Microsoft's quarter booms.  When will open source make a dent?
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It seems that the proprietary world is doing just fine in the face of open source.  But for how long?
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No one would have believed me if I had said five years ago that Microsoft would have a page on its Web site called âOpen Source at Microsoftâ with the following remarkably sane and reasonable statement on the subject: Microsoft is focused on helping customers and partners succeed in a heterogeneous technology world. This starts with participating and contributing to a broad range of choices for developing and deploying software, including open source approaches and applications. From thousands of lines of code and scripts on MSDN and TechNet, to open source applications like IronPython, ASP.NET AJAX, SharePoint Learning Kit, and WiX on CodePlex and SourceForge, Microsoft is continually growing the number of products released with open source access.  That's right: Microsoft has released not one but several pieces of code as open source.  Moreover, it's submitting some of its home-grown licences to the Open Source Initiative  for approval.  So what is going on here?
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Microsoft has an offer open-source startups are having a hard time refusing.  Should they?
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Microsoft beat Wall Street expectations for both revenue and EPS (earnings per share) for its fiscal 2008 second quarter, attributing its strong quarter to sales of core client products, such as Windows Vista and Office 2007, as well as Exchange and SharePoint server software.For the quarter ended Dec. 31, Microsoft reported revenue of $16.37 billion, an increase of 30 percent year over year and a number that solidly beat the $15.95 billion in revenue that Thomson Financial analysts had estimated. Last year for the same period, Microsoft reported $12.54 billion in revenue.Diluted earnings per share were $0.50, an increase of 92 percent over the $0.27 in EPS reported last year, and $0.04 higher than Thomson Financial estimates of $0.46. Operating income for the quarter was $6.48 billion, an increase of 92 percent from the $3.47 billion reported for the same period last year.Microsoft&#39;s year-over-year percentage growth is higher than normal due to a deferral of $1.64 billion in revenue and operating income, as well as $0.11 of diluted earnings per share from the second to the third quarter of fiscal 2007. This deferred revenue contributed to the higher-than-average second-quarter percentage growth. Without these deferrals, second-quarter growth rates for revenue, operating income and earnings per share would be 15 percent, 27 percent and 32 percent, respectively, for the quarter reported Thursday.Ahead of Microsoft&#39;s announcement, analysts had expected the company to report a strong quarter even among economic uncertainty and fears that the U.S. economy is entering a recession.Microsoft&#39;s client business, on sales of Windows Vista, was especially strong in the quarter, with $4.34 billion in revenue compared to $2.59 billion in revenue a year ago. According to Microsoft, its client business has grown 20 percent on average since Windows Vista was made available nearly a year ago, and the company believes Vista began hitting its stride for adoption among customers and partners in the second quarter. According to Microsoft, it has sold more than 100 million licenses for Vista.Looking ahead to the next quarter, which ends March 31, Microsoft said Thursday that it expects revenue in the range of $14.3 billion to $14.6 billion; operating income in the range of $5.6 billion to $5.7 billion; and diluted earnings per share in the range of $0.43 to $0.45.For the full fiscal year ending June 30, Microsoft expects revenue in the range of $59.9 billion to $60.5 billion; operating income in the range of $24.2 billion to $24.4 billion; and diluted EPS in the range of $1.85 to $1.88.
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John D. Halamka has taken a close look at operating systems and thinks 2008 may be the tipping point for open-source OSs on the desktop.
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Blog: Open source applications will drive a hefty load of infrastructure purchases in the future.  Proprietary vendors who hide their heads in the sand and try to avoid this trend or make it difficult for would-be open source partners to work with them will fin
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It was indeed an astounding quarter for Microsoft, with operating income having grown last quarter at an annual rate of 32%. A big part of that growth is attributable to Windows Vista. But does the fact that customers are adopting it truly signal that customers are embracing it? Yesterday, the company's chief financial executives offered some very revealing data.
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One's head spins thinking about Microsoft's unsolicited bid of $44.6 billion for Yahoo. Yahoo has been a major figure in the open source world for a long time. It sponsors events, participates in countless development projects, and encourages its own engineers to do open source work. And, of course, it uses countless open source code bases as well. read more
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News abounds for Firefox and other Open Source Internet browsers. According to WebSideStory results, both Mozilla and Firefox saw their marketshare grow in the last month.
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MicrosoftWatch: The Redmond software firm is set to make available more of its code under an open-source license on Tuesday. Microsoft is preparing to release a third piece of code under an open-source license
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Blog: Novell takes a lot of heat for its patent deal with Microsoft, and rightfully so.  But there is much that the company is doing to advance the cause and state of open source in the industry.  In this second installment of the "Open Source @" Series, I talk
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Ziff Davis - Although there are no dates or delivery mechanisms specified yet, Microsoft is considering how and if it should 'open source' more of its technology.
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Sales of the open source operating system Linux will reach $35 billion by 2008, according to analysts at IDC, with $10 billion of that accounted for in desktops.
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Linux continues to gain momentum in a Windows world, with global sales of the open-source software expected to surpass US&#36;35 billion in the next four years, according to research conducted by IDC.
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Blog: It's true that open source applications and infrastructure don't necessarily play well together today, as Microsoft suggests.  But it's also true that more than enough integration is in place for current market demand.
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Operating system might help make up for a rough quarter and Microsoft nipping at the company's heels.
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There's a lot of money to be made in open source, both as a shareholder and for the company.