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Linux Server Sales to Reach $9.1 Billion by 2008

dunric writes "ZDNet is reporting that sales of servers using Linux will reach a whopping $9.1 billion by 2008. Annual revenue for Linux servers is expected to grow by a healthy 22.8 percent, compared to just 3.8 percent for the overall server market. Additionally, Linux servers will account for nearly 26% of all server shipments."

21 of 167 comments (clear)

  1. A blatant falsehood by Anonymous Coward · · Score: 3, Funny

    As can be confirmed by simply going to Netcraft, Slashdot actually runs on the crushed hopes, dreams and spirits of thousands of self-proclaimed, social-anxiety-disorder-afflicted "nerds".

  2. ZDnet = page hit whores by SethJohnson · · Score: 5, Interesting



    Methinks ZDnet published this prediction simply to exploit the predictable slashdot-effect response to such a story. I am projecting a 22% increase in ad revenues from their banner ads featured with this story at the tail end of 2004.

  3. Interesting by ryanw · · Score: 4, Insightful

    This news is interesting but what would be interesting to see is which markets Linux servers are eating up. People of /. are going to assume "FINALLY THE DOWN FALL OF MICROSOFT!". But the truth of the matter is Linux is probably eating up the markets of AIX, HP-UX, SunOS, Alpha, etc. Look at Sun's stock.... Down over 30% from last year? Even if this statistic is true I don't think Microsoft is probably losing any business but rather our fellow UNIX brothers. Go Linux!?

    1. Re:Interesting by rseuhs · · Score: 4, Interesting
      Yes, go Linux:
      • First Linux does eat up Microsoft's marketshare, no matter how often MS sais otherwise. Just look at this for an idea, or even at this Yes, that's right, Linux has already marginalized Windows in some markets. In Germany it's hard to find a webhoster even offering Windows (and when they do, they charge about twice the usual fees). Windows is doomed in central and eastern Europe, all the usual network effects (it's established! the people know it!) work against it there and there are no more advantages left.
      • Then what Linux does is what we all wanted, right? Unify Unix. What's the point of having similar but slightly incompatible systems from IBM, HP and Sun? Linux unifies Unix in a way that even if you don't run Linux, it will be compatible to Linux (compatibility layers for Solaris and AIX). Of course a unified Unix is also a lot stronger versus Windows than a balkanized one. "Unix is incompatible to itself" and "Unix needs overpriced hardware" were the 2 biggest pro-Windows sales arguments. No more.
  4. Tip of the iceburg by NZheretic · · Score: 4, Insightful
    IDC has always based its survey data around sales of servers with Linux pre-installed. IDC barely scratches the surface. They do not count the number of whitebox systems sold, OEM systems sold with Microsoft's OSs and older hardware now running Linux fulltime.

    The last eight Intel servers I installed were all assembled from good quality motherboards, fans and better quality ATX power supplies into run of the mill whitebox full/mid tower cases.

    If space is not an issue then I find that taking time to assemble a well laid out PC case delivers better reliability than Intel based 1U or 2U rackmounted servers.

  5. As versus Windoze servers ? by Taco+Cowboy · · Score: 3, Interesting



    "A whooping $9.1 billion by 2008", or so it is reported.

    But what about the Windoze servers ?

    "A whimper $18.2 billion by 2008" ?

    --
    Muchas Gracias, Señor Edward Snowden !
  6. Servers Running Linux by halcyon1234 · · Score: 3, Insightful
    {sigh} Why do I have this awful feeling that the reason there will be 2.8 Gargillion dollars worth of sales will be because everyone and their brother is going to open up a "Servers that Run Linux" company? And you know that the 2.8 Suptexillion dollars will be coming out of the pockets of companies that don't realize that they can just buy a server and install Linux themselves. Or hire someone to do it for the fraction of the cost of a "Linux Server".

    Seriously, saying "Linux Server" to a CEO has one of two effects. One, they glaze over and continue using their familiar "Windows Server". Two, they think you're really smart and give you lots of money. Sure, there's the rare third case where they'll realize "Linux = OS, Server = Hardware", but chances are they're the CIO.

    Does this mean I should open a "Servers The Run Linux" eBusiness? Amazonux.com, perhaps?

  7. Not real growth. by Anonymous Coward · · Score: 5, Funny

    Everybody knows that people buy Linux servers just so they can install pirated versions of Windows on them!

    Linux may be sitting high and pretty on the desktop market, but it has to create a usable UI to break on thru to the server market.

  8. But Windows has a lower TCO and better performance by Nine+Tenths+of+The+W · · Score: 5, Funny

    That's what the adverts on Slashdot say, anyway

    --
    Slashdot: News for Nerds, Stuff that matters only to them
  9. Forecast for when? by wulfbyte · · Score: 4, Insightful

    Whenever I see words like forecast and prediction buried, I wonder what the motivation of the writer is. I dug around a very little bit and found this link to an IDC ress release that this is based on (I think). IDC - Press Release http://www.idc.com/getdoc.jsp?containerId=pr2004_1 1_02_093312 Reading the press release, I could only think to myself "uhm, duh, who couldn't see that coming." I do wonder how they came up with the time frame though. Four years seems like a long time to predict anything in the IT business with any accuracy.

  10. Re:Interesting.... by MC+Negro · · Score: 4, Interesting

    From those numbers, it seems like Linux is having its main growth because of it's price, rather than the OS itself. Numbers were ~50% of blades, ~20% of rack-mounts, and ~10% of free standing
    This raises an interesting point. If pricepoint is genuinely what is the deciding factor for these predictions, what will happen when OpenSolaris is release?
    From the article -
    Sales of servers using Linux will grow faster than the overall market at least through 2008, when customers will spend $9.1 billion for machines using the open-source operating system, market researcher IDC forecast Monday

    The results highlight the spread of the operating system, a relatively new competitor to Unix versions such as Sun Microsystems' Solaris and to Microsoft Windows. The top four server sellers--IBM, Hewlett-Packard, Sun Microsystems and Dell--all support Linux, though Sun steers customers to Solaris.
    This is not a troll, but I have never understood the wide-spread embracing of Linux to be a direct result of anything but price-point and community support. I hate near everything about the way Linux is structured when compared to other flavors of UNIX, and I am not a fan of the kernel internals, yet I keep going back to it because of the aforementioned reasons. To be fair, I was introduced to UNIX with SunOS and the BSD family before being introduced to Linux, and lately I've been sharpening my skills with AIX and some of their enterprise solutions, so I may be totally missing the point of Linux.

    Let's talk hypothetical here - Let's say Sun releases Solaris under a nice license that satisfies everybody - the BSD nuts, the Stallman-worshipers, and the corporate players [bear with me here; I realize I'm treading fairytale water], and let's say the community loves it and starts hacking away at it like a hillbilly with a hatchet. Right there, the Linux pricepoint and community support is matched.

    I predict in the future we will see some more UNIX versions opened up, specifically, AIX. This is based entirely on speculation and the late-night readings of IBM papers, but I wholeheartedly believe in the next 10 years, IBM will either completely open the source or share a great portion of it (barring a SCO victory).

    I myself have always preferred commercial UNIX to community efforts (although the *BSDs are near and dear to my heart) and have used Linux out of necessity, not out of direct superiority to commercial UNIX. My point is that if (or when) commercial versions of UNIX (such as Solaris and AIX) match the benefits of Linux, Linux may be the kid without a gimmick. But again, this is based entirely on the premise that Linux's gimmick is limited to the two previously mentioned, so if I am totally missing something, would some more-informed Linux guru clarify :-)?

    Eh, it's late. Too much RPG IV.
    --
    "You and your third dimension."
  11. By 2008?? by wirelessbuzzers · · Score: 5, Insightful

    Who will be able to predict the market in 2008? With spam, viruses and hacker attacks escalating, and Longhorn due to be released... who really knows what the market will be like then?

    --
    I hereby place the above post in the public domain.
  12. ZDNET by harryoyster · · Score: 3, Insightful

    ZDNET is just another publishing company that generally have b grade IT writers. Just look at the spam software show down. Hangon.. where is spamassassin.. maybe they didnt pay zdnet enough money to advertise thier product so it wasnt included.

    --
    Got a question about UNIX ask it here : Unix/xBSD Forum
  13. Linux vs. BSD by Neo-Rio-101 · · Score: 3, Interesting

    Don't forget that FreeBSD is stealing in on MS and the other UNIXes as well.

    Here, we're winding down Solaris and replacing it with FreeBSD.

    (although patch management on BSD is an absolute PITA... portupgrade my ass. Give me Debian anyday)

    --
    READY.
    PRINT ""+-0
  14. Re:But Windows has a lower TCO and better performa by Darth+Cow · · Score: 4, Funny

    Get it straight! It's lower TC0 - Total Cost of 0wnership.

  15. Short term memory by rseuhs · · Score: 4, Interesting
    I think it's ironic how short the memory of the public is.

    Around 2000, Linux was already reported at over 30% and to rise even more.

    How is it possible that it is expected to account for only 26% of shipments in 2008?

    Easy: IDC changed their counting methods in the meantime, while the earlier numbers are about shipments, the current numbers are about revenue and only for server-hardware that actually ships with Linux.

    That is correct:

    • debian, Gentoo and Fedora don't create revenue, so as far as IDC is concerned, they just don't exist
    • If you actually buy a computer without Linux and buy a boxed Linux distro afterwards (or if you use a disk image), your installation doesn't exist either, because it wasn't shipped with Linux.
    • If you buy a computer with Linux preloaded, but that computer isn't classified as "server" and you use it as a server - again it doesn't count because they only count computers are sold as servers.
    • And last but not least, if you aren't some fortune something buerocracy, all your Linux installations don't count either, because IDC doesn't care about you and will not ask you.

    So to make a long story short, most Linux server installations do not exist for IDC.

    Isn't it funny that Windows always looks good in heavily distorted studies (TCO "studies", market share studies, etc.) while they no longer look so good in not-so easily distorted studies (like Netcraft)?

    Of course IDC is quite smart, they talk about "sales" and they know that people will think about shipments/units and not revenue.

    While the older numbers had some touch with reality, the current numbers are just nonsense. In reality Linux already accounts for a lot more than IDC wants us to believe.

  16. Re:Interesting.... by Diag · · Score: 3, Insightful

    I have seen Linux displacing other O/S'es for consolidation purposes, and usually Linux itself is not the driving factor.

    For example, VMWare/ESX is gaining a lot of market consolidating hundreds of Windows servers (usually test/dev) down to a dozen or so Intel servers running VMWare/ESX, which is Redhat Linux running VMWare. But the Linux side of it is almost invisible. I have spoken to VMWare administrators who refused to believe that it was running on Linux.

    Also, I've seen large Oracle databases moved from Sun or HP hardware, to IBM Intel servers running Oracle RAC on Redhat. In that case, Oracle and Intel platform are the driving factors. Again, the Linux is packaged sepecfically to run Oracle RAC, so server administration is minimal.

    My point is that, in my somewhat limited experience, people are not purposely moving to Linux, it's more that vendors are packaging their products that way, and it makes sense in many cases.

    --
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  17. Re:Interesting.... by pyat · · Score: 5, Interesting

    The parent post is maybe not so far off the mark, though i'd like to posit a slightly different way of looking at things. I believe the situation would be clearer (for once!) if we wrote GNU/Linux instead of Linux.

    Linux is just a kernel. Another child post mentioned it has good hardware support compared to solaris, i'm sure there are some other good points (e.g. a lot of architectures supported, embedded apps, a formidable base of experienced open-source developers, etc.,) that could mean Linux wouldn't just die if Solaris became free/Free.

    But what most people think of as Linux, and what is in fact the largest part of, GNU/Linux is the set of userland tools we use. From the basics like bash, tar, grep, sed, awk, etc., to the compilers (gcc, etc.,), and up to the desktop level tools (KDE-family, Gnome-family, mozilla, openoffice, and so on).

    Many of these tools can/are(!) ALSO be used on Solaris systems as appropriate/preferred.

    If the Solaris licence is as free as the parent post hypothesizes, then this future is great! We can have a GNU/Solaris system if we want, Debian could offer a Debian-Solaris option (in the same vein as the Debian-NetBSD port), we can use bits of Solaris to improve Linux... All grist to the Free-Software mill.

  18. I havent been counted... by Anonymous Coward · · Score: 4, Interesting

    Where I work, we all have servers as desktop development machines (typing this on a dual xeon, etc). We get our machines from Dell, and usually default to the Windows XP setup. As soon as we get them we reformat and install RedHat Enterprise or Fedora. I guess that means we arent counted in the stats, but instead are counted in the 'Windows Server' statistics, even though we are all using Linux servers. So I would think the Linux server stats are probably higher than stated.

  19. What about support costs by Vulcann · · Score: 3, Insightful

    ZDNet is reporting that sales of servers using Linux will reach a whopping $9.1 billion by 2008...

    Considering Linux (and OSS in general) makes money via support offerings, shouldnt this be added to the overall $$$ amount ? Does 9.1. billion include support charges or simply the cost of hardware ?

    Another thing I routinely keep hearing about is that hardware is going to keep become VERY cheap (as a matter of fact there were some articles suggesting it might even become free in the long term). If one cant sell hardware, and cant sell the OS, where the hell does 9.1 billion come from ? "Voluntary donation" ??

    1. Re:What about support costs by rimmon · · Score: 3, Insightful

      I don't think that server grade hardware is going to be available free of charge anytime soon. Maybe you will get a pc for free like you get a cellphone for free if you sign a service contract. But don't forget: That isn't really free, the costs are hidden. And stay the hell away with cheap crap like that from my serverroom :)