Subject: Linux will dominate says Goldman Sachs
From: cmaeda@alum.mit.edu
Date: 16 Jan 2003 21:16:24 -0000



  (cmaeda@alum.mit.edu) has mailed you the following article:



Linux will dominate says Goldman Sachs



http://www.crm-forum.com/item/101086



Message: Research on Linux uptake in the enterprise.




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pplications vendors will ignore Linux at their peril according to
Goldman Sachs which predicts that the open source software will become
the dominant operating system in corporate data centres.

According to the study, IT buyers will use Linux to take advantage of
lower-cost, higher-performance Intel-based servers and shake off
"premium-priced" proprietary systems.

"Many observers confine Linux's enterprise opportunity to the market for
low-end 'edge' servers such as file, print, Web, and e-mail servers,"
the study, entitled "Fear The Penguin," notes. "But we are confident
that the technical developments and market forces are in place for it
also to become the dominant OS on the higher-end servers of the
enterprise data centre."

Unix is set to be the biggest loser. But Linux will not win market share
from Microsoft in the desktop market in the near term. But it will
"hamper the movement of Windows into the enterprise data centre"
according to Goldman Sachs. "This shift will limit Windows' market
opportunity in the data centre for both its OS and its applications that
run on that platform," the study concludes.

Goldman Sachs believes that Linux' emergence will most directly benefit
independent semiconductor companies such as Intel, as well as
infrastructure software vendors, such as BEA Systems and Oracle.

But one thing that could slow down the mass adoption of Linux is lagging
support from the packaged application vendors. But trends such as server
consolidation and wider deployment of J2EE-based computing models could
significantly accelerate rates of adoption.



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