Slashdot Mirror


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.

30 of 176 comments (clear)

  1. How much is Linux worth? by zappepcs · · Score: 2, Insightful

    In a different sense, the question is as simple as answering this one: How much is your business worth?

    1. Re:How much is Linux worth? by Daniel+Dvorkin · · Score: 4, Interesting

      It's a little more complex than that because an individual business does have a quantifiable worth: in the case of a publicly traded company, it's their stock valuation; in the case of a privately held company, it's how much they'd get if they went public. (Note that I'm not saying this is an accurate measure, but it is at least something you can put a number on.) You could, if you wanted to and you had enough money, buy any corporation for a precisely tabulated amount. With Linux, there's nothing to buy out -- you could buy all the companies that make money distributing it (Red Hat etc.) and you still wouldn't own it.

      From the market-value-is-everything POV, this means Linux has infinite value, which clearly isn't true. But it does make it a lot harder to count up than, say, the value of Windows or Mac OS.

      --
      The correlation between ignorance of statistics and using "correlation is not causation" as an argument is close to 1.
    2. Re:How much is Linux worth? by Anonymous Coward · · Score: 5, Funny

      How much is your business worth?

      -$104, 287 in the red ever since the BSA raided my small business. Turns out that a former employee(my dim but well-meaning wife) installed the same copy of Windows Vista Business on 5 computers while I had only 4 licenses.

      They came in with assault rifles and stomped my face into the ground with their jackboots and kevlar saying I was a "filthy pirate" and that I was "goin' on a free vacation to Gitmo" and stole all 6 computers including my Mac and my Linux box and told me that they were being used for software piracy. When I asked teh judge about my rights, he said "9/11 threat level yellow terrorist pirate national security" and now I write slashdot from a common terminal within a very sympathetic maximum security prison.

    3. Re:How much is Linux worth? by theaveng · · Score: 4, Insightful

      The answer to this question is the same answer to "How much money is lost when people download music?"

      "Whatever they are willing to pay."

      If, like me, they are not willing to pay anything for either Britney Spears' latest CD, or the latest Linux distro, then the value is nothing. $0.00. But the record companies always assume everyone who downloads Britney is a "lost sale", and they publish huge outlandish figures for how much value they think they've lost. I suspect the Linux estimators will make the same crucial error in their estimates. Of those who download "free" music, or Linux, probably only 10% would be willing to pay for it.

      That tendency to avoid spending money needs to be accounted for, otherwise the value estimates are meaningless.

      --
      FOX NEWS.com should be BANNED from television and internet. Have the Congress take it over and give us Truespeak.
    4. Re:How much is Linux worth? by Anonymous Coward · · Score: 2, Insightful

      Exactly.

      If linux were suddenly to 'go away', how much would it cost to license, install, configure, and support the entire business world with millions of copies of Server 2008?

      Answer - a heckuva lot more than 25B.

      Back to the abacus to make up some new numbers...

    5. Re:How much is Linux worth? by erroneus · · Score: 4, Funny

      Everyone who downloads Britney is a "lost cause" but this is off-topic isn't it...

    6. Re:How much is Linux worth? by entgod · · Score: 2, Interesting

      Even though people wouldn't pay for something it doesn't mean it doesn't have any value. I certainly wouldn't pay for my linux distro but it is of tremendous value to me, I use it for many things with it most people would pay money (in form of buying windows) to do. The fact that it's hard to attach an accurate monetary value to something doesn't mean it doesn't have any.

  2. What? by Yvan256 · · Score: 4, Funny

    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.

    There's no need for that, we already have the answer (see title).

  3. In related news... by Jeff+Hornby · · Score: 3, Insightful

    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?
    1. Re:In related news... by fm6 · · Score: 4, Insightful

      Usually, I share your cynicism about these breathless, fact-free "open source is gaining ground!" stories. But here your logic is way off. If this were just some pundit working for the Linux foundation making the usual "expert" assertions, your criticism would be valid. But this is a report based on real-world figures, and these figures deserve to be evaluated on their own merit. The fact that the people who wrote the report have a bias should make you look out for selective use of data, but doesn't automatically destroy the report's credibility.

    2. Re:In related news... by gstoddart · · Score: 3, Interesting

      I wonder how much the Linux ecosystem would be worth if it were valued by an organization that didn't have a vested interest.

      Depends on if they have a vested interest in the other way.

      Microsoft would argue that Linux clearly has a negative value due to all of those patents which it may or may not be infringing on and the licensing fees you owe them.

      IBM will argue it has a high value since they make gobs of money on services as a result of it.

      At some point, you have to try to value it in terms of industry revenues associated with it, as well as the intangible value of how long it would take to build your own, or to buy a commercial solution to replace it.

      If every company using Linux were forced to replace it with a Microsoft solution, I can easily see the valuation to industry being measured in the billions.

      In terms of the resources being managed under Linux machines, how they're used, and what it would take to swap them out ... there's an awful lot of stuff you'd have to be spending a lot of money on to replace.

      Cheers

      --
      Lost at C:>. Found at C.
    3. Re:In related news... by sgtrock · · Score: 2, Informative
      Here's a report released on November 2006. Quoting from the executive summary:

      Direct economic impact of FLOSS

      The existing base of quality FLOSS applications with reasonable quality control and distribution would cost firms almost Euro 12 billion to reproduce internally. This code base has been doubling every 18-24 months over the past eight years, and this growth is projected to continue for several more years.

      This existing base of FLOSS software represents a lower bound of about 131 000 real person-years of effort that has been devoted exclusively by programmers. As this is mostly by individuals not directly paid for development, it represents a significant gap in national accounts of productivity. Annualised and adjusted for growth this represents at least Euro 800 million in voluntary contribution from programmers alone each year, of which nearly half are based in Europe.

      Firms have invested an estimated Euro 1.2 billion in developing FLOSS software that is made freely available. Such firms represent in total at least 565 000 jobs and Euro 263 billion in annual revenue. Contributing firms are from several non-IT (but often ICT intensive) sectors, and tend to have much higher revenues than non-contributing firms.

      Defined broadly, FLOSS-related services could reach a 32% share of all IT services by 2010, and the FLOSS-related share of the economy could reach 4% of European GDP by 2010. FLOSS directly supports the 29% share of software that is developed in-house in the EU (43% in the U.S.), and provides the natural model for software development for the secondary software sector.

  4. I Love Linux, but... by mfh · · Score: 5, Interesting

    The only tidbit of info I have so far is that the LInux Foundation has valued Google's use of Linux for Android at $1.3 billion worth of R&D.

    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.
    1. Re:I Love Linux, but... by Daniel+Dvorkin · · Score: 4, Informative

      This is therefore an example of Post hoc ergo propter hoc

      This is an example of someone not understanding what a particular logical fallacy actually is, and throwing it against the wall hoping it will stick.

      Seriously. These online lists of classic fallacies are useful resources, and I think they've done a lot of good by helping people learn to recognize arguments that fail in certain predictable ways, but I'm getting really tired of people just grabbing their favorite and applying it to whatever argument is at hand without pausing to make sure that it actually applies in any meaningful way.

      --
      The correlation between ignorance of statistics and using "correlation is not causation" as an argument is close to 1.
    2. Re:I Love Linux, but... by TheRaven64 · · Score: 2, Insightful
      Actually, that's a pretty good measure of value. Google had three choices:
      1. Buy an OS from someone.
      2. Develop their own OS.
      3. Use an open source OS.

      The value of the open source OS, to them, is the cost of option 1 or 2, minus the cost of developing the extra stuff they need on top of it.

      --
      I am TheRaven on Soylent News
    3. Re:I Love Linux, but... by pclminion · · Score: 4, Insightful

      If the entire Linux technology sphere magically vanished overnight (don't ask me how), would the damage to the economy be in excess of $25 billion? Just because there's no liquidity doesn't mean there's no value.

    4. Re:I Love Linux, but... by Vellmont · · Score: 5, Insightful


      Value can only be attributed towards things that can be bought and sold.

      Pure nonsense. Value can be attributed to things that produce value. Would you say the Brooklyn Bridge is worth nothing because it can't be bought or sold? I'd hope not.

      Linux, like the Brooklyn Bridge produces economic value. Economists assign value to things that aren't bought and sold all the time. You can argue about how to go about this (and I'm certainly not qualified to do even that), but it's silly to say you can't give it a dollar value simply because nobody can "own" it.

      --
      AccountKiller
    5. Re:I Love Linux, but... by Alarindris · · Score: 4, Informative

      Mod parent up.

      A occurred, then B occurred.
      Therefore, A caused B.

      I really don't see how that applies here.

      I think the converse fallacy of accident is more applicable.

      Every (business/good/OS) I've seen is worth something, so it must be true that Linux is worth something.

      But, as was stated, Linux is not for sale.

    6. Re:I Love Linux, but... by jonaskoelker · · Score: 4, Insightful

      Value can be attributed to things that produce value.

      l = []; l.append(l); print l. Your definition is circular.

      Value is a measure of how much we want or like something. I value personal liberties. I value economic liberties. I value food, clean air, sex, internet, staple guns, learning new things, intellect and reason in myself and others, science and lots of other things.

      Value influences how much we're willing to give up to get the thing we value. If I had to choose between a house to live in and air to breath, I'd choose the air. If I had to choose between sex and internet, I'd choose sex. If I had to choose between 100$ and a copy of GH3+controller, I'd choose Guitar Hero. If I had to choose between 200$ and two Guitar Hero packs, I might choose the money, or I might choose the GH packs in hope of a resale.

      Money has value for society because it allows us to break symmetry: I don't have to write code for the baker to get his bread. It has value to the individual (or the organization) because we all agree to trade it for other things we value.

      Asking for the value of Linux is a vague question. The value of Linux what? The Copyrights? Not sure; even if everybody handed copyright on all FOSS code to a buyer, it's still FOSS, so we could just fork it and continue doing what we do. The buyer could allow itself to link GPL-incompatible code to _its_ GPL-licensed code. Or go all-the-way proprietary. How large a competitive advantage is that going to give? Not much, I think.

      Linux use? To me, being able to use Linux is more valuable than being able to use Windows. I'm a member of our minority group on that. To some people, there's a big dollar amount [of saved money] attached to using Linux instead of $OS. Measure all those amounts well and add them up, and you may end up with a number that actually means something and has a relationship to reality.

      An interesting bit from TFA:

      In 2008, IDC forecast that the Linux ecosystem would be worth $49 billion by 2011. That report coincidentally was sponsored by the Linux Foundation as well.

      Is that like a Gartner report saying Vista is worth $BIGNUM monies? Because from here I can't tell the difference, so someone please spell it out for me.

      (#define Linux GNU/Linux or Linux, as appropriate)

      -- Jonas K

    7. Re:I Love Linux, but... by suggsjc · · Score: 4, Funny
      You make some good points, but I think you lost about half of your readers after this line:

      If I had to choose between sex and internet, I'd choose sex.

      --
      When I have a kid, I want to put him in one of those strollers for twins and then run around the mall looking frantic.
  5. Air by mcgrew · · Score: 3, Insightful

    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.

    1. Re:Air by mcgrew · · Score: 3, Insightful

      Putting a price on the priceless devalues it. "Priceless" means it has infinite value, and any dollar amount put on your infinitely useful object/endeavor/material brings its value DOWN.

      There is more to life than money.

  6. Simply Put by DaMattster · · Score: 4, Insightful

    Linux is priceless in value precisely because it is F/OSS

  7. Not something to brag about? by Hikaru79 · · Score: 5, Insightful

    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.

    1. Re:Not something to brag about? by glop · · Score: 2, Interesting

      25 Billion $ is a lot of money.

      Additionally, if we follow your reasoning, many companies that have products that could be sold for Linux will think : Linux = 5% of Windows. They will conclude that they could increase their sales by 5% by supporting Linux.

      That could sound like an interesting deal for many companies.

  8. That's NOTHING! by DoofusOfDeath · · Score: 4, Funny

    25 Billion? That's nothing. Have you seen how much just one of RIAA's infringed songs is worth???

  9. Okay I will explain my logic. by mfh · · Score: 2, Interesting

    A occurred, then B occurred.
    Therefore, A caused B.

    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.
  10. Mod by Shohat · · Score: 4, Funny

    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.

    There's no need for that, we already have the answer (see title).

    Mod parent recursive !!!

  11. Hmm? by Moraelin · · Score: 2, Informative

    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.
  12. A problem though remains... by Moraelin · · Score: 2, Insightful

    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.