Facing the developed by the groups, often with free and open source software in the form of increasingly fierce competition, Microsoft plans to develop "thebasic functions of the product, its price is less than the price of the standardversion.
Once-independent open source software such as Linux has been used in a number oftechnology giants including Google, IBM and Motorola to provide products. Thesetechnology giants believe they earn money by selling Add-ons and services tomake more money than developing software.
Microsoft says open source software more and more serious threats to itsbusiness software. Microsoft last week submitted to the United States in itsannual report the Commission said that open source software vendors haveinvested considerable effort in product development, develops products that mostclone of our product features and functionality.
In fact, last year IBM released Lotus Symphony is a free desktop suite, has manyof the features of Microsoft Office. IBM said there are hundreds of thousands of users have downloaded Lotus Symphony.
Open source software is still eating away at Microsoft's Windows Mobilebusiness. LiMo Foundation, formed by several major handset vendors, theFoundation offers cell phone operating system. On Monday, the LiMo Foundationhas announced the addition of 11 new members, and announced that the Motorolaand NEC have unveiled new phones based on the LiMo.
Earlier this year, has 65% the Symbian Mobile OS market share began to use theopen source model.
Microsoft said it plans to meet the challenge of open source software. Microsoftsaid in its annual report: "in response to the competition, we will developproducts with basic functionality, its selling price is less than the standardversion of the product.
But so far, Microsoft products was still relatively high at low prices,especially when compared with free software. For example, Student Edition andHome Edition of Office 2007 priced at $ 100 or more, Equipt softwaresubscription service priced at 69 dollars a year.
Microsoft argues that its lower-priced goods is cheap enough, keep on the userin, enough to compete with free software. A Microsoft spokesman said: "Microsofthas developed lower-priced products to meet customer needs, in the future, wewill continue to implement this solution.
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