[Fsf-friends] As Linux Nips at Microsoft, Its Advocates Talk Numbers

Tue, 21 Jan 2003 21:01:37 -0800

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As Linux Nips at Microsoft, Its Advocates Talk Numbers
By STEVE LOHR

he evidence is now overwhelming that Linux, once a symbol of software's =
counterculture, has become a mainstream technology.=20

The Linux World conference that begins in New York tomorrow promises to =
be a staid, corporate affair. The speakers' list is filled with =
corporate technology people who will be there to discuss the =
dollars-and-cents rationale for Linux, an operating system that is =
distributed free and developed according to open-source principles, in =
which programmers donate their labor to debug and modify the software =
cooperatively.

Such speakers will hardly be the visionaries and philosophers of the =
open-source software movement who were the stars of Linux gatherings of =
a few years ago.

These days, executives at companies that have adopted Linux speak in =
pragmatic terms of the benefits of saving money and gaining flexibility.

Even Microsoft has quietly decided to change its tactics this year. No =
longer will its executives make speeches against what Microsoft regards =
as the evils of free software and its inherent agenda of denying =
intellectual property rights.

"We still have those concerns, but you're not going to hear us talking =
much in public forums about them," said Peter Houston, a strategy =
executive at Microsoft. "In 2003, we're going to emphasize the business =
benefits of our software =97 the value for money, the competitive =
advantage and the safety of investment for customers from buying =
Microsoft software."

Microsoft, it seems, is acknowledging that Linux has become a fixture on =
the competitive landscape, not something that corporate customers can be =
persuaded to avoid.

To date, Linux has thrived in some sizable niches of the market for =
operating systems on server computers, the data-serving machines that =
act as the hubs of computer networks. Linux is widely used on machines =
that send Web pages to desktop personal computers and for =
high-performance computing tasks like scientific research, Hollywood =
special effects and analyses of risk and trading patterns on Wall =
Street.

But the real issue is how far Linux can extend its reach into everyday =
corporate computing in all kinds of industries. By 2005, it should be "a =
mainstream choice," along with Microsoft's Windows and commercial =
versions of Unix, as a server operating system in most industries, said =
Dan Kusnetzky, an analyst at IDC, a research firm.

Linux is typically cast as the enemy of Windows, as the populist =
challenger to Microsoft and the company's drive to extend its monopoly =
on the PC desktop into the lucrative business of corporate computing. It =
is true that Linux and open-source software in general pose a threat to =
Microsoft, the dominant software maker.

Still, the rise of Linux is a more imminent threat to the commercial =
versions of Unix. Linux is the open-source offspring of Unix, an =
operating system developed at Bell Laboratories in the late 1960's and =
early 70's. The leading commercial versions of Unix today are made by =
Sun Microsystems, I.B.M. and Hewlett-Packard. The Unix flavors run on =
costly, specialized hardware, while Linux was designed to run on =
low-cost hardware from the PC industry powered by Intel microprocessors =
or Intel-compatible chips. And software applications that run on Unix =
can be moved over fairly easily to Linux.

I.B.M. and Hewlett-Packard are placing big bets on Linux, and both are =
on a path to phase out their proprietary Unix businesses eventually. =
Companies like I.B.M., Hewlett-Packard, Red Hat, SuSE Linux, Linuxcare =
and others make money by supplying hardware, technical support, services =
or software for Linux systems.=20

Sun Microsystems, however, is deeply dependent on its homegrown Unix =
business =97 on large, powerful and expensive machines running its =
Solaris operating system.

E*Trade, the online broker and bank, has made a significant shift to =
Linux over the last year. E*Trade began looking in early 2001 at the =
potential savings from moving to Linux on Intel-based servers, but it =
seemed risky, according to Joshua S. Levine, the chief technology =
officer.

But by the end of 2001, when it became clear that I.B.M. and =
Hewlett-Packard were really investing in Linux, supporting it with =
hardware, software and services, Mr. Levine decided to make the move. =
Last year, the company bought 160 Intel-based servers and converted =
about two-thirds of its data center to Linux, replacing Unix systems, =
mostly from Sun Microsystems.

Last year, Mr. Levine says, the move saved E*Trade about $13 million in =
data center expenses, including maintenance, depreciation and software =
licensing fees. And the reduced hardware costs, especially after the =
replacement is complete, proved irresistible. "I'm replacing $200,000 =
Unix machines with $4,000 Intel servers," Mr. Levine said.

The one thing not being shifted over to Linux machines is the E*Trade =
databases of customer and trading information. "That is the riskiest =
thing to do," he said.

Mr. Levine, a 25-year veteran of the corporate computing field, said of =
Linux: "It's just an operating system, and a minimalist one at that. But =
Linux unshackles us from a proprietary world. It allows me to manage =
computer hardware manufacturers like I've never been able to manage =
them."

Still, rapid conversions to Linux are the exception. That is especially =
the case at large companies with corps of in-house programmers =
accustomed to writing programs for other operating systems. And changing =
technologies can be risky and disruptive.

J. P. Morgan Chase began experimenting last year with using clusters of =
Linux machines as a high-performance computing environment for =
conducting risk analyses on vast amounts of market data. Such work is =
similar in its calculation requirements to scientific research, where =
Linux has been used for years.=20

The bank is looking at using Linux-based systems for new applications =
and when hardware has to be replaced. The pilot projects have gone well, =
and Linux is now being used for some high-performance applications. =
"It's real, but it's in the early stages," said John Curcio, vice =
president for distributed computing.

Earlier this month, Goldman, Sachs issued a lengthy report titled, "Fear =
the Penguin," a reference to the Linux mascot. "Linux-on-Intel appears =
likely to emerge as the dominant platform in corporate data centers," =
the report predicted.

"All of Unix is more at risk than Microsoft's Windows in the next few =
years," said Thomas Berquist, a Goldman, Sachs analyst and a co-author =
of the study. "But what is really at risk is the concept of a =
proprietary operating system. And that has to affect Microsoft."

Source: =
http://www.nytimes.com/2003/01/20/technology/20LINU.html?todaysheadlines =

Posted by

N.S. Soundara Rajan

Freelance IT journalist,=20
Columnist "Deccan Herald", =20
Spoken English Teacher and=20
Knowledge networker=20
=20
 ...connecting people to people, and people to knowledge
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D
34, I Floor, 8th Main,  Yadhavagiri, MYSORE 570 020, Ph: 0821 414726

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<DIV>As Linux Nips at Microsoft, Its Advocates Talk=20
Numbers</DIV>
<DIV></NYT_HEADLINE><NYT_BYLINE version=3D"1.0" type=3D" ">By=20
STEVE =
LOHR </NYT_BYLINE><NYT_TEXT>
<IMG alt=3DT =
src=3D"http://graphics7.nytimes.com/images/dropcap/t.gif" align=3Dleft=20
border=3D0>he evidence is now overwhelming that Linux, once a symbol of =
software's=20
counterculture, has become a mainstream technology. 
The Linux World conference that begins in New York tomorrow promises =
to be a=20
staid, corporate affair. The speakers' list is filled with corporate =
technology=20
people who will be there to discuss the dollars-and-cents rationale for =
Linux,=20
an operating system that is distributed free and developed according to=20
open-source principles, in which programmers donate their labor to debug =
and=20
modify the software cooperatively.
Such speakers will hardly be the visionaries and philosophers of the=20
open-source software movement who were the stars of Linux gatherings of =
a few=20
years ago.
These days, executives at companies that have adopted Linux speak in=20
pragmatic terms of the benefits of saving money and gaining =
flexibility.
Even <A=20
href=3D"http://www.nytimes.com/redirect/marketwatch/redirect.ctx?MW=3Dhtt=
p://custom.marketwatch.com/custom/nyt-com/html-companyprofile.asp&amp;sym=
b=3DMSFT">Microsoft</A>=20
has quietly decided to change its tactics this year. No longer will its=20
executives make speeches against what Microsoft regards as the evils of =
free=20
software and its inherent agenda of denying intellectual property =
rights.
"We still have those concerns, but you're not going to hear us =
talking much=20
in public forums about them," said Peter Houston, a strategy executive =
at=20
Microsoft. "In 2003, we're going to emphasize the business benefits of =
our=20
software =97 the value for money, the competitive advantage and the =
safety of=20
investment for customers from buying Microsoft software."
Microsoft, it seems, is acknowledging that Linux has become a fixture =
on the=20
competitive landscape, not something that corporate customers can be =
persuaded=20
to avoid.
To date, Linux has thrived in some sizable niches of the market for =
operating=20
systems on server computers, the data-serving machines that act as the =
hubs of=20
computer networks. Linux is widely used on machines that send Web pages =
to=20
desktop personal computers and for high-performance computing tasks like =

scientific research, Hollywood special effects and analyses of risk and =
trading=20
patterns on Wall Street.
But the real issue is how far Linux can extend its reach into =
everyday=20
corporate computing in all kinds of industries. By 2005, it should be "a =

mainstream choice," along with Microsoft's Windows and commercial =
versions of=20
Unix, as a server operating system in most industries, said Dan =
Kusnetzky, an=20
analyst at IDC, a research firm.
Linux is typically cast as the enemy of Windows, as the populist =
challenger=20
to Microsoft and the company's drive to extend its monopoly on the PC =
desktop=20
into the lucrative business of corporate computing. It is true that =
Linux and=20
open-source software in general pose a threat to Microsoft, the dominant =

software maker.
Still, the rise of Linux is a more imminent threat to the commercial =
versions=20
of Unix. Linux is the open-source offspring of Unix, an operating system =

developed at Bell Laboratories in the late 1960's and early 70's. The =
leading=20
commercial versions of Unix today are made by <A=20
href=3D"http://www.nytimes.com/redirect/marketwatch/redirect.ctx?MW=3Dhtt=
p://custom.marketwatch.com/custom/nyt-com/html-companyprofile.asp&amp;sym=
b=3DSUNW">Sun=20
Microsystems</A>, <A=20
href=3D"http://www.nytimes.com/redirect/marketwatch/redirect.ctx?MW=3Dhtt=
p://custom.marketwatch.com/custom/nyt-com/html-companyprofile.asp&amp;sym=
b=3DIBM">I.B.M.</A>=20
and <A=20
href=3D"http://www.nytimes.com/redirect/marketwatch/redirect.ctx?MW=3Dhtt=
p://custom.marketwatch.com/custom/nyt-com/html-companyprofile.asp&amp;sym=
b=3DHPQ">Hewlett-Packard</A>.=20
The Unix flavors run on costly, specialized hardware, while Linux was =
designed=20
to run on low-cost hardware from the PC industry powered by <A=20
href=3D"http://www.nytimes.com/redirect/marketwatch/redirect.ctx?MW=3Dhtt=
p://custom.marketwatch.com/custom/nyt-com/html-companyprofile.asp&amp;sym=
b=3DINTC">Intel</A>=20
microprocessors or Intel-compatible chips. And software applications =
that run on=20
Unix can be moved over fairly easily to Linux.
I.B.M. and Hewlett-Packard are placing big bets on Linux, and both =
are on a=20
path to phase out their proprietary Unix businesses eventually. =
Companies like=20
I.B.M., Hewlett-Packard, Red Hat, SuSE Linux, Linuxcare and others make =
money by=20
supplying hardware, technical support, services or software for Linux =
systems.=20

Sun Microsystems, however, is deeply dependent on its homegrown Unix =
business=20
=97 on large, powerful and expensive machines running its Solaris =
operating=20
system.
E*Trade, the online broker and bank, has made a significant shift to =
Linux=20
over the last year. E*Trade began looking in early 2001 at the potential =
savings=20
from moving to Linux on Intel-based servers, but it seemed risky, =
according to=20
Joshua S. Levine, the chief technology officer.
But by the end of 2001, when it became clear that I.B.M. and =
Hewlett-Packard=20
were really investing in Linux, supporting it with hardware, software =
and=20
services, Mr. Levine decided to make the move. Last year, the company =
bought 160=20
Intel-based servers and converted about two-thirds of its data center to =
Linux,=20
replacing Unix systems, mostly from Sun Microsystems.
Last year, Mr. Levine says, the move saved E*Trade about $13 million =
in data=20
center expenses, including maintenance, depreciation and software =
licensing=20
fees. And the reduced hardware costs, especially after the replacement =
is=20
complete, proved irresistible. "I'm replacing $200,000 Unix machines =
with $4,000=20
Intel servers," Mr. Levine said.
The one thing not being shifted over to Linux machines is the E*Trade =

databases of customer and trading information. "That is the riskiest =
thing to=20
do," he said.
Mr. Levine, a 25-year veteran of the corporate computing field, said =
of=20
Linux: "It's just an operating system, and a minimalist one at that. But =
Linux=20
unshackles us from a proprietary world. It allows me to manage computer =
hardware=20
manufacturers like I've never been able to manage them."
Still, rapid conversions to Linux are the exception. That is =
especially the=20
case at large companies with corps of in-house programmers accustomed to =
writing=20
programs for other operating systems. And changing technologies can be =
risky and=20
disruptive.
<A=20
href=3D"http://www.nytimes.com/redirect/marketwatch/redirect.ctx?MW=3Dhtt=
p://custom.marketwatch.com/custom/nyt-com/html-companyprofile.asp&amp;sym=
b=3DJPM">J.=20
P. Morgan Chase</A> began experimenting last year with using clusters of =
Linux=20
machines as a high-performance computing environment for conducting risk =

analyses on vast amounts of market data. Such work is similar in its =
calculation=20
requirements to scientific research, where Linux has been used for =
years. 
The bank is looking at using Linux-based systems for new applications =
and=20
when hardware has to be replaced. The pilot projects have gone well, and =
Linux=20
is now being used for some high-performance applications. "It's real, =
but it's=20
in the early stages," said John Curcio, vice president for distributed=20
computing.
Earlier this month, <A=20
href=3D"http://www.nytimes.com/redirect/marketwatch/redirect.ctx?MW=3Dhtt=
p://custom.marketwatch.com/custom/nyt-com/html-companyprofile.asp&amp;sym=
b=3DGS">Goldman,=20
Sachs</A> issued a lengthy report titled, "Fear the Penguin," a =
reference to the=20
Linux mascot. "Linux-on-Intel appears likely to emerge as the dominant =
platform=20
in corporate data centers," the report predicted.
"All of Unix is more at risk than Microsoft's Windows in the next few =
years,"=20
said Thomas Berquist, a Goldman, Sachs analyst and a co-author of the =
study.=20
"But what is really at risk is the concept of a proprietary operating =
system.=20
And that has to affect Microsoft."
Source: <A=20
href=3D"http://www.nytimes.com/2003/01/20/technology/20LINU.html?todayshe=
adlines">http://www.nytimes.com/2003/01/20/technology/20LINU.html?todaysh=
eadlines</A>=20
</NYT_TEXT>
Posted by
N.S. Soundara Rajan
Freelance IT journalist, Columnist =
"Deccan=20
Herald",&nbsp; Spoken English Teacher and Knowledge networker=20
 &nbsp; &nbsp;...connecting people to people, and people to=20
knowledge =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D 34,=
=20
I Floor, 8th Main,&nbsp; Yadhavagiri, MYSORE 570 020, Ph: 0821=20
414726</DIV></BODY></HTML>

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