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CNET Amazon Saves Millions With Linux Switch

Oct 30, 2001, 23:04 (49 Talkback[s])

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" was able to cut $17 million in technology expenses in the last quarter largely because of a switch to Linux.

The online retailer spent $54 million on technology and content expenses in its third quarter, ended Sept. 30, compared with $71 million in the year-ago quarter, according to a filing with the Securities and Exchange Commission. The reduction was primarily because of Amazon's "migration to a Linux-based technology platform that utilizes a less-costly technology infrastructure, as well as general price reductions for data and telecommunication services due to market overcapacity," according to the statement.

Amazon said in June that it was revamping its computer systems and switching to "commodity" computers running Linux. Executives said at the time that they expected technology costs as a portion of net sales would decrease by 20 percent this year."

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