Microsoft Sees Open-Source Threat Looming Ever Larger

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Microsoft Corp. is facing growing pressure from open-source software across every segment of its business—a competitive threat that could have significant consequences for its financial future going forward, the software maker said in its latest 10-K filing to the Securities and Exchange Commission this week.

“We continue to watch the evolution of open-source software development and distribution and continue to differentiate our products from competitive products, including those based on open-source software. We believe that Microsoft’s share of server units grew modestly in fiscal 2004, while Linux distributions rose slightly faster on an absolute basis,” the filing reads.

Link: eWeek