• On GameSpot: Wii Fit tells 10-year-old she's fat
August 28, 2008 7:07 AM PDT

Linux jumps to 13.4 percent of the stalling server market

Posted by Matt Asay
  • Font size
  • Print

According to a recent IDC report highlighted by ZDNet, Linux is booming. At just 9.4 percent of the overall server market in terms of revenue in 2007, Linux has now climbed to 13.4 percent of the overall server market, with Unix at 7.7 percent and Windows at 36.5 percent. If Linux server vendors want to continue to grow, at some point they're going to have to come to grips with Windows, rather than eating into the low-hanging Unix fruit.

The big winner in the quarter was IBM, with 33.2 percent of the market. Hewlett-Packard is not far behind, but is moving the wrong way on market share:

(Credit: IDC)

Despite the healthy 6.4 percent growth in the overall server market, however, IDC suggests a softening in the server market, as The Wall Street Journal points out:

...(T)he growth came, in part, because manufacturers cut prices on popular product lines. That worries IDC because cutting prices is how companies typically react when faced with softening demand. With economic conditions showing few signs of improvement, price cuts "are a concern, as they may foreshadow a slowdown in market demand," said Matt Eastwood, an IDC group vice president.

Perhaps this softening is one reason that while Linux server growth topped 10 percent, Unix only grew 7.7 percent and Windows struggled to achieve 1.7 percent growth. I actually would have expected a stronger showing from Windows but then, HP, IBM, and Dell all have a vested interest in getting out of Redmond's shadow. Linux points the way to greater independence.

It will be instructive to see if Linux server growth will continue to outpace the rest of the market and, in particular, Windows server growth. In a down economy, Linux may find its direction is up, up, and away. Red Hat and Novell will be the beneficiaries, and perhaps a bit more Ubuntu?.

Matt Asay is general manager of the Americas and vice president of business development at Alfresco, and has nearly a decade of operational experience with commercial open source and regularly speaks and publishes on open-source business strategy. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.
Recent posts from The Open Road
Novell delivers another 33 percent quarterly rise in its Linux business
Cisco's $100,000 bounty: Get paid to love Linux, diss Microsoft
Apple more proprietary than Microsoft, survey finds
Facebook finally hits the mainstream
China Linux policy suggests open source is not always open
Pandora breaks free on the iPhone: Is the music industry listening?
Microsoft's mixed-up open-source TCO messaging makes perfect sense
Eclipse coaxing developers away from Windows Vista?
Add a Comment (Log in or register) 23 comments
by Penguinisto August 28, 2008 7:41 AM PDT
Dude- you confuse revenue figures (money) with actual machines installed (which you can't measure via money).

For instance, my own group @ work (counting all four sites across two continents) has hundreds of Linux servers, and only a few dozen Windows ones. Granted we don't have to deal with Exchange/Communicator (Corp IT does that on our behalf), but overall, Linux has taken the corporation at large by storm, and this ain't some small mom-and-pop org, either (hint: ask Tom or Ina who it is ;) ).

I recently (2 days ago) accepted an offer for a position at a start-up company that has mostly Windows, but I was hired specifically because of my Linux/UNIX experience - they're looking to replace a large chunk of their Windows servers. You can't swing a dead cat on Monster without it bouncing off of an opening for a Linux admin or programmer these days... which tells me that Linux' share is a whole lot larger than 13%, yanno?

/P
Reply to this comment
by Philips August 28, 2008 9:43 AM PDT
The post isn't about "how much of Linux is around" - it is about "server market". And "word" market implies exchange of money. Essentially they try to estimate how much money H/W companies made on selling Linux servers.

I have two Linux servers at home (streaming media and backup storage), but they are not relevant to "server market" figures: nor I bought a server hardware for that, nor have I support contract. And that's what makes Linux market.

In a way, 13.4% of revenue figure is really awesome. Because due to lower price of Linux, that translates in comparable (if not higher) number of sold Linux boxes.
by Vegaman_Dan August 28, 2008 9:51 AM PDT
There's a lot of openings for Linux admins. Finding credible ones is much harder. It doesn't take much to claim you're a Linux admin. That's the problem- there is no way to tell. You can swing that dead cat around a lot and find a lot of self proclaimed security experts and linux admins who are legends in their own minds. It's all about honesty though. You have to be honest to get the job.


Speaking of honesty, your comments about your current employer seem to stretch the truth a bit. Four sites across two continents? Hundreds of linux servers? Wow. That's impressive. Too bad the small childrens' book publisher you work for in Oregon doesn't actually know anything about that. They weren't aware they had facilities in different countries, nor were they aware of these hundreds of Linux servers. Your self-proclaimed title of sys admin and security expert came as a surprise to them as well. They had no idea you were doing any of that- it certainly wasn't in your job title or duties. <p
Yes indeed, honesty is a very important thing.

by Penguinisto August 28, 2008 10:44 AM PDT
@Vegaman_Dan: You are correct in that there is a vast difference between claiming experience (in any field) and actually having it. Even certifications are worthless (see also the MCSE and the zillions of braindumps, cheat sheets, and etc).

As far as Linux, I can tell you from experience that most Linux admin slots usually involve a test before they'll even think of considering you for the position. My past two positions (this and a previous one) have required that I either take a written test of the company's devising, or was given a server IP address and a list of functions to perform on it (some of which are intentionally impossible to do - but the point was to know which ones, and to know when to say as much).

Oh, and who I work for? Since I only have a few days left here, I don't mind giving you a clue or two, since you're so eager to continue in your misrepresentations: My employer deals with semiconductors. Lots of them. I'm sure you might have heard of them from up there @ your job with Microsoft... rumor has it that our two employers used to work together a lot. ;) I have no idea or experience about the publishing industry, let alone children's books (hint: my name is a pretty common one - there's about 40 of me in the local phone book).

So, does that help you out any?

@Phiips:

Agreed, though most folks confuse the two all too easily. Also, money is a pitiful metric to use as far as server OS popularity, since 1) Linux can be had for $0.00, 2) It is very easy for Microsoft to over-estimate the number of licenses sold by fudging the assumptions of counts in Universal and similar licenses, and 3) Many OS products use Linux heavily in its core without saying so (see also VMWare ESX), which tends to muddy things up a bit.
by CompEng August 28, 2008 11:49 AM PDT
Yep, that sounds about right for Intel, Penguinisto :) They use a *lot* of linux.
by Kwasiowusu August 28, 2008 11:52 AM PDT
Penguinisto : "Dude- you confuse revenue figures (money) with actual machines installed (which you can't measure via money). "


When the actual server machines sold are counted, Windows Server has an even bigger lead over Linux, and incresaed their lead in 2007. For the whole of 2007, Windows server unit market share came to 66.8%, as compardd to only 23.2% for Linux.

http://www.reuters.com/article/ousiv/idUSN2748543820080228

And hey, stop telling fibs. They are getting a bit tiresome.
by Penguinisto August 29, 2008 8:43 AM PDT
@Kwasi:

Your "source" is a quote from Microsoft's PR division. How about some actual third-party figures, instead of regurgitated PR from MSFT?

Also, the majority of servers sold come with no OS installed on them. If you actually worked in the enterprise, you would have known that.

/P
by softwaredesignengineer August 28, 2008 8:08 AM PDT
What? After reading CNET for so long I was under the impression that Linux leads the server market hands down. But sheash! Windows Server leads it and more than doubles it???

Maaaan... and what are all these Linux fanboys talking about then? They suck at the desktop. They never had server lead all the time either.
Reply to this comment
by skillingssucks August 28, 2008 10:02 AM PDT
Linux leads the Web server market hands down, not the corporate server market.
by rklrkl August 28, 2008 8:38 AM PDT
At work, when we order a server that will run Linux (usually either an HP blade or a Dell PowerEdge), we order it with no OS and install CentOS on it (we'd do the same with desktops/laptops destined for Linux if any major OEM would have the guts to ship a desktop/laptop with no OS - none of them do!). So that's neither a separate software Linux sale nor a pre-installed Linux sale - how are these servers counted as Linux servers then?

Answer: they can't be and it's why producing stats on commercial Linux server sales (either bought separately or pre-installed) is irrelevant because it's likely that there's far more Linux servers running that either had no OS or Windows pre-installed than servers that shipped with Linux pre-installed or had a commercial Linux installed later on.

I suspect the "true market share" of Linux (i.e. including *any* server that's running Linux) is far higher than 7.7%, but as usual, lazy CNet journos don't question the press releases they're fed and just regurgitate them verbatim.
Reply to this comment
by RompStar_420 August 28, 2008 9:19 AM PDT
Linux is great, I am Linux, Therefore I am.
Reply to this comment
by Vegaman_Dan August 28, 2008 9:52 AM PDT
The graph only lists hardware providers, not OS shares. Where are the OS figures coming from? We're missing something from the article, I think.


Let's see the whole thing, please.

Reply to this comment
by Penguinisto August 28, 2008 10:45 AM PDT
May want to hit up the URL in the article, which is where he got his numbers from.
by Vegaman_Dan August 28, 2008 12:12 PM PDT
Penguinisto: Thanks for the tip to the URL. I had missed that. Firefox hadn't highlighted it accordingly, but reload the page and there it popped up.


Now the numbers are there. Not quite the positive spin the blogger is giving, but then again, it is a blog, not a news story. I'd be curious to see a news story about this by a professional reporter.

by rmva August 28, 2008 10:17 AM PDT
Matt,

Am I correct? Windows Server 2008 didn't launch until February 27, 2008. Hope you weren't expecting a lot of sales during the first 90 days. It takes enterprises 18-24 months to do that evaluating thing.
Reply to this comment
by Penguinisto August 28, 2008 10:46 AM PDT
@Philips:

Peek at some of the comments between mine and this one. See what I mean in my reply to you earlier? ;)
Reply to this comment
by Kwasiowusu August 28, 2008 11:43 AM PDT
These are obvioulsy revenue figures, and they came during the Windows Server 2008 launch window.
When it comes to actual unit sales, Windows Server is far ahead of anyone else.

The last figures I have for the whole of 2007 from Gartner, have:

Windows Server unit market share : 66.8 (up 1% from 2006)
Linux Server unit market share : 23.2 (down 1% from 2006)
Unix unit market share : 6.8 (down 1.3% from 2006)

http://www.reuters.com/article/ousiv/idUSN2748543820080228

Window Server rules, and the gap actually increased during 2007.
Reply to this comment
by rklrkl August 28, 2008 12:30 PM PDT
Re: Kwasiowusu

As I said in my earlier posting, you cannot possibly know how many Linux servers are out there - quoting this "unit market share" is simply ludicrous. It comes from Gartner too, who are about as useless at being "analysts" as most of Cnet are w.r.t. their "journalism".

OK, I'll make up some 2007 figures to show how proposterous quoting Linux share of the market is:

Total Linux servers in production: 50% market share (up 12% from 2006)
Total (legal) Windows servers in production: 22% market share (down 2% from 2006)
Total (illegally installed) Windows servers in production: 12% market share (up 3% from 2006)
Other OS'es (primarily BSD and commercial UNIX): 16% market share (down 11% from 2006)

OK, anyone want to challenge those figures and quote me *exact* figures in each of those categories? Nope, didn't think so! What a joke this server market share nonsense is that's trotted every 3 months or so!
by Penguinisto August 29, 2008 8:45 AM PDT
Kwasi is regurgitating MSFT PR spin anyway - read the article he's referencing. ;)
by chris_d August 28, 2008 12:39 PM PDT
It's no mystery why Windows has such a high percentage of server numbers. Exchange. From what I've heard, it's likely that an Exchange server can support no more than 50 users, probably less, and with that in mind, Microsoft is sure going to sell a lot of Windows licenses. The other thing is that usually only one service per box is deployed on a Windows server. So you get a lot more servers. If you're using a virtualization technology like VMWare or VPC, you're going to, AFAIK, need a new Windows license for each VM. On top of that, those virtualization solutions incur about 8-10% processor usage just idling.

We've got a lot of Linux servers, but we're moving towards Solaris now that Sun has started getting serious about Solaris on x64. Solaris's RAS features are unmatched in the x64 realm. ZFS is incredible. It's made life so much easier for me. Right now I am working with Solaris Containers to consolidate machines and increase server utilization. It looks promising. AIX seems very competitive in RAS and has some impressive functionality in its WPARs (live VM mobility), but they want so much $ for those POWER servers that we haven't given them any serious consideration.
Reply to this comment
by marcobw August 28, 2008 12:45 PM PDT
Matt,

Being an open source guy, you should know better than to compare linux to other server os' based on revenue. This post is worthless.
Reply to this comment
by archangel4u August 29, 2008 10:52 AM PDT
Dude you are talking revenue figures here. Linux owns over 75% of the server market and that is a fact. In terms of revenue you maybe right since many firms install some free form of Linux that does not generate any OS revenue but in terms of sheer server numbers you are waaaaaaaaaayyyyyyyyy off with that number.
Reply to this comment
by afaet August 30, 2008 6:55 PM PDT
Matt,

I know you a more a Linux than UNIX Guy, but that is no excuse to put the UNIX market share wrong. UNIX has a market share by revenue of 32.7% with a revenue growth of 7.7% not market share as you incorrectly wrote. There is still a lot of low-hanging UNIX fruit to eat.
Reply to this comment
 See all 23 Comments >>
advertisement

In the news now

Slowing expectations at a green-tech start-up

Six months ago, biofuels start-up Mascoma had the wind in its sails, as did the rest of the clean-tech sector. Now, the company is treading carefully and scaling back.


With JavaFX, Sun seeks new coders, new revenue

With the launch of JavaFX 1.0, Sun is trying to reclaim Java's strength as a foundation for rich Internet applications. But it's no longer the incumbent.


Tim Lincecum, motion capture star

San Francisco Giants pitcher, who won the Cy Young award last month, dons a motion capture suit for 2K Sports' Major League Baseball 2K9 video game.


Resource center from CNET News sponsors
Business. Ready.
Sony VAIO® Professional PCs.

Click Here!
A new grade in mobility demands a new kind of notebook. And Sony delivers.Tough, portable and featuring up to 7.5 hours of battery life! VAIO® Professional notebooks are built for business. Learn more.

Click Here!
Built tough for business.

Learn more about the rigorous quality testing Sony puts its notebooks through.

Protect your investment.

Find out why VAIO® tech support recently won a Laptop Editors' Choice Award, July 2008.

Long battery life.

Up to 7.5 hours of battery life! See how VAIO® PCs will keep you productive longer when on the road.

Travel light

Check out our ultraportable line-up, starting at 2.87 lbs.

PCs for every need.

Find out which VAIO® notebook is right for you.

About The Open Road

Matt Asay brings a decade of in-the-trenches open-source business and legal experience to the Open Road, with an emphasis on emerging open-source business strategies and opportunities. Matt is general manager of the Americas division and vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

Add this feed to your online news reader

The Open Road topics

advertisement
advertisement

Inside CNET News

Scroll Left Scroll Right