[svlug] Microsoft exec says there is no such this as Free Software

[Christian Einfeldt]

Here is how Microsoft describes its competition with Free Software in its
most recent SEC 10-k filing:

http://microsoft.shareholder.com/redesign/EdgarDetail.asp?CIK=789019&FID=1193125-07-170817&SID=07-00

Our business model has been based upon customers paying a fee to license
software that we developed and distributed. Under this license-based
software model, software developers bear the costs of converting original
ideas into software products through investments in research and
development, offsetting these costs with the revenue received from the
distribution of their products. In recent years, certain "open source"
software business models have evolved into a growing challenge to our
license-based software model. Open source commonly refers to software whose
source code is subject to a license allowing it to be modified, combined
with other software and redistributed, subject to restrictions set forth in
the license. A number of commercial firms compete with us using an open
source business model by modifying and then distributing open source
software to end users at nominal cost and earning revenue on complementary
services and products. These firms do not have to bear the full costs of
research and development for the software. A prominent example of open
source software is the Linux operating system. Although we believe our
products provide customers with significant advantages in security,
productivity, and total cost of ownership, the popularization of the open
source software model continues to pose a significant challenge to our
business model, including continuing efforts by proponents of open source
software to convince governments worldwide to mandate the use of open source
software in their purchase and deployment of software products. To the
extent open source software gains increasing market acceptance, sales of our
products may decline, we may have to reduce the prices we charge for our
products, and revenue and operating margins may consequently decline.
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