Microsoft Corporation (MSFT), Google Inc (GOOG), International Business Machines Corp. (IBM): It’s Looking Increasingly Likely That Linux Could Kill Off Windows

Microsoft’s mistakes
If Linux does eventually replace Windows, Microsoft Corporation (NASDAQ:MSFT) will deserve much of the blame. In recent years, missteps by Microsoft’s management have helped to accelerate Windows’ decline.

When the iPhone was announced in 2007, Microsoft Corporation (NASDAQ:MSFT)’s Steve Ballmer actually laughed at it. Ultimately, the iPhone — along with the iPad — would serve as the basis of Apple‘s push into mobile computing, with Google Inc (NASDAQ:GOOG)’s Android following in Apple’s footsteps. Microsoft Corporation (NASDAQ:MSFT) eventually mustered a response with Windows Phone 7 and then Windows Phone 8, but the delay has led to lackluster developer support; even today, Windows Phone lacks a multitude of popular apps.

At the same time, Microsoft Corporation (NASDAQ:MSFT)’s aggressive redesign of Windows — in the form of Windows 8’s Metro interface — has led to a backlash among its base of traditional PC users. Some consumers may have found the changes to Windows 8 too drastic, perhaps holding on to older machines instead. Samsung appears to believe that; an executive of the South Korean tech giant told reporters that Windows 8 was about on par with Vista (a previously despised version of Windows that even Ballmer has criticized).

The fall of Windows
In the 90s, the US Justice Department was obsessed with Microsoft Corporation (NASDAQ:MSFT)’s then operating system monopoly. But today, the very notion of a Microsoft monopoly seems silly. In large part, that’s due to Linux-based operating systems, particularly Android, as well as Chrome OS and IBM’s Linux-powered servers.

As Windows still accounts for about one-fifth of Microsoft’s revenue and a sixth of its operating income, further declines in its Windows business could devastate Microsoft’s earnings. This is one trend Microsoft investors need to keep a close eye on.

The article It’s Looking Increasingly Likely That Linux Could Kill Off Windows originally appeared on Fool.com and is written by Sam Mattera.

Sam Mattera has no position in any stocks mentioned. The Motley Fool recommends Google. The Motley Fool owns shares of Google, International Business Machines, and Microsoft.

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