It's a double whammy when it comes to Linux. Unit sales are lost (espeically in the server segment) and the remaining units sell for less. As excited as that might get those rooting for Linux as the underdog, Microsoft is far from going down for the count.
Microsoft still posted a net income of $1.2 billion dollars for the first quarter of this year and is sitting on $56 billion in cash and short term investments. By comparison, RedHat posted a measely net income of just under $11 million dollars for the same period.
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