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Is There a New Sheriff In Town? - Linux operating system
It's getting close to high noon at the OS Corral.
If you're thinking about adding PCs and software to your business, it's a given that those programs will be running on Microsoft Windows, right? Not anymore.
There's a new operating system in town and, while it isn't about to topple Windows, it's definitely punching a few holes in its foundation. In fact, if Bill Gates needs another argument to persuade the antitrust court that the PC industry isn't really his own personal sandbox, he can point to the success Linux is having against the keystone of his alleged monopoly.
Developed by Finnish programmer Linus Torvalds back in 1991 and maintained by a slew of volunteer code slingers around the world, this low-cost OS has reached critical mass during the past 12 months. Long the darling of counter-culture (meaning non-Windows) programmers, Linux has lately developed quite a following among corporate IT managers and Web masters who find it a good alternative to Windows NT for local area networks (LANs), Web servers and other multiuser and/or Internet-oriented applications. The most recent Comdex trade show--where Torvalds shared top billing with Bill Gates--also demonstrated how popular Linux is becoming: You can now buy Linux server software off the shelf at CompUSA.
The next target is the huge desktop-applications market serving the Microsoft Office-bound workers in your company. This is Linux's weakest link, but not an insurmountable hurdle to deploying Linux-based computers in your company.
Linux has legitimate hopes of attracting packaged software developers not only because it's free of licensing fees, but also because it's free of Microsoft's economic vision, which often seems at odds with the interests of those dependent on a Windows license. Linux appeals to developers by virtue of it's sleekness, its modularity and its ability to run on undersized or even ancient PCs. Then, of course, there's the whole anti-big-business, anti-Gates energy of a movement committed to global teamwork and code sharing.
What's it mean for your company's productivity? Perhaps a more complex computer-purchasing decision with higher interim support costs. But possibly more bulletproof multiuser computing solutions at lower prices.
REVENGE OF THE NERDS
It was demoralizing enough when Bill Gates became the world's richest man. But the success of Linux really demonstrates just how far geek chic has progressed. Wall Street is snapping up the IPOs of Linux companies even more quickly than it did the dot.com IPOs of last spring. Come-out prices have rocketed to triple-digits in early trading, and VA Linux Systems' IPO set a first-day market appreciation record before ending the day at $239 1/4 a share.
Even private placements attract a Who's Who of venture capitalists. San Francisco-based LinuxCare's recent $32.5 million second round was subscribed to by Patricof & Co., Kleiner Perkins Caufield and Byers, Sun Microsystems, Dell Computer, Oracle and Motorola. In other words, some of the best and brightest minds in Silicon Valley are betting that Linux has legs, and it's starting to look like they just might be right.
In 1998, Linux was the third most popular server operating environment after Windows NT and Novell Netware, according to data from IDC. Paid Linux shipments held 16 percent of the server operating environment market. By 1999, Linux had grown enough to take the No.2 position behind Windows NT. IDC's preliminary data shows that paid Linux shipments held 25 percent of the market for server operating environments, says Dan Kusnetzky, program director of operating environments and serverware research services for IDC.
Overall, IDC expects the Linux environment--both client and server applications--to log a 26 percent compound annual growth rate through 2003, compared to about half that for Windows. Linux companies aren't likely to threaten Microsoft's unit shipments for years, but Linux is becoming a highly regarded back-office OS for small-business Web servers and office LANs serving eight to 12 clients, explains Kusnetzky.
COMMUNAL CODE
No one company owns Linux the way Microsoft owns Windows. Torvalds wrote the OS to look and work like the Unix he loved, but then put it in the public domain, keeping only the Linux trademark for himself so no claim-jumper could steal it. Today, dozens of different flavors of Linux are being maintained communally over the Net by tens of thousands of volunteers.
This development methodology has led to concerns that different Linux flavors will become Balkanized like the Unix variants before them. Not a chance, says Kusnetzky. While Unix companies intentionally made "better-but-incompatible" versions of the OS to gain commercial advantage, no one profits from participation in public-domain Linux projects.
Linux execution modules, complete with source code, are made freely avail-able over the Internet to any programmer or distributor willing to play by the Open Source Organization rules--meaning all changes to the code base must be shared freely over the Net, where it is subject to exhaustive peer review. The thousands of developers who critique Linux code have an interest in working toward universal compatibility; and that's creating a pretty bulletproof OS.
" hours a day, seven days a week, fully utilizing their CPUs, and I haven't had a single crash in two years," says Bill Faust, 34-year-old partner in the engineering firm Optim Microwave in Thousand Oaks, California. "We considered using Windows NT, but based on my own [experience], I had little confidence NT servers could stay up for weeks and months at a time."
"Linux certainly isn't the most userfriendly or intuitive system in that I have to look at a book to use it," adds David Sears, 42-year-old principal in Cambridge Data Systems, based in Cambridge, Massachusetts, runs a Webemployment database on its Linux server. "But I'm not doing a lot of work on it either. It's up 24/7 and has given me all I expected."
Faust and Sears use code from the Debian GNU/Linux Project, which, like all Linux versions, is available free off the Web (www.debian.org) or from commercial developers like Corel (www.corel.com) and VA Linux Systems (www.valinux.com). Other commercial companies like Red Hat (www.redhat.com) and Caldera Systems (www.caldera.com) combine code from other projects. Pure Linux is still a little geeky, so most distributors also include graphical user interfaces which, according to PC magazine reviewers, are pretty fair imitations of the Windows look.
Many technically adept groups that would normally buy copies of Windows at $90 to $1,000 apiece are, instead, downloading a free copy of Linux and making as many copies as they want. Faust estimates that his four-person company saved $12,000 by running Linux instead of Windows NT on the cluster of servers Optim Microwave uses to design communication antennae. "Linux has been key to our success as a start-up because it enabled us to get very cheap processing power when we had low funding," says Faust.
But how do commercial ventures like Red Hat, Caldera and VA Linux make a living in the long term by giving away free software? The answer is that they give away the razor to sell support, add-on products and various system-integration services--a common Internet business model. Prices on commercial CD-ROMs can range from a few dollars to cover copying, packaging and shipping to around $200 for professional Webmaster/programmer versions with different kinds of documentation, tech support options, utilities and other add-ons.
TOASTER OR SERVER APPLIANCE?
In addition to general-purpose networking servers, the minimal hardware needs of Linux make it ideal for so-called server appliances. These downsized PCs, not much larger than toasters, run one or two multiuser server applications very well--such as accessing the Internet, performing e-commerce and sending and receiving e-mail.
These low-profile boxes--from companies like Cobalt Networks (www.cobalt. com), Netmachines (www.netmachines.net) and Rebel.com (www.rebel.com)-- to existing Ethernet networks or connect over the Internet to networks managed remotely by a Value Added Reseller (VAR).
Starting at less than $1,000 and running on low-powered processors, different server appliances can be used as print and file servers--even on NT and Novell networks--giving entrepreneurs a flexible way to back up network services. The key added value these vendors is to configure their servers so they can be added and managed by a small business operating without an IT staff. Cobalt, Netmachines and Rebel.com use customized HTML interfaces so their Linux appliances can even be managed remotely over the Internet.