign 'Leaks'
Links for the day
Media Operatives of Microsoft Paint Microsoft Layoffs as Buyouts (Intentionally False Narrative)
Those are mass layoffs disguised as something else
IBM's Stock Has Collapsed Over 10% in One Day, Insiders Explain What's Happening
Today, due to a lack of time, we mostly present an outline of what people say (not IBM-sponsored media hacks with LLM slop)
Getting Aggressive Suggestive of Loss - Part I - Threats Sent From Burner Accounts Since February, Belatedly Reported to British Police
Threats connected to Graveley or Garrett or 5RB or Brett Wilson LLP [...] We're not dealing with a law firm here; we're dealing with the underworld
EPO Cocainegate Escalates - Part V - Where Does the António Campinos 'Family Affair' Go From Here?
Do cocaine in public, get caught, take paid "sick leave", come back to lead Europe's second-largest organisation
Links 23/04/2026: Legal Trouble for Microsoft, Chronic Fatigue Syndrome, and DMCA Whac-a-Mole
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, April 22, 2026
IRC logs for Wednesday, April 22, 2026
Gemini Links 23/04/2026: Sunrise Chasing Season, Going Back to Older Software, New Gemini Client for Mobile Devices
Links for the day