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Linux for business critical applications - myth or reality?

Click here to download the META Group Executive Summary Report:
"The Impact of OS/Platform Selection on the Cost of ERP Implementation, Use and Management" (76k, pdf format)

The SME market is ripe with opportunities for implementing business systems.

"We had projected Linux would be No. 2 in 2002 or 2003. It happened in 1999." - IDC
"Linux's market share will expand to 41% by 2005" - IDC
"Linux will dominate about 80% of the high-performance-computing (HPC) market" - Aberdeen
"the HPC market size in 2000 was approx. $6B - $7.5B" - Aberdeen
"the Linux market grew 24% in 2001 making it the fastest growing operating system" - IDC

SAGE, IBM and Linux - ready to do business

the opportunity
Now that SAGE, the world's largest supplier of business management software and related products to SME's, and IBM, the world's largest supplier of servers, are joining forces on Linux. Companies wanting to invest in a comprehensive yet cost effective business software solution will now be able to implement a new system without having to change their infrastructure. In a market where Aberdeen's current research indicates that Linux will dominate about 80% of the high-performance-computing (HPC) market, the opportunity for consultants to create value, choice and flexibility for their clients is massive.

the reality
Despite a tough road, Linux has never been so popular and the early start-ups are now being replaced by the tech heavyweights such as IBM, HP, Sun, Dell. Linux has been knocking on the enterprise door but the speed of its progress is dependent on the availability of enterprise applications running on Linux. With Sage and IBM firmly committing to Linux that huge endorsement should dramatically increase Linux' rate of progress in the business critical applications market and offers a realistic alternative to the Microsoft platform.

the future
With IDC research showing market growth in 2001 at 24% and predicting 37% by the end of 2002 the Linux market could reach between $10B - $12.5B this year. IDC analyst Dan Kusnetszky further sees Linux market share expanding to 41% by 2005 on servers, the workhorse machines that handle computing tasks for businesses. In this area, 70% of the revenue generated comes from the high-performance midrange and technical servers area, the two areas where Linux is expected to dominate most rapidly. Consultants able to take advantage of this opportunity can look helping the clients achieve more flexible, robust and cost effective systems for years to come.

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E-mail: facingthefuture@pmp.co.uk