Linux in emerging markets

For example, a bank in New Delhi using a sophisticated IT system to empower employees and better service clients has the same ultimate goals as a similar institution in New York City. It's true that the circumstances, challenges and day-to-day operations these companies face can vary to a great degree.

Issues such as the state of the local economy and existing infrastructures shape the IT needs of companies that seek to thrive in their respective regions of the globe.

However, as markets develop and as IT systems continue to integrate themselves into all aspects of life-and all aspects of business-trends tend to converge. An online storefront in Guangdong, much like its counterpart in Texas, seeks to provide value to its customers, whether selling clothing or petroleum.

And customers worldwide react positively to similar incentives: convenience, reliability, efficiency and value. And so businesses across the globe continue to look for technological solutions to provide these very benefits, in the end helping them acquire and retain customers.

Ultimately, the basic hardware needed by these companies, no matter where they're located, tends to be very similar. Machines are needed to serve mail, power intranets, organize and store huge amounts of data, and support electronic storefronts and distribution.

The same is true for software. Applications are needed to allow employees to create and share files and to enable them to work together from remote locations. Software is also needed to power customer retention solutions, manage and plan finances and perform heavy statistical analysis.

But no matter how many similarities become evident as the world market matures, the routes used to achieve success varies, and it turns out there are some very basic differences. Operating systems (OSs), for instance, are not global currencies.

Markets outside the West-particularly in the Asia/Pacific region-although already to some degree entrenched in Wintel-powered IT solutions, are open to alternatives.

They seek solutions that help them save money, provide greater security, or increase freedom and flexibility. And as these economies seek to solidify their place in the world order, they evaluate many options before deciding on the platforms they'll build their systems around. And the more they look and the more they learn, the more Linux* seems like an ideal proposition.

Logical Progression

There's much about Linux that makes it attractive. The fact that its open source software means that organizations can fully understand how their systems function.

Unlike popular proprietary systems, where security holes seem to become apparent on an almost-monthly basis, Linux developers can see and understand the back-ends of their systems to a degree not possible with other commercial OSs. This is attractive to all types of institutions, and governments, companies and research universities are all seriously concerned with the privacy of their data and they seek the solutions most likely to guarantee it.

Additionally, the cost of ownership for Linux systems is often substantially lower than commercial alternatives. In traditionally price-conscious markets, it's no surprise that free and open source software like Linux is particularly attractive.

Factiva, a news aggregator powered by Dow Jones & Reuters, quotes Neeraj Bhai, chief technology officer at IBDI Bank in India, as he demonstrates this technology with a practical example: 'Our mail server started off handling 15,000 e-mails a day and scaled up to 1,650,000 e-mails a day. We took an old server and installed … Linux on it, saving on hardware costs because we didn't have to buy a new box. [Additionally] if I had used [commercial software] I would have had to pay for 1,500 client-access licenses … [and] I haven't seen instances where my Linux box crashed.'

Beyond this, Linux becomes more practical as the amount of hardware and software designed for it continues to expand. Led by IBM, the world's fastest growing Linux vendor, the market is producing more machines and applications built for Linux thanever before, with more coming all the time.

Linux-powered productsexist at all levels and accommodateall needs. But it goes beyond this. The amount of software-from mail servers to intranetmanagement solution-has increased exponentially, and the quality of these applications is world-class.

Support from the Top Kathy Knaack, program director of Linux Strategies-Emerging Countries at IBM, is optimistic about both what Linux can provide for institutions in the Asia/Pacific region, and what these countries mean to the future of Linux.

With less-developed legacy systems in place, these regions have even greater freedom to embrace alternate IT systems based on Linux, even though their economies are already, in many cases, thriving. Knaack points out that one of the most fertile Linux breeding grounds, China, already has a GDP of 8 percent growth and that Linux is seen as a way to increase efficiency and productivity even more.

Knaack also reinforces the security concerns of institutions at all levels in the Asia/Pacific market: 'Just as you'd imagine, security is a paramount concern for both governments and corporations in this region. Linux provides a lot of peace of mind. Organizations at all levels find it reassuring to be using an open source system. It's possible to see the code powering your systems and make sure there are no backdoors. People all over the globe have reservations about using code when they can't see the source-how else can you make absolutely certain that things are sealed tightly as a drum and that there are no access points for unwanted traffic?'

For all these reasons, support for Linux solutions in the Asia/Pacific region is coming from the highest levels. According to Knaack, in August of last year, the Chinese government passed measures and policies to 'help ensure that government agencies and ministries use locally produced software, and they see the key to this as embracing open source software.'

She adds that moving to Linux helps achieve this goal and 'helps stimulate and promote local software development.' This sentiment is true all over the region. In November 2003, computer associations in South Korea, Japan and China-in cooperation with their respective governments-came together to develop nonproprietary software solutions.

In this instance, security was once again cited as the gravest concern. 'Open source software such as the Linux operating system provides programming instructions that many [proprietary] software companies like to keep private,' a concern that has grown 'particularly since the rash of computer viruses that hit Microsoft's Windows software last summer.'

While there may be some truth to the claim that Linux is not fundamentally less vulnerable to virus attacks than other OSs, according to the Factiva, as of November 2003, Windows had been assailed by at least 4,000 strains of virus, while only 11 virus attacks had been recorded that were designed to hamper Linux systems.

Even in more 'Westernized,' economies Linux is becoming increasingly popular. In an August 2003 article by Venkatesh Hariharan, published collaboratively by Dow Jones & Reuters, this phenomenon is demonstrated by the 'Linux invasion' that India is undergoing.

According to Hariharan, 'What is unmistakable is that CIOs across the country welcome the much-needed competition that Linux … [has] brought into the market. … Driven by cost, licensing issues and technical issues, a cascading number [of companies] across the country are now taking a serious look at the world of free and open source software.'

The article continues to point out that, 'It is the banking and financial sector and the government, two segments normally seen as archconservative, that have been early adopters of Linux.'

Leading the Way

Knaack is proud of the work IBM is doing to bolster the adoption of Linux in the Asia/Pacific region. As she points out, 'IBM is really viewed as the leader in Linux, and it's doing extensive work to reinforce this.'

She notes that 'at every level, we're trying to help institutions in these countries understand and implement the IT systems that make the most sense. Often, this means helping them establish Linux systems.'

In June 2003, IBM jointly established a Linux competency center with the Beijing government in China. According to Knaack, IBM and the Beijing government established this center for many reasons, including 'promoting the usage of Linux by helping organizations port applications to a Linux environment; creating end-to-end Linux solutions; as well as providing training for Linux professionals in China.'

The IBM Web site points out, 'With 300 Linux developers in its research and development center in China, IBM is leading the development of Linux by providing technical support, Linux certification and training for professionals.'

A second center in Guangzhou, opened in June 2004, provides software testing, project and technology-management services and professional training courses for local software developers. IBM has instituted similar efforts all over the Asia/Pacific region.

According to the Korea Times in May of this year, 'IBM has been in talks with South Korean officials and industrialists about promoting the global open source computer operating system.'

Jim Stallings, general manager, Linux -IBM Systems Groups, has met with government officials to 'work out a three-year strategy for the promotion of Linux.' IBM also assists in Singapore with efforts such as the IBM Open Source Computing Center in Ang Mo Kio.

One of the primary institution nodes, the IBM Linux Integration Zone (LIZ), promotes the adoption of Linux by business partners, customers and developers by providing them with a platform to rapidly build, test and deploy a wide variety of Linux-based solutions.

This includes helping create solutions for finance, retail, e-commerce, telecommunications, distribution and manufacturing companies. Through LIZ, IBM provides training for the enablement of IBM Linux-based middleware, products and solutions, as well as Linux technical support and integration services.

Knaack remarks that this is just good business sense: 'Deciding which operating system to build around is a huge decision. We can help governments, companies, universities-whatever-determine where and when it makes sense for them to implement Linux solutions.'

She points out that IBM has followed a similar policy globally, noting that the competency centers in China aren't unique. As she says, 'We've had a lot of success with these centers globally. We have them on four continents, in countries from Germany to the U.S. to Japan.'

For instance, IBM and the Russian Ministry of Communications and Computerization have agreed to create a Linux Competency Center in Moscow to help push greater use of the open source OS in Russia. And late last year, IBM signed a letter of intent with the government of Brazil to jointly expand the use of open source technologies and Linux throughout the country.

As part of the agreement, IBM will help create the infrastructure and professional skills to grow the use of open source technology within the public sector. This system of cooperation and education has helped IBM assume leadership at the head of the Linux movement.

Into the Future

Linux's unprecedented growth in the Asia/Pacific region has global ramifications. As alternatives to proprietary systems are adopted and expanded worldwide, the viability of it as an OS continues to increase.

Knaack, as with most experts, stops short of claiming that Linux is about to emerge as the dominant force in OSs in the Asia/Pacific region-at least for now. But she points out that there can be no doubt that it's becoming a huge factor in IT decisions there, and that this trend will continue.

'I have no doubt that we'll continue to see this proliferation, and five years from now its growth will be even more established, even more remarkable,' she says. 'Linux is one of the biggest growth areas in that part of the world, and that trend doesn't look to be ending anytime soon.'