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Steve Ballmer's Linux Memo

June 9, 2003


On June 4th, Steve Ballmer issued an internal email to all Microsoft employees which details Microsoft's current position on the growing Linux threat.

Below are selected passages from Ballmer's Linux memo.

eMail from Steve Ballmer


Microsoft Photo

Sent: Wednesday, June 4, 2003

To: Microsoft ALL

In this environment of lean (information technology) budgets and concerns about Microsoft's attention to customers, noncommercial software such as Linux and OpenOffice is seen as an interesting, 'good enough' or 'free' alternative.

Noncommercial software products in general, and Linux in particular, present a competitive challenge for us and for our entire industry, and they require our concentrated focus and attention.

IBM's endorsement of Linux has added credibility and an illusion of support and accountability, although the reality is there is no 'center of gravity,' or central body, investing in the health and growth of noncommercial software or innovating in critical areas like engineering, manageability, compatibility and security.

There is always enthusiasm in our business for new concepts. So-called 'free software' is the latest new thing. We will rise to this challenge, and we will compete in a fair and responsible manner that puts our customers first. We will show that our approach offers better value, better security and better opportunity.

While the noncommercial model may lead to many flavors of software, getting broad, consistent innovation requires coordination across many technology components. In the event of needed enhancements or fixes, the Linux development community, no matter how well intentioned, simply cannot advance Linux the way we can--and must--innovate in Windows.

There is an interesting debate emerging in the industry today about the value of information technology. Some pundits are suggesting that IT no longer matters; that what was once a transforming technology has reached the end of the road in terms of innovation, that it ceases to be a source of business advantage once everyone has it, and that customers should just optimize for costs and outsource IT for efficiencies.

Information is the lifeblood of business and software is what gives people and businesses the ability to harness it. Software is what enables us to collect, manipulate, access, store, share, analyze and act on information. It enables companies to constantly hone their competitive edge. So, contrary to the idea that we're entering a 'post-technological era,' I believe that taking software to the next level will be one of the biggest sources of value creation for customers, and that Microsoft is well-positioned to enable this and to benefit from it.

Some other vendors sell against integration. We see and deliver unique customer value because of integration.

Microsoft needs to focus on strengthening the customer value in our end-to-end technology platform--client and server operating systems, client and server applications, and programming tools--which all integrate seamlessly and scale from the enterprise to the desktop to wireless mobile devices. These systems are better for users, developers and IT people because of the common architecture for development tools, management, application schema, interoperability, identity, data, etc.

Longhorn is our big bet on galvanizing the next big breakthrough--even bigger, perhaps, than the first generation Windows release. Virtually everything we're doing from a product standpoint will accrue to the Longhorn wave. In addition to the Longhorn client, there will be a Longhorn version of Office, Longhorn server enhancements, Longhorn development tools, and a Longhorn version of MSN. We will do the work and take the time required to get it right, because it truly is the next quantum leap in computing, which will put us years ahead of any other product on the market.

We also must improve business consistency. Customers love predictability, and rightly so. Licensing 6.0 was our hard-learned lesson about this.

Our Trustworthy Computing initiative is hitting its stride, and we have formed a group focused on adding core security technologies to all our products. Our customers are still hit with security vulnerabilities, and we have spent a lot of time learning from Slammer what we need to do better. We are improving our approach to fixes, and our new integrated software update and distribution services will provide more businesses with the tools they need to deploy updates easily.

We should look at communicating about new product design to customers earlier through online design discussion. For some products it makes sense to publish regular builds of new products online, for community feedback.

Steve Ballmer




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