By Jay Wrolstad
   NewsFactor Network
   June 2, 2003

   Microsoft  must  be cautious in delivering any code to the open-source
   community.  "They  have  spent billions developing their software, and
   they  don't  want  to  give  away the crown jewels," said Yankee Group
   senior analyst Laura DiDio.      _________________________________________________________________

No  longer  able  to  dismiss  out of hand the attacks coming from all directions  --  or  to  counterattack  with  impunity -- Microsoft  may be well advised to  extend an olive branch to the open-source community, say some industry analysts.

It  is  no  secret  that open-source software is gaining ground on the server, on the desktop, and in PDAs and next-generation phones. Given the vast array  of  tools  and  the  network  of applications developers at its disposal,  said Forrester Research analyst Ted Schadler, Microsoft could  generate  increased  interest  and  revenue  by assuming a more
 giving attitude.

First,  it  could  make  its common-language runtime (CLR) more widely available.  Embracing  the  Mono  project  designed  to  replicate the NET framework on Linux also could be a  smart move.

Beyond the Desktop

Schadler  told NewsFactor that the development-focused benefits of the Microsoft  architecture  are  still  a  strong  lure  for buyers. "The company  has  a  tremendous  ability  to  build  tools for application development  and  is  the best at helping developers build easy-to-use applications quickly," he said.

The  challenge  now is to move beyond the PC and notebook to build new software that connects the desktop to phones and handhelds. "Microsoft  needs to get its software on as many devices as possible, not just the operating   system,"   Schadler  said.  To  compete  in  the  Java world, which is where many of these devices are,  he  said,  the  company  could  take  advantage  of  open source by offering some of the lower layers of  the  CLR  to  that  community  and  make  it  easier to port their software.

"It's  a  proliferation  strategy, and once their technology is out in  the  open,  Microsoft can then sell more development tools and support services," said the analyst said.

Cautious Approach

Yankee  Group  senior  analyst Laura DiDio, agrees, up to a point. "Microsoft  cannot  adopt  a  bunker mentality, or aggressively attack open  source,  because  open  source  is  not  going  away,"  she told  NewsFactor.  "And  the  company  is  providing ammunition to those who consider it the evil empire out to preserve its monopoly status."

But  Microsoft  must  be  cautious  in  delivering  any  code  to  the open-source  community.  "They  have  spent  billions developing their  software,  and  they  don't want to give away the crown jewels," DiDio  said.  For  handhelds  and  phones,  there  could  be  an advantage in  releasing  some  of its CLR, as long as some controls are established,
she suggested.

 A  potential  problem  with  this  strategy  is  that if the code were  released,  there  could  eventually be as many versions of Windows and .NET  as  there are of Linux. "They should offer just enough to enable  interoperability," DiDio cautioned.

Shared Knowledge

One  concern  for  Microsoft is that it only supports its own platform and  has  shown  little  inclination to consider other standards, said Forrester analyst Stacey Quandt.

"It   would  be  to  their  advantage  to  embrace  more  applications developers,  including  those  in  open  source," she told NewsFactor. Microsoft  already  has  a  shared-source  initiative enabling systems  integrators  to  modify  some  of  the company's software for handheld devices.

The  company  knows that a growing number of its customers are leaning  toward  alternative  platforms, such as Linux, and it therefore has to  consider  supporting  other  operating  systems  as  replacements  for Windows in new devices, Quandt said.

The Mono Factor

Then  there is the Mono project, sponsored by software firm Ximian and designed  as  an  open source, Linux-based version of Microsoft's .NET Web-services development platform. Microsoft is keeping a close eye on the project, says Forrester's Schadler. It would enable .NET to run on virtually any operating system.

 "If  their  architecture  is  out  there,  Microsoft  ultimately wins, because  they still own the servers, tools and channel relationships,"  he  said.  "Microsoft  is interested in this because they want to keep all of their options open."

Mono  could  be  a hedge strategy for Microsoft, DiDio agreed, but she  pointed  out  that  there  has not yet been a stampede toward Linux. A Yankee  Group  study  reports that only 7 percent of server users have adopted  the  platform,  and just 3.5 percent of organizations plan to  install Linux on the desktop.

Bridges To Build

Microsoft  could relinquish some Mono project secrets, DiDio said, but  may  be  reluctant  to  do  so  since  the  Linux community has yet to satisfactorily define ownership of the platform.

Quandt  is  not  so  sure.  "I  don't  see  them  jumping on [the Mono project], she said, because it undercuts their Windows business."

The bottom line is that Microsoft needs to forge some bridges with the open-source  community,  said  DiDio. "It has become a case of 'if you can't beat 'em, join 'em,'" she said.

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