January 11, 2009

A Software Populist Who Doesn’t Do Windows
By ASHLEE VANCE
NY Times

http://www.nytimes.com/2009/01/11/business/11ubuntu.html?ref=business&pagewanted=print


THEY’RE either hapless pests or the very people capable of overthrowing 
Windows. Take your pick.

In December, hundreds of these controversial software developers 
gathered for one week at the Google headquarters in Mountain View, 
Calif. They came from all over the world, sporting many of the usual 
signs of software mercenaries: jeans, ponytails, unruly facial hair and 
bloodshot eyes.

But rather than preparing to code for the highest bidder, the developers 
were coordinating their largely volunteer effort to try to undermine 
Microsoft’s Windows operating system for PCs, which generated close to 
$17 billion in sales last year.

All the fuss at the meeting centered on something called Ubuntu and a 
man named Mark Shuttleworth, the charismatic 35-year-old billionaire 
from South Africa who functions as the spiritual and financial leader of 
this coding clan.

Created just over four years ago, Ubuntu (pronounced oo-BOON-too) has 
emerged as the fastest-growing and most celebrated version of the Linux 
operating system, which competes with Windows primarily through its low, 
low price: $0.

More than 10 million people are estimated to run Ubuntu today, and they 
represent a threat to Microsoft’s hegemony in developed countries and 
perhaps even more so in those regions catching up to the technology 
revolution.

“If we’re successful, we would fundamentally change the operating system 
market,” Mr. Shuttleworth said during a break at the gathering, the 
Ubuntu Developer Summit. “Microsoft would need to adapt, and I don’t 
think that would be unhealthy.”

Linux is free, but there is still money to be made for businesses 
flanking the operating system. Companies like I.B.M., Hewlett-Packard 
and Dell place Linux on more than 10 percent of the computers they sell 
as servers, and businesses pay the hardware makers and others, like the 
software sellers Red Hat and Oracle, to fix any problems and keep their 
Linux-based systems up to date.

But Canonical, Mr. Shuttleworth’s company that makes Ubuntu, has decided 
to focus its near-term aspirations on the PCs used by workers and people 
at home.

The notion of a strong Linux-based competitor to Windows and, to a 
lesser extent, Apple’s Mac OS X has been an enduring dream of advocates 
of open-source software. They champion the idea that software that can 
be freely altered by the masses can prove cheaper and better than 
proprietary code produced by stodgy corporations. Try as they might, 
however, Linux zealots have failed in their quest to make Linux 
mainstream on desktop and notebook computers. The often quirky software 
remains in the realm of geeks, not grandmothers.

With Ubuntu, the devotees believe, things might finally be different.

“I think Ubuntu has captured people’s imaginations around the Linux 
desktop,” said Chris DiBona, the program manager for open-source 
software at Google. “If there is a hope for the Linux desktop, it would 
be them.”

Close to half of Google’s 20,000 employees use a slightly modified 
version of Ubuntu, playfully called Goobuntu.

PEOPLE encountering Ubuntu for the first time will find it very similar 
to Windows. The operating system has a slick graphical interface, 
familiar menus and all the common desktop software: a Web browser, an 
e-mail program, instant-messaging software and a free suite of programs 
for creating documents, spreadsheets and presentations.

While relatively easy to use for the technologically savvy, Ubuntu — and 
all other versions of Linux — can challenge the average user. Linux 
cannot run many applications created for Windows, including some of the 
most popular games and tax software, for example. And updates to Linux 
can send ripples of problems through the system, causing something as 
basic as a computer’s display or sound system to malfunction.

Canonical has tried to smooth out many of the issues that have prevented 
Linux from reaching the mainstream. This attention to detail with a 
desktop version of Linux contrasts with the focus of the largest sellers 
of the operating system, Red Hat and Novell. While these companies make 
desktop versions, they have spent most of their time chasing the big 
money in data centers. As a result, Ubuntu emerged as a sort of favored 
nation for those idealistic software developers who viewed themselves as 
part of a countercultural movement.

“It is the same thing companies like Apple and Google have done well, 
which is build not just a community but a passionate community,” said 
Ian Murdock, who created an earlier version of Linux called Debian, on 
which Ubuntu is based.

Mainstream technology companies have taken notice of the enthusiasm 
around Ubuntu. Dell started to sell PCs and desktops with the software 
in 2007, and I.B.M. more recently began making Ubuntu the basis of a 
software package that competes against Windows.

Canonical, based in London, has more than 200 full-time employees, but 
its total work force stretches well beyond that, through an army of 
volunteers. The company paid for close to 60 volunteers to attend its 
developer event, considering them important contributors to the 
operating system. An additional 1,000 work on the Debian project and 
make their software available to Canonical, while 5,000 spread 
information about Ubuntu on the Internet. And 38,000 have signed up to 
translate the software into different languages.

When a new version of the operating system becomes available, Ubuntu 
devotees pile onto the Internet, often crippling Web sites that 
distribute the software. And hundreds of other organizations, mostly 
universities, also help in the distribution.

The technology research firm IDC estimates that 11 percent of American 
businesses have systems based on Ubuntu. That said, many of the largest 
Ubuntu customers have cropped up in Europe, where Microsoft’s dominance 
has endured intense regulatory and political scrutiny.

The Macedonian education department relies on Ubuntu, providing 180,000 
copies of the operating system to children, while the Spanish school 
system has 195,000 Ubuntu desktops. In France, the National Assembly and 
the Gendarmerie Nationale, the military police force, rely on Ubuntu for 
a combined 80,000 PCs. “The word ‘free’ was very important,” said Rudy 
Salles, vice president of the assembly, noting that it allowed the 
legislature to abandon Microsoft.

Without question, Ubuntu’s rapid rise has been aided by the fervor 
surrounding Linux. But it’s Mr. Shuttleworth and his flashy lifestyle 
that generate much of the attention Ubuntu receives. While he favors 
casual attire matching the developers’, some of his activities, 
including a trip to space, are hardly ordinary.

“Look, I have a very privileged life, right?” Mr. Shuttleworth said. “I 
am a billionaire, bachelor, ex-cosmonaut. Life couldn’t easily be that 
much better. Being a Linux geek sort of brings balance to the force.”

The first installment of Mr. Shuttleworth’s fortune arrived after he 
graduated from the University of Cape Town in 1995 with a business degree.

He had been paying bills by operating a small technology consulting 
company, setting up Linux servers for companies to run their Web sites 
and other basic operations. His business leanings and technology 
background inspired him to try to capitalize on the rising interest in 
the Internet.

“I’m more of an academic than a cut-and-thrust wheeler-dealer,” he said. 
“I was very interested in how the Internet was changing commerce and was 
determined to pursue it.”

Mr. Shuttleworth decided to start a company called Thawte Consulting 
(pronounced like “thought”) in 1995 that provided digital certificates, 
a security mechanism that browsers use to verify the identity of 
companies. As a 23-year-old, he visited Netscape to promote a broad 
standard for these certificates. Netscape, then the leading browser 
maker, bought into it, and Microsoft, which makes the Internet Explorer 
browser, followed.

As dot-com mania surged, companies became interested in this profitable 
outfit, based in South Africa. In 1999, VeriSign, which manages a number 
of Internet infrastructure services, bought Thawte for $575 million. 
(Mr. Shuttleworth had turned down an offer of $100 million a few months 
earlier.)

Having owned all of Thawte, Mr. Shuttleworth, the son of a surgeon and a 
kindergarten teacher, became very wealthy at just 26.

So what’s a newly minted millionaire to do? Mr. Shuttleworth looked to 
the stars. Paying an estimated $20 million to Russian officials, he 
secured a 10-day trip to space and the International Space Station on 
the Soyuz TM-34 in 2002 and became the first “Afronaut,” as the press 
described him.

“After selling the company, it wasn’t a blowout yachts and blondes 
situation,” he said. “It was very clear that I was in a unique situation 
where I should choose to do things that were not possible otherwise.”

In the following years, Mr. Shuttleworth set up venture capital and 
charitable organizations. Through investments in the United States, 
Africa and Europe, he says, he has amassed a fortune of more than $1 
billion.

He spends 90 percent of his time, however, working on Canonical, which 
he considers another project that challenges what’s possible.

“I have done well with investing, but it has never felt very 
fulfilling,” he said. “I fear getting to the end of my life and feeling 
you haven’t actually built something. And to do something people thought 
was impossible is attractive.”

CANONICAL’S model makes turning a profit difficult.

Many open-source companies give away a free version of their software 
that has some limitations, while selling a full-fledged version along 
with complementary services for keeping the software up to date. 
Canonical gives away everything, including its top product, then hopes 
that companies will still turn to it for services like managing large 
groups of servers and desktops instead of handling everything themselves 
with in-house experts.

Canonical also receives revenue from companies like Dell that ship 
computers with Ubuntu and work with it on software engineering projects 
like adding Linux-based features to laptops. All told, Canonical’s 
annual revenue is creeping toward $30 million, Mr. Shuttleworth said.

That figure won’t worry Microsoft.

But Mr. Shuttleworth contends that $30 million a year is self-sustaining 
revenue, just what he needs to finance regular Ubuntu updates. And a 
free operating system that pays for itself, he says, could change how 
people view and use the software they touch everyday.

“Are we creating world peace or fundamentally changing the world? No,” 
he said. “But we could shift what people expect and the amount of 
innovation per dollar they expect.”

Microsoft had an estimated 10,000 people working on Vista, its newest 
desktop operating system, for five years. The result of this 
multibillion-dollar investment has been a product late to market and 
widely panned.

Canonical, meanwhile, releases a fresh version of Ubuntu every six 
months, adding features that capitalize on the latest advances from 
developers and component makers like Intel. The company’s model centers 
on outpacing Microsoft on both price and features aimed at new markets.

“It feels pretty clear to me that the open process produces better 
stuff,” Mr. Shuttleworth said. Such talk from a man willing to finance 
software for the masses — and by the masses — inspires those who see 
open source as more of a cause than a business model.

In his spare time, Agostino Russo, for example, who works for a hedge 
fund at Moore Europe Capital Management in London, created a program 
called Wubi that allows Ubuntu to be installed on computers running Windows.

“I always thought that open source is a very important socioeconomic 
movement,” Mr. Russo said.

Ultimately, however, parts of Mr. Shuttleworth’s venture continue to 
look quixotic. Linux remains rough around the edges, and Canonical’s 
business model seems more like charity than the next great business 
story. And even if the open Ubuntu proves a raging success, the 
operating system will largely be used to reach proprietary online 
services from Microsoft, Yahoo, Google and others.

“Mark is very genuine and fundamentally believes in open source,” said 
Matt Asay, a commentator on open-source technology and an executive at 
the software maker Alfresco. “But I think he’s going to have a crisis of 
faith at some point.”

Mr. Asay wonders if Canonical can sustain its “give everything away” 
model and “always open” ideology.

Canonical shows no signs of slowing down or changing course anytime soon.

“We already have a sense of where we need to compete with Windows,” Mr. 
Shuttleworth said. “Now the question is if we can create something that 
is stylish and stunning.”

In his personal life, he continues to test what is possible, requesting 
that a fiber-optic connection be installed to his house on the border of 
London’s affluent Chelsea and South Kensington neighborhoods.

“I want to find out what it’s like to have a gigabit connection to the 
home,” he said. “It is not because I need to watch porn in 
high-definition but because I want to see what you do differently.”

He says Canonical is not just a do-gooder project by someone with the 
time, money and inclination to tackle Microsoft head-on. His vision is 
to make Ubuntu the standard for the next couple of billion people who 
acquire PCs.

-- 
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204 
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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