The value of Linux for the SMB market.

Linux is here to stay. As the computing industry's fastest growing operating system, some analysts predict that Linux will surpass Microsoft Windows in new server shipments in just a few years. This represents a significant growth opportunity for solution providers as Forrester Research estimates that 50 percent of SMBs would consider open source for desktop applications and 38 percent would consider open source for database applications. As the technology continues to mature, it's becoming easier for solution providers to implement, allowing SMBs to overcome the real and imagined roadblocks to adoption.

Linux, a low-cost, multi-platform operating system that scales from PC desktops to mainframe computers, rivals Microsoft Windows with regard to performance and reliability. And due to the freely available nature of the Open Source code base, users can customize the software to meet their unique business needs--without incurring costly license fees.

Large corporations such as those in financial services, insurance, pharmaceuticals and the like already benefit from this flexible and cost-effective technology. These organizations have determined they weren't achieving a strong enough return on their Windows investment, and with a little research, soon found Linux to be a viable alternative for delivering systems at the same or greater level of service--for substantially less. Having worked with their solution providers on their own Linux integrations, these large organizations paved the way for seamless adoption by others. It's now the role of the solution provider to pass the knowledge of these Linux pioneers to the SMB community and others considering the technology.

However, the SMB market as a whole (organizations with less than 1,000 users) has typically been reluctant to integrate Linux because they just don't know a lot about it. IT managers at smaller companies often embrace the attitude that "everyone uses Windows," so they will, too. Compounding this lack of education about Linux is that often SMB IT managers don't believe they have the internal resources and technical expertise to integrate and directly manage Linux. Although, what many have yet to realize is that they already possess the skills necessary to integrate Linux to their computing environment, and vendors are also changing their approach by delivering greater support to help smaller companies get started--all helping to create opportunities for solution providers to integrate Linux into the SMB market.

Business Advantages of Linux

Real estate used to be an organization's most expensive capital expenditure. However, the cost of computing resources and other technology now outpaces even real estate. If you could save 50 percent or more by relocating your business to an identical office right next store, you'd do it. The same holds true for technology.

Infrastructure servers, database and application servers, and their associated data are key components of a customer's IT infrastructure. Charged with hosting, protecting and managing these applications, organizations have traditionally deployed these server and service products based on expensive and proprietary software, including UNIX and Windows. Unfortunately, these deployments come at a very high price to the IT budget considering the relative cost of purchasing and maintaining these proprietary systems and technologies.

Linux has certainly matured in recent years and is now comparable to every commercial operating system. It can do everything a company needs. Smaller companies and IT teams now have a choice.

Linux can be deployed on all the major enterprise hardware architectures and is supported by almost all of the major commercial and open source database vendors--making it easier for solution providers to recommend and a viable alternative for IT managers to consider. Additional advantages for integrating Linux within the SMB market are its ability to reduce IT costs and the ease of integration and administration, and in many cases end user retraining is not needed.

An organization can integrate Linux into its current computing environment at a substantial cost savings without affecting its business operations because there are no site license fees and maintenance and upgrades cost less. Employees receive the same level of service and application access, and the IT department manages the Linux server in much the same way as their existing Windows environment. Linux doesn't have to change how users interface with the system--the only aspect that changes is how much it costs to provide these services.

Overcoming Support Issues

So what's keeping organizations from making the move to open source? Support has long been a barrier to adoption for the SMB community. Whereas enterprise-level IT departments generally have the technical expertise within their ranks to support a Linux infrastructure, SMBs typically don't.

However, vendors are now delivering greater support and forging more partnerships to help SMBs overcome the real and imagined roadblocks to Linux adoption. For example, IBM and Novell are partnering to deliver greater support for Linux integrations, providing an extra level of comfort and reliability for first-time users. Similar partnerships deliver hardware platforms supported by multiple vendors to further case Linux integration into the existing environment.

Another advantage to Linux is its flexibility. Once an organization adds Linux to its infrastructure, it can move users to the new system at any time. It's not bound by rigid rules or site licenses. Linux empowers the SMB community to lay an open source foundation and add to it whenever needed.

Helping End Users Get Started

An easy entry point to deploy open source is to begin with services and applications that every company needs regardless of its size. File, print, database and Web applications are standard services--much like electricity and plumbing for a building. And the skill level required for implementing and integrating Linux-based services of this nature is widely available--an SMB's existing Windows-based IT department can easily integrate and administer Linux in these scenarios.

Upon engaging with an organization considering Linux, solution providers should assess the computing environment to determine how using Linux could reduce costs and increase flexibility. Based on the assessment, they should develop a plan that demonstrates how to integrate Linux that includes a blueprint for where Linux can most easily be added to the current environment--instead of developing a full blown plan for migration, which can be costly and unnecessary. The solution providers can then present the open source tools and offerings that align with the organization's specific workloads.

Characteristics of ideal Linux tools for the SMB market include:

* Low cost applications designed for productive use right out-of-the-box

* On demand scalability to allow for seamless upgrades as the business grows

* Self-tuning, self-managing, self-configuring and self-protecting capabilities that increase reliability while reducing complexity and required skills

* Easy configuration by the solution provider for transparent installation

* Integration with and support for a wide range of vendor applications

* Deployment of information on demand

* Design that reduces the total cost of ownership

Once the organization integrates basic Linux services applications, SMBs can then move beyond these basic enterprise infrastructure capabilities to more complex applications like core middleware and datacenter functions.

Opportunities for Solution Providers

IT departments often turn to Linux for its flexibility, and the finance department likes it for its cost savings. As a result, solution providers often shy away from open source because they question the profit opportunity for them, leading to less competition for those with the knowledge to recommend Linux. Solution providers still have the potential to generate the same or greater profit as compared to other operating systems by delivering complete solutions based on Linux with higher margin value-added services that solve a company's specific business challenge. Such a solution may include an enterprise server, management software, installation and configuration from the service provider, the application itself, and custom levels of vendor support.

By using the open source platform, organizations can save up to 70 percent right from the start because there are no expensive licensing fees. A company can buy file and print server software for a flat fee (usually just a couple of hundred dollars), and an unlimited number of users can access it. Considering that file and print services and applications alone generally account for 40 percent of an IT department's budget, and Linux doesn't require costly hardware upgrades or licensing fees, this represents significant savings that can easily be reinvested back into the organization's computing environment. As a result, the end user can tackle other IT priorities such as upgrading to faster processors with lower power consumption, implementing greater storage management solutions and adding virtualization technologies--or take advantage of additional services not in the budget previously-thereby increasing profitability for the solution provider.

Conclusion

Linux is having a major impact on the computing world as an increasing number of organizations realize its flexibility and cost savings. Those evaluating and deploying Linux-based solutions to meet their infrastructure workload requirements are learning that they can easily achieve the same levels of performance, reliability, scalability and security with a significantly lower investment, making Linux ideal for the SMB market. As solution providers help SMBs take advantage of this industry-leading technology, they have the opportunity to generate additional revenue. Linux presents an opportunity to deliver complete solutions and assist with new projects that result from end user organizations reinvesting the cost savings from Linux back into their computing infrastructure.

Frank Welder is ISV program manager for Novell, Avnet Partner Solutions

www.novell.com

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