Microsoft successfully expanded in personal computer and enterprise server markets through the 1990s, partially on the strength of the company's marketing strategies. By the late 1990s, Microsoft came to view the growing open source movement as a threat to their revenue and platform. Internal strategy memos from this period, known as the Halloween documents, describe the company's potential approaches to stopping open source momentum. One strategy was "embrace-extend-extinguish", in which Microsoft would adopt standard technology, add proprietary extensions, and upon establishing a customer base, would lock consumers into the proprietary extension to assert a monopoly of the space. The memos also acknowledged open source as a methodology capable of meeting or exceeding proprietary development methodology. Microsoft downplayed these memos as the opinions of an individual employee and not Microsoft's official position.
While many major companies worked with open source software in the 2000s, the decade was also marked by a "perennial war" between Microsoft and open source in which Microsoft continued to view open source as a scourge on its business and developed a reputation as the archenemy of the free and open source movement. Bill Gates and Microsoft CEO Steve Ballmer suggested free software developers and the Linux kernel were communist. Ballmer also likened Linux to a kind of cancer on intellectual property. Microsoft sued Lindows, a Linux operating system that could run Microsoft Windows applications, as a trademark violation. The court rejected the claim and after Microsoft purchased its trademark, the software changed its name to Linspire.
In 1998, Microsoft published at least one public beta release of their Services for UNIX (SFU) based on the MKS toolkit, which in turn included some GNU utilities licensed under the GPL. Microsoft fulfilled the obligations imposed by the GPL and other Open Source Software (FLOSS) licenses by offering the source code of these software components and their licenses for download.
Microsoft CEO Steve Ballmer acknowledged that more customers are running mixed systems and said about the partnership with Novell:
The same year, Microsoft also open sourced Matter Center, Microsoft's legal practice management software and also Chakra, the Microsoft Edge JavaScript engine at the time. Also in 2015, Microsoft released Windows 10 with native support for the open-source AllJoyn framework, which means that any Windows 10 device can control any AllJoyn-aware Internet of Things (IoT) device in the network. Microsoft has been developing AllJoyn support and contributing code upstream since 2014.
In March 2016, Ballmer changed his stance on Linux, saying that he supports his successor Satya Nadella's open source commitments. He maintained that his comments in 2001 were right at the time but that times have changed.
Commentators have noted the adoption of open source and the change of strategy at Microsoft:
In 2018, the Microsoft CTO of Data spoke with ZDNet about the growing importance of open source stating that:
In 2019, Microsoft's Windows Subsystem for Linux 2 transitioned from an emulated Linux kernel to a full Linux kernel within a virtual machine, improving processor performance manifold. In-keeping with the GPL open source license, Microsoft will submit its kernel improvements for accommodation into the master, public release.
After exploring different alternative options and talking with various well-known commercial and open source package manager teams including Chocolatey, Scoop, Ninite and others such as AppGet, Npackd and the PowerShell based OneGet package manager-manager, Microsoft decided to develop and release the open source Windows Package Manager in 2020.
In August 2021, Microsoft announced that it is expanding its partnership to become a Strategic Member at the Eclipse Foundation.
Microsoft is either founding member, joining member, contributing member, and/or sponsor of a number of open source related organizations and initiatives. Examples include:
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