ABI Research is projecting that in 2009 Linux will represent 32 percent of netbook sales, far higher than the seven percent figure claimed by Microsoft, says a report. ABI also estimates that Linux will overtake Windows on netbooks by 2013, largely due to sales in less-developed countries, says the story.

ABI Research predicts that Linux and "alternative operating systems" (OSes) will overtake Windows XP in netbook sales by 2012. Reasons cited by ABI include the arrival of low-end ARM-based netbooks, as well as mobile stacks such as the Linux-based Android that are suited for these platforms.

Microsoft makes for an unlikely David, and Linux an even unlikelier Goliath — but here we are. A few years ago, Linux was positioned as the “Windows killer.” Now, as Microsoft is ramping up its efforts in the netbook market, Windows 7 is being positioned as the Linux killer. Interesting that Microsoft is being cast as an underdog here, albeit one with about 70% of the netbook market.

Linux is shaping up as Microsoft's target in a potential war of attrition to gain lost market share for Windows Mobile in handsets.

At first glance, Microsoft’s software portfolio — Windows, Office, Small Business Server and Exchange — still dominates the small business market. But Red Hat CEO Jim Whiteshurst says his company has found a back door into the small business market. Perhaps surprisingly, it doesn’t really involve desktop Linux.

Asustek Computer (Asus) predicts the Eee PC it has started selling with Microsoft Windows XP Home edition on board will outsell the original Linux-based version by a ratio of 6 to 4 in the market by year-end, a heady prediction considering the Windows machine costs nearly twice as much as the cheapest Linux one.

Windows of opportunity, that is. No one can predict history, but when we look back to today, we may see through these windows more clearly. These are windows of opportunity for Linux -- windows, ironically, at Microsoft's (Nasdaq: MSFT) expense.

In an unforseen move Microsoft has announced the release of the Windows 95, 98, Me and MS-DOS source code for today only. Microsoft Chairman Bill Gates said that "by releasing the code for these operating systems we are allowing software developers worldwide to create better applications for these systems".

For at least the third time in recent weeks, prominent Dell newspaper advertisements feature the Inspiron Mini 9 Netbook running Canonical’s Ubuntu 8.04 (that’s a small Linux notebook, folks). The VAR Guy hears Microsoft “has gone postal” over the Linux notebook ads. You might even say this is Microsoft’s nightmare before Christmas. Here’s the complete scoop.