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Microsoft's discounts could threaten profits

Time: 00:57 EST/05:57 GMT | News Source: Bloomberg | Posted By: Todd Richardson

A Microsoft program to provide discounted or free software to government customers to compete with the free Linux operating system may hurt profits, analysts said. Linux "is breaking their monopoly control of the market," said Rob Enderle, an analyst at Giga Information Group. "Because of the discount in the government and education space, over the long term they should show declining profit margins."

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