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To: Ms. Baby Boomer who wrote (10349)8/8/2002 12:18:03 PM
From: Ms. Baby Boomer   of 14451
 
Windows Dissatisfaction Bolsters Mac, Linux
Tue Aug 6, 1:32 PM ET
Lisa Gill, www.NewsFactor.com

Apple's ( Nasdaq: AAPL - news) Mac OS X ( news - web sites) is at its highest popularity peak to date, while the adoption of Linux ( news - web sites) has gained impressive momentum as both go up against the most widely used operating system in the world, Microsoft ( Nasdaq: MSFT - news) Windows, a research firm said Tuesday.


• Windows XP: What's the Business Verdict?
• Microsoft To Reveal Windows Code Before Final Ruling
• Controlled Complexity and the Beauty of Difficulty


In a Yankee Group report, researchers noted that Apple has found a loyal, dedicated group of users that rely on its new, ultra-stable operating system for sophisticated graphics and to run production departments.

The study also noted an increase in the adoption of Linux as the "un-Windows" solution, particularly as companies become increasingly dissatisfied with Microsoft's complex and expensive licensing structure.

Niche Market?

"Do [Linux and OS X] retain niche market status? Yes, but I think it's a very healthy niche market. And I think it could grow," Laura DiDio, Yankee Group senior analyst and the report's author, told NewsFactor.

DiDio noted, however, that organizational migration to alternative platforms remains a challenge, especially at the enterprise level.

"Because Microsoft products -- Office and Windows -- at the desktop level are so intertwined with the fabric of the organization, you couldn't rip [the operating system] out and replace it even if you had the time, money and resources," said DiDio.

Dissatisfaction High

The study, a joint effort between Sunbelt Software and The Yankee Group, found that 38 percent of respondents said they are considering alternatives to Microsoft's products since the software company announced its new licensing structure.

Survey respondents cited Windows XP ( news - web sites) Professional and Windows NT Workstation as the two most widely-used operating systems, while one in five said their licensing fees under the new plan would rise between 30 percent and 50 percent.

"I think [Microsoft] has realized the real threat is coming from 50 percent of the installed base of small and mid-size businesses -- companies with fewer than 1,500 employees," noted DiDio.

She added that such firms often have an easier time with platform migration as their systems might not be as highly integrated, and switching or adding operating systems becomes more feasible.

Companies Feel Burned

The research firm noted that Microsoft's perceived monopoly, security issues, delayed product releases and confusion surrounding its .NET strategy have cut into corporate confidence in the software company.

At least with the recent licensing changes that require companies to pay monthly fees instead of an annual flat fee, companies are "bruised and battered," Julie Giera, vice president and research leader for IT Services at Giga Information Group, told NewsFactor.

Giera said she believed Microsoft's licensing pricing structure was put in place to condition companies for the move to Web services.

"This is all about creating recurring, dependable revenue for Microsoft," explained Giera. "The surprise is that Microsoft has made a load of money on licensing fees with its move toward enterprise contracts with a guaranteed monthly fee."

Defection versus Diversification

DiDio noted that while defection to alternative platforms is mostly occurring in small and mid-sized businesses, Large IT departments also are seeking to diversify among platforms.

"There is a much larger group that is installing Linux and Macs alongside traditional Windows desktops. We are seeing more diversification, but it's very controlled," said DiDio. "It's for certain, specialized applications."
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