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Linux Business

Linux Sales Down, But... 588

An anonymous reader writes " News.com has a story about combined Linux revenues reaching $80 million for 2001. "The Linux operating system market, from a revenue perspective, accounts for one half of 1 percent of the total operating system revenue each year, or roughly two days' worth of Microsoft's operating system revenue," [IDC Analyst] Gillen said. "On the second day of January, Microsoft had generated more operating system revenue than the Linux community (will for the entire year).""
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Linux Sales Down, But...

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  • by egg troll ( 515396 ) on Wednesday August 07, 2002 @01:35PM (#4026092) Homepage Journal
    I believe sales are down as people have learned that Linux can be downloaded...for free!
    • by Anonymous Coward
      But there still are sales to be made out there for the less educated in the computer world. Not everyone is going to download the ISO of their favorite distro (crap...99.9% of the computer using world doesn't know or care about what a distro is) and burn it and then install it. They want to go to Best Buy, pay their money and follow the on screen instructions. IF something goes wrong they want a 1-800 number to call and be stupid towards. There is money to be made for Linux in the desktop arena...it just isn't being made yet and that is probably because there is too much desktop software that only runs on Windows...maybe Wine, WineX, Lindows, Codeweavers and the such can help with that...
    • by garcia ( 6573 )
      ok great, we all know it's free. This goes back to my point that MOST people don't understand this fact.

      These people walk into their local software store, see Windows XP upgrade for $100 (or whatever it is) and see Mandrake and RedHat right next to it (at least in close proximity) for $25/65. These people know that Linux is not as easy to use at Windows but they see it isn't for free.

      MOST people will assume that Linux is one single entity (not multiple distributions) and think that it is for cost.

      So, now we have people writing stories to further this false info. Yay. This will continue to drive Linux into the ditch as far as the masses go.
    • Please note: With the withering sales of Linux, and the fiscal challenges faced [google.com] by the crusaders of an alternative business [forbes.com] model, it comes a time to reevaluate the "free" definition. Free as in beer is killing free as in speech. Now, get off your wallet you cheap fucks and BUY what you need. Donate to struggling linux sites, and subscribe [slashdot.org] for ad free content. Really, what do you think Slashdot needs, corporate checks or paypal funded blocks. Sheesh.
      • by 13Echo ( 209846 ) on Wednesday August 07, 2002 @02:37PM (#4026639) Homepage Journal
        No doubt. This year, I've paid for my copy of Slackware 8.1, Lycoris Desktop LX, and joined Mandrake Club. Apparently there are other people out there that use, and love Linux, but they are still cheapasses.

        These are the same people that would never buy Windows anyway, but would rather pirate it. What does the Microsoft sign say in computer parts stores? 3 out of 4 OSs are pirated.

        So what does this research show? It shows squat. Linux still doesn't have the luxury of being preinstalled in retail major manufacturers desktop PCs. Microsoft only sells Windows to large companies that it is able to audit, as well as preinstalled Windows PCs that ship to retail stores.

        And the rest of the world is still a bunch of cheapskates. If you don't want to buy it... Don't use it. Mod my down if you wish- if you are angry, but keep in mind that it is the truth.

        Poll [digitalnowhere.com]
        25% of all business software is pirated? Does that count home users? [bsa.org]
        • by kubrick ( 27291 )
          there are other people out there that use, and love Linux, but they are still cheapasses

          I use Debian. I've donated money to Debian, but not every time I upgrade the system, which happens incrementally anyway. I'm happy that it's free, and I'm happy that it's Free.

          If you don't want to buy it... Don't use it.

          Why should I support companies commercialising the work of other people, especially when they don't produce distros suited to my needs? And where do you get off on turning Free Software into an economic imperative?

    • Co-relation (Score:2, Interesting)

      by RoshanCat ( 145661 )
      I can see thousand of posts claiming that Linux can be downloaded for free and hence sales figures doesn't matter.

      But Linux was always available for free & all Linux users know that. This is not something which users found in 2001.

      But, say 20% of the Linux users pay, then by co-relation, more often than not the number of users are also down. If Linux server sales were up, definitely you would have seen a revenue increase

      Dan Kuznetsky, a Linux zealot, who is the VP of IDC software division, overcalculated Linux server unit figures for 2000 (at 27%) & his 2001 Linux figures came significantly low and having to eat humble pie since his Linux growth prediction didn't come true

    • by WildBeast ( 189336 ) on Wednesday August 07, 2002 @02:17PM (#4026476) Journal
      It hasn't occured to any of you that many people don't have broadband and therefore prefer to actually buy the product instead of downloading it for weeks?
    • Yeah, isn't this sort of what you suspect from a free operating system?

      It's free in more than speech....
    • First they ignore you. Then they laugh at you. Then they fight you. Then you win. --Gandhi At least we've made it to step #2!
  • by Brento ( 26177 ) <brento.brentozar@com> on Wednesday August 07, 2002 @01:36PM (#4026100) Homepage
    On a related note, Gillen said that "On the second day of January, Microsoft had generated more ill will than the Linux community (will for the entire year)."
    • On yet another related note, U. L. Rod said that "On the second day of January, Microsoft had extracted more capital from businesses and consumers than the Linux community will for the entire year."

      In a down economy keeping cash leakage down, so you can survive until the next upturn, is the primary local target of many companies. What a pity so many of them are still hemmoraging money into Microsoft's pockets.

      Of course in a down economy badly run businesses are damaged more than well-run businesses and thus have a higher probability of going under. The resources that they held become available to the survivors and new startups as things turn back up. ("Think of it as evolution in action.") So while it may be bad for the employees and investors of the dying companies (whether badly run or just not yet sufficiently established to weather the drought) it's good for the economy as a whole.
    • Also notice this one: "On the second day of January, Microsoft had generated more crashes than the Linux OS will for the entire year."

    • ...and on the third day of January, Microsoft shareholders were informed that because of gross abuse of stock options in lieu of salary at Microsoft, every penny Microsoft had "earned" over the last 8 years or so of its existence was already spoken for (to make good exercised options, or to expense them fairly), and that the rank and file shareholders were discovering they owned shares in a company that becomes technically INSOLVENT the day it is forced to adopt halfway honest accounting protocols (as recently adopted voluntarily by Coke for example).
      Shareholders watched in nauseated horror as insider MSFT selling accelerated & the going price for MSFT was chopped from $120 ath to 41-$45 and still dropping, whereat shareholders said, "Uh Holy Shit, I gotta go call my broker....".

  • Really, I mean 1% or whatever seems pretty good when you figure that the OS costs about $5 with all sorts of applications included. Add to that the amount of people who just download the latest ISO's and what do you get? No shit sherlock, the free OS makes less money than Microsoft, whoa...
    • Im currently about 1/3rd of the way down the page and have yet to see anyone who "get's it." The fact that Linux is free is a given. This isn't news. It is expected that the sales figures are pretty abismal when compared to Microsofts. This isn't news either. What is (or would be interesting) is to see the support numbers - how the sales of support and services stack up. Red Hat doesn't make money off of the sales of its OS, it's the support contracts that are their primary revenue generators.

      This article is meaningless in my eyes because it is comparing something that anyone can have to somthing that is under lock and key. Show me the results of the support numbers, show me the results of the contracts and their numbers, then I'll give an opinion that means something. Otherwise, please stop wasting my time with this blatant attempt to stir up the hive and get the fragile linux zealots on their high horses. Be an advocate, not a zealot - people respect you more.
      • Microsoft racks up on the support numbers as well. I don't have the exact figures, but it's pretty obious. They charge in excess of $100 for a business just to call their support line, much less actually get any help. They release unstable, buggy software and then charge you out the ass to fix it or even just talk to them. Either way, none of this is news.
        • I have no doubt that Microsoft rakes in the cash when it comes to support. Any company that is nursing on the Microsoft nipple would be stupid not to buy a Microsoft Diaper so that when things go to shit, they have someone to bail them out.

          I was trying to push that fact that Microsoft charges for their OS, Linux vendors may or may not charge for their OS. I think that support contracts would be a more justifiable metric to measure the value of the two as opposed to OS sales.
    • by Black Parrot ( 19622 ) on Wednesday August 07, 2002 @02:28PM (#4026552)

      > Really, I mean 1% or whatever seems pretty good when you figure that the OS costs about $5 with all sorts of applications included. ... No shit sherlock, the free OS makes less money than Microsoft

      Yes, we live in a curious society where the value of something is reckoned solely on the basis of what you can sell it for, rather than on the basis of what you can use it for.

  • Microsoft is closed January 1st for new year's eve.
    And the 2nd could be a weekend day.
  • But... (Score:3, Interesting)

    by kraf ( 450958 ) on Wednesday August 07, 2002 @01:39PM (#4026119)
    are they happy ?
    • Re:But... (Score:3, Interesting)

      Actually, I believe this to be a valid question.

      Are the people who use Windows in their business happy? Happy to have increased licensing costs for a "yearly" subscription? Happy to have an operating system with security holes the size of my Aunt Lilly's ass? Happy that Microsoft is about to release the details of API's - but you can only use some of them if you "license" their use?

      We're so happy at my Day Job that we're pretty much converting everything over to Novell or Linux, we're installing OpenOffice (except where we *must* have MS Office), and I'm still trying ton convince people that really, OS X is a great desktop system for the business. Oh yeah, happy are we with Windows.
    • All I want to know... Is do you like your OS? Anyhoo, on a more serious note, another good question is are the Linux companies happy? They are of comfortable size, and make a decent profit, and aren't anywhere near large enough to handle the kind of business MS gets.
  • by Quasar1999 ( 520073 ) on Wednesday August 07, 2002 @01:39PM (#4026120) Journal
    At some point in time Nvidia was making one tenth of a percent of 3DFx... I don't see Nvidia doing too badly right now...

    Just because Microsoft is making a lot of money, doesn't mean that this will always be true. Their business plan is fundamentally flawed... who in their right mind will rent software? And who in their right mind actually agrees with Microsoft's EULA? Right now they make way more money than Linux, but if Linux wasn't a product line that was profitable, then companies like IBM and Corel would not have put any energy into it...
    • who in their right mind will rent software?

      IBM's mainframe customers have been doing it for years... seems to have worked for Big Blue... but as they're now switching to using Linux for a whole load of stuff, maybe it's a sign that the practice of renting is out of favour.

    • who in their right mind will rent software? And who in their right mind actually agrees with Microsoft's EULA?

      That's the whole point. Microsofts target market is people who aren't in their right mind (henceforth called 'the general public'), and since 'the general public' can't think for themselves, take responsiblity for their actions, or critically examine their options, primarly because Microsoft doesn't let them see any other options, the net result is people who will agree to draconian licensing and renting software simply because they don't know any better. Of course if 'the general public' knew what all Microsoft could do with their computer (spyware, installing whatever it feels necessary, monthly fees, etc), they probably wouldn't be so keen on Microsoft, but they don't know, even if they did, they probably wouldn't know of any other options or even think they were viable alternatives to Microsoft so they would just go along with it, but as they say 'ignorance is bliss'.
    • "I don't see Nvidia doing too badly right now..."

      Then you obviously don't keep up on things. Lets see.. in the past 7 months their stock has fallen 88%, from 72.66 to 8.69.

      They expected their second-quarter revenue to be up 1 percent to 3 percent, instead it declined by about 30%. (Causing the stock to tumble 31% in after hours trading two weeks ago) Nvidia said it would have to take a "significant" write-off of inventory in the quarter.

      Yeah, I would say they are hurting right now.

      -gerbik
  • "On the second day of January, Microsoft had generated more operating system revenue than the Linux community (will for the entire year)."

    Shouldn't it read? "On the second day of January, Microsoft had generated more bugs than the Linux community (will ever in their entire lives)."
    • No, 'cause that'd be false. A more accurate statement would be "On the second day of January, the Linux community had patched the bugs that Microsoft won't have patched until NEXT January."
  • Trend (Score:2, Redundant)

    by return 42 ( 459012 )
    On the second day of January, Microsoft had generated more operating system revenue than the Linux community (will for the entire year).

    Yep. They have nowhere to go but down. And we have nowhere to go but up.

    • Re:Trend (Score:4, Informative)

      by Znork ( 31774 ) on Wednesday August 07, 2002 @01:53PM (#4026264)
      'On the second day of January, Microsoft had sucked more money out of their customers than the Linux community will for the entire year'.

      Is an alternate way of looking at it. Which the customers appreciate.

      Seriously tho, RedHat and company knows that they will never ever make anywhere close to what Microsoft has made selling software. But the idea is to make computing cheaper and freer, not to suck customers dry and invent new exciting buisness 'methods'.
  • But... (Score:5, Funny)

    by swordboy ( 472941 ) on Wednesday August 07, 2002 @01:40PM (#4026132) Journal
    Linux sales down, but the RIAA believes that piracy is the cause.
  • Well...duh! (Score:2, Interesting)

    by MoxCamel ( 20484 )
    Of course Microsoft is (currently) winning the battle for dollars. You *have* to buy Microsoft products. You don't have to buy Linux.

    A more interesting look would be to see how much money Microsoft is *losing* per year, because companies are replacing Windows with Linux.
  • Well, duh! (Score:4, Insightful)

    by Anonymous Coward on Wednesday August 07, 2002 @01:40PM (#4026136)
    The whole point of free (as in beer) software is that you don't *need* money to get it... I'd much rather see numbers pointing to actual in-use comparisons than money comparisons.

    It amazes me that so many media people still don't get that you can't measure Linux's success in dollars and cents!
    • Linux is not something that they can understand in terms outside of dollars/cents. It is something that the general public cannot understand either.

      Ask people who use computers at work what their ENTIRE network is based on... "Windows9x/NT". They have no idea that it is possible to have a Unix-based network running behind this.
    • Personally, I think a part of the operating system's success is measured in dollars and cents. But you're right, part of its success is measured in how many people or organizations use the system.

      In my opinion, the largest part of GNU/Linux's success is if the mere existance of the system has changed the way people think about software. It has certainly changed my perspective. I know some people don't believe this, but one of the goals of free software (as in speech) is Widespread Social Change. Not so much that software can be developed collobaratively, thats just creamy filling. But that lending out your software CDs to friends, family, or complete strangers doesn't have to be illegal and it doesn't have to be wrong.

      This is a rather small element of our society that is going to change. Even so, it has to be done. Its for the better.
  • In related news... (Score:5, Insightful)

    by SIGFPE ( 97527 ) on Wednesday August 07, 2002 @01:41PM (#4026146) Homepage
    ...analysts have been studying revenue generated by sales of air. Apparently total US sales of breathable air is close to zero. On the other hand annual revenue for Coca Cola is around $20bn. Clearly the importance of air has been overrated in recent years. In fact sales execs at Coca Cola have already been in discussion with publishers of biology textbooks in an attempt to replace unimportant chapters on respiration with new chapters on the metabolisation of Coca Cola products.
  • cool (Score:3, Funny)

    by brad3378 ( 155304 ) on Wednesday August 07, 2002 @01:43PM (#4026170)
    > On the second day of January, Microsoft had generated more operating system revenue than the Linux community (will for the entire year).

    The Microsoft crowd must have been too hung over on January 1st.
    • Yeah... this is exactly why you shouldn't drink on New Years... you forget all the problems you had in IT the year before.

  • by anshil ( 302405 ) on Wednesday August 07, 2002 @01:43PM (#4026171) Homepage
    It's the very same thing as moby said recently, he questioned why the worth of music is measured by the amount of sales. I agree with him that the music that really matters and defines our culture is not the charts.

    Same for the operating system, what is it worth for humanity and our social system? How much of our resources we would have needed to spent (to microsoft) if it wouldn't be there? What money would the companies miss that use linux?

    And note again becase it's free does not mean it costs anybody a job or is evil. After all not a single job should be just a occupational therapy.
    (thats where the anti GPL comments fail, or where the adversaries miss the global sight. A job should be good for something, if we can save the work then better leave it, and leave us all more freetime, spent the time on the beach, etc.

    • It's the very same thing as moby said recently, he questioned why the worth of music is measured by the amount of sales. I agree with him that the music that really matters and defines our culture is not the charts.

      Yeah... but moby also said that he still wants to make a living selling music.

      -a
  • by WndrBr3d ( 219963 ) on Wednesday August 07, 2002 @01:44PM (#4026178) Homepage Journal
    I'm sure this article only applies to the 5% of Americans who are buying Manchicken Loonix for the first time to run on their desktop PC to feel awesome. The thought of just downloading the ISO never crossed their minds.

    So in essence, this article really only applies to the mentally handicapped. ;-)
  • Well, duh! (Score:3, Insightful)

    by TrumpetPower! ( 190615 ) <ben@trumpetpower.com> on Wednesday August 07, 2002 @01:44PM (#4026180) Homepage

    For all that the BSA would have you believe otherwise, the vast majority of computers running Microsoft operating systems are running paid-for licensed copies.

    For all that Red Hat and others would hope, the vast majority of computers running Linux are running unpaid-for licensed copies.

    Even if the same number of computers ran each operating system, the Microsoft operating system ``market'' would be much larger, as a result of simple math.

    With this overwhelming inherent disadvantage, that Linux is even on the charts at all is impressive.

    Cheers,

    b&

  • Lessee. I go to the Linux or BSD Distro of choice (insert your favorite here) site on the wb, or a bookstore which has books on Linux, or a ShareWare CD-ROM site, etc. And I get one CD from which I can create as many servers/workstations/etc. as I like. Then I get my patches and OS updates from the web, usually without any real expense. In other words, not much revenue got produced by the sale of the OS, but I may have support contracts worth much much more to vendors supporting Linux, Linux apps & services etc.

    Compare that to Microsoft which gets revenue for every Intel box built by most of the major PC OEMS, plus every seat in a site licensed business, etc. etc. ad nauseum. In other words, Operating System Sales revenues are irrelevant as a measure of Linux success in the real world. The real question is: what percentages of new installs in the various business sectors (consumer, small business, enterprise) and segments (server, workstation, PDA, embedded) are more important and interesting statistics, are they not?

    Isn't that the point of the "free OS" anyway?

  • How did they assemble the information for the survey?

    What kind of sales were included?

    When it comes to Linux a lot of the sales do not derive from the sale of shrinkwrapped packages, but from consultancy services. Sometimes software is service, but these kind of surveys seldom acknowledge that. Sure, you do need help to install Microsoft Windows too, but in the Linux case the installment service might be the only cost associated with the installment, thus scewing the figures quit much.

    Regards,

    Mikael
  • by teetam ( 584150 ) on Wednesday August 07, 2002 @01:48PM (#4026216) Homepage
    When someone compares MS Windows and Linux, it should be a comparison of how many PCs have windows as OS and how many have Linux as the OS.

    It doesn't make any sense to compare the "revenues" of a priced product and a free product.

    What next? A startling revelation that people all over America are paying for HBO and Cinemax, but many are getting local networks like NBC, ABC and Fox for FREE?

    • Again, you're off-base.

      While it's true that you can't use the revenues of individual Linux companies to draw any intelligent conclusions about install base, you can use it to gauge the health of the particular companies. Since they don't run on candy and magic, their revenues are extremely important.

      Now, that said, comparing them to the 800-lb. gorilla of the industry also seems unfair -- almost nobody has revenues comperable to Microsoft's. As an investor in Red Hat, I care about the following "real" items:

      Are they bringing in more money than this time last year?

      Can I reasonably expect continued growth in that revenue?

      Are they in the red or in the black?

      There are some other things to think about as well, but these are basically it.

      To sum up: Don't let the jerking of your knee cloud the real concerns.

    • It doesn't make any sense to compare the "revenues" of a priced product and a free product.
      That depends entirely on what subject is of interest to you.

      If you are trying to figure out what people are doing with computers, then yes, comparing revenue does not enlighten.

      If you are trying to figure out what the relative budgets are going to be for purpose of lobbying, litigating, and advertising, then revenue amounts do matter, a lot.

    • I believe that is an Incorrect analogy.

      For NBC, ABC and fox generate revenue (and a hell of a lot of it) based on viewers... in your analogy, linux should be generating lots of revenue since a lot of people have it installed.

      The problem is that Microsoft gets money upfront for their OS sales, while tv stations generate money based on views (or 'use' if we push the analogy a bit.)

      Now if we could get advertisers to buy 30 second commercial breaks in your linux productivity software and/or games, then perhaps we could get those revenues up a bit... But I don't want commercials poping up while I work, it's bad enough while I'm surfing the web...
    • I would say people should use this site more:

      http://counter.li.org/

      (too tired to link)
  • The tone of the article makes it sound like Linux is losing bad. Certainly the little blurb on /. tries to make it sound bad for Linux...

    But you can't compare revenue generated by a FREE operating system with revenue generated by a rather costly operating system. The goals are completely different.

  • It's worse than apples and oranges (although it would be more accurate to compare Apple and Microsoft). Microsoft has revenue from standalone sales and OEMs. Every computer sold is more revenue for Microsoft. Then add the retail upgrades that some people purchase at $99 or more. Yeah, lots of revenue.

    Linux, on the other hand, is either bought standalone or downloaded. Most folks download it. It's loaded on very few computers when they're sold, plus Linux is the minority OS in comparison.

    Next thing they'll tell us is rainy weather is wetter than dry weather :P

  • by dnoyeb ( 547705 ) on Wednesday August 07, 2002 @01:49PM (#4026230) Homepage Journal
    Its not that Linux is free. Its more that the Microsoft flogging model of required and forced upgrades fails miserably in Linux. Anyone that successfully installs Linux and uses it for a short while will
    A. Not need to upgrade in a long time.
    B. Realize how to upgrade for free.

    [political rant mode on]
    "While experts still can assemble the required Linux components for free and create the same package that companies sell, customers will be leery of using that sort of customized software, Gillen said. "

    I like how people feel no shame in telling what customers WILL do.

    Reports like this are very usefull as an indication of what the news organization that reports them's position is. This tells me that news.com is a BigSoftware mouthpiece.
    [/political rant mode on]
    • by electroniceric ( 468976 ) on Wednesday August 07, 2002 @03:53PM (#4027400)

      Anyone that successfully installs Linux and uses it for a short while will
      A. Not need to upgrade in a long time.
      B. Realize how to upgrade for free.

      This is true for the server market, where the OS is still relatively detached from what's running on top of it, and there's a lot of incentive not to change that much.

      In the desktop market, both of your premises are off base:
      a) people want new stuff: Microsoft sold tens of millions of copies of XP within a short time of releasing it. People regularly buy new cellphones for size, color, or something else they could probably get along without.
      b) at this stage upgrading is not easy at all. I upgrade KDE fairly regularly, and even though I use binary packages built specifically for my Mandrake distro (the supposedly user-friendly one), I still have to slog through the dependency swamp every time I install it. And God forbid you should try to build source....Even installing a new version of OpenOffice involves dealing .sversionrc, and figuring out how the hell to install it so everyone can use it.

      Recall also that the three or so years that a decent number of people have been making a go at Linux-as-a-business is a very short time. Much of what will happen has yet to happen. So the "analysis" by IDC is basically speculation on what a very short history means for a long future.
  • He would lobby Congre$$ to implement a "no copy" flag on all PCs. Then anyone that wanted Linux would *have to* go and buy a boxed set! To summarize:

    1. Lobby Congress to force PCs to not save Linux on the hard drive.
    2.
    3. Profit!

  • by Jason Earl ( 1894 ) on Wednesday August 07, 2002 @01:53PM (#4026266) Homepage Journal

    The good news is that sales are up, especially for "client" computers.

    The real danger to Microsoft isn't Linux's ability to generate profits, the real danger is Linux's ability to commoditize software. Eventually Microsoft's customers are going to learn that they can get more for less.

  • by JimBobJoe ( 2758 ) on Wednesday August 07, 2002 @01:53PM (#4026271)
    ...is an interesting way of looking at things, but I wouldn't put too much stock into it.

    For instance, I guess most people say that in politics winning is everything. But quite a lot can be said about losing as well. In 2000 every single Libertarian candidate in my county lost, and most of them lost big--I think the max one got was 7% of the vote (now that I think about it, I was that candidate :-)

    However, one county comissioner's race, the clerk of courts race, the county treasurer's race, and I think a judgeship's race went unexpectedly for the democrats. Our LP candidates threw almost all of the county for the Democrats in spite of the fact that it's a strong Republican county. For a 3rd party candidate, there's actually a victory to be had in throwing a race. Next time you campaign, the candidates take you seriously, not to mention the people who won with "your help."

    My point in saying that is, I'm sure that MS takes that 1% of their revenue lost very seriously, because I suspect that it matters quite a lot more to them than just 1% of their operations, in the same way that a Republican candidate who lost the election with 48% of the vote takes an LP'er who got less than 2% of the vote very seriously.

    (ok...ok...it's an apples to mustard greens comparison, i'm just saying that there are lots of ways of looking at that data)

    • Our LP candidates threw almost all of the county for the Democrats in spite of the fact that it's a strong Republican county.

      It is for the reason of this kind of perverse outcome that boolean ballots should be scrapped and be replaced by ranking ballots. E.g.: who do you want for president (of the US):
      • Al Gore
      • George W. Bush
      • Pat Buchanan
      • Ralph Nader
      Instead of selecting one, the voters would select a ranking order for all four candidates (except in Palm Beach where they would select "Al W. Buchanan").

      The procedure for determining a winner would be to tally all of the first choices and eliminate the candidate with the lowest vote count, and then repeat counting the highest-ranked choice still available for each voter. This way, voters for Nader wouldn't unintentionally be voting for Bush instead, whom they probably despise. The vote results would more accurately represent the true will of the voters.

      France effectively had a similar idea in its recent federal elections, by eliminating all of the lower-ranking candidates before the final vote, but it could have all been done in one go with a ranking scheme.
  • Aw, BS (Score:2, Interesting)

    If Linux sales accounted for less than 1% of all OS sales, why is Netcraft reporting that over 50% of all webservers are running Apache on Linux?
  • Afterall Linux is free. Only those who have a slow connection will go out and buy it and also people who are just a little lazy :)
  • The economy is in the shitter. Sales for just about everything you can think of is down.

    Why is this even considered news?
  • For all the people shouting, "Well, it's free! And anyway, Microsoft SUCKED more on January 2nd than the Linux community will all year!", no one seems to have noticed the most interesting assertion in the article.
    IDC based its projection of $280 million in sales within four years on efforts by Red Hat, SuSE and others to wring more money from Linux, in part by making it more difficult for users to obtain the software for free, Gillen said. "What we're expecting the revenue to come from is the fact that the Linux vendors are moving toward a model where they're trying to drive revenue per server," Gillen said.

    For example, Red Hat doesn't offer downloads with which others can easily create installation CDs for its high-end Advanced Server edition. And while the software may be installed on multiple computers--unlike Windows--Red Hat charges per server for subscriptions to the Red Hat Network for online services.

    While experts still can assemble the required Linux components for free and create the same package that companies sell, customers will be leery of using that sort of customized software, Gillen said.

  • So what that means in Microsoft terms is that Linux is in remission.

    .

    .

    ahh, the Micropoly [cafepress.com]

  • I thought the end of the article was a little funny...

    • Linux is best suited for use in servers, the higher-end computers that often run 24 hours a day handling tasks such as corporate e-mail. Most Linux revenue came from this market, Gillen said.

    • IDC declined to release the numbers of copies of Linux that were sold, but said the number stayed about level from 2000 to 2001. The number of copies that sold for "client" computers such as desktops and workstations, however, increased nearly 50 percent over 2000, in particular in Asia and Latin America, Gillen said.

    Just because higher revenue comes from server sales doesn't mean it is "best suited" for servers. I think he's selling the desktop short, especially considering the huge growth of the desktop market this year (presumably from almost nothing to a little bit more than almost nothing, but none the less....)

  • I'd like to see a "Wealth Generated per $100 In Sales" type of comparison - how much does it cost for each OS to generate $X worth of wealth for others. Not just hard $, but soft benefits as well. Does Microsoft and Windows actually grease the wheels of innovation by generating lots of $, or does Linux provide more benefits with the sharing of code and IP?

    That would be actually rather interesting, from both social and business points of view. Not easy at all, but interesting.

    Soko
  • That $80 million in revenues for Linux probably generated about $200 million in revenues for Microsoft due to Microsoft's licensing tactics. As we all know, Microsoft's "campus" style licenses require you to pay a fee for every CPU whether it's running Windows or some other OS.

  • That's right. Linux is free software. Sure, Redhat and others sell a boxed set in retail stores, and cheapbytes and others sell $5 CD's, but its available for free online for anyone with an internet connection. Of COURSE Microsoft will make more money than Linux will. The same could probably be said about a great many large software companies. Other factors need to be considered.

    How many new installations of Linux were installed vs. the number of Windows installations?
    Sure, Microsoft will probably still win, but the ratio will be a lot tighter.

    -Restil
  • I do. Or I make my employer du jour do so. I buy two or three a year. I usually buy anything other than Red Hat just to keep the manure spread as evenly as possible. And I've made it a point to buy one copy of Debian annually the last three years. I'm an athiest, this is what I do instead of tithing a church.

    Go ahead, fertilize your favorite distro today.
  • The Microsoft computer systems market, from a revenue perspective, accounts for one half of 1 percent of the total computer systems revenue each year, or roughly two days' worth of Apple's computer systems revenue," [IDC Analyst] Someone said.

    "On the second day of January, Apple had generated more computer systems revenue than Microsoft (will for the entire year).""

    what's even better news about that is that Apple is selling actual property in that figure.. not just intellectual property...

    and that.. in the end... will make all the difference. because no matter how many laws they make - they can never hire enough cops or lawyers or judges to stop the spread of information and intellect.
  • by bembleton ( 589035 ) on Wednesday August 07, 2002 @02:32PM (#4026596)
    I bet those 10 million users are thinking, "You mean I could have gotten this for FREE?? Dammit!"
  • A Gardener study released yesterday suggests that bottled water manufacturers will have greater revenue by January 2 than all of the lakes, streams, and oceans in the world combined.

    Another Gardener study has indicated that oxygen tank manufacturers will have more revenue by January 2 of next year than the (unnamed and unknown) purveyors of the free air that humans normally consume.

    Gardener recommends that corporate executives switch to free water and air.
  • Not only that, but I'd go so far as to say that between May 17 and May 19, Microsoft earned as much revenue as Linux did from June 3 to June 3 the following year. Think about it.
  • by Mr. Firewall ( 578517 ) on Wednesday August 07, 2002 @02:43PM (#4026717) Homepage

    ... isn't in this report.

    I've seen reports similar to this apples-and-oranges comparison (revenue from free software vs. proprietary) for the last couple of years, but the last figures I've been able to find that actually mean something (market share, or how many computers out there are actually running this or that OS) are for the year 2000.

    That year, M$ server OSes had a 41% market share, with around 30% for Linux. It's interesting that no one has ever released the figures for 2001. Apparently IDC knows what those figures are, but won't say.

    WHY DON'T ANY OF THESE SURVEY COMPANIES WANT TO TALK ABOUT MARKET SHARE??? Is it because M$ is going down the toilet and they're afraid it will start an investor panic if the word gets out? Is M$ PAYING them not to release the information? Is it just that nobody cares and no one wants to know?

    I'm an inquiring mind, and I want to know....

  • by evilpenguin ( 18720 ) on Wednesday August 07, 2002 @02:46PM (#4026753)
    As many have already pointed out, this is a useless piece of information. I work for a company that can only afford to do what it is doing because GNU/Linux exists. How does the revenue of my company get counted in this "revenue" figure? How many other companies are able to do more for less because they are starting to use GNU/Linux and Free/OpenBSD and Apache and on and on?

    The revenue of companies that manufacture goods, while not insignificant, is less important than the network effects on the economy of infrastructure products like operating systems. These "second order" effects are often much greater than the first order revenue. Especially when we are talking about productivity tools (as opposed to pure consumer products like toothbrushes and deodorant).
  • by verbatim ( 18390 ) on Wednesday August 07, 2002 @02:47PM (#4026770) Homepage
    an anonymous reader writes "News.com has a story about combined (legitamite) Windows downloads reaching 0 for 2001. "The Windows operating system market, from a download perspective, accounts for 0 percent of the total operating system downloads each year, or roughly no days' worth of Linux's operating system downloads," [IDC Analyst] Gillen said. "On the second day of January, Linux had generated more operating system downloads than the Windows community (will for the entire year).""

    So, your point was that more people buy Windows than Linux. Wow. Anyone could have figured that one out. Why not compare the number of Linux installations to the number of Windows installations? Wouldn't that be a more appropriate benchmark of Linux popularity? As for the commercial side of Linux, I don't think anyone claims to be as competative as Microsoft. Why aren't there meaningful co-relations (eg. 10% more Linux sales than last year)?

    Oh well. I don't do things 'cause they are popular, so this means nothing to me. ;)
  • Comparing Revenue? (Score:3, Interesting)

    by Shagg ( 99693 ) on Wednesday August 07, 2002 @02:48PM (#4026785)
    "The Linux operating system market, from a revenue perspective, accounts for one half of 1 percent of the total operating system revenue each year"
    "On the second day of January, Microsoft had generated more operating system revenue than the Linux community (will for the entire year)."


    You're kidding!

    You mean that Linux, which is free, generates less revenue than a commercial OS, which costs money? Wow, how long did these guys spend figuring this one out?
  • Statistics (Score:3, Insightful)

    by hendridm ( 302246 ) on Wednesday August 07, 2002 @04:43PM (#4027942) Homepage
    Ok, I've heard everybody mention the fact that Linux is free and that is why the numbers are low. I've heard others rebut the fact that not everybody sees Linux as free because it costs money in your average retail store. However...

    1. I would dare to say the majority of Linux installs is of free ISOs (sorry, no evidence), which would still affect the low sales figure dramatically.
    2. For those who use dialup and wish to purchase Linux, most distributions can be found for $5 or less, also contributing to low sales figures.

    Also, do we know what "linux sales down" means? Does it mean retail purchases or anytime someone shells out money for Linux? What about expensive systems where a vendor version of Linux is included?

    For example, if I buy a Sun Cobalt RAQ server right now, I get a nice server with Cobalt Linux installed on it. Sun has sold me the system and included a version of Linux with the sale of the system. Did the study give a dollar value to the Linux OS that was sold with my server in this case? I doubt it. There are a helluva lot of web hosting providers that use RAQs.

    What about embedded devices?

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