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From: "NW on Linux" <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>
Sent: Thursday, January 03, 2002 4:31 AM
Subject: Linux predictions for 2002


> NETWORK WORLD NEWSLETTER: PHIL HOCHMUTH on 
> LINUX
> 01/02/02
> Today's focus: Linux predictions for 2002
> 
> Dear <xxxxxxxxx>,
> 
> In this issue:
> 
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> 
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> _______________________________________________________________
> Today's focus: Linux predictions for 2002
> 
> By Phil Hochmuth 
> 
> What can you say about Linux in 2001? It was no 2000, that's 
> for sure. If Y2K was the best of times for Linux companies, 
> 2001 might be looked back upon as one of the worst. 
> 
> While the beginning of the year saw the release of the long-
> awaited 2.4 version of the Linux kernel, Linux companies 
> suffered the brunt of the tech economy slowdown as IT spending 
> came to a screeching halt at the beginning of the year.
> 
> Looking ahead, here are some predictions for Linux in 2002:
> 
> Consolidation
> 
> Once the highest-flyers in the high-tech boom, most Linux 
> companies have hit bottom. Many of these companies - which 
> tried to make a business out of selling a free operating system 
> kernel with additional tools and "value add" applications - 
> are hurting. Red Hat and Caldera, the two most recognized Linux 
> names in the enterprise, have both seen their losses grow each 
> quarter this year and their respective stock prices at penny 
> stock levels. As a result, expect to see some cannibalism among 
> Linux vendors in the coming year, as consolidation and mergers 
> will be the only way for some of these firms to stay in 
> existence.
> 
> The big boys stay on board
> 
> While the Linux start-ups and distro vendors have had a rough 
> go of it, large IT vendors such as IBM, Compaq, Hewlett-Packard 
> and Dell continue to throw their weight behind Linux. Server 
> vendors have seized on Linux as a way to offer an alternative 
> platform for enterprise customers that are dissatisfied with 
> Windows and whose pockets are not deep enough to buy super-
> high-end Unix boxes. With relationships such as TurboLinux/IBM 
> and Compaq/Red Hat already tight, it would be no surprise to 
> see one of the major server vendors absorb a one of the better-
> known Linux companies as its own Linux flavor.
> 
> Microwaves to mainframes
> 
> This year, Linux proved that it is a truly pervasive force, 
> capable of boiling down to run on a wristwatch, or beefed up to 
> power the largest server hardware. Expect to see vendors use 
> Linux as a base operating system for every kind of device, from 
> network switches, to phone systems, to specialized Web and 
> storage appliances. As equipment vendors continue to look for 
> ways to cut costs, the adoption of Linux - which is free, and 
> can be jiggered to perform any kind of task - just makes sense. 
> 
> _______________________________________________________________
> To contact Phil Hochmuth: 
> 
> Phil Hochmuth is a staff writer for Network World, and 
> a former systems integrator. You can reach him at 
> mailto:[EMAIL PROTECTED].
> _______________________________________________________________
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