Linux making inroads into mainline mid manufacturing

We always said that Linux, the open source free Unix style operating system developed by legendary Linus Torvalds, would only start to gain ground in business when main line applications emerged on it. They are. Yesterday Sage announced its Linux-based version of the popular Sage Line 500 (formerly Sage Enterprise). It’s the first household name for core business systems to do so. And with the system running either as an integrated package on IBM iSeries (formerly AS/400), or on upgraded IBM data management software with its Intel servers (xSeries), following a deal with Big Blue, this could be a winner. Two years ago, ailing IBM was announcing its commitment to Linux, and last year the giant spent around $1billion on Linux development – wisely. Analyst IDC is among many reporting that Linux is now the fastest growing platform in the world, forecasting 37% growth this year, against 24% last (compared with 6% for Windows NT) as it moves further into the body of industry and commerce. Early Linux take-up by SMEs has mainly been for infrastructure applications like file/print sharing and web serving. Yesterday’s announcement paves the way for Linux in core business applications, allowing SME users to benefit from its easy integration, high performance, robustness and scalability to manage anything from finance to distribution, manufacturing and service. IBM says it expects to invest a further $330 million in Linux services development over the next three years in terms of consulting, planning and implementation services. Some of that will now be with Sage and its customers. Big Blue makes the point that key issues for SMEs are availability and total cost of ownership, and loses no time in pointing to IDC surveys that show iSeries at 99.98% availability, while overall costs are 91% lower than for Unix servers and 95% lower than for Intel servers. Graham Wylie, Sage’s UK managing director, says: “Linux is becoming very important to the business community. The agreement between IBM and Sage will give mid-sized companies greater choice and flexibility when choosing a business management solution. Companies wanting to invest … will now be able to implement the new system without having to change their IT infrastructure.” Julian David, vice president IBM SMB (small to medium businesses), says: “SMEs choose a computing system because it gets the job done, it’s reliable and it’s cost-effective. Sage, IBM and Linux have independently demonstrated, that they possess those attributes. With this announcement all three are brought together to form an extremely compelling proposition.”