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Windows faces new competition: Itself

 


In the past year, Microsoft appears to have done just what it asked a court not to make it do: fragment Windows.

In April 2002, the software maker's chairman, Bill Gates, testified that too many versions of Windows would be bad for consumers and for competition. But since then, Microsoft has essentially doubled--to about two dozen--the number of "current" versions of the operating system software.

The goal behind the proliferation, analysts say, is in fact to create competition of sorts, within Microsoft's own monopoly market. They say the variations indicate the company understands that consumers and businesses crave choice. More versions could also boost sales and fill niches left vacant by the lack of external alternatives.

"Vanilla just doesn't work for everybody anymore," said Technology Business Research analyst Lindy Lesperance. "Microsoft is looking for ways to drive new demand, in new form factors and segments of the market where their OS may be applicable. They have to fragment to get into these new markets."

Since November, for example, Microsoft has released three new versions of Windows XP alone.

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