Linux "Has The Potential to Fragment"
Microsoft Group Vice-President Kevin Johnson predicts the upstart operating system will go the way of Unix
Kevin Johnson, Microsoft group vice-president for worldwide sales, marketing, and services, has some interesting challenges. Since Microsoft (MSFT) has monopolies in two of its major markets -- PC operating systems and productivity applications -- Johnson's main job there is to keep people buying upgrades. But with the growing popularity of the Linux open-source operating system on desktops and in servers, Johnson also has to fight a rear-guard action.
He recently spoke about the Linux assault with BusinessWeek Senior Writer Steve Hamm. Edited excerpts of their conversation follow:
Q: How is the competition between Linux and Microsoft shaping up?
A: Our mission statement is now to enable people and businesses around the globe to realize their full potential. That's really about putting customers at the center. We reengineered goals and put in new incentives. We expanded field sales and marketing. It's all about being connected -- listening and responding.
In many ways, customers were looking at how to be more efficient, to drive down the total cost of owning technology. We're helping customers do more with less and at the same time reduce their application backlog. Linux is a competitive alternative. We welcome the competition. By understanding the customer, by having the value proposition that we feel is better, we will win customers. Look at the last year: Windows Server 2003 grew share. Linux also grew. Unix is declining.
Q: A year ago, you started your "Get the Facts" campaign -- comparing Windows' cost of ownership with that of Linux. Why did you take that approach?
A: A few years ago, the perspective was that Linux was free, so it must be lower TCO [total cost of ownership]. Clearly that turns out to not be the case. We have good benchmarks. We can show great examples of how customers can use our technology to run their operations more efficiently.
Q: Microsoft says Windows is more secure than Linux. People laugh when they hear that. How do you account for that reaction?
A: Because of the evolution of the Internet and connectivity, the whole area of security is bigger than any one vendor. We have a responsibility to champion and lead, and this is what we've done. There's still a lot of work to do, but we've made progress.
Look at the facts based on some of the studies we didn't pay for. They show that we respond to problems more quickly than the Linux suppliers and that we corrected 100% of our vulnerabilities.
Q: In Linux and Microsoft, two very different business ecosystems are stacked up against one another. Why do you think Microsoft's ecosystem will be stronger over the long haul?
A: Our business approach is built on partners. We have more than 160,000 partners worldwide. Our approach is to deliver value through integrated innovation. That's not just what we do in Microsoft, but what our partners build on top of and extend. The partners are just core to our strategy of delivering value to the marketplace.
Q: What do you expect to happen to the Linux ecosystem?
A: More and more companies will get into the business with a commercial view. They'll have to compete with one another. They'll want to have a unique value proposition, and that will create fragmentation of the different Linux solutions. At the end of the day, it has the potential to fragment like Unix did.
Q: How will the competition between Windows and Linux play out over the next few years?
A: Windows server software gained share last year, even with Linux gaining share too. Unix has lost share. Customers are going to Windows or Linux. Once all of Unix' share is wiped out, we'll continue to gain share. We'll do it by focusing on customers, listening, and responding well.
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