Microsoft's Outdate Business Model

february 6, 2003

In Microsoft's SEC filing the say that they may be forced to lower its software prices because of increasing competition from Open-Source Software. I think Microsoft is finally coming to realize that their business model has been turned upside-down and has been outdated: Why pay $300 for an OS and another $500 for an office suite? People are starting to realize that even if someone plays $300 for an OS, they don't have to pay $500 for an office suite (OpenOffice.org). And if one is willing to relearn their OS, they can get a complete OS along with office suite for free (Red Hat Linux or SuSe Linux). So, what makes more sense? $800 or free? I think the choice maybe easy.