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Technology Stocks : How high will Microsoft fly?
MSFT 480.95+0.7%3:59 PM EST

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To: Ed Yander who wrote (10350)8/27/1998 1:01:00 PM
From: Mike Milde   of 74651
 
<< Where is the revenue model for Linux? I can download Linux and Navigator for Linux free of charge. >>

You sell support, books, and tools. The OS is free. No different than giving away a web browser. If someone made an OS that runs all Windows software (don't worry, Microsoft has made sure that is extremely difficult to pull off), then the Windows OS would eventually be free also. Internet Explorer is free because someone else has a web browser that "runs" all web pages equally as well as Internet Explorer. When you get down to it, the OS, the JVM, and the web browser all perform very similar functions. They all serve the purpose of providing a low layer of software services and can be mixed and matched most anyway you choose.

Bill Gates is not stupid, not even a little bit. He understands the importance of integrating the browser and OS and shifting the consumer's point of view. Microsoft can't afford to be labled as an OS company for too many more years. Microsoft's survival depends on it remaining a "we provide the missing link that you gotta, gotta have" company. They wanna sell that thing between the hardware and the rest of the world's software and data, and they want to make sure you get Microsoft's version of it and no one elses. The market's insistence on open standards would be the death of Microsoft.

Mike
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