Linux train late – but still coming

Open source solutions are gaining in popularity but there’s still work to be done.

Global service provider EDS caused a ripple across Australia’s IT community last month when a visiting US executive claimed Linux was off the radar, due to problems with security and scaleability.

Robb Rasmussen, who manages EDS’ global alliances, told news media at the Sydney launch of the multi-vendor EDS Agility Alliance that Linux would not factor as a player alongside alliance partners such as Cisco, EMC or Microsoft in the foreseeable future.

That is despite Linux’ undoubted success in recent years, particularly in the server space. Rasmussen says platforms and applications linked in an open environment often have holes. "We are not as confident on Linux in the corporate environment in terms of securing it. We are not strongly backing Linux and we are watching to see what happens," he says.

There are also unforeseen problems scaling across geographies with Linux, he says. Yet EDS’ own website proffers a case study that claims open source offers licensing cost savings and a chance for faster, better support.

Con Zymaris is chief executive of Cybersource, an IT services and solution provider based in Melbourne. "In the first instance, all the major players are making more money off Linux," he says.

Zymaris says the likes of IBM and HP sell "something like" $7 billion in Linux-related products globally. Mostly, that’s been in hardware consultancy and services, but some are seeing "very broad" adoption of Linux among their customers. "It is easier to replace a Unix system with a Linux system," he adds. "Linux is now the de facto Unix."

Also, users running Microsoft applications such as Small Business Server and/or ones like NT 4.0 that the software giant no longer supports are still migrating to Linux as predicted, Zymaris says.

"They can upgrade to the latest version of Windows," he says. "But the cost of doing that upgrade is more expensive." Cost savings are still critical, even as the IT purse-strings at many Australian companies supposedly loosen up.

Zymaris says Cybersource sells some of its Linux solutions "in the dozens". Although that’s not a large number, for a small company like Cybersource that is not focused on retail, it is significant and suggests much more could be sold through the channel, he says.

"People that do [retail and reselling] should be able to do 10 times more than that," Zymaris says. "And we get more money from doing our $2000 Linux server install than another company would doing the $10,000 Microsoft installation."

Cybersource sells its Safe Internet Computer (SafeIC) media kits to resellers at $99. The SafeIC system, including hardware and software, retails for $595. The hardware needed by a SafeIC wholesales around $350, he says.

"Resellers can therefore make around $150 profit for each SafeIC system they ship. Information on the SafeIC is attached, along with the online user manual,"Zymaris says.

Cybersource also sells a Small Business Linux Server (SBLS) Build system for a $4000 annual subscription and $1000 set-up fee. Resellers can build an SBLS in two minutes but must provide their own server hardware.

"They can then sell these servers at whatever price their market can bear. There are no ongoing licence fees or other costs. Selling one server every three months covers the cost of the maintenance fee," Zymaris adds. "Selling more is pure profit."