Matthew Broersma of ZDNet (UK) reports that at a recent conference for partners, Microsoft has admitted that the Linux phenomenon has forced the company to change the way it approaches customers. Broersma writes . . .

“The emergence of Linux as a serious competitor to Windows has forced Microsoft to change the way it approaches customers, according to Microsoft chief executive Steve Ballmer.”

“At Monday's closing keynote speech to Fusion 2002, the company's annual symposium for its partners, Ballmer said that because of Linux, Microsoft is 'going through a whole new world of thinking.'”

“Where Microsoft has traditionally competed with companies such as IBM, Sun Microsystems, Novell and Oracle on the basis of 'low price, high volume', Linux and other open-source software have changed the game through its even lower cost — it is free.”

“'We haven't figured how to be lower cost than Linux,' Ballmer joked . . .”

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