News & Analysis
Linux rises as budgets fall
Tim Witham, Director, Open Source Development Lab, Beaverton, Ore.
7/24/2002 12:24 PM EDT
Amid the pain and angst of the past two years, companies in general, and IT departments in particular, have become more disciplined, returning to core business values and processes instead of slavishly following every new technology trend. As IT developments continue quietly in the background, managers have to demonstrate a rapid payback-typically, a return on investment in less than four quarters from the start of the implementation cycle. As a result, the types of project categories emerging are those that either supply bottom-line cost savings or offer a strong possibility of increasing revenues within a year.
Other IT teams are expected to deliver currently planned capabilities on time and typically within budgets that have been trimmed. This is causing many developers to turn to Linux. By running Linux on an older server or desktop, developers can continue to make progress while saving on the initial cost of the base server software. Often, this substitution occurs with management's knowledge and blessing. Management's rationale is that it can switch to an industrial-grade proprietary product later on, when the value of the project has been shown.
However, more and more we are seeing companies make the decision to actually deploy with the Linux-based development stack. A growing number of these teams are discovering that Linux and its application stacks are good enough for the application being developed.
The other opportunity for Linux seems to be occurring at lease-renewal time. Often lease fees increase at the very same moment that department budgets are cut. This budget sensitivity results in close scrutiny of equipment and software needs. Many times, it is discovered that the needs of this legacy application can be met with Linux, in tandem with either a new, inexpensive server or an existing server that isn't currently being used to its full potential.
Linux is even starting to emerge in the telecommunications sector as cost concerns are becoming paramount. While telecom equipment manufacturers are feverishly working to create a next-generation infrastructure, they must keep development and deployment expenses to a minimum. Here again, Linux is gradually making inroads as teams are starting to use it during development and even some deployments.
In both cases, Linux is following the classic disruptive-technology adoption curve. Open Source Development Lab, an independent, nonprofit organization dedicated to guiding the development of Linux and Linux-based applications for data center and carrier-class deployment, is leading the definition and delivery of technical road maps for true carrier-grade Linux and for Linux in the data center.



