“According to IDC, Linux products accounted for nearly 25
percent of the server and operating system market in 1999, up from
15.8 percent in 1998. Another research firm, NetCraft, noted that
29 percent of public Web servers currently run on Linux, making
Linux the most popular operating system for public Web sites. Since
Linux can run on the projected 55 million Internet devices — from
personal digital assistants to Internet toasters — that IDC thinks
will be shipping by 2002, there appears to be plenty of room to
grow there, too. Currently, there are roughly 150 companies in
the Linux playground. But only a handful of them are above the
radar in terms of any bona fide market share, says Dan Kusnetsky,
vice president of research and chief Linux-watcher at
IDC.“
“In the Linux software distribution and services, the market
share leader is Red Hat Software (Nasdaq: RHAT), which Mr.
Kusnetsky says “is the hands-down winner in brand recognition.”
(The recognition is due in large part to the ubiquitous red fedoras
the company’s employees sport at trade shows and elsewhere.) Red
Hat is also trying to be everything to everyone — not just by
distributing its software (Red Hat Linux), but by selling
consulting, custom development, training, and support services to
clients like Home Depot (NYSE: HD), Lockheed-Martin (NYSE: LMT),
and Burlington Coat Factory (NYSE: BCF).”
“Another value-added software and distribution player is the
privately held, San Francisco-based TurboLinux, which has found a
rich market for its Linux products — ranging from the $50
TurboLinux to a $10,000-plus supercomputing product, enFuzion — in
Asia. Dell Computer (Nasdaq: DELL) installs TurboLinux on its
machines; Intel (Nasdaq: INTC) has worked with the company to port
Linux to its new IA64 Itanium chip. According to IDC, TurboLinux’s
revenues, based on product shipments, grew almost 500 percent from
1998 to 1999.”