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is it a problem at all? why bother trying to switch people over to windows when you can just make money off hosting their linux servers?

you're not thinking about the sales channel.

It's more lucrative to license Windows + SQL server + MS 365 + etc etc than hourly VM rates.

365 is a hosted service. you don't need to run windows on your servers to use it

SQL server is also offered as a managed service on Azure, and you can query it from your linux server just fine.

i'm talking about the sales funnel

Except the very few that will take that option when there's a better open source alternative for free won't make it worth it.