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Follow UsOn the eve of the launch of Windows 2000, Microsoft chief executive officer Steve Ballmer conceded that the year-long delay in the release of the new software has opened the door to competition, particularly in from the Linux side.
"I think in some spaces we've given a little bit of opportunity. I think in all of them we have a chance to come back," said Ballmer, adding that some universities and Internet service providers in particular abandoned Windows and went to Linux. Now, many in the Linux community believe the upstart OS can compete effectively. "Nobody likes to wait. What we have is an affordable alternative that will not only cost less, but provide a lot more flexibility," said Larry Augustin, founder and CEO of VA Linux Systems, which sells Linux servers pre-loaded with a Linux OS and various utilities.
Linux now represents 24 per cent of the total server operating systems market, up from 17 per cent a year ago. Windows, meanwhile, has remained relatively stagnant at 38 per cent. The remainder is held by various versions of the Unix system and Novell's NetWare. Linux’s strengths are its flexibility, scalability, reliability and free distribution model. Linux users can make changes directly to the source code, allowing them to fix bugs and develop new features.
"Microsoft's software is proprietary, and because of that, it's inherently inflexible,'' said Bob Young, chairman and co-founder of Red Hat Software, which markets Linux. "We're giving customers proprietary control of the product, and working with them to tailor it directly to their needs. Given that we aren't even a true software company and we come with a unique set of values for the customer, it's only a matter of time before the world comes knocking at our door."
Now it is Microsoft versus China
If China wants to keep up with the rest of the computing world and adopts Microsoft’s new Windows 2000 network operating system, it may have to rethink its ban on unauthorized encryption software. The Chinese version of Windows 2000, scheduled to debut in March, includes data encryption capabilities that conflict with China’s recent anti encryption laws that prohibit the use of product that encrypt data unless the publisher provides the Chinese government with access to its source code.
The latter is not likely to happen with Windows 2000. China has said it won't allow products containing foreign-designed encryption software. Windows 2000 uses encryption technology in its Outlook e-mail system and its Internet Explorer browser. Microsoft spokesman Adam Sohn said the Windows 2000 system will be released in the same form in China as elsewhere, meaning it will defy the terms of local encryption laws.