Linux can be good for your business

It is virtually impossible to read an industry magazine,
visit a website or go to a conference these days without hearing about Linux.
There are a lot of success stories on the stock market and news of companies
porting applications to Linux, but it's only half the story. One thing often
missing in these messages are the reasons why Linux is becoming so prevalent.

There are three key benefits that Linux and open source
software bring to the marketplace--flexibility, reliability and affordability.
Linux's flexibility makes it a great choice for a customer that wants to deploy
operating systems at both the high-end and the low end. What this means is that
Linux can be used as a single-purpose server on lower-end hardware and as a
multiple application server with multiple processors at the high end.

Also, because the operating system source code is open
and available, there is an opportunity for firms to customize features and
programs for their customers. They are able to gain a better understanding of
the code, and build better applications. Custom application development provides
a significant opportunity for channel partners to take advantage of the freedom
only open source solutions provide.

If there is one issue common between all computer users
and administrators, it's the need for reliability. To put it in plain terms,
businesses don't want their computers to crash. On the desktop, crashes are an
irritation and reduce productivity, but they don't bring business to a halt.
When a server crashes, the whole business stops most of the time. Employees
can't access files or e-mail, or even worse, customers can't access the
corporate website.

What Linux means to the VAR market?

Reports of system crashes on Linux-based operating
systems are few and far between. In fact, Linux uptime is reported in months and
years in many cases, as opposed to days and weeks. What does this mean for the
value added reseller? To put it simply, happy customers. Customers who don't
have to worry about system crashes are certainly going to be happy with a
reseller solution, which will likely lead to repeat business.

As for affordability, the software itself doesn't have
any licensing fees; however, tech support can be purchased at reasonable prices.
For the OEM or system builder, this translates directly into higher margins on
their current systems, or the ability to market lower cost solutions to their
customers. This is primarily the reason why biggies like Compaq, IBM or HP are
pushing in Linux as a pre-loaded OS in some of their systems now.

Said Manish Mehrotra, MD of Allahabad-based Tritech
Enterprises, "Almost all the big system vendors are zeroing in on Linux
now. They have realized that it is going to save them a lot of money and
eventually the customer is having a system at a price which is around Rs 5,000
to Rs 6,000 lower than a MS loaded system. So this is encouraging for the
customers as well as vendors."

Because of Linux's low cost, a reseller can include more
service, support and training in a standard deal. Resellers make higher margins
on service, whether they are delivering it themselves or partnering with the
vendor. Linux vendors typically offer packages to resellers that allow them to
deliver frontline support to customers, while helping with higher-level support
issues. "We are quite happy with Linux response. Though there is not much
enthusiasm among the SOHO segment, but corporates are looking at it quite
positively," added Mehrotra.

As the computer industry starts to look toward
value-added services, particularly through ASP and outsourcing models, customers
will be less inclined to pay high licensing fees for software. Open source
software is already in line with these new models, with low fees for the
software and services becoming the bulk of the sale. The ability to bring
low-cost, reliable solutions to the marketplace is the true advantage of Linux.
Understanding these advantages puts a reseller in the driver's seat to take part
in this exploding trend.

"If you're a VAR and you're at least open to
considering the idea, one reason to go for Linux is that even though the profit
margins aren't that big, not paying a licensing fee is an issue," quipped
RK Tiwary of Lucknow-based Computer Shack. "The other thing is, it's good
for a lot of boxes that sit in corners (servers)."

According to Ashok Kaul, GM, Aci, Linux is the best
option available to them not only because of its cost factor but also because of
the open source architecture. "We are providing a pre-loaded Linux
operating system with our notebooks and this is one of the factors because of
which we are able to price our notebooks for the student community at around Rs
35,000."

Linux is a real market force, battering both NT and
traditional Unix. If big-name vendors keep their commitments of major financial
and product support, the movement will only become stronger. And the channel
community would be well-advised to start focussing on the same.

Zia Askari