Monday, January 22, 2007

The Smell of Profits, Here Comes LINUX

Microsoft sells $45 billion of software every year and makes about $12.6 billion a year in profits, about a billion dollars more than Wal-Mart($11.6 billion), and its profit margin is huge (28.5%) and its ROE is high (31%). That level of sales and profitability creates a redolent, attractive smell that permeates the economy, and attracts competitors like bees to a flower.

According to the
NY Times, the creation of the Linux Foundation is being announced today. Its mission is to help Linux, the leading example of the open-source model of software development, compete more effectively against Microsoft, the world’s largest software company, for the $45 billion software market.

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