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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).""

33 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 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.
    2. 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?

    3. 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?

    4. 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. But... by kraf · · Score: 3, Interesting

    are they happy ?

    1. Re:But... by Dark+Paladin · · 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.

  3. 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.

    2. Re:What's the big deal with revenue? by mr_gerbik · · Score: 3, Informative

      "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

    3. Re:What's the big deal with revenue? by rseuhs · · Score: 3, Funny
      Yeah, I would say they are hurting right now.

      Yes, because they got sucked into a dead platform (XBox).

  4. But... by swordboy · · Score: 5, Funny

    Linux sales down, but the RIAA believes that piracy is the cause.

    --

    Life is the leading cause of death in America.
  5. 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!

  6. 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
  7. cool by brad3378 · · Score: 3, Funny

    > 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.

    --

  8. Why is Worth = Sales? by anshil · · Score: 3, Interesting

    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.

    --

    --
    Karma 50, and all I got was this lousy T-Shirt.
    1. 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

  9. Linux Sales ? by WndrBr3d · · Score: 3, Funny

    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. ;-)

  10. 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.
  11. Different perspective by teetam · · Score: 5, Interesting
    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?

    --
    All your favorite sites in one place!
    1. 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. Upgrade extortion non-existent in Linux by dnoyeb · · Score: 5, Interesting

    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]

    1. 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.

  13. Re:Trend by Znork · · Score: 4, Informative

    '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'.

  14. Sales up revenues down by Jason+Earl · · Score: 3, Interesting

    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.

  15. linux sales as a % of a MS sales by JimBobJoe · · Score: 3, Informative

    ...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)

  16. $80 million is like 10 million users ... by bembleton · · Score: 3, Funny

    I bet those 10 million users are thinking, "You mean I could have gotten this for FREE?? Dammit!"

  17. 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
  18. Which one fosters more economic productivity? by evilpenguin · · Score: 5, Informative

    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).

  19. 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?
  20. 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
  21. Comparing Revenue? by Shagg · · Score: 3, Interesting

    "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?

    --
    Unix is user friendly, it's just selective about who its friends are.
  22. 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?