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TheStreet.com: Linux Reality Doesn't Match Hype

Dec 04, 2003, 17:00 (30 Talkback[s])
(Other stories by Ronna Abramson)

[ Thanks to Tuttle for this link. ]

"Almost every week, it seems, another government is jumping on the Linux bandwagon, badmouthing Microsoft all the way. But for all the headlines, the open-source software movement remains very much a fringe business, raising troubling questions for investors who've plowed into publicly traded Linux providers in the past year.

"And plowed they have: As of Tuesday's close, Red Hat shares were up 110% in the past 12 months, while shares of Novell, which recently acquired Germany-based SUSE Linux, had soared nearly 150%. Those returns compare quite favorably with the 33.4% gain by the Nasdaq Composite and 26% rise by the Goldman Sachs Software Index in the past year.

"Yet, 'in spite of all the talk [about Linux] , there's still not a lot happening,' said Robin Simpson, a Gartner research director in the Asia Pacific region..."

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