Businesses and open-source

Ok. I’ve been reading a lot about the competition between Microsoft and Linux and how Linux being open-source and basically free, is really posing a threat to their income. What I have been trying to figure out is how a company can produce software and it not be threatened by open-source software, and also how a company can produce open-source software and still get some kind of an income to keep the business running. I was wondering what you all think about this. Thanks ahead of time for your opinions.

support, it's all about the support and implementaion of the products you distribute...
RedHat doesn't make all their money from the $40 versions at Borders (a book store)... l0l

-take it easy!

Thanks tampabay. Any more ideas from all you other people out there?

I think Linux did good implementation than microsoft did .. i dunno much about trading , bussiness and all of thiese thing. The competition will continue for long long time ( i think ) and each of them will try to complete their minus and will give more advantage to the user. we will see who will win , and who will be the last standing company.
I use Miscrosoft rather than Linux, it's not becoz of i don't like it. but becoz in here ppl use microsoft ( most of them ) than Linux And Linux has sold the product with quiet cheap but the ppl still looking for microsoft . i dunno why , i just try to adapt with what they use.
i hope it is not wrong.

:)