[ale] OT: Microsoft & the open source threat

[Jim Philips]

Brad Silverberg, former Microsoft bigwig, was recently asked by an interviewer 
how Microsoft is dealing with the open source threat. His answer is 
thoughtful and very instructive, since he knows their culture from the 
inside. Here is the excerpt:

Milestone:  How does Microsoft deal successfully with the open source threat? 


Silverberg:  I don't think they have figured that out yet, I think that is 
clear. They are struggling with not so much open source, per se, but rather 
they are no longer the low price solution. In the past Microsoft was the low 
cost solution and Microsoft was then competing and attacking expensive 
proprietary systems from below. Now for the first time the tables are turned 
and it's Microsoft that's being attacked from below by a lower price 
solution. Microsoft needs to figure out how it can demonstrate better TCO to 
justify its higher prices. Another aspect to that, which is an area I think 
Microsoft is also struggling with, which is when you are as successful and 
dominant as they are, how do you continue to foster that ecosystem? What 
really propelled Microsoft Windows success was an ecosystem that they created 
that allowed other people to benefit from your success. Actually your success 
was really a side effect or byproduct of their own success. If they saw a way 
that they could develop your platform, make money for themselves and build 
big businesses. Now that Microsoft has expanded into so many different areas 
there is reluctance from some developers to continue to invest in a Microsoft 
platform because they wonder how do they build a business? How does it become 
their business and not Microsoft's business? So people are looking for 
alternative platforms that create new ecosystems that allow them to build. 
The challenge to Microsoft is to continue to keep that ecosystem going and to 
get developers and applications folks to see that there is benefit to 
themselves in adopting and continuing to develop for the Microsoft platform. 

http://www.milestone-group.com/news/04_07/Silverberg.html