I’ve been thinking for some time now that Linux is really not that big a threat to Microsoft. I do believe that especially for smaller businesses they should have Microsoft based solutions for their main office applications. For there server solutions a Linux based solution, especially one of those all in one solutions (email and web server, remote access, file server, etc) from Nitix or Emerge Core could be ideal.
However, the Associated Press is reporting that in another sign competition is heating up in the software industry, Microsoft Corp. has slashed prices by more than half for Paris City Hall as the French capital considers switching to low-cost open-source programs. (full story)
Even if a company chooses to use Microsoft, Linux can be used as a stick to get Microsoft to lower prices.