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Here, not in a Washington courthouse or Silicon Valley cubicle, lies what may be the purest threat to Microsoft's domination of the software industry. Raymond, 40, is a full-time evangelist for "open-source" software, an idealistic concept once confined to the computing fringes, but one that has forged dramatic mainstream inroads in recent months. It dictates that software makers should grant access to their products' embedded "source codе," or "digital DNA" -- the basic formula that makes them work.

This would be somewhat akin to Coca-Cola Co. releasing its formula. If adopted on a large scale, its proponents say, open-source would allow a vast body of technical talent -- nourished and connected by the Internet -- to tinker with and improve software's underlying recipe. Software would become more reliable, Raymond tells audiences. Why? Because, in a closed company world, its creation is often not subject to independent peer review. This is why computers crash so often.

Conversely, open-source provides a broad and rigorous universe of peers to root out problems. In this collaborative environment, creativity would flourish. New business models would form. And Microsoft would be forced to assimilate or succumb. At least that's the idea. It might seem utopian in a computing industry governed by intellectual property laws. But in recent years, successful companies have emerged that specialize in open-source products.

Linux, an operating system attributed to Finnish engineer Linus Torvalds and enhanced through open-source collaboration, has become one of the fastest-growing software phenomena among fervent techies. Some major computing brands have adopted open-source formats. Microsoft is betraying fear of the movement in internal memos. And Eric Raymond has evolved from a childhood pariah to a hacker cult figure to an unlikely industry player who is being consulted by some of Wall Street's biggest investors.

Last month, Raymond received a call from a Merrill Lynch & Co. vice president inviting him to preach open-source to a group of 70 institutional investors. "Ꮃith any luck, Micгߋsoft'ѕ stock ѡill drop the next daу," he tells his Austin audience, which applauds.