Business Standard

Tux's progress

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Business Standard New Delhi
The "Linux vs Windows" debate generally revolves around the Total Cost of Ownership (TCO) issue. Decision-makers rely heavily on their assessment of TCO""which includes hardware, software, installation, maintenance and business process costs""when making IT purchases. Fresh fuel has now been added to the debate of which software system to choose, following a Frost & Sullivan study which indicates that high-priced Windows has a lower TCO than the "free" Linux. The problem of course is that this is a Microsoft-commissioned study. As it happens, in an independent study earlier this year of over 200 Linux enterprises, Enterprise Management Associates (EMA) argued the opposite. Sophisticated management tools, the research argued, allow Linux management to be fast, effective and inexpensive, with far lower acquisition costs.
 
It is important to understand the dynamics of different segments of the market. The fact is that Linux on the desktop (with a mere 5 per cent share) has never been a serious competitor to the Windows OS (operating system) that has a market share of over 80 per cent the world over and in India. But Linux is not without its successes: Life Insurance Corporation now has nearly 70,000 Linux desktops, which may reach the one lakh figure soon. Prominent banks like HDFC and Canara are toying with Linux desktops. Besides, every major hardware player is bundling Linux as the primary desktop OS to save costs (it's another matter that the OS is replaced by users with a pirated Windows OS). If Linux is to build on these successes, it needs better hardware support, improved compatibility with Windows and Mac applications, support for Active X and multimedia applications, and more drivers for hardware (especially for laptops) like soundcards and printers. Besides, Linux installation is still not a breeze for the uninitiated.
 
It's on the server side (read enterprises) that Linux is no underdog. UTI Bank's call centre handles over 7,000 calls per day and uses Linux for its core business applications. Nearly 10,000 customers are online at any point of time on Indiabulls' internet trading platform""which runs on Linux. Central Bank of India has installed Linux in nearly 3,000 branches. Even the governments of Kerala, Maharashtra and West Bengal are welcoming Tux (Linux's official penguin mascot). This list is not exhaustive, and IDC has consistently reported Linux as the fastest growing OS in the world. The Unix market (dominated by Sun Microsystems) is also huge. And it's this market that Linux is attacking more than Microsoft. The major companies are standing aggressively by Linux""IBM, HP, Oracle, Red Hat and Novell, for instance. Meanwhile, Peerstone Research indicates that Linux is expected to have 15 per cent of the ERP market by 2007; 55 per cent of all companies deployed Linux by the end of 2005, states AMR Research; there are over 1.2 million developers with Linux skills, reports Evans Data Corp; IBM has more than 7,000 services professionals working with Linux; and the Robert Francis Group (IBM-sponsored research) found security levels in Linux generally exceeded those in Windows. IDC's Worldwide Quarterly Server Tracker (August 2006) states that Microsoft Windows servers continued to grow 4.6 per cent year over year. Linux servers now represent around 12 per cent of all server revenue and Unix servers experienced a 1.7 per cent decline in factory revenue year over year. Tux, it would seem, is marching on in style.

 
 

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First Published: Nov 30 2006 | 12:00 AM IST

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