Martin Taylor, global general manager of platform strategy at Microsoft, talks to vnunet.com about how the company is handling the open source threat:

"I've hired quite a few people from the Linux open source world to run a research and development centre...we bring consultants from the Linux open source space to help us build solutions. We've got every Linux distro running; about 120 servers all with varying degrees of open source stacks on them.

What we do there is help our product groups have line-of-sight when they need to know things about Linux."

Also, see an in depth presentation by Martin Taylor on Microsoft Platform Competative Strategy, includes audio webcast.