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Linux Business

FT on Europe's Open Source Option 235

Anonymous Coward writes "The Financial Times offers a very interesting read about Linux, its possibilities for business, and its threat to Microsoft. Also a second article about "Europe's open-source option"."
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FT on Europe's Open Source Option

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  • by Gentoo Fan ( 643403 ) on Wednesday January 22, 2003 @09:15AM (#5134742) Homepage

    Developed by Stallman, the so-called general public licence attached to Linux forces anyone who modifies the system to make the modification freely available to others.

    Only if you REDISTRIBUTE the binaries as well! This makes it sound like any in-house change must be published.

    • by frleong ( 241095 ) on Wednesday January 22, 2003 @09:25AM (#5134815)
      The general concern of large corporations is more or less like this: what if I am an employee of a large corporation and the IT staff used GPL libraries to develop in-house apps? Can I request the source code since I got the binaries? But wouldn't this cause havoc with the internal IT policies, as usually the source code can only be revealed on a need-to-know basis?
      • by memfrob ( 157990 ) on Wednesday January 22, 2003 @09:52AM (#5134988) Homepage
        Can I request the source code since I got the binaries?

        I wouldn't think so, since your company has not actually "distributed" the binary. If the company has made the modification, then as long as the company keeps the binary internal to the company, I wouldn't imagine it would be constrained by that portion of the GPL. Just as they didn't "give" you that monitor on your desk, or that chair you're sitting in, I don't think they would "give" you the binaries that you're using. Since the GPL seems to rely on variants of the term "distribute" however, it could legally be interpreted several ways. I would think, however, that you are being given access to the binaries as an agent of the company, not as an individual; in that case, no real distribution has occurred.

        IANAL, but I'm sure your company has two or three; ask them.

        • From the FSF (Score:3, Informative)

          by jbolden ( 176878 )
          Here is what the FSF says on this very issue:


          Q- Does the GPL require that source code of modified versions be posted to the public?

          A - The GPL does not require you to release your modified version. You are free to make modifications and use them privately, without ever releasing them. This applies to organizations (including companies), too; an organization can make a modified version and use it internally without ever releasing it outside the organization.
          But if you release the modified version to the public in some way, the GPL requires you to make the modified source code available to the users, under the GPL.

          Thus, the GPL gives permission to release the modified program in certain ways, and not in other ways; but the decision of whether to release it is up to you.

      • Big difference between distribution within a company and distributing to anyone who wants to download it. Since corporations are legally treated as an individual person, there is no difference between everyone in a corporation using the modified code (in binary form) and not distributing it at all.
        • Big difference between distribution within a company and distributing to anyone who wants to download it. Since corporations are legally treated as an individual person, there is no difference between everyone in a corporation using the modified code (in binary form) and not distributing it at all.
          What about consultants or other external contractors? What if they need to install certain in-house apps in their own computers for interoperability? If these apps use GPL libraries, the corporation would be forced to give out the source code to these consultants/contractors too.
          • I doubt it, it comes down to the non-disclosure agreement between them. If the contractor is using the program only for work for that company (as they should) there is no reason the company has to give up their right not to 'distribute', as it's still that company [legally a person] using the program to their own ends. IANAL, of course, so this could be debated endlessly, but I think the real important part is that a corporation is legally an individual, and a contractor doing work for that 'individual' is part of that individual when serving in that capacity, and doesn't have the right to distribute their works if they don't say so. if the company says the contractor can distribute it, then they have to give them the source too, but otherwise I think the rights still lie with teh corporation.

            • I doubt it, it comes down to the non-disclosure agreement between them. If the contractor is using the program only for work for that company (as they should) there is no reason the company has to give up their right not to 'distribute', as it's still that company [legally a person] using the program to their own ends. IANAL, of course, so this could be debated endlessly, but I think the real important part is that a corporation is legally an individual, and a contractor doing work for that 'individual' is part of that individual when serving in that capacity, and doesn't have the right to distribute their works if they don't say so. if the company says the contractor can distribute it, then they have to give them the source too, but otherwise I think the rights still lie with teh corporation.
              The contractor may not be allowed to redistribute the binary again, but GPL may force the corporation to give out the source code to the contractor. As you said, this can be debated endlessly. Being in a rather gray area, large corporations may avoid GPL even when they have lawyers and attorneys dancing around all the day.This doesn't mean that GPL is the problem, but certainly is a concern. To avoid hassles, they simply turn to non-GPL software (including BSD).
            • From the FSF (Score:3, Informative)

              by jbolden ( 176878 )
              Again this is specifically addressed by the FSF:

              Q- Does the GPL allow me to distribute a modified or beta version under a nondisclosure agreement?

              A - No. The GPL says that anyone who receives a copy of your version from you has the right to redistribute copies (modified or not) of that version. It does not give you permission to distribute the work on any more restrictive basis.

              Q - Does the GPL allow me to develop a modified version under a nondisclosure agreement?

              A - Yes. For instance, you can accept a contract develop changes and agree not to release your changes until the client says ok. This is permitted because in this case no GPL-covered code is being distributed under an NDA.
              You can also release your changes to the client under the GPL, but agree not to release them to anyone else until the client says ok. In this case, too, no GPL-covered code is being distributed under an NDA, or under any additional restrictions.

              The GPL would give the client the right to redistribute your version, but in this scenario the client will choose not to exercise that right.


      • Most of the fear about Open Source software is due to Microsoft fearmongering. In reality, there's no problem with selling/using closed source on top of Linux (see WordPerfect for Linux). In fact, the "disadvantage" becomes an advantage, as the programmers and legal are more aware of their boundries.

        As for your example, the libraries can be put in a sandbox, and segregated from the more sensitive bits. But as long as you're not distributing out-of-house, you can keep your source code confidential. Just beware, should you decide that your app can be sold to clients...
      • by rseuhs ( 322520 ) on Wednesday January 22, 2003 @11:47AM (#5135957)
        Alright, let's ignore the existence of the LGPL and pretend it didn't exist.

        Asking "What happens to our software if we use GPL-software as base?" is like asking "What happens to my company when we don't pay licensing fees to MS?"

        It's just part of the rules. And be assured, it's a lot easier to make sure not to use GPLed code in in-house apps than to make sure no employee has somewhere installed some unlicensed software. (Which can cost the company hundreds of thousands)

        Also, all the GPL violations have been solved by either removing the code (rewriting it) or opening up the whole. So if you don't want to open up you just need to do what you should have done from the beginning: Write it yourself. The risks involved in breaking the GPL are minimal, especially because there won't be any damages claims. Also, when it is about an in-house app anyway, what's the big deal in opening it up?

        Micorosft's license, on the other hand, is enforced, there are audits and huge fines.

        Anybody asking "What happens to our software if we use GPL-software as base" is either:

        • An idiot still not understanding the GPL, the difference between GPL and LGPL and in this case also not understanding licneses in general
        • A MCSE, MSFT-stockholder or somebody else who will lose very much with the decline of Microsoft, happily willing to spread any FUD about any non-Microsoft product.
        • A troll
        • Anybody asking "What happens to our software if we use GPL-software as base" is either:

          An idiot still not understanding the GPL, the difference between GPL and LGPL and in this case also not understanding licneses in general

          First, not everything is licensed under LGPL. Period. Even with LGPL, people cannot statically link their applications to the libraries. Also, RMS is now advocating that everything be licensed ONLY via GPL and not even LGPL.

          Second, by caling people with concerns with GPL as idiots, you're actually helping MS to spread FUD. It is this kind of elitist attitude that scares many people away. If not for IBM, the credibility of GPL would have gone down from the hills pretty quickly, because of people like you, and not because of GPL per se.

    • Internal deployment is still deployment. It's copyrighted material and I'd consider any situation that would trigger licensing fees from other companies as distribution and expect changes from same. Of course, I am not a lawyer (But I have seen every episode of Ally MacBeal.)
      • You've seen every episode of Ally MacBeal? Ouch.

        Seriously, internal deployment is not the same as distribution.

        Qote from the GPL: These requirements apply to the modified work as a whole. If identifiable sections of that work are not derived from the Program, and can be reasonably considered independent and separate works in themselves, then this License, and its terms, do not apply to those sections when you distribute them as separate works.

        So solution 1 is to distribute your program in binary form separate from the GPL'd code.

        Quote from the GPL: You may charge a fee for the physical act of transferring a copy, and you may at your option offer warranty protection in exchange for a fee.

        Solution 2 is to charge a high enough fee to dissuade others from requesting the source.

        Quote from the GPL:In addition, mere aggregation of another work not based on the Program with the Program (or with a work based on the Program) on a volume of a storage or distribution medium does not bring the other work under the scope of this License.

        So don't worry about your closed-source code being "polluted" by the GPL

        Quote from the GPL: b) Accompany it with a written offer, valid for at least three years, to give any third party, for a charge no more than your cost of physically performing source distribution, a complete machine-readable copy of the corresponding source code, to be distributed under the terms of Sections 1 and 2 above on a medium customarily used for software interchange; or,... (etc)

        So, who's to say what my cost of physically performing this is? It depends upon what my hourly rate for such a task is, and this can be set arbitrarily high.

        I agree with most of the posters, that the writer slipped up here.

    • Glossed over (Score:5, Insightful)

      by SgtChaireBourne ( 457691 ) on Wednesday January 22, 2003 @10:35AM (#5135343) Homepage
      The article also glossed over the introduction of Richard Stallman, skipping his contributions to computer science, culture and society. In addition to his contributions with Emacs and other software, his drafting the GNU General Public License (GPL [gnu.org]), he is the recipient of the Takeda Award for Techno-Entrepreneurial Achievement for Social/Economic Well-Being and the recipient of a fellowship from the John D. and Catherine T. MacArthur Foundation (aka a "genius grant.") Calling him just an "American programmer" would be like calling Steve Jobs an "American interested in computers".

      Stallman doesn't wear a tie. Get over it already.

      However, more importantly, The Financial Times and many others seem to intentionally obfuscate or misinform their readers regarding the Freedom part of the GPL. Peddling misinformation does a heavy disservice to any that might be trying to make an informed decision regarding their IT strategies.

  • Free beer! (Score:5, Interesting)

    by e8johan ( 605347 ) on Wednesday January 22, 2003 @09:16AM (#5134749) Homepage Journal
    I'd say that the article misses out on the freedom part of the word free. Not to sound evangilistic, but there is a bias towards free as in no money (but what can one expect from the _financial_ times?).
    • Re:Free beer! (Score:3, Interesting)

      by zorglubxx ( 513559 )
      Actually it's better they left it out. I dont think the GPL gives you more freedom since it takes away the freedom to use the code in anyway way you may wish. The only license that gives you true freedom is the BSD one.
      • It doesn't "take away" this freedom, as you don't have it anyway.

      • Re:Free beer! (Score:4, Insightful)

        by e8johan ( 605347 ) on Wednesday January 22, 2003 @09:33AM (#5134862) Homepage Journal

        It depends if you're interested in running a stable system or selling a patched version. I'd say most of the intended audience of the article aren't interested in selling Linux systems, but rather use it. Then the GPL is good, since it makes patches spread thoughout the community.

      • The GPL guarantees the freedom of the software itself by prevent it from being locked up,

        It does not guarantee YOUR freedom.
      • BZZZZT. The GPL takes away freedom? No, the GPL giveth, the GPL does not taketh away. You have precisely no rights to use unlicensed code written by other people.

        The GPL gives you the right to use it (assuming it's been licensed that way) if you follow some rules. And if the BSD license offers 'true freedom', how come people don't release under Public Domain instead? Oh wait, time for you to go read the licenses again.
      • I dont think the GPL gives you more freedom since it takes away the freedom to use the code in anyway way you may wish.

        All things are relative, including freedom. The GPL certainly gives you more freedom than Microsoft's EULA. Everything Microsoft's EULA allows the GPL allows. So in this common common case the GPL is more free.

        The only license that gives you true freedom is the BSD one.

        But the BSD license takes away my freedom to strip off the original authors copyright statement and delete the disclaimer of warrante. If we're going to demand absolute freedom you need to look at truly public domain software, no copyright.

      • Copyright says you have NO freedom to a work others have created. Zero. None. The GPL grants you freedom to use, view, modify and distribute the work given that you agree to certain conditions. That is indeed more freedom than "none". BSD certainly grants more freedom (almost to the point of placing in the public domain), but that in no way lessens the freedom granted by the GPL. If you're going to advocate a position, advocate it rationally, not with clearly untrue propaganda.
      • You've already gotten a bunch of replies, but here is an important one.

        Freedom is not just the absense of restraints. Introducing a "freedom to steal" destroys "the freedoms to own property" possession not ownership becomes the best you can do. You simply cannot have some freedoms in combination with others.

        As the history of X11 shows quite clearly:

        a) The freedom for commercial companies to embrace and extend a technology is propietery ways

        b) The freedom for users to form a community th share ideas which will allow them to be able to configure their software environment in a meaningful way

        are contradictory freedoms. Which freedom do you care about more?
      • One could argue that the only truely free society is one in which I'm allowed to shoot anyone I want, and steal anything I want from anyone I want. It's true that both of those freedoms are abridged by the government so that more freedoms are retained by all. A BSD license is anarchy. You are free to do whatever you like with the code including modifying it and then selling it back to me. There is nothing wrong with modifying my code and selling it back to me, it's just that the GPL promotes a chain of freedom which is self reinforcing. BSD promotes no such chain, so while it may be true that BSD promotes more freedom in the short term, a simple analysis of the GPL code base shows empirically that GPL stimulates more free code shareing, and thus more freedom in the long run. In short BSD provides more freedom in an academic (how many angels can dance on the head of a pin) sense. GPL (as evidenced by simple observation) generates more free (as in freedom) code in the practical sense.
    • Re:Free beer! (Score:5, Insightful)

      by IamTheRealMike ( 537420 ) on Wednesday January 22, 2003 @09:25AM (#5134816)
      Yeah. So much for Stallmans vision of free software being wanted because you could control it and share it with friends. That sort of stuff is important only to a small fraction of the worlds people clearly.

      These things are interesting to read, and overall I thought the article was pretty accurate, but it makes it feel very dry doesn't it? All the graphs, figures, and relentlessly the focus on cost, the bottom line. Other benefits like increased flexibility and lack of lockin weren't mentioned. Neither was the fact that the vast majority of people who work on Linux the OS as a whole are not employed by big tech companies.

      It's also rather depressing how much the involvement of IBM means to people. IBM has done a hell of a lot of good work, but the "we didn't pay any attention 'till IBM did" line indicates supreme daftness to me - Linux hasn't changed that much. I guess it's just a case of sheeple following whoever is biggest.

      • Re:Free beer! (Score:5, Insightful)

        by christophersaul ( 127003 ) on Wednesday January 22, 2003 @09:36AM (#5134876)
        IBM's involvement means a great deal. If you're an IT manager following IT trends, you'll have read about Linux in the trade press and shrugged your shoulders with vague interest. When the IBM sales guy turns up to tell you his AIX box can run Linux, or the Sun guy is talking about Linux boxes running your webservers, then you start to take more notice.

        Before, the evangelists were totally irrelevant and totally without credibility - in terms of who an IT Manager would take advice from.
      • Re:Free beer! (Score:3, Insightful)

        by Toy G ( 533867 )
        You must consider the context: it's the Financial Times speaking. They are not looking for the public good, they simply talk business to business-minded people.

        Why businessmen choose Linux?
        1 - Concern about IT spending (at least for SMEs this is the big factor).
        2 - Concern about relying on a monopolist, high-price oriented company (Microsoft as much as the old proprietary Unix producers).
        3 - Concern about relying on a monopolist, fixed-price oriented, *american* company...

        If you read the article, you'll find these and not much more, because the FT reader doesn't want anything other (well, maybe some tits would be appreciated).
      • Neither was the fact that the vast majority of people who work on Linux the OS as a whole are not employed by big tech companies.

        Actually the article mentioned this in a (backhanded way) but they disagree with your estimate that it is a "vast majority". It said (and I have no idea if it's true or not) that about 50% of the 1,000 or so developers that are really actively developing Linux are employees of big tech companies. I'm sure that there are many, many more non big company developers that are contributing occasionaly but the efforts of 500 full time developers doing it day in and day out for their living is probably making a pretty big impact.
      • Ok, so the free speech aspects are more subtle and this article doesn't really cover that. There is another more important aspect of GPL software that is called out in the article, and you don't get this bennefit with BSD licensing.

        They do point out that UNIX fragmented in the '80s and '90s because each UNIX vendor went off and created their own additions and variations, and that this is what created the opportunity for Windows to get into the server market. Without the introduction of Linux, we were quickly going to a situation where Sun was the defacto UNIX standard, and in the Sun/Solaris vs PC/Windows competition. This isn't that different from the competition with Apple, where the software development and support is really a drag on the hardware business (keeping costs up), and it is hard to compete with the commodity PC pricing (MS just cleans up, big time).

        With Linux, system vendors can cooperate on software without worrying that the competition can just take their contribution and not return anything. IBM will not work on Darwin, but Linux is great precisly because of the limits imposed by the GPL.

      • Yeah. So much for Stallmans vision of free software being wanted because you could control it and share it with friends. That sort of stuff is important only to a small fraction of the worlds people clearly.

        As the parent said, it's called Finacial Times for a reason. The people who read it basically care about one thing: money. If you want to communicate with them you need to speak their language: money.

        There's a very good reason for not mentioning RMS-style Freedom to this audience; it gives them the willies. It's very difficult for a money-minded person to see how those ideals benefit them since all they are able to see is monetary worth.

        It's also rather depressing how much the involvement of IBM means to people. IBM has done a hell of a lot of good work, but the "we didn't pay any attention 'till IBM did" line indicates supreme daftness to me - Linux hasn't changed that much. I guess it's just a case of sheeple following whoever is biggest.

        When a very small company I was working at a while back needed to move all the important business files off of the bosses desktop and onto a dedicated fileserver I suggested adding a big harddrive to an old unused machine we had and throwing Linux on it. After explaining what Linux is and why we don't have to pay anyone for it if we don't want to, the question posed was "Who else is using it?" It seemed like a very strange question to me, but eventually I understood what it was about. Managers really don't like to take risks. What they were asking for is examples of where Linux has been successfully deployed. Data is the backbone of any company, and you don't trust your data to a platform that doesn't have an acceptable track record, and to have that you need some big names (like IBM) saying publicly "Yes, we use that, it works".

        Unfortunately, this was when IBM was first talking about supporting Linux, so examples from companies anyone had heard of were scarce, to say the least. I managed to talk them into it anyway, and the winning arguement was money. Hardware and software costs to do it the way I suggested were $125 (new HDD and NIC), whereas software costs alone for an MS solution was around $1000, or $1500 for Novell, and both of those would have required more hardware expenses to create a viable platform, and would have had additional expenses for licenses ($50 and $70 respectively per seat, IIRC) whenever a new employee were hired (the company was growing roughly 30% per year at the time).

        It so happened that the CEO had recently asked the CFO to marry him, so once these numbers were pointed out to her, the issue was decided in favor of Linux ;-)

  • Very good to see (Score:5, Informative)

    by Achmed Swaribabu ( 642441 ) on Wednesday January 22, 2003 @09:16AM (#5134754) Homepage
    I think that the EU has traditionally been more open minded to open the source technologies than the USian people have been, by my judgment.

    We have been doing much work for lots of private industrial companies all over Europe by make the modfications to FreeBSD and Gnu/Linux kernel for years and just now starting to see jobs from the USA.

    Oh too, to make a clarification, most of our work has been on FreeBSD (my specialty actually) because we recommend it for companies because of the more flexible license, but we like the work on Gnu/Linux too.

    • Oh too, to make a clarification, most of our work has been on FreeBSD (my specialty actually) because we recommend it for companies because of the more flexible license

      That's an interesting perspective. Presumably if you make custom changes for companies then they wouldn't be redistributed so you wouldn't have to reveal the changes anyway. And what sort of things do you change or add that is so secret they can't be released back?

    • by Dan Ost ( 415913 )
      Part of that is that Microsoft is not a EU
      company and so there is no political motivation
      to protect MS's market in the EU.

      Whether or not that plays a bigger role than the
      national security angle (being dependent on a
      foreign company for national IT), I have no idea.
    • Well, as a European I'm flattered, but was it really necessary to post such an inflammatory post?

      For instance, you set up America vs Europe, a classic hot subject on Slashdot whatever the subject discussed. Same with FreeBSD vs Linux. Also "USian" isn't a very respectful term, right?

      Cheers,
      Lars

      • > Also "USian" isn't a very respectful term, right?

        I don't think respect is "in" these days. :-) And no, it's not.

        The whole EU vs US thing is silly, because it presumes two huge land masses are monolithic in their thinking. Microsoft's demise will mean more jobs for everyone, both EU and US.
      • "USian" is pretty respectful to the couple of hundred million people in the America's who aren't in the USA.
  • by mijok ( 603178 ) on Wednesday January 22, 2003 @09:16AM (#5134758)
    World Business Report this morning. Very good indeed that Linux gets more and more publicity among businesspeople too.
  • Written by businessman, for businessman.
    I can undestand why slashdot puts stories like these on but I still laugh when I read them. The contradictions, the overstatements, not to mention the information they sometimes get wrong. I don't mind reading them though, if only for a laugh.

    Not to say that this story has ALL of those listed above, but I did notice some lines that gave me a chuckle.

    • by CharlieO ( 572028 ) on Wednesday January 22, 2003 @09:27AM (#5134826)
      I love them - yes they are funny, but they are of major use to our community.

      Most of us on squishdot rage flamewars about code stability, scaleability, freedom of choice - but none of this matters to the execs - they don't read what we write.

      But if someone like the FT mentions Linux and how good it is - this gets read in the board room, on the train, on the trading floor.

      And then maybe, just maybe, someone will ask the head IT person just what its all about. Then we get a chance to explain it. Get a copy of these articles, save the link somewhere - and then next time you have to do a whitepaper or value proposal in your company where you know open source is the better choice you have some references that people will sit up and notice.

      Treat these articles as sales leads to big buisness - marketing is what open source is not good at beacuse we don't press the right buttons - the FT does.

      Still - good for a chukle wasn't it.
      • I'd go beyond that and be a little less condescending about their technological ignorance. The businessmen and investors etc. shouldn't be interested in all the technological intracacies that are of interest to us. They *should* get the executive summary version and the *should* be interested in the bottom line & cost. All the technology issues we are interested in are ultimately reduced to cost - a system that doesn't scale will cost more in the long run, a system that is unreliable will cost more - at the level of decision making these guys are concerned with the technical details are less important than the outcome. They need good advice from technical experts & some knowledge on their own part of the technical issues that will effect costs is helpful but ultimately not really their concern.

        That being said it doesn't excuse outright errors. The businessman reading the article can't be expected to know or care about the technological details. The technology writer on the other hand, while he may have to reduce things down to a simplistic level, should NOT be getting things just plain wrong.
        • Agree whole heartedly.

          Stage 1 is getting people to talk about it

          Stage 2 is getting them to talk about it correctly.

          To my mind an obvious but reasonably harmless error like some of those in the article is okay - we get a chance to correct them.

          Deliberate FUD however is not and should be jumped on.

          I guess I'd say don't shoot the messenger - so long as the messenger doesn't have an agenda!
  • by Omkar ( 618823 )
    "You'll see a shift from Microsoft to preaching the benefits [of its software], not the theological arguments"

    What the hell? Do we need analysts to tell us ideology has no value in business?
  • by icantblvitsnotbutter ( 472010 ) on Wednesday January 22, 2003 @09:33AM (#5134860)
    Keeping the big companies in line this time round - other than an increased mutual respect for Microsoft - is a licensing system that gives them little incentive to try to commandeer Linux for their own purposes. Developed by Stallman, the so-called general public licence attached to Linux forces anyone who modifies the system to make the modification freely available to others. "The licence doesn't guarantee there won't be fragmentation but it makes it very difficult to support a business model" if a company wants to develop a proprietary Linux, says Mr Frye at IBM.


    That's a part of the model that I don't often see pointed out. It's pretty apparent, when you think about it, but not obvious. Sure, companies can add distinguishing (and proprietary) applications, but the core stays relatively stable.

    Not only do others benefit from what is added, they benefit from what isn't added.
  • Just how big? (Score:4, Interesting)

    by nicknoxx ( 176942 ) on Wednesday January 22, 2003 @09:36AM (#5134874)
    The article states that the server market is $200bn and that Linux's share is only $8bn which looks like a very small percentage until you read the Linux machines "cut the cost of hardware purchases eightfold, says Geoff Penney"
    So Linux share of the server market could be much larger than it would appear.
    Nick
    • The article states that the server market is $200bn and that Linux's share is only $8bn which looks like a very small percentage until you read the Linux machines "cut the cost of hardware purchases eightfold, says Geoff Penney"

      I'm not sure how to feel about that.

      On the one hand, this is a weapon for MS. "Linux is only $8G in a $200G industry. That's only 4%! Even Apple has a bigger marketshare than that! You don't want to be a loner, you want to be able to interoperate with everyone else...", they might say.

      On the other hand, what is a $8G marketshare at Linux prices would be a $64G marketshare at MS prices, which makes it more like a 25% marketshare.

      I'm not entirely sure that my math or logic are entirely correct, but one thing is clear: money is a really stupid way to measure usage.

  • by MosesJones ( 55544 ) on Wednesday January 22, 2003 @09:37AM (#5134880) Homepage

    The basic concern here is also reliance on technology that can be controlled by another goverment, the advantage of Open Source is not just financial but is also one of Intellectual Property. Most of Europe is politically much further to the left than the US and is pro-sharing. This is a major principle of the EU, as opposed to the US centric treaty that enables logging and exploitation on the other side of the pond.

    So there is less of a clash of culture when considering open source, Europe understands why co-operation is good, that is how much of the European defence industry works already.

    Now there is also the arrogant bit....

    We think European Students can build better OSes than US corporations - Linus

    We think that Europeans can build better enterprise systems - SAP

    We think that the best things to come out of IBM were developed in Europe - MQSeries

    So basically underpinning this is a belief that we don't have the cash to do better, but do have the talent. Most EU reports on Open Source software talk about leveraging this talent pool, and not having the marketing and release costs of a full scale company.

    Its the difference between consent based and co-operative management and the approach taken over the pond.
  • by Martin Spamer ( 244245 ) on Wednesday January 22, 2003 @09:37AM (#5134885) Homepage Journal

    The Slashdot link seems to have caused this article to rise to number 1 in the FT list of most popular articles (from 3 in the 10mins or so it took me to read it).

    http://news.ft.com/servlet/ContentServer?pagenam e= FT.com/StoryFT/FullStory&c=StoryFT&cid=10424909759 62&p=1012571727085#
    Looks like t
  • by dipfan ( 192591 ) on Wednesday January 22, 2003 @09:44AM (#5134929) Homepage
    Apart from the big Linux piece highlighted, the paper's Lex column carred a note on Linux as well today (it was in the dead tree edition - the online bit is subscription only.)

    To explain, the Lex column is a very influential daily piece of analysis, read by the financial world's movers and shakers (mainly in the UK). I'd quibble about a few points - MS's Office franchise is (financially) secure? Linux suffers from "real security issues"? Nonsense. Anyway, for review purposes, here the piece:

    "Technology investors should be thinking long and hard about Linux. The free, open source operating system has moved beyond the beard and sandals stage and is no longer just an option for bleeding-edge early adopters and those theologically opposed to Microsoft. Linux, whose mascot is a cuddly penguin, has developed teeth. The technology has emerged as a credible alternative for corporate IT departments and is winning significant share in the $200bn server market.
    "Sun, Hewlett-Packard and IBM - which have traditionally marketed high-margin Unix equipment and software - are among those that have suffered from Linux's growing popularity. All three have seen the writing on the wall and have begun supporting Linux, but the transition from Unix, with proprietary hardware and software, will be painful.
    "For the moment, Microsoft has not been overly affected by Linux's rise. Open source software is unlikely to gain even a foothold in personal computer operating systems, so Microsoft's $10bn Windows monopoly remains impregnable. Its $8.8bn Office franchise is equally secure.
    "Nonetheless, Microsoft cannot be complacent. The long-term threat to its $6.5bn server business is real. Microsoft's model has been low price, high volume, but for the first time it is being undercut on price. It can argue that Linux suffers from real security issues that are only now emerging and that the operating system has a tendency to fragment, making it difficult to ensure applications' reliability. But it has a real marketing battle on its hands."

    • I'd quibble about a few points - MS's Office franchise is (financially) secure? Linux suffers from "real security issues"? Nonsense.

      The way I read it, FT is saying that those are arguements MS could make, but will have a battle making them stick. "It can argue" v. "It can be argued".

      I agree with you about MS Office, though. At the moment it might look secure at the moment, but then an undermined castle wall looks secure right up to the point where the besieger burn out the supports, and those Star/OpenOffice guys are working fast.

  • by Modern Hamlet ( 311094 ) on Wednesday January 22, 2003 @09:48AM (#5134957) Homepage
    "Although Linux has been slower to catch on in Europe, the drive to end dependence on the US for technology is a common but seldom admitted justification in every country exploring the technology."

    Perhaps I'm taking the comparison a little too far, but the similarities between the US and the Roman Empire at its height (before it imploded) have been jumping out at me even more lately. Bush's unilateralism, the RIAA's panic response to P2P, and yes, even Microsoft's attempts to hold off Linux strike me as desperate actions of a dominant power failing to keep up with the changing times and thus losing its grip on power.

    If India, China, and the EU eventually embrace open source as the new paradigm, that will be just one more crack in the wall.

    -mh
    • There are two things people seem to forget when they make this analogy to the Roman empire:

      1) It took centuries for the Roman empire to fall. Using a Roman timeline we somewhere in the age of Augustus Ceasar. That means for the next 150 years we get stronger not weaker. 300 years from now we are still the undisputed power. 500 years from now a major (but declining influence)

      2) When Rome finally did fall it took the entire empire down with it. The fall happened from the outside in, now from the inside out. In other words: Europe falls first, falls harder and falls for longer

      You sure you like the analogy?

      • It took centuries for the Roman empire to fall.

        Things move much faster now.

        Using a Roman timeline we somewhere in the age of Augustus Ceasar.

        No, we're way past Augustus. Analogies are never perfect, so you can't really draw a direct correlation, but our culture is more like a split between Rome under Caligula and Rome under Constantine (post conversion).

        The sickening decadence and depravity endemic to our society (think Springer, SUV's even after 9/11, a populace who watches news programs which are completely geared to manipulating them and maintaining their ignorance. Bread and circuses.)
        is reminiscent of Roman society under the Claudian Emperors.
        The religious zealots eager for martyrdom and the excommunication or torture and murder of anyone who has a different thought during the rise of Christianity is frighteningly similar to the zealots we have here today. Muslims have their similar wackos, but most of the rest of the civilized world is moving away from the sickening idea of fundamentalism.

        That means for the next 150 years we get stronger not weaker. 300 years from now we are still the undisputed power. 500 years from now a major (but declining influence)

        Again, things move faster.
        Also Rome would have fallen much sooner if they hadn't still had the image of invulnerability. The barbarians could have moved earlier than they did.

        When Rome finally did fall it took the entire empire down with it. The fall happened from the outside in, now from the inside out. In other words: Europe falls first, falls harder and falls for longer

        Much of Europe was part of the Roman Empire. They are not part of the American Empire. The ties are deep economically, as they are throughout the world.
        You make a large mistake in your analogy. The Europeans (and Asians) are not ignorant, and they are most certainly not barbarians.

        • >> It took centuries for the Roman empire to fall.

          > Things move much faster now.

          Any proof of that? Economic cycles that took about a lifetime then still take about a lifetime; which means things are evolving slower (since life expectency is higher). Political movements seem to also be moving slower; like the rise of Thatcherism... I don't see much evidence things are moving faster. This is one of those rumors of the modern age.

          >> Using a Roman timeline we somewhere in the age of Augustus Ceasar.

          > No, we're way past Augustus. Analogies are
          > never perfect, so you can't really draw a
          > direct correlation, but our culture is more
          > like a split between Rome under Caligula and
          > Rome under Constantine (post conversion).

          Huh? What are just picking emperors at random?

          1) We have a great deal of political and military influence over the empire but still lack direct control. Just like Rome in the early years. The rest of the world is not paying tribute but rather seems themselves as weaker partners.

          2) There are still strong counter forces

          3) A major increase in trade is occuring do to the safety of transportation (or in this case international trade and finance system) under Roman (American) control.

          > The sickening decadence and depravity endemic
          > to our society (think Springer, SUV's even
          > after 9/11, a populace who watches news
          > programs which are completely geared to
          > manipulating them and maintaining their
          > ignorance. Bread and circuses.)

          Springer isn't that popular nor that depraved. The vast majority of Americans live in stable households, hold down steady jobs, are very law abiding, and frankly have monogomous sexual relations... That is not a society on the verge of collapse by any standards. As for bread and circuses I see no large government directed mass entertainment projects with minor exception like July 4th and the Olympics. It simply isn't happening.

          > is reminiscent of Roman society under the
          > Claudian Emperors. The religious zealots eager > for martyrdom and the excommunication or
          > torture and murder of anyone who has a
          > different thought during the rise of
          > Christianity is frighteningly similar to the
          > zealots we have here today.

          Except the real wave of martyrs are mainly second century not first 80 years after the Claudian emperors.

          > Muslims have their similar wackos, but most of
          > the rest of the civilized world is moving away
          > from the sickening idea of fundamentalism.

          As it was during the days of Augustus. Augustus was a rise in rationalism. The mystery cults were a counter force but it wasn't for many years until they became a mass movement.

          >> That means for the next 150 years we get
          >> stronger not weaker. 300 years from now we are
          >> still the undisputed power. 500 years from now
          >> a major (but declining influence)

          > Again, things move faster.
          > Also Rome would have fallen much sooner if they > hadn't still had the image of invulnerability. > The barbarians could have moved earlier than
          > they did.

          Could they? All through the 2nd century the barbians were still being pushed back. In the 3rd Rome began to lose ground but slowly. Attilah was a genius but he was also the right man at the right time. Note he also didn't take out the eastern empire.

          > > When Rome finally did fall it took the entire >> empire down with it. The fall happened from
          >> the outside in, now from the inside out. In
          >> other words: Europe falls first, falls harder
          >> and falls for longer

          > Much of Europe was part of the Roman Empire.
          > They are not part of the American Empire. The
          > ties are deep economically, as they are
          > throughout the world.
          > You make a large mistake in your analogy. The
          > Europeans (and Asians) are not ignorant, and
          > they are most certainly not barbarians.

          First off it isn't my analogy I was commenting on this Roman analogy that gets brought up often. Second in the time of Augustus most of what would later be the empire had all sorts of mutual defense treaties and economic treaties with Rome. They didn't have any sort of formal vassel status and they didn't pay tribute. Mostly they just had bases on their territory and some limits placed on their foreign policy (which is a lot like today). Vassel status wouldn't come for a very long time.

          Anyway if America is Rome then in the analogy Europe would be what will become a vassel state.
          • Any proof of that? Economic cycles that took about a lifetime then still take about a lifetime; which means things are evolving slower (since life expectency is higher). Political movements seem to also be moving slower; like the rise of Thatcherism... I don't see much evidence things are moving faster. This is one of those rumors of the modern age.

            Well, I can fly from San Diego to Chicago in 4 hours. How long would it take to ride a horse?
            I can send a message from Rome to South America in seconds. How long did it take at the height of the Roman Empire? About 1500 years.
            In fact at that time, the Romans didn't even know South Americans existed.
            Information and knowledge travel very quickly indeed.
            Technology moves much much faster than it did back then.

            Huh? What are just picking emperors at random?

            Not at all. Caligula was arguably the worst of the Claudian Emperors. Constantine was the (I believe) first Christian Emperor. I then went on to draw comparisons between those specific times and now. Not very random at all, huh.

            1) We have a great deal of political and military influence over the empire but still lack direct control. Just like Rome in the early years. The rest of the world is not paying tribute but rather seems themselves as weaker partners

            Fair enough.

            2) There are still strong counter forces

            Yes, but they are well informed, technologically advanced counter forces. Much more so than in the Roman days.
            Our society has much more in common with Carthage at the time of the Punic wars than it does with Roman society at the same time. In Carthage, public officials were openly for sale just like America. Almost any action, no matter how disgusting or depraved, was ok as long as it made money. Exactly as in America. In Rome, a public official taking a bribe was practically unheard of. For one the person would be an outcast from society and also the penalty for this was death. It was ok to get rich, but there were some things that just were not done. Polybius draws comparisons where Carthage is at one extreme, Rome is in the middle, and Sparta is at the other extreme where no man could own more land than any other, and acquiring wealth was to be despised. He makes good points about how this prevented Sparta from becoming a major player on the world stage.

            3) A major increase in trade is occuring do to the safety of transportation (or in this case international trade and finance system) under Roman (American) control.

            Partially due to America, certainly.

            Springer isn't that popular nor that depraved. The vast majority of Americans live in stable households, hold down steady jobs, are very law abiding, and frankly have monogomous sexual relations... That is not a society on the verge of collapse by any standards. As for bread and circuses I see no large government directed mass entertainment projects with minor exception like July 4th and the Olympics. It simply isn't happening

            I believe Springer is still the most popular daytime TV show. The depravity isn't Springer's show as much as it is the fact that people watch it. There are Massive Corporate Media directed entertainment projects. Generally they tell the government what to do, so it works out to essentially the same thing. Again, analogies don't map exactly. Our economy is based on manipulating people into buying lots of worthless crap they don't need. This is not a healthy condition. It is one sign of a decadent society.

            Except the real wave of martyrs are mainly second century not first 80 years after the Claudian emperors.

            Right. Like, say, more toward the time of Constantine as I said?
            There never really was a "wave" of martyrdom. There were a few cases here and there. The total number was around 2000 (according to Gibbon). A lot of it was just revisionist history by the Christians.

            As it was during the days of Augustus. Augustus was a rise in rationalism. The mystery cults were a counter force but it wasn't for many years until they became a mass movement.

            Well, Augustus was also the first Roman person to be declared a god. Not very "Rational" that.

            First off it isn't my analogy I was commenting on this Roman analogy that gets brought up often.

            Sure, but you modified the analogy which made it yours. I further modified it and pointed out flaws in the analogy.

            Second in the time of Augustus most of what would later be the empire had all sorts of mutual defense treaties and economic treaties with Rome. They didn't have any sort of formal vassel status and they didn't pay tribute. Mostly they just had bases on their territory and some limits placed on their foreign policy (which is a lot like today). Vassel status wouldn't come for a very long time.

            True enough.

            Anyway if America is Rome then in the analogy Europe would be what will become a vassel state.

            In a strict analogy, perhaps so. Again many things are different and Europe is aware of the history. Whether or not they can learn from it is another question.

    • James Davidson's and Lord Rees-Mogg book (published in 1997) made the point strongly that Western Welfare Democracies (e.g., U.S., U.K.) are indeed similar to the Roman empire during its long slow fall.

      They talk about just how bad the Roman tax collectors are and suggest that people leave large welfare democracies, emigrating to small stable democracies that do not support welfare states.

      - Mark Watson

      - Free Web Books at www.markwatson.com

    • Perhaps I'm taking the comparison a little too far, but the similarities between the US and the Roman Empire at its height (before it imploded) have been jumping out at me even more lately.

      I don't think you're taking the comparison too far at all.

      I just read "The Rise of the Roman Empire" by Polybius which was written during the republic; about 100 years before Julius Caesar.
      I'm currently halfway through "The Decline and Fall of the Roman Empire" by Gibbon.

      I have been amazed by the similarities between the US in its earlier years and Rome during the republic when it was on the rise.

      The similarities between Rome in its decline and The US currently are even more striking.

      It's truly frightening.

      We show all of the signs of a society in its decline.

  • by Mackus Daddius ( 28273 ) on Wednesday January 22, 2003 @09:51AM (#5134977)
    Microsoft last week said it would let government customers examine the source code of its Windows operating system, a move intended to overcome perceptions of the systems's security weaknesses.

    Now, I am not a Fortune 500 CTO (IANAF5CTO?), but I would be pretty worried if I had a global deployment of Windows systems and Microsoft just started handing out the source code to foreign governments (or my own for that matter). If people consistently find exploits without access to the internal code, imagine what a motivated foreign intelligence service can do with access to it.

    Is Microsoft, in reacting to the emerging "open source in government" movement, inadvertently making Windows less desirable to everyone else?

    ::md

  • High cost of Unix (Score:5, Insightful)

    by kahei ( 466208 ) on Wednesday January 22, 2003 @10:01AM (#5135037) Homepage

    I still think that the most striking feature of this market is not so much the spread of Linux now -- after all, it offers obvious benefits -- as the fact that people are finally *stopping* spending huge amounts of money on Unix (read Sun) hardware.

    I've occasionally had to do with projects where costs were reduced to 1/8 or so (yes, about what the article says) by replacing Sun with NT hardware. With hardware savings like that, it doesn't matter if you have a whole entire backup system with it's own set of staff.

    What the popularity of Linux really means in money terms is that sites that kept spending millions a year on Sun, because of internal opposition to Microsoft, now have a politically correct way to buy cheap Intel hardware.

    This is good. It's just a pity so many sites upgraded to ma$$ive Sun-hardware j2ee systems during the boom... it'll take forever to get rid of 'em all!

  • System Sales (Score:2, Insightful)

    by Anonymous Coward
    Isn't it great how these articles list sales of Linux systems? Consider how many of the Linux systems out there aren't purchased preinstalled. It must be a pretty high percentage of those 'sales' numbers, if not more.
  • by rnturn ( 11092 ) on Wednesday January 22, 2003 @10:23AM (#5135247)

    Count me as one person who's getting a little tired of this argument that we keep hearing that ``Linux's security isn't up to snuff and hasn't been severely tested because all the `hackers' are too busy writing attacks on Windows. Oooh! It'll just be awful when these `hackers' turn their attention to Linux''. Well, to me, that's just pure FUD and BS. Linux is, as reported in the FT article (or was it another one I read this morning) being developed by 1000 developers. These are hackers -- hackers in the sense we understand to be the true meaning of the word and not what the news outlets redefined it to mean -- that are attacking the Linux kernel every day. To think that the security implications of the features that are working their way into the kernel aren't being looked at from a security aspect by (at least some of) these 1000 developers is just silly and wishful thinking by Linux detractors. Not to mention the untold number of people beta testing the development kernels.

    Oh sure, there are userland applications that have security issues. But didn't Intuit's flagship product recently have a flaw exposed? And didn't Oracle (you know: the folks with the ``unbreakable'' database) have to issue patches to plug potential security holes?

    The day when the army of ``hackers'' writing Windows exploits focus their aim on Linux is the day after Microsoft releases Office for Linux (though I'm not holding my breath until that hit the shelves). And the attacks that target Linux-based systems will be a tribute to the concept of code reuse as most of the current Windows exploits will probably work just fine against the Office running on Linux. (Anyone thinking about who Microsoft would blame for the problem?)

  • UK and Microsoft (Score:5, Insightful)

    by Mr_Silver ( 213637 ) on Wednesday January 22, 2003 @10:30AM (#5135308)
    The UK, one of the slowest countries to adopt open-source - partly because of close ties with Microsoft - last year published a paper offering guidance to government departments considering switching to open-source software.

    Whilst this sounds very nice, I feel that I should bring everyone back into the cold harsh reality by pointing about that the UK has a long long way to go before it becomes more open source savvy.

    For example, the NHS, possibly the most underfunded thing we have, just coughed up £60 million for Microsoft Licencing [cw360.com].

    Money well spent? You decide.

"Conversion, fastidious Goddess, loves blood better than brick, and feasts most subtly on the human will." -- Virginia Woolf, "Mrs. Dalloway"

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