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Linux may be the answer to the behemoth Microsoft. Here is a recent article, and some Linux links from the same magazine including a deal with Red Hat Software, a hot upcoming IPO.
Linux's threat to Microsoft What open source and the Internet mean to Redmond.
By Jason Pontin The Red Herring magazine From the June 1999 issue
This year, we almost gave Red Hat Software our award for best private company. Red Hat is the biggest reseller of Linux, the operating system whose underlying source code can be freely modified and distributed by the public. People give Red Hat money for something that is free because Red Hat offers things like installation software and technical support that users can't get with the bare-bones Linux they download from the Internet. Extraordinarily, Linux sold 17 percent of commercial server OSs in 1998, an increase of 212 percent from 1997.
Finally, we balked. Our top private company must be more than the leading representative of an important trend. It must also have a business model that could make its investors rich. Red Hat sells easily imitated services based on a free commodity. (We chose Symbian in the end. To find out why, see "Private Company Superstars.")
We weren't the only ones fretting about Linux. Many were dumbfounded when Steve Ballmer, Microsoft's (Nasdaq: MSFT) president, said that the company was "thinking with great interest" about releasing some, or all, of the Windows OS as open-source software. To geeks, this was like H.R. Haldeman, Richard Nixon's chief of staff, announcing that he and Dick had looked into the matter and were really interested in the redistribution of property to the proletariat.
No one really believed Mr. Ballmer (in fact, Ed Muth, the Windows 2000 group product manager, told us, "Although we never say never, we do not think our customers would be well served, and it wouldn't work with our business model as it is now constructed"); but that Mr. Ballmer said it at all, and that we thought about Red Hat so hard, says a lot about the threat that Linux poses to Microsoft.
In my first column in the Red Herring (see "Five Scenarios for Microsoft's Future"), I wrote, "The Internet might displace Windows as a platform, and with it Microsoft's business." Microsoft's challenge has been to reproduce the strange ecology of Windows on the Internet. For while most desktop and server systems in local area networks (LANs) once used Microsoft Windows, and therefore all software developers wrote for Windows, on the Internet most servers are not Windows, most desktops are nonproprietary browsers, and developers write software that can easily find a home on any host. In order to turn the Internet into one great Microsoft LAN, the company requires a share of the Internet server market similar to its share of LAN servers. Then Internet developers would write server applications that ran only on Windows, and Web developers would design sites that took advantage of specific features in Windows.
But the success of Linux means that this will probably never happen. In Linux, the Internet has found an OS commensurate with its needs. Like Unix, on which it is based, and unlike Windows, Linux is, in the jargon of the industry, scalable and robust. It offers the benefits of open-source development: the nearly continuous improvement of a program by its most enthusiastic users. People want to use it. Together with Unix OSs, Linux means that Windows' share of the server market will never be overwhelming, and developers will write Internet applications, not Windows applications.
The world will be very different. Microsoft will remain among the largest software vendors, but it will no longer be a company with special, impregnable advantages and a guaranteed income from the sale of Windows and Windows software.
To argue that Microsoft is in trouble may seem perverse. At $429 billion, it is the best-capitalized company in the world. But often, empires are in decline when to contemporaries they seem strongest.
Whether Red Hat can ever make a lot of money is a subject for another column.
Write to jason@redherring.com.
Red Hat address:http://www.redhat.com/
Red Hat and IBM team up:http://www.redherring.com/insider/1999/0218/news-linux.html
LINUX Torvolds and the beginning of the end for MSFT:http://www.redherring.com/mag/issue34/connection.html
Server software choice: not necessarily a MSFT rebellion:http://www.redherring.com/mag/issue63/news-freeware4.html
The SI link:https://www.siliconinvestor.com/subject.aspx?subjectid=21961
Oh Yea, I really like the BNBN web site, never failed on me so far. BNBN web site is powered by the unstoppable Windows NT crash derby. |