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Technology Stocks : Red Hat Software Inc. (Nasdq-RHAT) -- Ignore unavailable to you. Want to Upgrade?

To: Jerry Whlan who wrote (146)	7/26/1999 1:28:00 AM
From: Mohan Marette	Respond to of 1794

Linux Servers to have greater success in Server Appliance Market-Dataquest. GartnerGroup's Dataquest Forecasts Linux Servers to Have Greater Success in Server Appliance Market than Traditional Server Industry San Jose, Calif., July 19, 1999—While Linux servers have gained a lot of mind share as a possible leader in the server market, Linux servers are expected to have a larger impact on the worldwide server appliance market, according to Dataquest Inc., a unit of Gartner Group, Inc. (NYSE: IT). Dataquest estimates that by 2003, Linux servers will account for approximately 24 percent of worldwide server appliance revenue, or $3.8 billion, and 14 percent of server appliance shipments, or 1.1 million units. Linux servers are projected to represent 3.4 percent of worldwide traditional server revenue, or $1.9 billion, and 8.1 percent of traditional server shipments, or 450,000 units by 2003. "Linux will continue to grow as an operating system deployed on new server hardware, but much of the hype surrounding Linux will fade once Microsoft ships and then delivers a service pack for Windows 2000 Server," said Kimball Brown, vice president and chief analyst for Dataquest's Emerging Server Technologies Worldwide program. "However, in the server appliance market, we believe Linux is becoming a credible and favorite operating system used by server appliance vendors." Dataquest recently surveyed various vendors in the server appliance market, and the survey results showed strong support for Linux as the basis for their products. A slew of server appliance vendors are using Linux rather than BSD UNIX, another variant of UNIX that is free, other operating systems, or Windows NT Embedded, which require licensing fees. "Not only is Linux free, but the support and continual upgrade of Linux off-loads the appliance maker from having to support its own operating system, further cutting costs. Because the operating system is free, the vendor can either offer a lower price for the solution, which is good for reaching small business and workgroup markets, or realize increased margins," Mr. Brown said. (To subscribe to this program, please call 800-419-DATA or 408-468-8009.)