Microsoft and the Linux threat
Ravi Madapati
Faculty Member
Icfai Knowledge Center
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Linux-based business models
As it was developed under the GNU[1](General Public License) the source code of
Linux became freely available to everyone. Though Linux and its assorted
distributions are free, companies and developers can charge money for
additional features and services they offer as long as the source code remained
available.
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A vast number of software programmers take Linux’s
source code and adapt it to meet their individual needs. In August 1991,
Linux essentially consisted of the kernel and some GNU tools. With the
help of others, Torvalds added more and more tools and applications.
With time, individuals, university students and companies began
distributing Linux with their own choice of packages around the kernel.
The success of any operating system depends on the zeal with which
application software developers and other service providers embrace it.
Linux is used for a wide variety of applications including networking,
software development, and as an end-user platform. It has emerged as a
low-cost alternative to other more expensive operating systems like
Windows. |
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Many companies have tried to create business models that
try to combine Linux with for-charge products and services. But the major
problem they face is that most Linux users are sophisticated enough not to need
the services or bundles of complements that the commercial Linux companies
offer.
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Nonetheless, there are companies that have explored
different ways to take advantage of Linux to enhance their platforms or
generate complements. Companies like Red Hat, VA Software, Lindows, Caldera, and TurboLinux, sell
special versions of Linux that package the free software with a bundle of
utilities (such as special installation programs) and applications (such as
Star Office, a competitor of Microsoft Office) as well as service and support.
While a host of Linux-oriented start-ups were launched in the late 1990s,
most of them were geared to selling to dotcoms—many of which went out of
business after the bubble burst. A dozen Linux companies failed in 2001
and 2002, including Loki, a gaming company, and Eazel, which was making
Linux easier to use. In early 2003, VA Software was struggling three years
after it broke all IPO records with a share price that soared 698% on the
first day of trading. Red Hat has become a leading provider of Linux-based
software services. It sells packages including Linux software for desktop
computers and servers. But because of the ban on selling Linux itself, Red
Hat essentially sells related software, ongoing technical support, and
maintenance for corporations. Three years after going public, the company
made its first-ever profits in its third quarter-ended November 30, 2002—a
small $305,000, on $24.3 mn in revenues. |
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There are documented cases of Linux servers running non-stop for over a year without a system-halting crash |
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The Linux threat
Linux has now emerged as a popular operating system. For
developers and users, Linux offers several attractive features. Linux can be
downloaded from many sources. It is available in many versions, one of them
provides firewalls, another can boot the entire operating system from a floppy
disk or CD-ROM and a third can be used to power TV “set-top” boxes. Linux scores
over comparable commercial-release operating systems in various ways. It is free
and the source code is easily available. On the other hand, existing
commercial-release operating systems have various problems:
Slow release pattern
Major upgrades to operating systems come very slowly. Windows 95 had been
released three years after Windows 3.11; Windows 98 a few years later and so on.
Linux updates on the other hand are released every six months or so. Minor
upgrades take longer to acknowledge and fix in commercial systems. Recent
problems with Netscape Navigator and Microsoft Internet Explorer are good
examples[2].
High cost
Commercial operating systems, especially server operating systems, like Windows
NT Server and Novell IntraNetware cost more than $400 for a single copy and
their licenses limited the number. Even the more modest $100 for Windows 95 is
beyond the reach of customers in developing countries, especially students. The
price of commercial systems almost never includes development tools, which cost
even more. Linux, on the other hand, includes free C, C++, FORTRAN, and other
development tools.
Tech support
Commercial systems require
their customers to depend on their companies for technical support. They have to
call the service centers of the companies if there is a problem. The users often
are
put on hold while paying for the toll call. It is often easier to get help from
Linux’s various online
support communities when there is a problem.
Lack of source code availability
Since the source code for Windows is a closely guarded secret,
people can not tinker with it and improve it. Users with the
technical expertise can not fix problems that are technically easy
to fix, but have to wait until Microsoft published a patch. The
availability of source code in case of Linux is particularly useful for
programmers and computer science students, who form a significant
percentage of Linux users.
Crash-prone
The quality of Windows is another issue. Steve Ballmer (Ballmer)[3],CEO of Microsoft has once admitted that in the rush to beat
Netscape, Microsoft had cut corners in quality control. There have
been reports about Windows “crashing” for no particularly good
reason, often causing people to lose files. Even Windows 95 and
Windows NT which are far more stable than the earlier version
Windows 3.1x, have failed with alarming regularity. On the other hand there are
documented
cases of Linux servers running non-stop for over a year without a system-halting
crash.
Monopolistic attitude
Epitomized by the antitrust proceedings launched by the Department of Justice
there is a general
perception that Microsoft wants to rule the world. Whether true or not, many
people have been
seeking alternatives to Microsoft systems just because they are uncomfortable
with the idea of a
Microsoft monopoly.
Growing acceptance among corporates
[1] Linux is written and distributed under the GNU General Public License, which means that its source code is freely distributed
and available to the general public.
[2]
In the case of the “denial of service” TCP/IP bug, a Linux patch was posted for it mere hours after the problem was isolated.
Anyone who is technically capable can fix the bugs, too, merely by changing the code in question and recompiling.
[3]
Source: http://www.seul.org/docs/whylinux.html
© Icfai Press. Global CEO •
April 2003, All Rights
Reserved.
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