According to Be Inc. -- a former provider of an operating system rival to Windows turned corporate ghost/litigator -- Microsoft's (NASDAQ:MSFT) practices caused it to have been, er rather, put it out of business. However, the companies announced a $23 million settlement Friday, with Microsoft admitting no wrongdoing.
Now, $23 million may sound like a lot to you and me. But to Microsoft, with revenues of $28.36 billion and total cash of $49.05 billion, forking over a few million to a defunct rival just isn't going to break the bank.
So it may not mean much to Microsoft's bottom line. However, an easy, quiet settlement is one less public relations concern for Microsoft, and the company's had a few. Namely, those vicious hack attacks that are still fresh in our minds. The Be postscript to last week's woes serves as a reminder of the downside of a nearly ubiquitous OS like Windows, used by corporations, homes, and government entities.
Too bad about Be, you may think, but there are still other challengers. Open-source Linux, with some IBM (NYSE:IBM) backing, and Apple's (NASDAQ:AAPL) Mac OS, for example -- but none have reached near the presence that Windows has.
So this may be an example where security is not in numbers. Hackers just don't bother with the Mac and Linux operating systems, maybe because attacking them wouldn't deliver such large-scale disruption. Others argue that Microsoft's "closed" status gives hackers the irresistible urge to crack its code.
In its 10-K filing, Microsoft consoles shareholders about the rivalry posed by open-source Linux by saying it believes its own products provide "significant advantages in security and productivity." However, that bout of virus- and worm-related network addling and spontaneous PC rebooting left many wondering about the security part.
Newswires reported that Japan, China, and South Korea may create an open-source OS to use in lieu of Windows, citing security as a concern. According to a Reuters article, a Microsoft spokesman posed concerns about the fairness of such a development. Indeed, the company's 10-K poses the risk of governments requiring the use of open-source products.
When Microsoft voices concern over fair competition, are former Be employees and shareholders thinking, "Boohoo"? Not a chance. It seems Microsoft has a lot of work to do to ensure its corporate and home Windows users feel secure before other operating systems gain momentum.
