>Good point. But now that companies like IBM and HP are beginning to seriously back Linux...

Yup,

Too much to gain for the "sugar-daddies". Been following this alot lately and I firmly believe Linux is here to stay in a BIG way. It will kick MS ass in the embedded and server markets for reasons inherent to Open Source. While it is making nice inroads into the desktop arena via GNOME, Linux still has a long way to go.

Sure, the "distros" need to modify their revenue models to stay healthy (RedHat currently is) and will never attain the cash flow like Microsoft. But that's good for reasons not so obvious to those except Microsoft.

MS's margins are being "squeezed" and this is just the beginning. They can no longer expect their customers (who are getting smarter) to go for the incremental-upgrade-okidok. .NET IS a make or break thing.

Is MS worried about Linux? If they are not sh*t*ng-in-their-pants, they should be.