UPDATE - Microsoft loses city of Munich deal to Linux

yahoo.com ^

[Sub-Driver]

UPDATE - Microsoft loses city of Munich deal to Linux Wednesday May 28, 12:36 pm ET By Hans Nagl

(Adds Suse CEO, Microsoft, analyst, IBM comment) MUNICH, May 28 (Reuters) - The city of Munich said on Wednesday it would switch 14,000 computers from Microsoft's (NasdaqNM:MSFT - News) Windows operating system to rival Linux in a deal estimated to be worth tens of millions of euros.

ADVERTISEMENT

The decision is a blow to U.S. giant Microsoft, whose chief executive Steve Ballmer had personally campaigned for Microsoft's counter-offer to the city, based on Windows XP.

Microsoft has created two funds to discount its products against the emerging Linux software, which is eating into its most profitable business.

"This strategic decision makes Munich less dependent on one IT supplier and sets a trend towards more competition," Munich mayor Christian Ude said in a statement.

Analysts said Munich's decision to choose open source software, which means Linux, was a breakthrough.

"It is one of the largest desktop migrations to Linux ever seen," said Gartner Dataquest analyst Nikos Drakos in London.

Linux suppliers welcomed the move by of one of Germany's largest cities, where many of the country's biggest corporations have their headquarters.

"You can compare this to the fall of the Berlin Wall," said Richard Seibt, Chief Executive of Linux software provider Suse. Suse is bidding for the Linux contract together with International Business Machines Corp (NYSE:IBM - News).

Linux is considered by many to be the only big rival to Microsoft's Windows and can already be found on 15 percent of all computers sold in Western Europe.

A Microsoft spokesman in Munich said his company was still at hand if the city found that certain units could not switch over to Linux. "Some applications do not run on Linux," he said.

LINUX GROWING IN GERMANY

The Munich decision comes as the German government is installing Linux throughout certain ministries and public institutions.

In the northern state of Lower Saxony, 11,000 police computers will be switched from Microsoft Windows to Linux from next year, according to the interior ministry.

Companies and governments are increasingly opting for Linux, written by Linus Torvalds and further developed on the Web with the help of thousands of volunteer programmers, because it is a stable software and not controlled by just one company.

Hundreds of companies distribute the software, charging little or nothing for the core software, but taking fees on modifications, services and maintenance.

IBM and Suse declined to give the value of the bids for their Linux offerings.

Media have reported that Microsoft's offer of about 27.3 million euros ($32.3 million) had been almost three million euros below that of the Linux competitor, but the city had still chosen Linux for strategic reasons.

Microsoft confirmed it had offered discounts for the total project, but declined to give details.

[Sub-Driver]

the penguin strikes......

[Mister Baredog]

Media have reported that Microsoft's offer of about 27.3 million euros ($32.3 million) had been almost three million euros below that of the Linux competitor, but the city had still chosen Linux for strategic reasons.

Sounds like proper use of taxpayers money doesn't match their disdain for US technology.

[HamiltonJay]

hahah... Linux is a better deal even with the $3 million up front... because, no new licensing fees for upgrades... Taxpayers will save far more money than the MS solution in the long run, and even MS knows this... why do you think they tried to underbid them? MS would rather take a loss up fron but keep a client suckling because it knows it will make it up 100 times over in the back end.

[alloysteel]

This involved transfer of title of real estate to Microsoft, right? They should have been able to buy Munich.

[Mister Baredog]

Taxpayers will save far more money than the MS solution in the long run, and even MS knows this

That "evil" MS at it again. Life was so much simpler until that pig Gates came along. We didn't have to worry about so many things that are now a part of daily life, damn him! LOL!!!

[Sinner6]

Correct, Upgrades for OSes are where MS makes the lionshare of its money.

Plus most governments(even ours) are uncomfortable running on a system where they can't see the source code.

Plus in large networks(like this one) Linux/Unix/BSD is easy(cheaper) to maintain.

[HamiltonJay]

I have nothing against Mr. Gates, but if you think MS does not recognize the real threat of Linux to their profits you are in denial. Also if you think MS doesn't do loss leaders to protect its future profits you are also misinformed... hell MS has in the past even DIRECTLY PAID companies to switch to their products, or to get rid of competitors products.

The party is ending for the proprietary OS... its not going to go away overnight, but it will gradually wain over time. The OS market will become a commodity just like the hardware market has done. Thanks to the internet and open standards it becomes less and less relevant which OS is being used. The only real last foothold left is the proprietary file formats, and as XML slowly eats away at those, the distinction will be less and less relevant.

MS Windows will always be around, but it is on the back end of the bell curve and anyone paying attention sees it.

[FastCoyote]

well, I personally am not going to 2003 server, and my Free BSD box runs like a rock. So, I guess you know where I'm going. Plus, when I have a motherboard crash, I can recover.

[Mister Baredog]

I have nothing against Mr. Gates, but if you think MS does not recognize the real threat of Linux to their profits you are in denial. Also if you think MS doesn't do loss leaders to protect its future profits you are also misinformed... hell MS has in the past even DIRECTLY PAID companies to switch to their products, or to get rid of competitors products.

I don't disagree with anything you said. I have made note of the fact that the stock market has been on the decline since the day the US Justice Dept filed suit against them. It has cost me personally, therefore I have a little trouble being objective.

[CityOnAHill]

Something doesn't add up. They want an OS for 14,000 computers. Microsoft's offer was for $32.3 million. That's $2,307 per computer!

[HamiltonJay]

Contract was probably far more than just the OS, probably includes service and support etc... yadda yadda yadda...

[RinaseaofDs]

SCO Unix is suing Linux for use of proprietary Unix code. They hired a bunch of engineers to go looking for code they wrote that got pilfered and reused in Linux.

The way I understand it from the article in EETimes (latest issue) is that governments and businesses using Linux with the pilfered code is liable for the infringement under the EULA that each customer signs with Linux.

This is why open source is NOT going to work - Lawyers. Anybody at any time can walk in and demand to comb your OS over looking for their proprietary code. The company/government has no way of protecting the code from use of pilfered code by any of the administrators, and thus no way to protect it from litigation.

Open source means open season for lawyers.

Communism didn't work for economics, what made people think it would work for operating systems?

OS's are simply railroad tracks. One guage means an efficient marketplace for developing applications. MS made PC's possible. Unix could have been the OS, as it came first, but all the prop-heads wanted to retain their arcane line commands like a bunch of klingon speaking star trek groupies.

MS made this economy possible. They made PC's possible, and at affordable. When are we just going to say, 'Thank You' to Gates for having the vision to put it all together, and have done with it?

[HamiltonJay]

I know a lady who threatens to sue people because the state of Washington idiotically gave her a state wide trademark on the term "lease to own"...

Lawsuits are part of business in america today, I know all about the SCO suit, and SCO is not trying to halt linux, end of day all they want is a check, and if it turns out that part of their code was pilfered they may end up getting one...


All they are doing is trying to find a way to get a cut of the Linux explosion that is occurring. Lets not forget up until this little lawsuit, SCO itself was distributing and selling and supporting Linux.

Opensource does work, has worked and will continue to work, and no lawyer can shut it down! No more than the monks of old could shut down the printing press once it was invented.
You doubt that opensource works?

Apache, by far the number one web server on the planet - OPENSOURCE

GOOGLE, by far the most popular search engine on the planet... its database is a giant cluster of Linux (OPENSOURCE) boxes running the MYSQL (OPENSOURCE) Database!

Go check the New York Times TODAY!!! SAP just announced a technical partnership with MYSQL!

You are truly ill informed of this industry if you think opensource doesn't work.

Opensource not only works, it works so well when properly handled that it has opened up more innovation in the last decade than anything out of Redmond!

Anyone and I do mean anyone with a PC, can install Linux free, install APache Free, install the Gnu development suite free, install MYSQL free and develop a new web or other network based technology for no money out of their pocket! All they need is the drive and creativity to do it.

The proprietary OS is going the way of the dinosaur. It will continue to exist, but its stranglehold on the market is coming to an end. The proprietary file format is the only thing left, and XML is rapidly chipping away at this as well...

It is only a matter of time before the OS is a commodity, just like pc hardware. It won't matter what OS you are running your data will be interchangable, and paying 100-200 or 300 for an OS, other than for specific professional or specialized needs will be laughable.

The hardware play of the 80s is coming to the OS world, and the outcome will basically be the same. Just like there is no need to buy a true IBM computer today, some will still do so, most others will however go purchase the multitude of other lower cost systems that are equivalent. Its not there yet, but it is coming and MS knows it.

[Redcloak]

SCO's suit may have a problem.

[snooker]

OK, I will bite.

Thank you Bill Gates, now take your billions and move on.

See it was easy.

Once you realize what is really happening to MS as they turn into a control freak of a company you too will ask that they just move on.

The penguin is here. With IBM, HP, Dell, Sun, and a host of others pushing the Penguin, it is quickly turning into the winning OS. Yes an OS is just like the tracks, only all software developers want on, the penguin is a level playing field. Not a MS tilted and rigged playing field.

[Golden Eagle]

The proprietary OS is going the way of the dinosaur.

Hardly. This 'free software' revolution is nothing more than a bunch of admitted hackers wanting something for nothing. Communistic, in nature.

Microsoft is one of the largest market cap stocks in the world (largest?), and has about 50 Billion ($50,000,000,000.00) in cash reserves to defend themselves.

What is the largest Linux company, Red Hat? Are they even profitable?

Sure, these utopian minded hackers will continue to support Linux, but the average user probably won't. The software just isn't user friendly enough. Drivers rarely exist for new hardware, the latest games never work right on those Linux boxes.

Give me a Windows box anyday. Huge compatibility. Wizards to setup complex features. Security patches that come from the manufacturer, not some arrogant hacker 'commnunity'.

So what if that's what some German city wants, they're mostly socialistic anyway. What's the tax rate there, 60%?

[B Knotts]

They will save much, much more than that in the long run.

[B Knotts]

SCO Unix is suing Linux

Check your facts. "Linux" is not a company. IBM.

And they are going to lose.

Badly.

[B Knotts]

Oops. Let me try that again...

SCO Unix is suing Linux

Check your facts. "Linux" is not a company.

SCO Unix (actually what is left of Caldera) is suing IBM.

And they are going to lose.

Badly.

[Golden Eagle]

They will save much, much more than that in the long run.

I just love the way the Linux proponents throw comments like this out there with no substainiating information.

How could they save any money at all, if the SOP was to stick to the originally provided MS O/S for several years, and have a policy that required the users to run Windows Update every day before they left to go home?

Don't immediately misdirect or start spreading untruths about how much easier it is to recompile your linux kernel ;-D