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Linux Business

Wall Street Embraces Linux 505

Brian Stretch was among several who sent in this story about Merrill Lynch switching to Linux, this is interesting because it's actually companywide. Talks about Red Hat, Linux threatening Unix and so on.
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Wall Street Embraces Linux

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  • by A Commentor ( 459578 ) on Wednesday March 27, 2002 @04:58PM (#3236792) Homepage
    "Would I put an air traffic control system on Linux right now? No," says Carey.
    "But can it get there within five years? Absolutely."

    I know I would feel safer if the air traffic control is on Linux rather than any version of Windows...
  • Oh Man!!! (Score:1, Insightful)

    by cscx ( 541332 ) on Wednesday March 27, 2002 @04:58PM (#3236793) Homepage
    Easy way to earn Karma:

    I'm going to submit a story every time some company installs Linux! Because, it's evidently front page material, and people must care a lot! I can just imagine some Linux zealot cracking open a bottle of champage-nya now that there's one more on the band wagon!

    Short version: Yeah, companies are installing Linux. Woo-fucking-hoo. Do we have to know about every one?
  • by Kevbo ( 3514 ) on Wednesday March 27, 2002 @05:00PM (#3236811) Homepage
    Perhaps that's what they mean by "Even more important, who is accountable?" I am guessing that the costs are support costs to (ostensibly) RedHat, so that they can, indeed, call someone when it breaks.

    Seems to me this article wasn't very well written, you have to read between the lines a lot. I'd like to know more about how they're implementing it: distribution, updates, standard image, etc
  • Im not trolling... (Score:2, Insightful)

    by xtermz ( 234073 ) on Wednesday March 27, 2002 @05:01PM (#3236824) Homepage Journal
    ... But it seemed like only a matter of time before the major players in the business world adopted linux. Hate to jump on the 'Hate MS' Bandwagon, but MS has really fumbled the ball lately. As Linux becomes more widespread, and more competent people who know how to install/run/use it get into the job market, we will see more of these types of stories being commonplace.

    The problem I see is, so many people are trying to force feed the linux solution down peoples throats. Yes, advocate linux, but dont throw your hand. Managers and the ones who make business decisions like thinking they stumbled upon a great idea. For the most part, they wont take kindly to some geeky kid in IT telling them "we can save bunches of money with linux"... they have to talk to their buddies on the golf course, etc etc..

    To sum it up...dont fret, in time, linux _will_ dominate
  • Man this scares me (Score:1, Insightful)

    by Anonymous Coward on Wednesday March 27, 2002 @05:03PM (#3236843)
    I hate to say it but this doesn't sound so great at all. There is NO idealism on Wall Street, money and business are the ONLY things that matter. They're confused about Linux's freeness because it's just an alien concept to them that anyone would give anything away that they could charge for. Progress Software (the turds being sued by MySQL) at least make some pretense of supporting free software and wanting to give something back to the community. Wall Street is just take take take. If anyone is going to spend real money trying to mess up the GPL, it's those guys. Imminent death predicted, film at 11, yeah, yeah, I know. I just hope I'm wrong.
  • Re:Easy Slashbots (Score:3, Insightful)

    by theCURE ( 551589 ) on Wednesday March 27, 2002 @05:05PM (#3236858) Homepage
    I did read the article, and no where does it state that Merrill is using UNIX systems. The article does not state what OS's Merrill is currently using, it simply states references to unix systems and transitions to linux in general.
  • I know I would feel safer if the air traffic control is on Linux rather than any version of Windows...

    God yes. On the other hand, even as a GPL bigot and Linux zealot, I wouldn't want Linux running air traffic control stuff either, not yet anyhow. This is what QNX, et al, were *made* for.

    On the other hand, who knows? One of the great things about Linux is that in a few years it may just be good enough for air traffic control, etc.
  • by Gizzmonic ( 412910 ) on Wednesday March 27, 2002 @05:06PM (#3236866) Homepage Journal
    Nope, there's no correction necessary. Linux hasn't done much displacing Windows, but it has done worlds getting rid of Big Iron that costs 3x as much to set up. And what does that mean?

    Linux is killing Big Iron. It's hurting Sun in particular. People started running Linux so they could get UNIX-like functionality and performance on their cheap Intel boxes. Whether it has reached that point of being as good as Solaris/AIX/IRIX is debatable, but the fact is people are dumping their UNIX boxes for cheap x86 boxes running Linux.

    What does that mean for the bigger picture? Say goodbye to high-performance computing outside the Intel-compatible world. PA-RISC? Dead. Alpha? Dead. MIPS? Not even close to competing anymore. SPARC? Future questionable. PowerPC? It's an okay chip, but the outdated I/O on Apple machines negates any (debatable in the first place) performance advantage it might have.

    What might seem good at first (more Linux everywhere) is bad for the future of high-performance computing.

    Linux seems to be helping shore up Intel's hardware monopoly, as well as lengthening the lifespan of the decrepit x86 architecture.

  • by taya0001 ( 457928 ) on Wednesday March 27, 2002 @05:10PM (#3236907)
    Migrating to linux can become expensive when you consider the labor costs involved. MCSE are cheap as st|t. You cant cross the street without bumping into someone that is a MCSE. Im sure that their are quite a bit fewer Linux geeks in the professional feild and that might make it a little harder on buisness.
  • by cavemanf16 ( 303184 ) on Wednesday March 27, 2002 @05:13PM (#3236934) Homepage Journal
    I read Forbes all the time. I have a subscription to it, after all. Basically, understand that every part of a business is considered an asset, so logically, software is an asset of a company. So like the previous guy said, when Forbes talks about Linux not being "free," they mean that just like any software, there are add-ons, customizations, and DBA's that all need to be purchased and hired to implement and support the software, be it Linux or otherwise. What's notable is that Merril Lynch must have found it much more cost effective to switch from their previous software to Linux for certain tasks. Considering they are a top securities firm, I'm sure the money factor was analyzed much more closely and accurately than the "principal of the thing" or "useability" would have been in a more IT related company.
  • by ichimunki ( 194887 ) on Wednesday March 27, 2002 @06:12PM (#3237033)
    Not all Linux software is Free Software. Things like StarOffice or whatever might be considered as essential elements in this sort of move on the part of a large company-- somewhere in there I'd guess there is going to be one piece of licensed code. They might also obtain some custom code from a Linux development shop that they have the source for, but is not free in any sense of the word. Plus the cost to customize and burn "official" install CDs for the enterprise is not free of some cost.
  • by Col. Klink (retired) ( 11632 ) on Wednesday March 27, 2002 @06:24PM (#3237140)
    Actually, the only thing surprising here is that they're talking about it. Wall Street firms usually consider things like this their "competitive advantage" and don't want everyone to know what they're doing. They wouldn't mind if their competitors kept using more expensive proprietary hardware/software solutions...
  • by Anonymous Coward on Wednesday March 27, 2002 @06:45PM (#3237277)
    Unfortunately, Linux is nowhere near a solution to Exchange

    Of course Linux is no solution to Exchange, but Lotus Domino on Linux would be.... as long as you don't mind using Kaspersky as your antivirus product because McAfee/Norton/Trend do not yet support Domino-on-Linux yet. You can also do the smart thing and keep an Amavis-Sendmail relay between your internal Domino server and the Internet too :-)
  • Re:DIY Business? (Score:2, Insightful)

    by Graymalkin ( 13732 ) on Wednesday March 27, 2002 @06:49PM (#3237311)
    Uh...Marril Lynch is working with terabucks. They NEED some sort of accountability or else they will have to take a loss due to system failure on the chin. What the fuck don't Linuxites understand about accountability? If the seat of your car is attached to the body with gum because someone on the assembly line fucked up and you fly out of the car in a wreck you're going to blame the manufacturer of your car. If a server hiccoughs due to a drunk...fix later bug in some OSS code and millions of insured dollars are lost to the depths of /dev/null, someone is going to be to blame. Kindly insert your retarded sentiments about blame and business up your ass where they belong. It wouldn't be cool for ML to lose an entire country's financial account because some 15 year old KDE contributer was operating on an out of bound pointer.
  • by ChaosMt ( 84630 ) on Wednesday March 27, 2002 @06:52PM (#3237333) Homepage
    Two solutions:

    If you inisist on using outlook, there was a solution: OpenMail [openmail.com] but HP decided to kill it. Which, btw, everyone is assuming it's Sun they are replacing (a safe assumption) but with goofy I'll-do-a-merger-to-keep-my-job-and-blame-company- problmes-on-someone-other-that-I Carly at the helm of HP, I wouldn't be surpised if it's HP they need to drop.

    Bynari [bynari.net] is another calendaring solution that has been mentioned before for Linux. No, it's not open source, free, or even just like exchange; but it works, is virus free, etc.

    As for point 2, I've done the virus thing with a cheesy script on each system, and other such lame sysadmin duct tape approaches taking care of windoze network unfriendly boxes.

    Your primary point, the question, "just what are they replacing" is a good one and your conclusions are reasonable. My problem is what I sense inbetween the lines. Your point is that exchange makes outlook really easy to deal with and win2k server takes care of windoze boxes easier. Well, ya got me there. Yup, Linux isn't as good as windows in dealing with windows non-sense. I don't suspect it ever will be, EVEN if they were to play nice as Mr. Stallman suggested [linuxtoday.com] oh so long ago. You are suggesting that linux will never be ready for IT b/c IT runs windows clients. This doesn't have to be. Things in a linux server/win client enterprise would have to be different. In some ways it would be better and some ways not. There are of course growing pains - I'm sure you're one of the millions that have had to suffer through years and years of M$'s growing pains, mistakes and lies. Now, "their solutions" (ahem) are mostly workable on few commodity (cough, cough) systems - such as the most expensive Intel systems you could buy. That's one approach. Another might be to buy an old unix server (say, a Sun E450) and centralize each offices services to one reliable system.

    My point is that the gap between windows and unix/linux is getting smaller in some ways. Unix apps can be easily recompiled to run (slowly) on your pc, and that win box can now pretend to be a newtwork server. Large unix apps can now sort-of slowly run on small linux installations. But the windows boxes can't scale the same was as unix apps, and certianly can't scale as far and will never scale as big. They are different things, and it is very disingenuous for you to say that unix/linux will never cut it in IT b/c it's not windows. Unix can now go big or go small, and it always goes smart and dresses in style. Don't expect to run a better network with out some effort and growing pains - and if you're running windows, always expect to spend a lot more. This why they are replacing unix and you can bet that if this pilot project goes well, windows will be phased out.

  • by rnturn ( 11092 ) on Wednesday March 27, 2002 @07:06PM (#3237421)

    ...since this came from Forbes. Not exactly where one would expect to find the most accurate information about technology.

    When I read:

    ``Even more important, who is accountable? Linux is an amalgamation of the input of many companies and individual software engineers. So whom do you call when it breaks? Also, contrary to popular belief, Linux is not really "free." How are large-scale licensing agreements to be worked out?''

    I found myself laughing out loud.

    Has anyone successfully found Microsoft accountable for broken software? Or CA? Or any software vendor for that matter?

    Has anyone heard of Red Hat or any other Linux distributor making people pay licensing fees for the use of the software? Of course, Forbes is confusing a license to use the software (the sort of license that Oracle, for example, makes you pay for) with a support contract (which companies like Oracle make you pay for in addition to the usage license).

    The day when Red Hat starts asking people to pay for license keys that have to be loaded on each system or pieces of paper that they need to keep on file is the day they should put a big ``Going Out Of Business'' sign in front of their corporate offices.

    Not that I'd expect an old money magazines like Forbes to really understand the difference between Linux and other software products but how difficult would it have been for the writer to have called up someone in the OSS movement to get a comment and, perhaps, make sure the article didn't come off sounding like it was written by someone totally clueless.

    Jeez...

  • Re:Favorite quote (Score:4, Insightful)

    by isaac ( 2852 ) on Wednesday March 27, 2002 @07:12PM (#3237462)
    But there are risks in putting so much behind Linux. For starters, there are legal implications. Does anybody own the intellectual property of the "open-source" software? How exposed are companies to patent violation?

    Obviously Lisa DiCarlo really understands the comcepts in the story she just wrote. Yeah.

    If you're just being sarcastic, she seems to have a better grasp on the risks of using Linux than you do. The question of ownership is sticky - the owner of any particular bit of code might be difficult to determine and impossible to track down. This has some bearing on her question about patent violations which is frankly quite legitimate. Consider a company that is using open source software and has made changes to it to meet internal requirements. Suppose then a software company comes along claiming infringement of patented methods in that software package - is the company using the software liable if the software is found to be infringing because in changing the source they have become authors of the software? (Obviously not the sole authors, but said company may have much deeper pockets than the original authors.) I don't think this situation has yet been litigated, making the risk of liability difficult to quantify.

    Basically, if you think current copyright law has a chilling effect on open source development, wait until the big dogs break out their patent portfolios. It's gonna get ugly.

    -Isaac

  • Re:Favorite quote (Score:3, Insightful)

    by foobar104 ( 206452 ) on Wednesday March 27, 2002 @07:20PM (#3237509) Journal
    I don't understand why you have a problem with her statement. IP law makes it very easy to protect what you own, and very difficult to surrender the rights to it. And rightly so. If it were possible for the tiniest slip to render your claim to intellectual property invalid, then the law wouldn't really be protecting you at all, would it?

    I think there are lots of legal implications of open-source software that just haven't been thought out, or tested in court. It's not hard to imagine a scenario in which some previously unthought-of aspect of IP law renders the GPL invalid. Suddenly everybody who uses open source software must either stop using it, or pay a licensing fee to the license holders.

    Don't brand it as FUD; I don't intend to make people afraid of open source software. I'm just trying to say that the lady has a point.
  • by Anonymous Coward on Wednesday March 27, 2002 @08:14PM (#3237856)
    > It wasn't until we weighed it against the cost of redeveloping 120 applications for Linux that we decided to cave. MS knows this. They waited for companies to become dependant on their OS before jacking up the price. What Merril Lynch is doing is not whoop-de-doo! another company went to Linux!, it's truly amazing. For such an enormous organization to revamp on such a huge scale takes cahones.

    Any thoughts on your company contracting with CodeWeavers for a super-duper version of Wine that would enable you to keep running those 120 apps until the ports to Linux, on your own schedule, could be completed?.. Gotta cost less than all those MS licenses, and you get to keep the results.
  • by SlashChick ( 544252 ) <erica@noSpam.erica.biz> on Wednesday March 27, 2002 @08:30PM (#3237947) Homepage Journal
    Hmm, you checked out my homepage, but interestingly enough, you didn't check Netcraft to see what my server was running... ;)

    I write these kinds of posts (pro-Microsoft, etc.) for two reasons:

    1) People respond with better answers to a post filled with half-truths or a post from someone who they believe is "misinformed";
    2) I really do want to know what corporations use if they don't use Microsoft products.

    This about it this way: the sales people at Microsoft are out there every day selling their product. They are out there telling your PHB every day that Exchange is better, that SAMBA won't do the half of what Windows 2000 Server will do, and that an all-Windows infrastructure is the way to go.

    The real question is: what can you tell your PHB to dispute that?

    That's why I write these. Often, the best way to find alternatives is to say something decidedly biased toward one camp. Come on, admit it -- you'd much rather hit "reply" to someone who is wrong or half-right than someone who says "What is the best solution for xxx?" You're also much more likely to provide real, concrete evidence that your product is superior instead of just saying "Hey, Product Y will do xxx! Go check out their homepage."

    Now, I can take this information and hand it to the guy who is looking for an Exchange alternative, and I can say, "Look, why don't we check out Products Y and Z, because they might really fit the bill." I can then hand him what is basically a brochure describing migration problems and benefits of changing to the other products. Not only have I provided a solution, but I haven't asked you for bullet points -- I've asked you to prove that your product is better.

    It's marketing, pure and simple. I learn infinitely more by writing what I hear from Microsoft salespeople and having Slashdotters prove it wrong than I would asking a question somewhere. Plus, I get to hear and make contact with people who have actually used the product. And in some cases, I get people admitting that the Microsoft solution is the best one out there, in which case that is what I will take back to my customers.

    Try it sometime. You might be surprised at what you can learn.
  • by lkaos ( 187507 ) <anthony@codemonk ... s minus math_god> on Wednesday March 27, 2002 @09:56PM (#3238327) Homepage Journal
    First of all, all that stuff is horribly outdated.

    DD(x) [defenselink.mil] is the future of the Navy. The current fleet of battleships run a system called AEGIS [navy.mil] which runs on top of HP-UX. NT has very limited use in non-tatical systems. You have to understand, the Navy has a _very_ strict QA and development process and systems don't actually get used tactically for almost 10 years it seems.

    The future OS to run on DD(x) is up for grabs right now. MS federal systems has teamed up with the Blue Team so if they win, expect to see MS having a bigger role. That's not necessarily a bad thing though because the system is based on Java so not as many bad things can happen. Either way, with the thorough QA process, they should even be able to configure NT to be secure after 10 years.
  • by Anonymous Coward on Wednesday March 27, 2002 @10:13PM (#3238396)
    "It wasn't until we weighed it against the cost of redeveloping 120 applications for Linux that we decided to cave."


    What are the applications that your company needs? This is where the community comes in. The app that are needed be yours and other companies should be posted so that reverse engineering can get started. So that some where down the when M$ says pay up or else, you have an out.

  • by sheldon ( 2322 ) on Thursday March 28, 2002 @12:37AM (#3238862)
    In any large company you are going to have a large variety of technologies.

    Notice how Mr. Vielehr is identified as CTO, but there is the phrase "private client technology" behind that... That's probably a separate division of the company and they do things differently than other divisions.

    The way this Linux article is worded, they are replacing some of their systems with Linux... most likely existing Sun systems from the sound of it. But that doesn't preclude that they also have a great many Windows systems, both desktop and server.

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