Linux, an "open source" software standard backed by companies such as IBM and Novell, is starting to chip away at Microsoft's grip on computer networks, said Nick Petreley, an analyst with Evans Data Corporation.
"Microsoft really perceives Linux as a threat," he said. "You can see it in the moves they're making."
Several years ago the fight was only between enthusiasts. But now IBM is running Linux commercials and Microsoft use any opportunity to convince people that they have better software.
Linux is safer from viruses, more stable and you don?t need to pay licensing fees as you have to do with Microsoft.
Microsoft says that Linux costs companies more in support and staff, erasing any savings.
Some customers don?t believe that argument and they are using Linux, especially in Europe. The government of Brazil switched to Linux to avoid the high fees of Microsoft.
The IDC research group said that sales of Linux servers were nearly $3 billion in 2003, a 40 percent increase over the previous year. But that's less than 10 percent of the server market.
IBM hopes to change that by targeting companies that are coming to the end of their software cycle with Microsoft. The last summer?s virus attacks also helps.
"A lot of companies were burned, and some of them are looking at Linux," said Joe Wilcox, an analyst with Jupiter Research. "Whether they're serious about it remains to be seen."
Wilcox adds that Linux developers still need to offer a product as integrated or modern as Windows. Open Office is on a par with Microsoft's Office 97.
There's also some hesitation surrounding an ongoing patent lawsuit from SCO Group - a Utah company that claims it owns parts of Linux and deserves licensing fees. There are rumors that this lawsuit is just a battle in the Microsoft's war.
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