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Fedora 9 Would Cost $10.8B To Build From Scratch

ruphus13 writes "The Linux Foundation's recently released report claims, '... it would take approximately $10.8 billion to build the Linux community distribution Fedora 9 in today's dollars with today's software development costs.' The article states why this might actually understate the value of the distros, though, since it doesn't include the power of the brand and the goodwill value. 'There were several approaches that the Linux Foundation employed to reach the $10.8 billion dollar figure, including calculating the number of lines of code in Fedora 9 (204,500,946), and using an average programmer's salary of $75,662.08 — as determined by the US Department of Labor — to measure development costs ... On the balance sheets of Coca Cola and many other huge corporations, you find goodwill listed as a major asset.'"

43 of 293 comments (clear)

  1. Oh yeah? Guess what Microsoft can do! by jollyreaper · · Score: 3, Funny

    They can spend twice that much money and only deliver a tenth of the functionality! That's a win! I think.

    --
    Kwisatz Haderach
    Sell the spice to CHOAM
    This Mahdi took Shaddam's Throne
  2. Uh, Goofy Accounting by smack.addict · · Score: 5, Informative

    Goodwill only shows up on the balance sheet when an acquisition or some similar event occurs which creates a discrepancy between the purchase amount and the balance sheet of the acquisition.

    You don't just make up a number and add it onto your balance sheet.

    1. Re:Uh, Goofy Accounting by Ngarrang · · Score: 5, Funny

      You don't just make up a number and add it onto your balance sheet.

      And THAT is why I failed my economics class. My teacher never did appreciate my 'creativity'. I would simply explain that I wanted to be a CEO someday.

      --
      Bearded Dragon
    2. Re:Uh, Goofy Accounting by besalope · · Score: 5, Funny

      You don't just make up a number and add it onto your balance sheet.

      And THAT is why I failed my economics class. My teacher never did appreciate my 'creativity'. I would simply explain that I wanted to be a CEO someday.

      Economics does not use Balance Sheets, that would be your Accounting course. Perhaps that is why you failed?

    3. Re:Uh, Goofy Accounting by dontmakemethink · · Score: 2, Funny

      You don't just make up a number and add it onto your balance sheet.

      And THAT is why I failed my economics class. My teacher never did appreciate my 'creativity'. I would simply explain that I wanted to be a CEO someday.

      Economics does not use Balance Sheets, that would be your Accounting course. Perhaps that is why you failed?

      His teacher failed him because his improper application of the wrong tools in the wrong field could lead him to politics.

      --

      War as we knew it was obsolete
      Nothing could beat complete denial
      - Emily Haines
  3. Paying programmers by lines of code... by Anonymous Coward · · Score: 5, Insightful

    ...is like paying airplane manufacturers by weight.

  4. Erm! by cosmocain · · Score: 4, Funny

    [...]to build the Linux community distribution Fedora 9 in today's dollars[...]

    I'd rather build it in C with a modest compiler.

    1. Re:Erm! by ColdWetDog · · Score: 2, Funny

      Yes but it would be much much larger given the size of today's dollar...

      And it would crash, hard, every couple of years and you would need the federal government to reboot it. Not a good idea. Go with the C compliler.

      --
      Faster! Faster! Faster would be better!
  5. I'd rather see... by thered2001 · · Score: 2, Insightful

    ...a similar estimate for the kernel alone. Or, perhaps a more generalized number which would take into account other distros.

    --

    If your only tool is a hammer, every problem becomes a nail.

    1. Re:I'd rather see... by mentaldingo · · Score: 5, Informative

      RTFA. It said $1.4b for the kernel alone.

  6. Wow, goodwill is an asset? by maillemaker · · Score: 5, Funny

    I wonder if I can spend some of my karma down at Taco Bell for a burrito?

    --
    A work that expires before its copyright never enters the public domain and thus enjoys eternal copyright protection.
    1. Re:Wow, goodwill is an asset? by qwertphobia · · Score: 2, Informative

      Nope... but the Phillies got you a free taco last night!

      --
      Never ask for directions from a two-headed tourist! -Big Bird
    2. Re:Wow, goodwill is an asset? by Sponge+Bath · · Score: 5, Funny

      No, but when you die you will be reborn at Taco Bell *as* a burrito.
      That's karma!

  7. How much money did MS spend on Vista? by seeker_1us · · Score: 3, Funny

    According to an Inquirer article, the estimates were about $10 billion.

    I would think it would cost more than $10.8 billion to develop FC9 from scratch then...since it's a better OS.

    1. Re:How much money did MS spend on Vista? by Sockatume · · Score: 2, Informative

      Your better OS = more expensive rationale does not include the elusive "throw money down a hole" factor of marketing. Gates-meets-Seinfed and I'm-a-PC combined cost $300m, fully 3% of that entire budget.

      --
      No kidding!!! What do you say at this point?
  8. Re:Average salary? by jagilbertvt · · Score: 4, Funny

    Perhaps you should consider working on something other than an open source project :)

  9. Only $427.33 on eLance by Peter+Cooper · · Score: 4, Insightful

    I bet if you put the specs on eLance, there'd be a company in Romania somewhere bidding to do it for about $427.33, give or take a few dollars :)

    1. Re:Only $427.33 on eLance by ePlus · · Score: 2, Funny

      Well C is the most spoken language in Romania. ;)

  10. Re:Average salary? by OrangeTide · · Score: 3, Interesting

    You make $3.78/hr ?

    Where I live people who make $75k have to live in an apartment, and it is unlikely they will be approved for a home loan without at least 30% down (around $150k). If you save aggressively on that sort of salary it should only take about 5-7 years to scrap together enough money for your down payment. Once you have the house, I'm not sure how you pay the mortgage (roughly $3k/month).

    For you it will take closer to 70 years.

    --
    “Common sense is not so common.” — Voltaire
  11. Lines =! quality =! true cost by nurb432 · · Score: 4, Insightful

    Thats not a fair comparisons of cost.

    Especially since you are comparing lines of code in OSS to lines of code in CSS, Its like comparing 2 fruits, they are close, but not the same.

    --
    ---- Booth was a patriot ----
  12. Imagine... by parvenu74 · · Score: 2, Insightful

    Ten billion for an operating system... am I the only one thinking that the money we spend on military adventures and bailing out Wall Street would be better spent funding the creation and development of open source software?

    1. Re:Imagine... by Siberwulf · · Score: 4, Insightful

      I'm not in the military, so I'm speaking out of my ass here.

      The last time I checked, you couldn't stop a suicide bomber by throwing a copy of Fedora 9 at them.

    2. Re:Imagine... by lattyware · · Score: 4, Funny

      Actually, I tried this last week, turns out he turned into a communist and dropped the religion thing. So, you, sir, are incorrect.

      --
      -- Lattyware (www.lattyware.co.uk)
  13. But it wouldn't by 91degrees · · Score: 3, Insightful

    Fedora contains a lot of redundancy. throwing in several text editors makes sense if they're already there and free, but you wouldn't rewrite emacs, joe, Vim and nano. You wouldn't rewrite Epiphany, if you'd rewritten Firefox.

    The number's a lot bigger than it needs to be.

    1. Re:But it wouldn't by jedidiah · · Score: 4, Insightful

      Sure you would have "re-written" things.

      Windows has/had 3 major competiting brands of office
      productivity software.

      Perhaps it wouldn't have all be developed by the same
      company, but the products themselves would have been
      developed. This just highlights the fact that a Linux
      distro is no so much just an analog for a copy of
      Windows but it also includes a freeware/commercial
      equivalent of a Simtel or Tucows archive DVD.

      This also exposes the real problem of competing with
      Windows or MS-DOS if you are an alternative OS. You
      not only have to compete with the core OS you also
      have to compete with all of the 3rd party apps.

      I'd be curious what the proposed dollar value of the
      entire Ubuntu software repository "multiverse" would
      be.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    2. Re:But it wouldn't by fahrbot-bot · · Score: 2, Insightful

      ...but you wouldn't rewrite emacs...

      Which existed *long* before Linux was a twinkle in Linus' eye - as did many of the tools used to create Linux (like GCC, and other GNU utilities).

      Not to troll, but if Linux wasn't around, we wouldn't build it from scratch, we'd simply use something else - like BSD, which was also here before Linux.

      --
      It must have been something you assimilated. . . .
  14. "Good will" does not mean what you think it means by John+Hasler · · Score: 2, Insightful

    > On the balance sheets of Coca Cola and many other huge corporations, you find goodwill
    > listed as a major asset.

    "Good will" is a specialized accounting term when used on balance sheets.

    --
    Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
  15. Re:What is a trademark's value called? by profplump · · Score: 3, Informative

    "Goodwill" is a specific subset of "intangible assets". Other items such as patents, copyrights, trademarks or other contractually transferable rights or privileges would be in the same category, but are not "goodwill", which has a specific meaning in accounting.

  16. Re:Grinding by internerdj · · Score: 2, Interesting

    This coupled with his salary tends to make me think his job market is similar to the one when I first got out of school. Employers are looking for ways to make the employees feel their below average salaries are really average salaries. I applied several times for an entry level job that sat open on a particular company's website for a year and a half, I had been doing everything in the req except for ADA academically for years but not even a call. The "we would rather not hire anyone than fill an open job with someone without professional experience" attitude for an entry level job really gets me. My current employeer does it to. If they are completely incompetant fire them. It isn't like they are going to destroy the world if it is entry level and they screw up.

  17. Re:What is a trademark's value called? by Otter · · Score: 2, Informative

    That's exactly the sort of thing "goodwill" includes. But, as the OP says, that value has to arise from a transaction. (For example, you spend $100M to buy a company with $80M in assets and book the remaining $20M as goodwill.) You can't just invent a number and apply it to your own balance sheet.

  18. Re:1400 lines/year??? by YrWrstNtmr · · Score: 2, Insightful

    ...approximate 1400 lines of code/y. Not very impressive.

    You forget all the other parts of a major project. Analyze, design, test. Those take people and hours away from simply pounding out lines of code.

  19. Re:Average salary? by gad_zuki! · · Score: 2, Informative

    Buy a smaller house or condo. 30% down? Usually its 20%. The housing in your area sounds a tad overpriced to me or your example is just another case of living beyond one's means.

    Lastly, home purchasing in the US is priced for couples, not individuals.

  20. Re:Average salary? by WhiteWolf666 · · Score: 2, Interesting

    No necessarily to the parent, but the GP, there are places in the US where you can live very comfortable on $50-$75k per year. Mostly smaller towns 100-150 miles from major metropolitan areas. I'm thinking Chicago's Rockford, or Elgin. Or any of the various industrialized suburbs of Milwaukee, or Brookfield, WI, or similar towns.

    Take out an FHA loan on a cheap property, something that needs a lot of love, and put in the work yourself (that way you *know* the value will go up; it's not appreciating, its sweat equity!).

    $50-75k is a very good salary in some areas, particularly if you aren't keeping up the Jones, and don't mind doing work around the house (probably a lot).

    --
    WhiteWolf666 an exBush supporter. All you new-school,compassionate,save the children Republicans can rot in hell
  21. Salary by RAMMS+EIN · · Score: 2, Insightful

    When reading this, I couldn't help but wish _I_ got paid that much money. The figure I get from sloccount ($55K) seems high, but this is even higher than that! Anybody want to make me an offer?

    --
    Please correct me if I got my facts wrong.
  22. Re:Grinding by OrangeTide · · Score: 2, Insightful

    If I had a nickle for every time I heard a geek claim Aspergers, I'd have roughly 500 cents.

    "A comprehensive assessment involves a multidisciplinary team that observes across multiple settings, and includes neurological and genetic assessment as well as tests for cognition, psychomotor function, verbal and nonverbal strengths and weaknesses, style of learning, and skills for independent living." .. I'm not saying this was not done for you specifically. But generally when I hear someone claiming this, it is some bullshit self diagnosis and means nothing.

    as for #2 and #3, I'm sorry to hear that. I symapthize

    --
    “Common sense is not so common.” — Voltaire
  23. Re:What is a trademark's value called? by WhiteWolf666 · · Score: 5, Informative

    Uh, Goodwill is the correct term.

    Has GP looked at GE's balance sheet?

    GE claims $4.5 billion in "Licenses, Patents, and Trademarks". While the GP is correct that these values primarily arise as a function of acquisitions or sale of assets, the only time that corporate evaluations really matter is during acquisitions, sale of assets, and other forms of stock/ownership valuations.

    Let me put it the way GE puts it (and GE is the *gold standard* when it comes to Goodwill, except for perhaps the Federal Reserve, who has a totally invented balance sheet.) There are 9 companies with triple A credit ratings, and GE's ability to manage accurately manage goodwill is one of the reasons it is a triple A rated company.

    Upon closing an acquisition, we estimate the fair values of assets and liabilities acquired and consolidate the acquisition as quickly as possible. Given the time it takes to obtain pertinent information to finalize the acquired companyâ(TM)s balance sheet, then to adjust the acquired companyâ(TM)s accounting policies, procedures, books and records to our standards, it is often several quarters before we are able to finalize those initial fair value estimates. Accordingly, it is not uncommon for our initial estimates to be subsequently revised.
    Emphasis added for the benefit of readers.

    You *do* just stick those things on your balance sheet; the issue is being able to justify them. If I put my good name on a financial statement to a bank, the bank probably won't take me seriously, unless my name is something like "Warren Buffet". If my name is "GE", and I "give" that name to some business effort, it is a very serious transaction with serious financial consequences, and I can potentially use that to either buy or sell assets, as well as finance offers, and issue debt.

    The credibility of the "good will", and the managers who evaluate the relevant values is what determines the financial values of those intangibles. They're only intangible in that they are intellectual concepts, and in many ways are just as "real" as stock or other corporate paper holdings.

    --
    WhiteWolf666 an exBush supporter. All you new-school,compassionate,save the children Republicans can rot in hell
  24. Re:Average salary? by Impy+the+Impiuos+Imp · · Score: 2, Interesting

    There was that study a couple of years ago that showed that top programmers are 4x as productive as the average ones.

    So hire a bunch of top programmers and pay 'em twice that rate, and you'll still halve development costs.

    Of course, if the guys in charge of The Linux Foundation's estimation were actually top programmers, they'd have relized this. But noooooooo, they're trying to rhetorically prove a point.

    I suppose if you hired 4x as many crappy programmers for half that rate, you can pay $20 billion to develop Fedora 9.

    --
    (-1: Post disagrees with my already-settled worldview) is not a valid mod option.
  25. In all seriousness by JDub87 · · Score: 3, Insightful

    Going by this metric... how much did it cost to develop windows? How much did it actually cost?

  26. Re:Average salary? by fishbowl · · Score: 3, Interesting

    As I wander around San Francisco, I see people living in some pretty squalid housing. I think to myself, "that's a 2 million dollar property? How? And how does that guy manage it?"

    I get the impression that there might be affordable housing in San Francisco, though not the really desirable kind of housing that goes for $1000 per square foot.

    I could be wrong, but then, the market still bears ridiculous pricing. It means you either need equity in the market, or it means that enough people have enough income to saturate the housing market.

    I love the Bay Area, but there are only a few parts that I think I want to live in. I'm amused by the real estate in San Fran because I know of a time when some of the 10 million dollar victorians were considered "ghetto" and were difficult to sell at any price.

    There are people who move to the Bay Area as an end in itself. I would move there if I could consider it a benefit of having a job or a business that earned enough that the expense of living there was not my most significant concern. On the other hand, I think my resumé allows me to say things like that to recruiters :-)

    Meanwhile, I'll settle for an Irish Coffee at the Buena Vista and a Tikka Masala at India Curry House, and then leave the City for my relatively low cost of living home. The Bay Area doesn't want me so badly that it's willing to make it look cheap, so why in the hell would I move there? If the best I could do was $75K, I'm pretty sure I'd make a priority of getting out of there.

    --
    -fb Everything not expressly forbidden is now mandatory.
  27. Re:Average salary? by Pantero+Blanco · · Score: 2, Informative

    I'm gonna have to call "shenanigans" on your $$ figures there. According to this it would appear there are plenty of homes one could buy that are FAR less than your supposed $625K "median" price.

    That's the wrong point to make. Half of the homes (give or take half of a house) would be under the "median price", in either case. Unlike the mean, how far some go above or below it doesn't affect it. If the prices were $5, $5, $5, $60000, $80000, $80000, and $85000, $60000 would be the median.

    You do appear to be correct about his first figure (the "bad place in the Bay" being wrong, though.

    A total of 7,271 new and resale houses and condominiums sold last month in the nine-county region, marking a 0.5 percent uptick from August. The median sales price fell 36 percent from a year earlier to a five-year low of $400,000, MDA DataQuick said.

    $400,000 / .64 = 625,000. It did "hit" 625K, evidently, but certainly isn't there any more.

  28. Re:Average salary? by Risen888 · · Score: 5, Funny

    In America, homeownership, like college, is a capitalist trap designed to force you into lifelong slavery. Fuck the house, own your life.

    --
    Hey, I finally got my first freak! Took you long enough!
  29. Re:Average salary? by Ihmhi · · Score: 2, Insightful

    It's also quite easy to do a 90 day trial for a job to evaluate performance. Many places do this and something similar. An acquaintance of mine started out working at Google as a contract worker - he works for the company for a limited amount of time (a year, I believe), and then they evaluate him at the conclusion of that time period and see if they want to bring him on board.

    He now proudly sports his @google.com e-mail as he's a full-time employee. He's working for a good company and Google knows they have a good worker.

    Back in my father's day, you'd walk into a store and a manager might try you out for a few weeks and see how you do. If he liked you, he'd keep you on as a full-time employee. If not, he'd have the courtesy to offer you to quit instead of firing you. It's more expensive than just looking at applications and taking a guess, but this is how some of the best businesses get a high percentage of high quality employees.

    Nowadays it's an all-or-nothing prospect - usually start someone full time and at their full wage (or not) based on their application and interview alone. I think that's pretty bass ackwards.

  30. real cost? by pak9rabid · · Score: 2, Insightful

    So, if you minus the lines of code that RedHat/Fedora didn't write (upstream projects developers' code), and added in the amount of man-hours associated with packaging/debugging/patching these packages, I wonder what they'd be at.