Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Jane4IceCream who wrote (113830)	9/14/2000 8:58:35 PM
From: puborectalis	Respond to of 120523

Linux: Sun Microsystems' Anti-Microsoft Crusade Does Wonders for Linux, Future Profitability Toronto, ONT, September 15 /SHfn/ -- In their recent announcement of support for the "Gnome" Linux desktop initiative, major Unix hardware vendors are helping specialist Linux firms like VA Linux [LNUX] and Red Hat [RHAT]. But that is beside the point. What the hardware vendors are really after is selling more of their high-margin Unix servers. The Gnome initiative also fits well with Sun Microsystems [SUNW] CEO Scott McNealy's anti-Microsoft crusade and his "thin client/fat server" vision. Sun is a major Gnome supporter along with other server-makers Compaq [CPQ], Hewlett-Packard [HWP] and IBM [IBM]. Riding on strong Unix server business, Sun shares are currently trading near the top of their 52-week range. Sun and the other hardware vendors are aiming to gain wide acceptance for a Linux-based, open-source-code desktop environment to displace Microsoft's [MSFT] Windows. This is part of a larger effort to increase Unix's market presence against Microsoft's server operating systems (OS). Currently, Microsoft NT (in its various iterations) dominates the server OS market. The bulk of shipments are low-end, lower-margin Intel [INTC] based servers running mostly NT. The Gnome partners would love to steer customers towards a combination of Unix servers with Linux running on top--thereby selling more high-end, higher margin Unix servers. Gnome is in effect becoming a Unix hardware vendors' "alliance" that aims to complete a free software initiative. One of the supporters' first announcements is that Sun's "StarOffice" applications suite will become part of Gnome. Sun is devoting heavy resources to developing StarOffice and other software, only to give it away as it is doing with its "Solaris 8" Unix server OS. Taken to a logical conclusion, either hardware vendors' margins increase if they can get rid of the bundling fees paid to Microsoft every time their hardware ships preloaded with Microsoft software, or the hardware vendors' customers pay less, which could stimulate demand. This supports McNealy's thin client/fat server vision, which depends on consumer demand stimulation for all sorts of thin client devices. By making software "free," the hardware vendors make "dumb" thin client consumer devices more affordable. Vast "smart" fat server networks provide the computing capacity for the thin client devices. In his vision, McNealy does not provide for making money off software itself. The hardware vendors' support for Gnome is a logical follow-on to their development of Linux support. Without a competing desktop environment, there is little hope of winning the match against Microsoft. A universal application standard and standardized desktop environment for Unix are the keys to moving Unix beyond its heavy duty, back-end data center market. Hewlett-Packard, IBM and Sun are developing Linux support so it will run on top of their Unix versions. The hardware vendors hope to establish Linux binaries as a standard format for deploying applications to run on Unix--software developers will finally have the standard for Unix applications development that is currently lacking. The development of such a universal application standard makes it much easier to attract applications developers to Unix. VA Linux and Red Hat should benefit from any initiatives that increase the marketability of Linux. The Unix hardware vendors' initiatives do this. If everything falls together, Unix / Linux will have a server OS, desktop environment and applications that are a match for Microsoft's seemingly unbeatable marketing combination of NT, the Windows desktop environment and Windows applications. Both Unix and Linux stand to benefit at Microsoft's expense. But the "free" software push means the most likely Linux winners will not be those pushing only software itself. The winners will be the companies with multiple revenues streams and large market share positions. Companies like VA Linux and Red Hat will do well, given that they take large proportions of revenue from things like specialized Linux hardware, add-ons to the basic Linux open source code, Linux software development services and product support. Companies will not do well if they plan on making money from software sales alone.

To: Jane4IceCream who wrote (113830)	9/14/2000 8:59:09 PM
From: puborectalis	Respond to of 120523

Linux: Sun Microsystems' Anti-Microsoft Crusade Does Wonders for Linux, Future Profitability Toronto, ONT, September 15 /SHfn/ -- In their recent announcement of support for the "Gnome" Linux desktop initiative, major Unix hardware vendors are helping specialist Linux firms like VA Linux [LNUX] and Red Hat [RHAT]. But that is beside the point. What the hardware vendors are really after is selling more of their high-margin Unix servers. The Gnome initiative also fits well with Sun Microsystems [SUNW] CEO Scott McNealy's anti-Microsoft crusade and his "thin client/fat server" vision. Sun is a major Gnome supporter along with other server-makers Compaq [CPQ], Hewlett-Packard [HWP] and IBM [IBM]. Riding on strong Unix server business, Sun shares are currently trading near the top of their 52-week range. Sun and the other hardware vendors are aiming to gain wide acceptance for a Linux-based, open-source-code desktop environment to displace Microsoft's [MSFT] Windows. This is part of a larger effort to increase Unix's market presence against Microsoft's server operating systems (OS). Currently, Microsoft NT (in its various iterations) dominates the server OS market. The bulk of shipments are low-end, lower-margin Intel [INTC] based servers running mostly NT. The Gnome partners would love to steer customers towards a combination of Unix servers with Linux running on top--thereby selling more high-end, higher margin Unix servers. Gnome is in effect becoming a Unix hardware vendors' "alliance" that aims to complete a free software initiative. One of the supporters' first announcements is that Sun's "StarOffice" applications suite will become part of Gnome. Sun is devoting heavy resources to developing StarOffice and other software, only to give it away as it is doing with its "Solaris 8" Unix server OS. Taken to a logical conclusion, either hardware vendors' margins increase if they can get rid of the bundling fees paid to Microsoft every time their hardware ships preloaded with Microsoft software, or the hardware vendors' customers pay less, which could stimulate demand. This supports McNealy's thin client/fat server vision, which depends on consumer demand stimulation for all sorts of thin client devices. By making software "free," the hardware vendors make "dumb" thin client consumer devices more affordable. Vast "smart" fat server networks provide the computing capacity for the thin client devices. In his vision, McNealy does not provide for making money off software itself. The hardware vendors' support for Gnome is a logical follow-on to their development of Linux support. Without a competing desktop environment, there is little hope of winning the match against Microsoft. A universal application standard and standardized desktop environment for Unix are the keys to moving Unix beyond its heavy duty, back-end data center market. Hewlett-Packard, IBM and Sun are developing Linux support so it will run on top of their Unix versions. The hardware vendors hope to establish Linux binaries as a standard format for deploying applications to run on Unix--software developers will finally have the standard for Unix applications development that is currently lacking. The development of such a universal application standard makes it much easier to attract applications developers to Unix. VA Linux and Red Hat should benefit from any initiatives that increase the marketability of Linux. The Unix hardware vendors' initiatives do this. If everything falls together, Unix / Linux will have a server OS, desktop environment and applications that are a match for Microsoft's seemingly unbeatable marketing combination of NT, the Windows desktop environment and Windows applications. Both Unix and Linux stand to benefit at Microsoft's expense. But the "free" software push means the most likely Linux winners will not be those pushing only software itself. The winners will be the companies with multiple revenues streams and large market share positions. Companies like VA Linux and Red Hat will do well, given that they take large proportions of revenue from things like specialized Linux hardware, add-ons to the basic Linux open source code, Linux software development services and product support. Companies will not do well if they plan on making money from software sales alone..............alsohttp://www.zdnet.com/intweek/stories/news/0,4164,2628254,00.html