Linked by Eugenia Loli on Wed 28th May 2003 18:28 UTC, submitted by michael
Talk, Rumors, X Versus Y In what is being called "one of the largest desktop migrations to Linux ever seen", Microsoft seems to have lost a major account worth "tens of millions of euros" when the city of Munich said on Wednesday it would switch 14,000 computers from Microsoft's Windows operating system to Linux.
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Huge risk for Microsoft
by Anonymous on Thu 29th May 2003 15:59 UTC

The willingness of MS to offer huge discounts is potentially very risky. 1. It tells potential clients that MS software is hugely overpriced. 2. Big customers know that MS will accept almost any price to retain them. 3. Preferential pricing is illegal in many jurisdictions and will open expose MS to litigation from governments, unhappy customers and hugely damaging negative publicity.

Once a few really large OSS rollouts sucessfully occur MS will be forced to reduce prices drastically(~90%)to maintain clients. Price reductions will affect profitability and unnerve investors.

Gates and Ballmer know that MS is facing a crisis that is why they are reducing their shareholdings in MS.