Digital MarketingStrategiesLinux Market Shrank in 2001

Linux Market Shrank in 2001

After two straight years of growth, shipments of the newbie OSdeclined last year, but forecasts still claim a compound annual growth rate of 28 percent.

Despite the clamor of the past two years that open-source operating systems would revolutionize the world, Linux operating environment revenue declined by almost 5 percent in 2001. This marks the first year of contraction for the newbie OS.

New license shipments for server operating environments (SOE), which makes up an overwhelming percentage of the $80 million spent in 2001 on Linux software, experienced essentially flat growth. On the bright side, client unit shipment grew by nearly 50 percent with the Asia/Pacific region contributing generously (34 percent) to 2001 sales.

“The previously strong growth of Linux SOE shipments was interrupted during 2001,” said Al Gillen, research director, system software at IDC. “We also saw China’s Red Flag and Brazil’s Conectiva make strong contributions to the Linux COE market, which continued to grow at a healthy pace.”

Ironically, the only operating environment to experience positive revenue growth in 2001 was Microsoft’s Windows, which unveiled Windows XP on Oct. 25, last year

Still, IDC expects spending on Linux operating environments to increase over the next five years from $80 million in 2001 to $280 million in 2006, which means a compound annual growth rate (CAGR) of 28 percent.

Despite the unconventional way Linux is bought and sold, IDC said it has become a mainstream choice for many infrastructure workloads particularly because the software is available either freely on the network or as a low-cost packaged product that can be deployed on low-cost, high-volume systems.

Furthermore, Linux is often packaged with other open source software such as Samba for file/print services, Apache for Web services, and MySQL or PostgreSQL for data management, which makes it a highly functional and cost-effective environment.

Related Articles

How financial services CMOs should approach regulation

Digital Transformation How financial services CMOs should approach regulation

2w Al Roberts
How are traditional banks competing for customers in a digitally disrupted industry?

Finance How are traditional banks competing for customers in a digitally disrupted industry?

1m Al Roberts
5 cross-platform automation tools to improve your team's efficiency

Collaboration 5 cross-platform automation tools to improve your team's efficiency

1m Tereza Litsa
How challenger banks are revolutionizing the banking customer experience

Finance How challenger banks are revolutionizing the banking customer experience

3m Al Roberts
8 ways AI can enhance your marketing strategy today

AI 8 ways AI can enhance your marketing strategy today

3m Marcela De Vivo
Why banks are becoming customer-centric organizations

Analyzing Customer Data Why banks are becoming customer-centric organizations

1m Al Roberts
Five tools to automate lead nurturing in sales

Ecommerce & Sales Five tools to automate lead nurturing in sales

2m Tereza Litsa
How CMOs are using apprenticeships to bridge the digital skills gap

Marketing How CMOs are using apprenticeships to bridge the digital skills gap

2m Christian Doherty