[link|http://www.nytimes.com/2003/05/15/technology/15SOFT.html?pagewanted=all&position=|How Microsoft Warded Off Rival]

"Last summer, Orlando Ayala, then in charge of worldwide sales at Microsoft, sent an e-mail message titled Microsoft Confidential to senior managers laying out a company strategy to dissuade governments across the globe from choosing cheaper alternatives to the ubiquitous Windows computer software systems.
Mr. Ayala's message told executives that if a deal involving governments or large institutions looked doomed, they were authorized to draw from a special fund to offer the software at a steep discount or even free if necessary. Steven A. Ballmer, Microsoft's chief executive, was sent a copy of the e-mail message.
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"Under NO circumstances lose against Linux," Mr. Ayala wrote.
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Perhaps most important, certain discounts may run afoul of European market regulators, who are still investigating accusations that Microsoft abused their antitrust laws.
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In the face of this competition, the Microsoft documents show the significant resources the company devotes \ufffd and the unconventional tactics it sometimes uses \ufffd to combat Linux.

Chris O'Rourke, a Microsoft employee, described attending LinuxWorld, a trade fair in California, where he "purported to be an independent computer consultant" working with several public school districts, according to an e-mail message he sent on Aug. 20, 2002.

"In general, people bought this without question," Mr. O'Rourke wrote. "Hook, line and sinker."

He said his goal was to glean intelligence about the competition. His guise, Mr. O'Rourke said, "got folks to open up and talk." Mr. O'Rourke did not respond to a fax and voice mail message seeking comment."