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The biggest threat to Microsoft isn't Apple or Linux, it's falling hardware prices

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The biggest threat to Microsoft isn't Apple or Linux, it's falling hardware prices

Posted by Adrian Kingsley-Hughes

Two interesting tidbits of news about Microsoft today. First is that the company is to make it legal to rent both Windows and Office. The second is an analysis on how slates will affect the Redmond giant's bottom line. Both are interesting reading, but both also are indications of the problems that Microsoft is likely to encounter over the coming years.

Take a look at Microsoft's business model. It's all about selling expensive software to users, and then, later on down the line, selling those same people an upgrade. Rinse and repeat. But this model is not what it used to be. The problem facing Microsoft is that as hardware prices drop, this puts pressure on Microsoft to lower prices. Moreover, the problem is that as CPUs get faster, hard drives get bigger, and components become more and more integrated, the pressure will continue.

Story at ZNet - http://blogs.zdnet.c...ardware/?p=6687

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