The Other Operating System

What you need to know about Linux now.

Let the trumpets blare: Linux has arrived. Once a tool used only by technical gurus, the maverick operating system developed to thwart Microsoft's stranglehold on the world's computers now powers some of the world's largest business and research applications. From government agencies such as the U.S.'s NASA to companies such as Japan's mega-retailer, DEODEO, organizations everywhere are entrusting their mission-critical applications to Linux. Meanwhile, many of the world's largest hardware and software manufacturers—including Compaq, IBM, Dell, Hewlett-Packard, Intel, and Oracle—have been scrambling to add support to their products as quickly as possible. Even entire countries such as the U.S. and China have expressed interest in "the other operating system."

Why are so many organizations now incorporating Linux into their IT landscape? After all, the prospect of migrating to a different operating system raises numerous technology and business issues. Plus, Linux represents a radical departure from proprietary operating systems (OSs) such as Microsoft Windows NT and UNIX. With its open-source foundation, Linux is wide open to people everywhere for viewing, modifying, and copying. What can be gained by adding Linux to your OS lineup? What are the risks? Should your organization begin gearing up for this new world, and if so, how?

Linux Laid Bare

Programmers were the first to recognize that Linux's stability, reliability, performance, and low cost made it an ideal candidate for the server environment. Linux is extremely stable. Indeed, many claim that it's more stable than Windows NT. Reliability is often measured in months rather than days. Linux is fast and performs well, even on inexpensive computers. Since the code is open, it's easily customized and optimized. Enhancements are distributed online and subjected to rigorous peer reviews. What could be more cost-effective than software that can be downloaded free from the internet?

Critics, however, say Linux poses several risks. Many business applications that companies rely on are still not available for Linux. (Of course, the world's most popular office suite—Microsoft Office—may never support Linux.) Support, therefore, can be problematic. The current user interface isn't as "friendly" as Windows or Apple's Mac OS. Security is also an issue. Some people, such as MacDonnell Ulsch, a senior manager of technology risk devices at PricewaterhouseCoopers, argue that Linux's openness makes it a prime target for security problems. Others say that modifications made by programmers can create havoc within an organization.

Meanwhile, the issue of total-cost-of-ownership can go either way. On the one hand, using free software that runs well on inexpensive, older hardware means you minimize hardware and software costs. However, if your organization is Windows-based and your employees are unfamiliar with UNIX, your staffing budget could skyrocket overnight.

As They Say in Hollywood, "Will It Fly?"

Then there is the question of the business model. How can a company make money offering free software? The answer is simple: by selling software and hardware bundles, consulting services, and support. Wall Street's enthusiasm has fluctuated wildly. VA Linux, for example, went public just over 18 months ago—and gained nearly 700 percent on its first day of trading. Since then, however, prices of most Linux stocks have dropped significantly.

While some professional investors question how Linux companies can ensure profitability, two of Silicon Valley's most successful venture capital firms—Benchmark Capital and Kleiner Perkins Caufield & Byers—are old-time believers. In September 1998, Benchmark invested US$2 million in Red Hat. Eight months later, Kleiner Perkins invested a reported US$7.7 million in Linuxcare. Why? Both see a tremendous payoff for customers—and ultimately, for their own investors.
The key to your success, however, is how you manage the process. "For the first time, we can have people collaborating worldwide," says Kevin Harvey, general partner at Benchmark. "Any CIO who deals with bugs and updates will appreciate Linux. They'll find a better product, since customers can contribute."
The flip side of that coin is that "it's a disruptive technology. If you can accept that, it's perfect," says Ted Schlein, general partner at Kleiner Perkins. "The challenge for companies is to understand how you manage tens of thousands of engineers submitting bug fixes."

Mission Control, We Have Liftoff

Although linux has been available for nearly a decade, it has only recently made significant gains in the marketplace. According to the analysts at IDC, paid shipments of Linux accounted for only 6.1 percent of the server market in 1997. Two years later, that number had jumped to 25 percent. (Windows NT owned 38 percent of the 1999 server market.) IDC predicts Linux shipments will grow faster than all other server operating systems through 2004. And while Linux accounted for only 4 percent of the client market in 1999, IDC predicts it will become the second-most popular desktop operating system by 2004.

Within the computer industry, momentum suddenly took off last summer. The GNOME Foundation was launched to promote a Linux graphical user interface and productivity software designed to compete directly with Microsoft's Office suite. (GNOME—the GNU
Network Object Modeling Environment—is an open-source user nterface.) IBM, Compaq, Hewlett-Packard, Sun, and several other key companies supported the initiative. Within days, Hewlett Packard said that Linux would be its third "strategic" operating
system,joining heavyweights Windows and its own HP-UX.Compaq and IBM announced plans for shipping iPaq and ThinkPad aptops, respectively, with Linux. That same week, Michael Dell delivered the keynote address at the LinuxWorld conference in San Jose, California. And, the Network Internet Computer Company (owned by Oracle Chairman and CEO Larry Ellison) began shipping the NIC, a US$199 internet appliance that runs on Linux. Then came a draft report issued by the President's Information Technology Advisory Committee recommending the U.S.government support "open-source software as an alternative path for software development." (The group had issued an earlier report saying that U.S. programmers couldn't meet the growing demand for software.) Irving Wladawsky Berger, an IBM executive and a member of the committee, was quoted in the New York Times in August 2000 as saying, "I am increasingly coming to the conclusion that the internet and open-source initiatives are the free-marketplace way of dealing with the extremely complex software issues we are facing."

Meanwhile, one of the industry's key trade publications weighed in—again. "We're happy to report that leveraging Linux with Oracle8i Release 2 to support e-business applications is a solid bet," wrote Maggie Biggs in an August 2000 InfoWorld Test Center review. Oracle has now ported all of its enterprise-level software to Linux. Oracle also plans to extend the internet platform for mobile computing by delivering Oracle8i Lite for Linux as well as providing all of its latest enterprise-class software for Linux, including Oracle9i Application Server (formerly iAS) and the Oracle E-Business Suite. "Although DB2 companies are traditional IBM customers centered on Big Iron, IBM's recent port of its enterprise database to Linux means that more cost-effective hardware options are now available," wrote Mario Apicella of the InfoWorld Test Center. The summer ended with another announcement: the creation of a laboratory in Oregon where open-source programmers could fine-tune Linux for high-end, multiprocessor systems. IBM, NEC, Intel, SGI, Dell, and Hewlett-Packard would fund the effort. And the news kept coming. Sun announced plans to purchase Cobalt Networks, a manufacturer of Linux-based server appliances.IBM researchers were running Linux on a wristwatch.Linux accounted for 10 percent of Dell's server sales. Nokia revealed plans for Media Terminal, a product that combines the internet and digital TV. And Red Hat announced support of NetSilicon's internet appliance.Through it all, Microsoft has been watching with a keen eye.During the government's antitrust trial against Microsoft, a key Microsoft witness—Richard Schmalensee, dean of the Sloan School of Management at MIT—noted that major manufacturers were already writing applications for Linux. "When those applications are completed, I believe it will be viable in a way that it's not now—and that's a matter of months, not decades," said Schmalensee. And, on the Microsoft Web site, you can find "Linux Myths," details of how Microsoft Windows deactivates Linux, and job announcements for Linux product managers.

Global Groundswell

Yet when you're talking about an operating system, what often matters most is who is implementing it and the business benefits early adopters have seen. According to Stacey Quandt, associate analyst at the Giga Information Group, numerous European companies, including Reliance Mutual, IKEA, France Telecom,and Allegiance Global Investments, have already implemented Linux. In Japan, recent converts include NTT DoCoMo and DEODEO. "While Linux is an engine of next-generation e-business infrastructure [worldwide], the companies deploying Linux represent a variety of vertical segments, including transportation, retail, insurance, pharmaceutical, oil and gas, entertainment, and services," says Quandt. "Giga believes the use of Linux in Asia Pacific will increase rapidly in comparison with North America and Europe." In fact, the People's Republic of China officially backs Linux, and the OS also appears throughout Latin America, Europe, and the Middle East.

According to Dan Kusnetzky, vice president of systems software research at IDC, Linux strikes a particularly strong chord outside the U.S. "Linux is more attractive internationally because it's not owned by a U.S.-based company, it's available worldwide, and it runs on less expensive machines," says Kusnetzky.

Decisions, Decisions

As with other operating systems, Linux is a good match for certain environments. "Organizations should look at how data in their systems will be used," says Kusnetzky. "Any organization whose job is to sell data should look at Linux. It's a very good development platform and supports internet applications very well. I don't see any more risk than bringing in any other operating system. There are the same issues and decisions, and the same kind of cost-benefit analysis."
Chances are good that your organization will eventually implement Linux. And if you don't think your company is already using Linux, look again. "I recently met with a CIO at a New York bank and asked if they had any Linux installed," says Kusnetzky. "The answer was a vehement, 'No.'" Later over lunch with other employees, Kusnetzky discovered that the bank was running Linux on more than 100 servers. When he asked them why it was such a well-kept secret, the answer came across loud and clear. "They said it was better to get kudos for a job well-done than to get criticized for how they did it."