Microsoft vs. Free Software

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Microsoft saw the open-source threat early on

Early comments (Anti-American, cancer, etc.)

Anti-Linux studies

Culminating in Microsoft's patent war against Linux and open source.

And yet Microsoft is starting to warm up to open source in some areas:
CRM
Embedding in Visual Studio
Etc.

Why is Microsoft has the most to lose from open source

Microsoft's business model is under siege from open source.
Microsoft's new IP chief believes in milking the patent machine.
Microsoft needs open source to cost more than $0.00.
Open Source Book