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In recent years Linux has become an increasingly popular server operating system, particularly for the low-margin, price-sensitive hosting market, and it has begun to make inroads to the desktop market. Wal-Mart now sells a cheap consumer PC running Linspire (formerly known as Lindows, renamed after a trademark challenge from Microsoft), which is a version of Linux made to look and work like Microsoft Windows. Recently, several governmental users have announced the conversion of their desktop computers from Windows to Linux, including the country of Brazil; the city of Munich, Germany; and France's Ministry of Equipment and Transport.
Microsoft CEO Steve Ballmer has stated that Linux is a "tough competitive force... It's non-traditional, it's free and it's cheap. We have to educate people why what they pay for [our offerings] is more than offset by the value we deliver. We used to be the cheap guys. We were cheaper than Novell, cheaper than Oracle. We can't do that with this one." (Reported in CRN.com, June 17, 2002)
Microsoft has been using various channels on the Internet and in popular media to fight the open source movement, usually with the help of think-tank organizations funded by Microsoft. One of their main claims is that the GPL license (the copyright license that Linux and much open-source software is released under) is a viral license that threatens intellectual property. They also argue that open source software is less secure, more expensive, and more attractive to terrorists than proprietary software. Supporters of open source assert that Microsoft's tactics amount to a campaign of FUD (Fear, Uncertainty, and Doubt). [10].
Microsoft has also facilitated a legal attack on Linux companies by licensing Unix from The SCO Group [11]. SCO, which is currently suing IBM and other defendants, claims that IBM devalued the SCO operating system by taking SCO proprietary code and releasing it as part of Linux.
In November 2004, Ballmer stated that Linux violates more than 228 software patents and that "someday, for all countries that are entering the WTO, somebody will come and look for money owing to the rights for that intellectual property. ... We think our software is far more secure than open-source software. It is more secure because we stand behind it, we fixed it, because we built it. Nobody ever knows who built open-source software." [12] He provided no details on which patents have been violated, nor did he mention the patent lawsuits currently facing Microsoft. [13] Microsoft later issued a statement saying that Ballmer was citing a study written by a risk-management company. The author of the study responded by saying that his study found 283 potential patent violations, but that such allegations are a long way from a court finding merit in them, and that proprietary software is at equal or greater legal risk. [14]
Meanwhile, Microsoft has placed three projects under an open source license: the Windows Installer XML (WiX) toolset, the Windows Template Library (WTL) and Flexwiki.
Main article: Common criticisms of Microsoft
Microsoft has been the focus of much controversy in the computer industry, especially since the 1980s. Among the more frequently criticized areas are: