An anti-market has grown up around Windows Vista that was made possible largely by its haphazard design and high price tag. But that works well for Linux, which is enjoying some strong sales growth at Novell.
While Linux is enjoying relative success, Microsoft is trying to stimulate Windows Vista sales growth by announcing price cuts for two products in the Vista family for customers in the US. Vista Ultimate will drop to from $299 to $219 and Home Premium will drop from $159 to $129, according to CNET.
“In an interview, newly minted Windows consumer marketing vice president Brad Brooks said that Microsoft had been testing lower prices over the past few months and was surprised to find that the amount of revenue lost was more than made up for by an increase in the number of PC buyers willing to shell out for an upgrade.”
Could this be a sign that Microsoft is willing to experiment with meeting its customer’s expectations rather than dictating software relationships as it typically does with products like Windows Vista and XP?
Regardless, the longer it takes Microsoft to create compelling pricing for Windows Vista, the more opportunity it creates for Linux to build market share.
Novell knows that and has been successfully marketing its open source platforms like SUSE Linux desktop and server. “Those two platforms produced $28 million in revenue, a 65% increase over the same quarter a year ago,” according to NetworkWorld.
In the current competitive landscape those numbers don’t even approach Microsoft, but it may be another indication that the marketplace is looking for solutions that are cost effective and nimble, which are two flagship features of most open source projects like Linux.