Although Linux is a long way from moving Windows from market dominance, the Open Source based operating system now championed by IBM is putting pricing pressure on Microsoft, forcing the software giant to reduce prices and become more competitive in the market palce.

The world’s largest distributor of Linux-based solutions is IBM and Big Blue appears to be gaining share at the expense of Microsft and the closed Windows architiecture.

Although IBM’s Linux venture is probably just a faint blip on IBM’s revenues and net profits radar screen at this point in time, Big Blue may be in the beginning stages of giving Microsoft a real run for the money in the small to meduim-sized enterprise market with its Linux-based products.

Again, I see Big Blue undervalued as it trades in the mid-90’s per share.

Good, price cuts on it’s cash cow OS’s will hurt their ability to flood other markets with cheap/free products at a loss.

According to   this story on c/net , Linux has MS running scared enough that they are giving away free copies of Office to try to get some people back into the fold.