As a way to address Linux competition, Microsoft is announcing its first commercial derivatives program for all licensees of Windows CE. The program allows licensees of Windows CE to change and redistribute changes they make to 2.5 million lines of shared source code in version 5.0. Microsoft wants the industry to understand that the derivatives do not have to be shared with Microsoft or anyone else. The program permits developers to modify and redistribute the Windows CE source code and should make Microsoft code Windows CE code more accessible to developers. A spokesperson for a systems integrator says the rollout represents a major perception change in terms of the way programmers will view Microsoft and Windows CE. The commercial derivatives program rollout followed Wind River Systems Workbench 2.0 integrated development environment (IDE) release that allows developers to construct embedded applications atop Linux and the WindRiver VxWorks operating system (OS). Both offerings are the most recent visible indication of efforts by leading players in the embedded industry to acknowledge the actual value of the open source Linux operating system (OS) and the rivalry it has created in the embedded OS market. However, the offerings are also are a response to the increasing complexity of application software, strong pressures on original equipment manufacturers (OEMs) to shorten lead times, and the cost-cutting measures resulting from recessionary times. Industry analysts say Microsoft's tactic will serve as one more piece of ammunition in the battle against roll-your-own operating systems.