The question of how Microsoft will respond to competition with open source software is beginning to be answered. I have already discussed the views of Stanford and Harvard Business School professors in an earlier post http://lawandlifesiliconvalley.com/blog/?p=74.
Jean Louis Gasse, a smart entrepeneur and technologist who is now a venture capitalist, suggests that Microsoft is working on a comprehensive strategy for the threat to its Windows operating system which includes responses in all three areas of risk: servers, mobile and desktop. http://www.mondaynote.com/?p=1022. As he describes it:
Microsoft’s Live services are but a rehearsal for a much bigger act, Microsoft’s Cloud OS, sometimes called Strata. And, based on Microsoft’s own Cloud services, we’ll see a Danger-based smartphone, as proprietary as the Xbox and the iPod competitor Zune. Put another way, Microsoft’s future business model will borrow from Apple and Google, it will have two components: proprietary devices and “universal” Cloud services
I recommend that companies using open source stay alert for the next month as this new strategy rolls out.
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