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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Len who wrote (16193)1/24/2000 5:38:00 PM
From: James Sinclair   of 54805
 
Information Week Cover Story: Why Linux Matters

Time for one of my occasional reminders to the thread that folks need to take the Linux impact on MSFT's gorilla status more seriously. Again, I'm not suggesting that any company dealing in Linux will become a gorilla, only that the OS is rapidly gaining credibility in corporate America as a low cost alternative to Windows for certain applications.

The link below will take you to an online copy of this week's Information Week cover story, "Why Linux Matters". I quoted one of the interesting passages below the link:

informationweek.com

"If I had to do it over again, I'd do it with Linux," says Greg Jones, chairman and CEO of uBid Inc., a $204.9 million online auction company that Microsoft recently listed as one of its Windows 2000 reference accounts. "The issue becomes not only can you deploy the best technology, but what's the cost of deploying it? Linux is in the mix as a new solution for companies in our space."

The reviews are equally enthusiastic from some of Microsoft's closest business partners. Intel CEO Craig Barrett says his eyes were opened when an Intel employee hosted a Linux user-group meeting online and thousands of Intel employees logged on. "Now we're seriously looking at it for above-the-waterline kinds of programs," Barrett says.

As Microsoft gets ready to unveil Windows 2000 formally, it would like to muffle the Linux buzz. "It's not on the radar screen for corporate IT," says Aubrey Edwards, a group product manager in Microsoft's Windows 2000 group. "Windows 2000 is a single platform that starts with departmental use and scales up to enterprise scenarios. Today, there isn't a similar scalability story for Linux."

Maybe so, but users like Linux's rapid development cycle, high reliability, and low price. Though Linux is available at no cost for downloading from the Internet, IT departments are willing to pay $50 for Linux CDs, which can be replicated on multiple machines. Compare that with Windows NT, which lists for $149 per workstation upgrade and $439 per server with 10 client licenses. The savings can add up quickly.


OK, I'm now ready to be brought back to my senses by the Microsoft loyalists in the crowd. I hate it when rags like Information Week start appealing to my rebellious side ;-).
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