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Linux Sales Down, But...

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).""

29 of 487 comments (clear)

  1. The Cause Revealed? by egg+troll · · Score: 4, Insightful

    I believe sales are down as people have learned that Linux can be downloaded...for free!

    --

    C - A language that combines the speed of assembly with the ease of use of assembly.
    1. Re:The Cause Revealed? by Anonymous Coward · · Score: 2, Insightful

      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...

    2. Re:The Cause Revealed? by garcia · · Score: 2, Insightful

      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.

    3. Re:The Cause Revealed? by Real+World+Stuff · · Score: 3, Insightful

      Please note: With the withering sales of Linux, and the fiscal challenges faced by the crusaders of an alternative business 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 for ad free content. Really, what do you think Slashdot needs, corporate checks or paypal funded blocks. Sheesh.

      --
      If we don't fight for ourselves no one will.
    4. Re:The Cause Revealed? by garcia · · Score: 2, Insightful

      no, they are NO where as easy to use as WinXP. Tell someone that they have to FIND a piece of software that they want to download and then install it.

      These people fire up Yahoo and search for a program. They find 1000000 matches for a piece of Windows software and near nothing or nothing for a Linux piece of software.

      This is not easy for them.

    5. Re:The Cause Revealed? by WildBeast · · Score: 5, Insightful

      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?

    6. Re:The Cause Revealed? by 13Echo · · Score: 5, Insightful

      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
      25% of all business software is pirated? Does that count home users?

    7. Re:The Cause Revealed? by kubrick · · Score: 3, Insightful

      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?

      --
      deus does not exist but if he does
  2. What's the big deal with revenue? by Quasar1999 · · Score: 3, Insightful

    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...

    --

    ---
    Programming is like sex... Make one mistake and support it the rest of your life.
    1. Re:What's the big deal with revenue? by stu_coates · · Score: 3, Insightful
      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.

  3. Well, duh! by Anonymous Coward · · Score: 4, Insightful

    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!

  4. In related news... by SIGFPE · · Score: 5, Insightful

    ...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.

    --
    -- SIGFPE
  5. Well, duh! by TrumpetPower! · · Score: 3, Insightful

    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&

    --
    All but God can prove this sentence true.
  6. Sales, statistics and Mark Twain by mpawlo · · Score: 2, Insightful

    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

  7. Proof positive : "EVERYBODY LOVES LINUX"! by Thud457 · · Score: 0, Insightful

    $26,000,000 / $0 = infinity !

    Stupid "It doesn't cost anything, so it must be worthless" MBAs.

    --

    the preceding comment is my own and in no way reflects the opinion of the Joint Chiefs of Staff

    1. Re:Proof positive : "EVERYBODY LOVES LINUX"! by Binome · · Score: 2, Insightful

      No... that proves the statement

      Lim 26,000,000/X=infinity
      (X -> 0+)

      (For those who can't make sense of that, it's saying that as the value of X approaches zero from the positive direction (decreases to zero), the value of 26,000,000/X approaches infinity.)

      However, 26,000,000/0 is still undefined. For those graphing along at home, that means you use an empty circle as opposed to a filled-in dot.

      This has been another presentation of more pre-calc than any of us really care to know.

      P.S. Please forgive the sloppy notation. It's a little difficult to do the necessary sub and superscripts on /..

      --
      In Soviet Russia, Beowulf cluster imagines you!
  8. Hello? Linux is FREE! by Rice-Pudding · · Score: 2, Insightful
    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.

  9. So What! by Anonymous Coward · · Score: 1, Insightful

    Linux is free. What about usage?

  10. Re:Why is Worth = Sales? by God!+Awful · · Score: 3, Insightful


    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

  11. Re:Different perspective by Quasar1999 · · Score: 3, Insightful

    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...

    --

    ---
    Programming is like sex... Make one mistake and support it the rest of your life.
  12. What I REALLY want to know... by Mr.+Firewall · · Score: 5, Insightful

    ... 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....

    --
    In times of universal deceit, telling the truth gets you modded -1 Troll
  13. Windows Downloads Down, But... by verbatim · · Score: 3, Insightful

    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. ;)

    --
    Price, Quality, Time. Pick none. What, you thought you had a choice?
  14. Re:Why is that surprising? by rodentia · · Score: 3, Insightful

    Or those willing to vote with their pocketbook instead of their attitude.

    Linux: not just a lifestyle choice anymore.

    --
    illegitimii non ingravare
  15. Re:Upgrade extortion non-existent in Linux by electroniceric · · Score: 4, Insightful


    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.

  16. Revenues down is bad news for Linux by AZPhysics · · Score: 2, Insightful

    There seems to be a myth that money doesn't matter to the development of Linux. On the contrary, the distros actually do quite a bit of bug-fixing and programming. The less money they have, the less will be spent on it. More money and more revenues mean faster growth and more options. So, a loss of revenue is a bad thing for Linux.

    Linux right now is in a growth phase. Regardless of the amount of revenue recieved, the number of computers running Linux has increased in the last year. Significant progress has been made on the desktop with KDE and Gnome. Programs such as OpenOffice and Mozilla have helped take up the application slack. Further, things like Code-Weaver and Ogg have helped advance the usability of Linux on the desktop and open source in general. It goes without saying that Linux has a significant server/high performance presence.

    I think that there are less shrink-wrapped linux distros being purchased. It takes marketing money to put packages on retail shelves, and with the loss of funding most Linux providers don't want to do that. Caldera, Corel, and Red Hat all seem to have left the retail market. Still, I think more revenue is being generated by the overall Linux market than the story says.

  17. economic Math != Math by rsd · · Score: 2, Insightful

    Linux total sales == 1% Total OS sales

    Linux sales == 2 days MS OS sales

    2 days MS OS sales == 1% Total OS sales

    365 days MS OS sales == 182,5% total sales

    note that other OS vendors (specially unix ones) has
    some participation. (less quantity, more expensive OSes).

    This can only mean that there are some people paying
    the costumers to get there OS to generate -82,5% of total
    sales.

  18. Statistics by hendridm · · Score: 3, Insightful

    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?

  19. On the Second Day of That Year.. by Sideways2 · · Score: 2, Insightful

    On the second day of January, Linux had generated more Love and Community Spirt than the Microsoft Corporation (will for the entire year).""

  20. M$ revenues are like water. by Anonymous Coward · · Score: 1, Insightful

    Some buy it in a fancy bottle, some drink it out of the tap. A fancy bottle has to make it better water, right? Same with software.