Microsoft Threat

Is Microsoft being threatened? By Linux, Google or Netbooks? Conz of ZDNet.CO.UK brings an interesting angle as to what could potentially cut down Microsoft’s margins. With netbook prices continuing to drop, I can’t imagine anyone other than a serious business user to plonk down a couple grand to buy a laptop if a cheaper alternative is available. My gut feeling is netbooks are going to be ubiquitous since they are portable, cheap and are adequately powered. They perform most of the basic functions most people do such as checking email, browsing, creating documents, spreadsheets and even watching movies in some ocassion. You may not be able to play the power hungry and graphic intensive computer games on the netbook, but most people who buy netbooks want only basic functionality. It will be interesting to see if Microsoft’s profits are squeezed out in the netbook market.

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