Raging Bull: Has Linux Bubble Burst?Jan 17, 2001, 15:28 (53 Talkback[s])
(Other stories by Chet Dembeck)
"...I think itâ€™s extremely important to revisit, reexamine and reevaluate one of the fair-haired segments of last year: companies touting various versions of the Linux operating system. Last year this sector had all the drama and glamour of a Hollywood flick, as Linus Tovalds, the Finnish native who helped create this free UNIX-based operating system, got almost as much press as Bill Gates."
"From the investorâ€™s point of view, the Linux picture has been nothing short of disastrous. For example, share value in the once-mighty Red Hat has plummeted from its 52-week high of $148 to around $7 per share. Similarly, VALinux share price has fallen from a 52-week high of $179.25 to about $7 per share. Meanwhile, Caldera - which never reached the heights of its two rivals-is selling at about $2 per share, far off its 52-week high of $33 per share."
"This brings me to what I think is the fatal flaw in the promulgation of the Linux operating system: lack of profit motive up and down the distribution food chain. If the often vilified Bill Gates proved one thing by making Windows the most-widely used operating system in the world it is this: profit motivates. Put another way: money talks and bull excrement walks."
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