Linux Ecosystem Is Worth $25 Billion
darthcamaro writes "How much is Linux worth today? That's a question the Linux Foundation is trying to answer in a new report expected to be released on Wednesday.
← Back to Stories (view on slashdot.org)
In a different sense, the question is as simple as answering this one: How much is your business worth?
Support NYCountryLawyer RIAA vs People
There's no need for that, we already have the answer (see title).
in a study done by me, my 11 year old jeep is also worth $25 billion.
I wonder how much the Linux ecosystem would be worth if it were valued by an organization that didn't have a vested interest.
Why doesn't Slashdot ever get slashdotted?
In real prices the Linux ecosystem is worth 25 double expressos.
The U.S. government could steal Linux, and it could pay 3.6% of the bailout package. Seriously, $25 billion is still small in terms of the real economy. For example, Microsoft's operating income is $22.5 billion.
Value can only be attributed towards things that can be bought and sold.
This is therefore an example of Post hoc ergo propter hoc; ie., just because Linux foundation says the Linux footprint is worth $25 Billion, is a fallicy because nobody can purchase it. It could show a measure of the rate of Linux adoption, but such suggestions must be understood by looking at the bigger picture. Who's losing when Linux is being adopted and also, which projects are not going with Linux?
There is also the long-tail of Linux adoption that couldn't possibly be accounted in their figure.
I must maintain that the big picture is currently too big for anyone to fully interpret at present, especially the Linux foundation who is subject to some considerable bias.
You can't sell the Linux ecosystem, and if you believe you can buy it -- I have a bridge to sell you (please contact me right away because I also have some important Nigerian business that requires you immmmmediate and humbling attention, kind sirs.)
I like Linux, but these types of concepts are rooted in Non Sequitur; that the buy-in of Linux is rooted in the success of Linux. That can only be true of this is a zero-sum claim, and there is evidence of losses directly attributed which while plausible does not make these factually relevant.
The dangers of knowledge trigger emotional distress in human beings.
Pardon my spelling errs. :)
fallicy -> fallacy
immmmmediate (as intended)
The dangers of knowledge trigger emotional distress in human beings.
How much is air worth?
It's sad that there are so many people who worship the almighty dollar that they have to put a price on everything.
Linux, like air, is priceless. Saying it is worth $n devalues it.
Free Martian Whores!
...done by SCO.
Linux is priceless in value precisely because it is F/OSS
Even let's say that the $25B value is accurate and represents something meaningful, it seems to be a pretty depressing number for the entire ecosystem, isn't it? Microsoft as a publicly traded company alone is currently worth $216.11B and I'm sure we can all agree that the entire Windows "ecosystem" is worth at least that much over again. So the Linux ecosystem is worth, what, 5% of Microsoft's value? And this is at a time when Linux is at a historic "high" while Microsoft is in a pretty firm slump...
Not that I think this is an accurate or meaningful number.
Like the mortgage backed securities embeded in bank asset portfolios, there's no market for "Linux" so anybody naming a price is spreading fairy dust. Maybe they can get the US Treasury to make a bid.
But technically, so is everything else I download.
Slashdot "libertarians": Small government for me, big government for those I disagree with. -1, I disagree with you
You missed the '!'
25 Billion? That's nothing. Have you seen how much just one of RIAA's infringed songs is worth???
A: Linux is worth $25 Billion
B: Microsoft market share has decreased
Therefore A caused B? No. There is no evidence of that.
I love Linux but that kind of logic is simply flawed and therefore people who love Microsoft could use it against OSS in their sales pitch. A good part of OSS is the ability to have groupthink be thwarted by the input from many open (freely offered) sources. I happen to be a proponent of OSS.
A: Linux is worth $25 Billion
B: Microsoft market share has increased
Therefore A caused B?
Linux foundation is suggesting that their value of Linux is somehow relevant. It's not that relevant.
How can you put a value on something that is inherently invaluable? How do you account for the savings of using free products that also cause additional savings (from avoiding security holes, for example).
You cannot attribute a price on the value of Linux. It's simply priceless and that was the intent of my original comment.
The dangers of knowledge trigger emotional distress in human beings.
I contributed 0.01% to the Linux source. Please contact me immediately for details on where to send my $2.5M check.
There's no need for that, we already have the answer (see title).
Mod parent recursive !!!
My Starcraft 2 Blog
Hmmm, I'm not sure I understand in which way it is a Post Hoc Ergo Propter Hoc fallacy.
Post Hoc Ergo Propter Hoc, means almost literally what its translation says: Y happened after X, therefore Y happened because of X. In other words it's mistaking chronology for causation. E.g.,
- I bought a new cell phone last year, and this year I occasionally have migraines. Therefore, the cell phone is obviously the cause of my headaches.
- Bill Hicks spoke against God and religion, then (after many years of it) Bill Hicks died relatively young. Of cancer. Obviously his lack of faith is the cause of his illness.
- I got a raise, and soon thereafter the latest economic bubble burst and the credit crunch kicked in. Obviously my raise the cause of the recession. My wage is that big a burden on the economy ;)
- Jane bought a new TFT monitor, and soon thereafter she got diagnosed with melanoma. Therefore the radiation from TFT monitors must have caused it.
- John switched from Linux to BSD, and soon afterwards he ended up in a mental institution. Therefore BSD drives people insane.
Etc.
The common theme there is really this: "happened after, therefore happened because". Temporal succession => causality.
The difference between it and, say, "correlation != causation" is that here usually you don't even have enough of a sample to even have a proper correlation. You have two random anecdotes and the only thing that connects them is the order of their timestamps, so to speak, and that succession is taken to mean causation.
But you probably knew that already.
So, anyway, assuming that you did mean that particular fallacy, in which way do you see it at work there? It doesn't seem obvious at all to me, and I'm genuinely curious. What case of chronology mistaken for casuality do you have in mind there?
A polar bear is a cartesian bear after a coordinate transform.
What about companies that owe thier existance to Linux?
2 I can think of are Tivo and VMWare. Both of their products are based on Linux
Are their values part of the ecosystem?
Shameless plug alert: Game server control panel
This is how much it would have been if it was for sale. But it is not and neither does it function as a sellable entity...
How about some of that there Internet money? Is Linus willing to fight the Laughing Baby and the Chocolate Rain guy for it?
Since the best answer to the question "what X is worth?" is always "what somebody is willing to pay for it", the answer to the question what Linux is worth is "what Microsoft would pay to make it disappear". If we pretend that there was a single entity in a position to control Linux and make it disappear, Microsoft would make a huge effort to determine what their highest bid to that entity should be. Thus a price in dollars can certainly be determined (well, Microsoft could but wouldn't disclose if they did and won't because they have no incentive to spend the high-priced MBA hours needed).
The problem that remains, though is: just because you can think up a random number to put on something, doesn't mean it's the right number.
And if economists were that good at calculating the values, the USSR would still be going strong and would have the strongest economy in the world. After all, that was the whole idea: instead of letting the free market work it out by trial and error, have a handful of smart guys who calculate exactly how many bycicles are needed and exactly how much should they cost. It should be much more efficient, right? It didn't quite work out that way.
So, yes, some people like to put a dollar value on anything in sight. It doesn't mean it's the right one.
The only moment when you can know the real value, is, yes, when you can apply what we knew at least since Publilius Syrus: "Everything is worth what its purchaser will pay for it." As long as you can't have a purchaser, that value you put on it is just a pointless abstraction. Again, I know that some people love to paint the whole world in dollar worths, but it doesn't mean it actually means anything or that you can do anything with that number.
E.g., they even put a $ worth on a human life. What _can_ you do with that number? Can I come shoot you if I have that money on hand to pay as weregeld? Can I buy you? Or what? Exactly what _does_ that number tell me?
In practice it's just an abstraction used to handwave stuff like "see, the legal speed on highways should by higher/lower because it means X million dollars in lost lives, vs Y million gained in commerce along that road." But it's ultimately just a made up excuse, and usually working backwards from the conclusion one wants to an acceptable excuse for it.
A polar bear is a cartesian bear after a coordinate transform.
The way to think about it is to estimate the maximum amount the world is willing to pay NOT to LOSE their Linux. RedHat would pay at least half their worth (2.6B / 2 = 1.3B) to stop you from pressing the NukeAllKernels button. Cisco would pay at least a sixth of their market cap (109B / 6 = 18B). That's already almost 20B! How much would you pay to not have your Linux nuked?
Vista cost $6 billion to develop, according to Wikipedia
What would that be if we had Microsoft's market share?
APK quotes people (including myself) without context and should not be trusted. Just thought you should know.
teabaggers.
Isn't that term reserved for people who play FPSs? Since we are using Linux, our exposure to FPSs is rather limited.
Juniper's JunOS is FreeBSD based. It wouldn't make sense to count most of Juniper's revenues as part of the Linux EcoSystem. While they have acquired a small number of Linux-based startups, the vast majority of revenue is from is FreeBSD JunOS software. Oh, and all that hardware...
How do you separate out the difference between the two anyway?
Value can only be attributed towards things that can be bought and sold.
In most everyday cases, this is true. However precise monetary value can also be assigned to things which cannot be bought or sold, or which are illegal to trade. Consider the life insurance policy taken out on a spouse, for instance. A precise monetary value is attached to the loss of the spouse. This cannot be the replacement cost to buy a new spouse, since buying and selling spouses is not legal.
Those who can make you believe absurdities can make you commit atrocities. - Voltaire
For example, it is a bit of public knowledge that Amazon runs on Linux. Amazon is what, 30B business? I know about the whole bunch of other first-tier companies that have their entire infrastructure on Linux as well.
Hmmm, aren't they just trying to figure out what everything is worth in terms of development hours invested?
Lets pretend that you could actually buy the Linux ecosystem. I believe MS would pay over $50 billion just to get rid of it, let alone to aquire some of the tech.
I often hear that the value of an object is whatever someone is willing to pay, so I say - the Linux ecosystem for $25 billion undervalued!
Mebby the Home-Next-Door" argument can be applied here. I refuse to sell my Cape Cod view bungalow. Period. No offered price will induce me to sell. So somebody goes to the (similar) property next-door and starts making offers. At $10-M a sale is concluded. I then get a tax-bill based on the next-door property valuation. Who could argue? Who could argue and win a court-case against the county tax_man ??
Nothing would happen because OSS is by definition FREE TO USE, and therefore it cannot disappear unless people just stop using it. The only reason they would stop using it is if it was banned because terrorists get funding from it and in order to prove that, they would have to prove it had value. OH SH-
The dangers of knowledge trigger emotional distress in human beings.
Then you sue because they are different houses. Home appraisers would be called in on both sides and your home's true value would be established, regardless of whether you chose to sell or not. And you would be a fool not to sell your $10M home if it was that inflated (and your argument suggests that it was inflated).
The dangers of knowledge trigger emotional distress in human beings.
It's fucking software, not life. It's not an ecosystem. Stop reassigning the definitions of words.
...according to estimations. That means each of us is worth $1000 in average.
I feel very cheap.
You can't sell the Linux ecosystem, and if you believe you can buy it
It's been tried before ... http://www.dwheeler.com/essays/linux-kernel-cost.html
Windows Server generates 5B a year in revenue. Companies are usually worth about 10 times their revenue (especially when their variable costs are so low). So if Windows Server was a company it would be worth 50B. Linux has more market share than Windows in servers. Plus a ridiculous amount of appliances (routers, switches, etc.), lots of netbooks (eeeeeeeeeeee pc), and a few desktops (ubuntu). So the answer is 100B.
Thank you,
Patent Pending
$25 Billion is peanuts compared to the size of Microsoft. This does not factor. The ecosystem of Microsoft is in the trillions. This number would work against Linux that way. The only way you could sell it is by looking at the rates of expansion and trying to compare them.
I extrapolated that as the only feasible cause for their concern. There is no other viable reason, and you have not presented one yet.
At this point you have completely discredited yourself.
The dangers of knowledge trigger emotional distress in human beings.