Linux handing CE its head in handhelds?

ZDNet has a good article discussing how Linux is breaking into the information appliance market with little or no effort, a feat that Windows CE has struggled with from the beginning. The article makes the point that Microsoft can't rely on its usual business strategy because nobody cares which OS these boxes run on. Consequently, if developers have to choose between a free, open source OS and a closed one with a pricetag, guess which one wins?

I think this is interesting not only on the surface level, but also for the implied statement it makes about Microsoft's monopoly status. Here's a developing market where Microsoft doesn't have the momentum or marketshare to strongarm everyone, and consequently they're getting smacked around pretty hard. What does that imply with regard to how Microsoft stays on top in the PC arena? Talk amongst yourselves.

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