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Linux and Open Source

Steven J. Vaughan-Nichols & Paula Rooney

Who uses Linux and Open Source in Business?

By | December 13, 2010, 9:46am PST

Summary: Almost everyone. Linux and open-source software has become totally mainstream in big business.

Thanks to Glyn Moody, a UK-based technology journalist, I’ve just learned that Netflix is not only using, but also contributing, to numerous open-source projects. They’re in good company.

As Kevin McEntee, Netflix’s VP of Systems & ECommerce Engineering explained on a recent blog posting, Why we use and contribute to open source software, “Our budget, measured in dollars, time, people, and energy, is limited and we must therefore focus our technology development efforts on that streaming video software that clearly differentiates Netflix and creates delight for our customers. These limits require that we stand on the shoulders of giants who have solved technology challenges shared in common by all companies that operate at Internet scale. I’m really just articulating the classical build vs. buy trade off that everyone deals with when developing software.

McEntree continued, “We do utilize some commercial software but there is often the alternative choice of utilizing open source software, preferably open source software that implements an open standard. Open source software projects often originate as a labor of love by software developers who are tired of seeing a shared problem solved over and over again in one off solutions, or perhaps they realize that they can offer a more simple and elegant alternative to a commercial product. The great thing about a good open source project that solves a shared challenge is that it develops its own momentum and it is sustained for a long time by a virtuous cycle of continuous improvement. At Netflix we jumped on for the ride a long time ago and we have benefited enormously from the virtuous cycles of actively evolving open source projects. We benefit from the continuous improvements provided by the community of contributors outside of Netflix. We also benefit by contributing back the changes we make to the projects. By sharing our bug fixes and new features back out into the community, the community then in turn continues to improve upon bug fixes and new features that originated at Netflix and then we complete the cycle by bring those improvements back into Netflix.”

That’s about a good summing up as I’ve ever read about why open-source software and development is good for business.

Netflix is far from the only business that benefits from open source though. People tend to think of Linux and open-source software as benefiting only technology businesses such as IBM, Oracle, and Red Hat. That’s not at all the case.

Google, Facebook, and Twitter, all best known as Web companies, depend on Linux and open-source software to handle their hundreds of millions to billions of daily users. Indeed, without open-source software I doubt very much that any of that trio would be as big as they are today.

It’s not just businesses that center on technology that have found Linux and open source help their bottom line. The London Stock Exchange, for example, just switched to Millennium Exchange, which is based around Linux. Other stock exchanges such as Chicago Mercantile Exchange (CME) the New York Stock Exchange (NYSE), the Tokyo Stock Exchange. etc., etc.

Why have all these businesses done this? It’s not because any of these businesses love Linux or open-source for their own sake or to stick it to Microsoft or other proprietary software companies. They do it because Linux and open-source software tends to be cheaper, faster, more stable, and gives them more control over the software. In short, open-source and Linux works well for business.

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Topics

Steven J. Vaughan-Nichols, aka sjvn, has been writing about technology and the business of technology since CP/M-80 was the cutting edge, PC operating system

Disclosure

Steven J. Vaughan-Nichols

Steven J. Vaughan-Nichols is a freelance writer. He does not own stocks or other investments in any technology company.

Biography

Steven J. Vaughan-Nichols

Steven J. Vaughan-Nichols, aka sjvn, has been writing about technology and the business of technology since CP/M-80 was the cutting edge, PC operating system; 300bps was a fast Internet connection; WordStar was the state of the art word processor; and we liked it!

His work has been published in everything from highly technical publications (IEEE Computer, ACM NetWorker, Byte) to business publications (eWEEK, InformationWeek, ZDNet) to popular technology (Computer Shopper, PC Magazine, PC World) to the mainstream press (Washington Post, San Francisco Chronicle, BusinessWeek).

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donaldsjones 9th May
Undeniably believe that which you stated. Your favorite justification seemed to be via internet that the simplest thing to be aware of. I say to you, I certainly figure out irked while people think about worries that they plainly don???t recognize about. You managed to hit the nail upon that the top as well as defined out the whole thing without having side-effects , people could take a signal. Will probably be back to discover more. Thanks

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RE: Who uses Linux and Open Source in Business?
Loverock Davidson 13th Dec 2010
Your problem is that you are associating open source and linux to be synonymous with each other and that is far from the truth. Yes linux is open source, but open source is not linux. A lot of companies use open source but very few are using linux. A lot of the companies you listed could do just as well without linux but instead use an alternative that has been proven to be a lot more reliable, scalable, stable, and secure. I see in no way that linux contributed to the success of any of the companies you listed, and some aren't a success such as Red Hat and twitter. Open source works, linux doesn't. That's why its dropping faster than the temperature.
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Maybe
Dietrich T. Schmitz, ~ Your Linux Advocate 13th Dec 2010
@Loverock Davidson

Maybe you should make an appointment to have your eyes checked or just maybe you have your eyes closed.

Maybe your analysis is unsubstantiated.

Maybe you have a special agenda which is bought and paid for by an undisclosed source.

Maybe also you have been nipping at the DayQuil again.
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RE: Who uses Linux and Open Source in Business?
Loverock Davidson 13th Dec 2010
@Dietrich T. Schmitz, Your Linux Advocate
Oh you have given up calling me by that other name already? I thought I was going to have to wait at least 6 months for you to do that. I just want to point out what a failure, and a disaster for that other guy, it was. You have brought shame upon yourself.
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Looks like he is taking things in stride. Good for him.
Dietrich T. Schmitz, ~ Your Linux Advocate 13th Dec 2010
@Loverock Davidson

http://www.gearsandwidgets.com/2010/12/09/spinning-gears-a-curious-case-of-mistaken-identity/

Whoever replied on his site isn't me. But he shows character.
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RE: Who uses Linux and Open Source in Business?
Loverock Davidson 13th Dec 2010
@Dietrich T. Schmitz, Your Linux Advocate
He sounds like a good guy, its just a shame you did that to him.
when zdnet posts a Linux related article. Than all Loverock does is put forth his usual FUD and than runs away and hides. He obviously has a vendetta against anything Linux or as many have said before he is a paid shill by you know who. His rambling are always out of context so as to create a disturbance in readers train of thoughts regarding the article informational substance.

The shear fact he always seems to find a way to be the first one to post his negative dribble has to make anyone wonder how he does this, is it inside information from someone inside zdnet? Its just to much of a coincidence that he's always the first one to post something negative about anything Linux.

If you remember Mike Cox's st-hick about him and his Microsoft reps lunching dates, that was at least funny and would give you a chuckle. People came to zdnet because Mike was funny, but you have to wonder what people really thing of Loverock Davidon constant belittling of anything Linux. I'll bet in the long run it costs zdnet readership.
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It seems like the earth is still flat
Economister 13th Dec 2010
@Loverock Davidson

Nice going
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@Loverock Davidson
What alternative are you talking about?
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RE: Who uses Linux and Open Source in Business?
Loverock Davidson 13th Dec 2010
@daikon
Anything that is not linux.
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Don't know what planet you live on, but
terry flores 13th Dec 2010
@Loverock Davidson

95 percent of our backoffice runs on RHEL, over 1000 servers total. That includes all of SAP instances, our PLM system, 60 or so LAMP-based web applications, and our customer-facing portals. For Windows we have Exchange and Active Directory, and that's it. Except for a couple of W2K systems running an engineering app that nobody can find the source code for ...

We are not alone by any means. When we go to industry conferences in our own and related industries (oil & gas) all of the big names have major Linux contingents, doing everything from business systems to supercomputing to gas station retail apps.

Are there companies making a killing (like MS) selling Linux? No, and that's the general idea happy
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RE: Who uses Linux and Open Source in Business?
Loverock Davidson 13th Dec 2010
@terry flores
Planet Earth. So you guys run a back end on linux, sorry to hear that. I'm sure it requires a lot of your time maintaining it. Although I don't quite get that last statement, any company wants to make a killing selling their software. Its just that with linux you can't.
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MS=Exploitation
Dietrich T. Schmitz, ~ Your Linux Advocate 13th Dec 2010
@Loverock Davidson

By and large, no one is making a killing on selling Linux. However many concerns *do* make money selling services that run on top of it.

Care for some DayQuil? Drink Up!
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@terry flores
I'm at a large, well known transportation company. We have over 1500+ Linux servers (and hundreds of thousands embedded Linux systems in the next few years) that run a mix of different software and internally written applications. Linux is also heavily used in banks, DOD, networking companies, ...etc. The marketshare is growing rapidly.

"Loverock Davidson" has to be doing a parody of sorts, if not he is seriously out of touch. happy
@terry flores

Great,, lets all celebrate the fact that you cannot make money selling linux LOL..

Thanks for that... what a classic..

I have to admit, you are 100% right, if you want to succeed in business, forget linux..

Damn that is funny...
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@terry flores

What is also really funny, is this..

I would not at all be surprised, if it was not the case that over the years, Microsoft has made more money from Linux and open source than RED HAT or coniacle has done since they were created..

You dont think MS has not allready made Millions if not billions from UNIX, Linux and open source..

Do you not remember the time when Microsoft has its own UNIX ? what about the money exchange between Novell and MS ?

So if you think MS has not make ALOT of money from Linux, and open source.. you do not really have a clue..

The only people not making any money out of linux and open source, and those dedicated to it.. everyone else does very well, thankyou..

Unless you are hard line, then you get NOTHING,,, !!!
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@Loverock Davidson

My goodness you are clueless. Please refrain from making statements about things you have no idea about. That will most likely mean we will no longer hear from you. Shame.
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I am afraid your complaint won't keep him away
Dietrich T. Schmitz, ~ Your Linux Advocate 13th Dec 2010
@rossdav@...
He has been at this *game* of his since about circa 2005.
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RE: Who uses Linux and Open Source in Business?
Loverock Davidson 13th Dec 2010
@rossdav@...
Then I guess I keep on posting happy
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@rossdav@... I hadn't seen anything posted by him in awhile. Can be entertaining but a warning to all - don't feed the troll. If you think you'll get him/her/it into a debate involving logic you will be sorely disappointed.
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@Loverock Davidson
Another good one. "...but very few are using linux...". Hilarious! Keep up the good work dude.
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RE: Who uses Linux and Open Source in Business?
tonymcs@... Updated - 13th Dec 2010
@Loverock Davidson

Totally agree. Open source is mainly Windows code, followed by server languages that are OS agnostic such as PHP. Linux of course has virtually none, as it only exists on less than 1% of desktops.

So do I use open source? I run MS SBS, Win 7, Windows File server, Visual Studio, Messenger, VPN, Remote desktop, Windows Live, WP7, but I also use PhProject (PhP) for project management, Moodle (PhP) for websites and eLearning and Bug Tracker (ASP.NET) for our quality control. These programs are open source and we've done extensive modification to the project manager and Moodle.

Do I use Linux - No. I don't use CP/M, DOS, VMS or RSTS/E anymore either. Maybe if I had an interest in antique OSs, then it might make a nice hobby.

So the answer is - yes, business does use a bit of open source here and there - if they have the people and expertise to maintain and modify it, but generally, there's not a smell of Linux in the building. You find a little bit of Linux in academia, where the IT hobbyists go after they get thrown out of business IT centres for their fascination with a 1990s OS.

So I'll join LD - open source works if you don't mind it's lack of sophistication and are willing to put in the hard work of supporting and modifying it, but Linux has really nothing to do with it. Of course you can do simple things with Linux and I'm sure there will be even one or two here that will report some call center running on Linux - good luck to you - the rest of us have moved on.
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@tonymcs@...
Does not sound like you moved on yet.
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@tonymcs@... you and LD must flip burgers together, its about as much as you both can manage... I wonder why Google et al use linux instead of windows.... if you don't use linux then you don't know how powerful and advanced it is. go back to your burger flipping with LD
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@tonymcs@...
Another joker, yawn....
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@tonymcs@... yes yes ... those simple things that all those huge systems on the Top500 list are doing ... those simple stock exchange systems ... 'tis a gift to be simple, 'tis a gift to be free, but I'm so glad you've moved on to those NP-hard problems like web sites and such.

Well, at least you're articulate ... I'm still half-convinced LD is a bot created by an experimenter in Natural Language Processing.
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@Loverock Davidson

I realize that you are just doing what you are paid to do. but,,,

A lot of Corporations use Linux, this includes virtually all of the Fortune 500, and even includes Microsoft.

Linux is what you bring in when you have generic Intel/AMD based servers, and Windows can't handle the load. It is also what you use when there are specialty demands that Windows can't do. Things like rendering for movies, really large databases (ala top end Oracle stuff), Supercomputer applications, or anything that really needs true 24/7 online availability. Windows unfortunatly, still needs that auto reboot. 5 minutes a week is deadly in some hospital settings.

Linux is also used in a lot of industrial controllers. The small, PIC based are still run with assembly code, but most of the mid line units use Linux. Windows is found there a little, but has a reputation for unreliability.

Windows is the preferred platform for Microsoft Office applications, and their related ecosystem, but that is slowly and steadily growing less important.

No worries though, the long slow decline will take longer than your time to retirement.
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@YetAnotherBob

It's much sadder than that.
He's not paid.
He's a volunteer.
@YetAnotherBob I do not think he is paid by MS or any company, but by zdnet to keep the forums interesting. happy
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@Loverock Davidson
"Loverock" has mastered the ability to bend himself in half and is now able to lick himself. He not only derives great pleasure from this, but finds it very enjoyable to brag about acts most humans find nauseating.
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@Loverock Davidson Linux doesn't work and dropping faster than the temperature? WOW you are looney toons dude. Many people and business' are switching and there is not much else that is more stable, secure, reliable, etc. Keep on spreading those lies you moron troll.
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duplicate entry deleted by dts
Dietrich T. Schmitz, ~ Your Linux Advocate Updated - 13th Dec 2010
nt
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Netflix and Linux
30otnix 13th Dec 2010
Why doesn't Netflix have a Linux client?
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Netflix uses open source software
LiquidLearner 13th Dec 2010
@30otnix

At no point did they mention Linux. And they don't have a Linux client for the same reason they don't have an Android client, DRM. Regardless of your views on the subject of DRM, it is something that is required for Netflix to sustain their business and keep their distribution contracts.

So open source is better unless you need to implement a closed DRM infrastructure, in which case you need OS X, Windows, iOS or WP7.
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@LiquidLearner

While I agree with your main point (ie. that DRM issues underlie Netflix's decision to not support (actively hinder?) Linux clients) the notion that DRM is necessary -- or even useful -- to their business model is profoundly mistaken.

DRM is one of those superficially attractive notions that doesn't work in practice, can't work in practice, and is a bad idea in the first place.

Firstly because it takes only one successful "pirate" to make the "protected" material available to all -- and worse, DRM generally results not only in treating "customers" as criminals, but also needlessly inconveniencing and hampering legitimate customers, while making the "pirated" material more attractive than legitimate product.

Secondly, because DRM is a one-sided attempt to impose a crude technical "solution" to a complex legal "problem" -- and this solution as implemented in practice is not even truly concerned with law and fair use, but with maximizing control over and extracting rents from "consumers" at every conceivable opportunity, even at the cost of pushing aside long-established principles of fairness and overturning the long-established balance between the interests of creators and the interests of society as a whole.

Of course, the current USA legal and political environment is such that Netflix may feel (with considerable justification) that they need to submit to the movie and television industries' demands to employ DRM measures, or suffer the same fate as so many would-be online music providers did. But this says far less about Netflix's business model, than it does about entertainment industry consolidation and the entertainment industry's disproportionate influence in legislatures and elsewhere.

Any "business model" that is premised on the notion that one's customers are criminals, has to be based on mistaken assumptions.
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Yawn
Bleh 13th Dec 2010
SVJN: Full of sound and fury, signifying nothing.

This is the state of tech journalism today. No wonder they fear bloggers - some of whom are better educated than themselves!
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Everyone.
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Linux and Open Source, means nothing, and big business would be lucky to even comprehend those terms. Let alone know anything about the underlying zealatry surrounding it.

so if a company has a LONE, linux box, or a few, they are automatically called "a linux company" they automatically make all their profit and advance as a business, ,,

Thats right BECAUSE THEY USE LINUX AND OPEN SOURCE..

Auto industry, failing ?? no problems, just let them use Open Source and linux ?? yes that will help..

A company hots a web site, you find that web site is hosted on a apache server, you instantly call that company "a LINUX and OPEN source" company..

Their entire success is not due to the fact they are using Apache for their web server..

Of course, it does not matter if that company has 5000 desktop machines and 200 back office machines all running Windows, and Microsoft applications..

That does not matter, as long as they have a apache web server, or a firewall, linux box in the basement, you can happily claim that linux moved in and saved the day, and therefore linux and open source rule the world..

Sorry,, but really disagrees with you. ...


Ofcourse you guys are going to get upset at Loverrock, he says things that are based in fact, and we all know arguing aginst such things is difficult..

That is why you will resurt to personal abuse, its easier than having to think of an intelligent answer to counter his claims.

If you think his claims are wrong, why dont you engage him in debate, and calmly and logically disprove his arguments..

I know why,,you dont..... do you.. ???

____________________


"Other stock exchanges such as Chicago Mercantile Exchange (CME) the New York Stock Exchange (NYSE), the Tokyo Stock Exchange. etc., etc."

Mr Author, can you please explain what that statement means ?

Do they teach you how to construct sentinces like that ? that have no meaning, draw no conclusing, and dont even make a statement ?

What does it mean ??
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@Aussie_Troll
You can not debate Loverock Davidson logically. He provides no basis to any of his comments.
Loverock Davidson has only one agenda, provide negative comments to anything Linux.

Chicago Mercantile Exchange (CME), The new York Stock Exchange (NYSE), The Tokyo Stock Exchange. They all run Linux.
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@daikon "Loverock Davidson has only one agenda, provide negative comments to anything Linux."

No, his agenda is against anything that isn't Microsoft.

Guess who probably signs his paycheck?
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@Aussie_Troll
You've lost any argument by writing this "Ofcourse you guys are going to get upset at Loverrock, he says things that are based in fact, and we all know arguing aginst such things is difficult.."
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@Aussie_Troll
A third joker in a day? Wow, this is a good day for comedy!
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@kirovs@...

Its funny, if what I say is not true, then why do you guys get so upset about what I said ??

Surly it would be easier to simply disprove my statments with your own FACTS and truth..

Just whining about what I say, and not adding anything to the debate, means that either you dont understand the debate, or you simple have nothing of value to bring to it..

Either way, you cant help but make comment anyway, and all you have left is abuse, and insults..

And that really works to convince people of your argument LOL
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@Aussie_Troll@...
See deaf_e_kate post. So you are either very, very stupid or a joker. I went the better. Want me to switch?
Here is a fact for you: look up RHT symbol on any finance web site. Now go back and remember this statement you made:
"Linux and Open Source, means nothing, and big business would be lucky to even comprehend those terms."
After you have done that you should perhaps comprehend why nobody takes you seriously.
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Waves @ Linux and Open Source
Steven J. Vaughan-Nichols & Paula Rooney
@DayQuil that was a good one
@Aussie_Troll What ? people don't make money off Linux ,Humm I bought Mandrakes , Redhat an SuSe plus the countless donations to open source programmers.Microsoft on the other hand became popular from well off welfare an monopolies , government offices , libraries , schools, etcetera simply because there wasn't any options.
But since the ball game has changed an w/t Leading PC manufacturers dropping VGA support by 2015 Microsoft users are in for a rude awakening because MS OS will not install on a "HDMI only"computer.

Netflix?s on linux it is about time !
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@cybursoft

What I got from the Article is that Netflix BACKEND runs with Linux. Not that there are any plans for a Client for Linux users.

I would be upset about that if I used my Linux system for Online Movies. I don't. But then, i don't use the Windows dual boot for online movies either.

I am just so last century.
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@cybursoft

donations are not the same as making money. If you are putting your hopes into MS os not install on a HDMI only computer, you are sadly mistaken..

And you got that right:

"people don'tmake money off Linux, Hmmm".. damn straight..
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If Netflix is so high on open source, why does it not support Linux/Open Source for playback of it's streaming services????
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* RED HAT - you prime example - some facts for you..

RH listed on the stock market, in Aug 1999 at a list price of $42.47

Aug List on exchange $42.47 per share
Nov 1999, stock price $34.06
Dec 6, 1999 stock price $136.53
Sep 17, 2001 $3.51...........!!!!!!!

Not until you get to November 15, 2010 where the stock price finally exceeds it's list price. Or at least gets close to it.

Nov 15, 2010 $41.87 (Almost up to its $42.47 list price).

So it took you from August 1999 to december 2010 to MAKE YOUR MONEY BACK, with NO interest.

You might as well put that $42 dollars under your matress for all it is worth 'investing' in open source..

What would have that same $42 made you if you had of invested it in Microsoft, or just put it in a bank and 3% interest..

so big businesss is not created from open source, and just because some big businesses use some open source products, does not mean their main source of software, does not come from proprietary sources. Just like it has always done..

Again, OSS keeps confusing free with desirable or usefull.

Being free just does not cut it, when people are willing to pay for quality. Cost of quality wins over free crap every time..

everyone knows that, everyone knows that adding value to something, is more important that providing the raw materials for free. the only group to have trouble with this is the open source people..

Its a wonder that after so many years, with "many eyes" they cant work out this bug in their system.
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@Aussie_Troll - so, all the research tools I check say that from Aug/99 to today, RHT is +12%, and MSFT is -34.3%. After the expected initial post-IPO volatility in RHT, say from about mid-2001 on, they perform pretty comparably (actually, slightly in Red Hat's favor), and in the last year, markedly in Red Hat's favor. Not sure what point you were trying to make, but pretty sure you didn't make it.

Unless you're just trying to spread FUD.

http://www.google.com/finance?client=ob&q=NYSE:RHT, and switch to "all".
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Thanks for the article Steven & Paula! Sorry for the comment section however, the usual debate ensues.
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while people think
donaldsjones 9th May
Undeniably believe that which you stated. Your favorite justification seemed to be via internet that the simplest thing to be aware of. I say to you, I certainly figure out irked while people think about worries that they plainly don???t recognize about. You managed to hit the nail upon that the top as well as defined out the whole thing without having side-effects , people could take a signal. Will probably be back to discover more. Thanks

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