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Matthew Langham

Great to see a VC comment on open source like this. Investing in companies that provide support and services around open source is probably an interesting perspective for the VC market in the upcoming months.


Jim Cook

Replace "open source" with "wireless" in your last paragraph and you have a similar insight. It will be interesting to see if the high tech community's approach to wireless will draw on anything learned from the open source movement over the last +5 years.

Charles Hudson

This article raises an excellent issue. I have been spending a lot of time talking to CIOs at major companies (mostly on Wall Street) who are definitely interested in investing their own resources to customize and implement Linux because the cost savings downstream in terms of hardware and software are so great. Also, if some of these Linux virtualization technologies really mature, the support costs will plummet and the question will go from "Why Linux" to "Why Solaris" in the second half of the decade.

Johnathan James

Just because Microsoft would only realize 2% to 3% additional profits if it did not give away its software, that does not necessarily make its action any less anticompetitive. The move is obviously a preemption against those non-profits moving to an Open Source product. If they were to move to Open Source, Microsoft loses licensing fees for supplemental products in the future, and they allow another little chink in their armor by letting ANYONE who doesn't already know, that there is a suitable, cheaper substitute. The move is absolutlely anticompetitive.

They know the non-profits could care less whether they are fostering more competition in the marketplace. When they do a cost vs benefit analysis, they see that OS allows them to do everything that Microsoft does and for little cost, but its not Microsoft. On the other hand, by going with Microsoft they see they can obviously do everything that other Microsoft users can do, for little or no cost, AND it is Microsoft behind it. Microsoft knows thats how they will think, and so it knows it can win by using the ol' "give it away free, because we can do it free longer than they can, and we raise our price once they're gone" routine, which has been used in an anticompetive manner before (see Standard Oil) and which is a main factor in the creation of antitrust law.

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I anticipate art and IT (and new media) technology coming together in a real and meaningful way.

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I have always found that if I move with 75% or more of the facts, I usually never regret it. It's the guys who wait to have everything perfect that drive you crazy

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