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Technology Stocks : How high will Microsoft fly?
MSFT 474.52+0.5%3:25 PM EST

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To: Frank Ellis Morris who wrote (35258)12/10/1999 7:10:00 AM
From: SunSpot  Read Replies (1) of 74651
 
The threat is not by Linux as the small program made by Linus Thorvalds. Linux is a collection of more than 2000 programs that are free. That's not the threat either. The threat comes from the fact, that Linux standardizes file formats and protocols. Microsoft in't any longer the only one that can set up an NT Server. Sun, IBM, HP, Compaq etc. can now set up a computer acting as an NT Server without paying Microsoft a license. They just put the "Samba" program onto it. Samba is developed by programmers in the Linux "community", but it's not a Linus Thorvalds product.

Additionally, the web-server developed in the sphere of "Linux" is called Apache and has much higher market penetration than Microsoft. There are many other programs that are or will become the de facto standard.

The investor craze in Linux is there, because when you don't buy Microsoft products, you will probably spend some more money at non-Microsoft vendors, which is already happening.

You can always ask, why want people to buy Linux products? In fact most people don't. But if somebody tells them you can buy a server that can do 1000 virtual web-servers, and the price including installation and licenses is less than $1500, and it's operated via a web-page as easily as posting messages to SiliconInvestor, and it's much more stable than Windows NT Server, why shouldn't you buy?

Lars Dybdahl.
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