Bonum Certa Men Certa

The Impact of GNU/Linux on Microsoft's Sharply-declining Numbers

Graph decay



Summary: As Microsoft's profits fall by about a third (again) we look at the role GNU/Linux plays

MAKING the same old tired arguments about the impact of GNU/Linux would be unnecessary, but in a nutshell, GNU/Linux turns operating systems into a commodity in devices, servers, desktops, supercomputers, and so on. This is a direct hit on Microsoft's bread and butter, which get devalued. Yesterday we wrote about the figures reported by Microsoft as they came in and David Gerard did so with a wonderful satire where there are elements of truth, such as:



The world’s largest software maker said it had been affected by weakness in the global personal computer and server markets, particularly by having to sell Windows XP for $5 to keep netbooks from going entirely Linux.


According to real reports, none of Microsoft's divisions saw a rise. Red Hat apparently takes the blame in this report from The Street (subscription required) and the following suggests that the impact of GNU/Linux should come first.

Microsoft profit is down 17%, and cited is long term threats that are materializing on it’s doorstep, Ubuntu Linux and Apple and the newly announced Google OS

Ubuntu Linux has been making serious inroads in the netbook market as a desktop of choice for many lower powered machines called netbooks, The Google OS is vaporware for now… but the threat exists.


More along the same lines:

Crashing PC sales send Microsoft profits tumbling



[...]

But there are other challenges abroad which the firm has dealt with rather less effectively – the effects of competition and the changing nature of the IT business to name but two. Its Windows operating system may still reign supreme numerically, but for how much longer? It faces two serious challenges, firstly from the various homemade flavours of Linux-based OS’s out there, and secondly from arch-rival Google, which is developing its own PC operating system to go head-to-head with Windows.

Linux is free to use already, and the Google system is likely to be so, too. So the $64m question is, how much longer will MS be able to go on selling very expensive OS’s and equally expensive applications when its key rivals will offer 80% of the functionality, and cost next to nothing?


Richard Waters, whose coverage tends to be strongly in favour of Microsoft, confessed that:

It is six years since Steve Ballmer issued a wake-up call to Microsoft's developers, warning of the threat posed by the Linux operating system and other open source projects.


Now it comes to haunt them where it hurts the most: the bottom line. Market share and profitability are totally separate things, albeit not independent. It is all about margins.

According to one of our readers, Microsoft is what killed Sun. "No one survives a partnership with Microsoft," he wrote. "We'll see if Oracle can clean house now.

Also see: Microsoft Q1 2009: The Things Microsoft Does Not Tell About Its Continued Decline

Recent Techrights' Posts

EPO Staff Can Go Listen to Richard Stallman Next Week in Munich (Technical University of Munich, Rudolf-Diesel Hörsaal (MW2001) on Campus Garching at 18:00)
"The talk is open to the public and attendance is free. Registration is not required."
At IBM, Relocation Means Layoffs (Downsizing)
Silent or 'invisible' layoffs?
Dystopian Trends in Technology Make Richard Stallman More Relevant Than Ever
It's good to see him attracting vast audiences
Richard Stallman (RMS) Announced His Talk Less Than 24 Hours Before It Took Place and Still Filled Up the Auditorium at Sapienza Università di Roma
Photos from yesterday evening [...] It looks like it was a very successful event
 
Slopwatch: UbuntuPIT, LinuxSecurity, Google News, and the Serial Slopper Brian Fagioli
Nothing of merit here, just more slop
Links 14/10/2025: Lack of Trust in Slop and "Retirement Challenges"
Links for the day
Rhonda D'Vine, Gerfried Fuchs, Pronouns & Debian pregnancy cluster
Reprinted with permission from Daniel Pocock
Central Staff Committee of the European Patent Office (EPO) Warns That EPO Management is Robbing or Manipulating Pension Funds Again
Faking "growth" is just about as bad as forgery
Probably a Lot Worse Than LLM Slop: GNOME Tying Itself to Divisive Politics, Even Where It's Clearly Not Relevant
Something has gone terribly wrong in GNOME
Links 14/10/2025: Microsoft OneDrive Scanning Faces in Photos (Without Asking First), "OpenAI Says It Will Move to Allow Smut"
Links for the day
They Generally Don't Like Scholars, as They're Less Compelled or Pressured to Repeat What Corporations and Oligarchs Say
People who loathe scholars have an agenda in mind that, unlike that of reasonable people, revolves around controlling people
Belated New Article About Last Thursday's Lecture by Richard Stallman in Helsinki, Finland
there are good reasons to pay with cash, not limited to privacy
Attacking Richard Stallman Has Become 'Career Suicide'
If you're going to viciously attack somebody, make sure your arguments are rock-solid
Microsoft's Failing XBox Business Has Turned Games Into Funerals
How does it feel to depend on Microsoft?
Yesterday's "Distinguished Lecture" by Richard Stallman Possibly Attended by Close to 1,000 People
The capacity of the place is about 900
Slop Poisons Everything
Imagine wanting to find what Torvalds has just said or what has just been released
Taking Software Freedom 'Mainstream'
interest in Software Freedom must have grown
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, October 13, 2025
IRC logs for Monday, October 13, 2025
Gemini Links 14/10/2025: Ada Lovelace Day, Sony CLIE PEG-TG50 Review, Why to Avoid Network Solutions
Links for the day
The EPO's War on Techrights Was a Massive Mistake
The EPO started the SLAPPs after we had published a few hundreds of articles; we've since then published close to 6,000 because the attacks on us emboldened insiders to help us
General-Purpose Computers to Become Growing Area of Coverage
Without them, we have little left for controlling our lives
"They missed a great opportunity to shut up." -Jacques Chirac
Brett Wilson LLP has been trying to cheat the legal system many times
Harassment evidence: Switzerland, overcrowded fitness and yoga centers, incompetence and racism in accident response
Reprinted with permission from Daniel Pocock
Vincent Danjean & Debian NXIVM collateral, blackmail risks
Reprinted with permission from Daniel Pocock
In Sweden This Past Friday Richard Stallman Explained Why Copyleft is Important
And he didn't have to 'bash' BSDs, either
IBM Layoffs Due to a Lack of Money and Company Debt Rising by Almost 10 Billion Dollars in 6 Months
IBM didn't buy Red Hat for any ideological reasons; it was a fast "cash grab" for revenue
Forbes Already Stopped Being a News Sites. Now It's a Spam and Propaganda Platform for "Paying Partners" (Companies).
news from Forbes became very scarce
Is the Second-Largest Institution in Europe (EPO) Gradually Becoming More Like a Sweatshop?
Underpaid, unqualified, inexperienced and incompatible people are already recruited to replace veteran examiners
The Register MS Has No FOSS Coverage Anymore
The Editor in Chief is like a Microsoft plant
Links 13/10/2025: "Toasty Subwoofer" and WiFi Speakers "Are About To Go Dumb"
Links for the day
Gemini Links 13/10/2025: iNaturalist and Tove Jansson’s Moominpappa at Sea
Links for the day
Microsoft Does Not Deny That Large Retailers Like Walmart, Costco and Target Are Giving Up on XBox (and Not Stocking It)
No doubt XBox is in trouble and rumours suggest that more mass layoffs are imminent
We'll Encourage Richard Stallman to Talk About Software Patents at the EPO Next Week When He Visits Munich (EPO Headquarters)
Go listen to Richard Stahlmann
Investigative Journalism Protects Society From Corruption, Crimes Against Women, Assaults on Civil Society
"what is the point of men doing military practice to defend a system that is so rotten?"
Swiss pimp usurping reputation of legendary Tissot boss Francois Thiébaud from France (BaselWorld, SWATCH Group SA)
Reprinted with permission from Daniel Pocock
Paris 'Love Nest' & Debian Outreachy: from Lycée Lakanal to ENS Cachan, Cr@ns, nepotism
Reprinted with permission from Daniel Pocock
Richard Stallman to Give Public Talk in 3 Hours, Then in the Technical University of Munich (Germany) Next Week
Richard Stallman at TUM on 21.10.2025 18:00, MW2001
Arnaud Parreaux lost case defending rogue employer
Reprinted with permission from Daniel Pocock
Mathieu Elias Parreaux declared bankrupt in Switzerland
Reprinted with permission from Daniel Pocock
Breakdown of the Rule of Law and Patent Law in the European Union (EU)
The EPO cannot recruit suitably qualified patent examiners this way, let alone retain them
Gemini Links 13/10/2025: Good Films, Wizard of Earthsea, Upgrading the Steam Controller's Stick
Links for the day
Leaks and Whistleblowers: Our Plan for Today
Society simply cannot advance when too many people self-censor
It's Not Justice When One Side Denies the Other Side the Ability to Even Speak
At this stage, Brett Wilson LLP is in my humble opinion acting in contempt of the Court
Links 13/10/2025: Australian Catholic University Uses Slop to Libel Students, Canada Threatens to Kill Beluga Whales
Links for the day
How Not to Silence Tux Machines (It'll Only Backfire, Badly)
defending Microsoft while attacking this site
Slopwatch: UbuntuPIT and Google News
It seems abundantly clear that Google News and Google in general participates in the slop epidemic
Vincent Danjean (not INTERPOL), Claire Bardel & Debian pregnancy cluster
Reprinted with permission from Daniel Pocock
Christmas lynchings: Martin Krafft (madduck), Penny Leach (mjollnir) & Debian pregnancy cluster
Reprinted with permission from Daniel Pocock
Gemini Links 13/10/2025: Birthdays and "Committee Unable to Contact Nobel Prize Winner"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, October 12, 2025
IRC logs for Sunday, October 12, 2025
The Same People Who Attacked Richard Stallman (RMS) Are Attacking Daniel Pocock to Discourage People From Listening to His Information
Pocock is being demonised for the same reasons and by the same people who attack RMS
Your Typical Anti-Richard Stallman (RMS) Cancellist
"About the RMS cancellation"
Richard Stallman (RMS) Has Announced His Talk in Rome Less Than 20 Hours in Advance (and on a Sunday)
Why did he wait until the night before?
We Are Safe in a Modern "Tech" Society, Right?
People are safer if they control their own computing
GNU Tools Cauldron Event in Portugal: Videos Now Available via Invidious
Go have a look
The Way Things Are Going, They May Soon Stop Saying "Web Address" and Instead Say "Chrome Address"
The Web isn't built or based around open Web standards anymore. It's centered around user-agent.
Microsoft as a Golden Cage
"I was laid off by Microsoft and can't find a job. I'm weeks away from giving up my apartment and moving across the country to live with family."
Weekend Discussion About How IBM's Bluewashing of Red Hat Will Cause "Enshittification" for Users
"I worked at a software company that was acquired by IBM so I knew it was game over for RedHat the day they were acquired"
Brett Wilson LLP Getting Sued by Its Very Own Clients, a Legal Story That Has Made the Mainstream News (Law360)
Law360 or Law.com are about as mainstream as one can get in that "sector" (litigation 'industry')
Slopwatch: GNU/Linux Sites That Became Slopfarms and Spamfarms
The Web is a mess and "Linux" or "Ubuntu" sites became part of the problem
Richard Stallman's Talk 25 Hours Away, Aula Magna Palazzo del Rettorato (CU001), Sapienza Università di Roma (Piazzale Aldo Moro, 5)
The talk is 25 hours away and we see some QR code for it
Gemini Links 12/10/2025: Watches, the Depression of 2026, Gamboling with Odds
Links for the day
Links 12/10/2025: 'False' DMCA Claims and Slop Facing Perils Again (the Hype Wears Off)
Links for the day
Microsoft Has Just Lost Privacy Case in Austria and Its Latest Moves Make a Complete Ban Seem Imperative
Microsoft is not a software company, it's a spying agency that uses software to collect data
The Register MS: Microsoft is the Security Expert, Not the Prime Culprit, So Buy More Microsoft
This front page feature is devoid of any actual substance, it's just Microsoft copypasta
Stefano Zacchiroli (Zack) & Debian pregnancy cluster
Reprinted with permission from Daniel Pocock
Lucas Nussbaum & Debian pregnancy cluster
Reprinted with permission from Daniel Pocock
Gemini Links 12/10/2025: "Palm Computering", Further Exploration of Slide Rules, and Key Takeaways from The Well-Grounded Rubyist
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, October 11, 2025
IRC logs for Saturday, October 11, 2025
Tomorrow: Founder of the Free Software Foundation and of GNU/Linux, Richard Stallman, Speaks in Roma (Rome), Italy at 4PM
GNU/Linux is more important than ever in this dystopian world
Microsoft and Apple Are Rare Topics in Geminispace
in Geminispace it's rather safe to assume everyone is into BSD, GNU/Linux, and sometimes retro