Will Microsoft compete with ‘Free’ ?

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Im wondering how the the new Microsoft CEO will tackle the competition of ‘free’ applications and source codes. Although their products are doing quite well on the server software side, like the Windows Server. It works most especially well with the Exchange email server and the under rated but very efficient collaborator server, which is the SharePoint. These applications and products have certainly ripened much to the delight of users. They are extremely easy to use and set up and manage. The Exchange successfully manages email, contacts and calendars for the thousands of its customer organizations worldwide. Apple recently adopted Exchange. With its iPhone, now easily syncs with Microsoft’s servers. Future compatibility and support for Exchange in the coming OS X is well under way. This is good news for Apple and Microsoft lovers as well.