Linux on the Desktop - Week of 03/15/2007
When computer maker Dell responded to a high volume of requests for open source solutions on its products by saying, "We are listening," speculation was raised that the company had plans to release consumer-level desktop PCs with Linux. Unfortunately for those whose hoped were raised, it was a misunderstanding; the note referred to certifying the hardware for being ready to work with Novell SUSE Linux, it was not an announcement that computers would be loaded and sold with the operating system. That Dell was moving towards Linux on the desktop may have provided the impetus for the numerous articles which followed the news, but the idea itself is not completely new, either in the press or the industry. While much of the press which appeared around the time of Dell's note focused specifically on Dell, many articles commented on the viability of Linux desktops for the masses in general. Those in the latter category reported that Linux interest and adoption is growing; Dell's customers requested it, Hewlett Packard has noted this as well, and analysts point out the same. However, the move to Linux desktops is not likely one Dell or others are going to make soon. Jim Zemlin, executive director of the newly formed Linux Foundation (of which Dell is a member) says, "Linux has a long way to go before it has the same market demand as Windows."
While they may be requesting Linux, BusinessWeek points out that customers, "have also complained about poor support and technical problems." Linux, better support, and technical problems could add up to trouble, at least as far as the bottom line is concerned, for any supplier of a Linux desktop PC. Sources have noted the necessary expenses in supporting the move to Linux desktops; BusinessWeek points out that suppliers would need to, "sign expanded support contracts with Linux suppliers like Red Hat and Novell, or train its own customer service reps on open-source technologies." Paul DeGroot, an analyst at the consulting company Directions on Microsoft, says, "After the second or third call, they've lost money on the machine." In regards to technical issues, BusinessWeek states, "to make Linux for consumers fly, the vendor would need to invest in engineering to ensure the software works with popular graphics chips and wireless modems." Dell is doubtless aware of these factors, as are others; Hewlett Packard has made similar conceits.
PCWorld quotes Doug Small, HP's worldwide director of open source and Linux marketing, "the number of indicators we look at—the noise level, the interest in the products on the market, the interest in our forums—are all tending to heat up for Linux during the last six months or so." Though one executive at HP sees, "the Linux desktop nearing critical mass," the tipping point has yet to be reached. Among the reasons for holding off at this point, much of the current interest in desktop Linux is coming from enterprises, most of them outside the U.S. and North American markets. To meet these needs, "HP says it has recently signed deals -- on an ad hoc, custom basis -- to provide Linux PCs to large customers," says the Wall Street Journal; Dell provides similar offerings to some if its enterprise customers as well. There may be a growing base of small- to medium-sized businesses asking about desktop Linux, but it just does not warrant the investment. With both Dell and HP waiting, it seems likely that it may be a while before Linux finds its way to the desktop of everyman. However, that it will come seems equally as likely; Dell and HP are not the only ones noting the rise in interest among users.
In an article entitled, "Is a Linux desktop avalanche coming?" DesktopLinux.com says, "Slowly, ever so slowly, the Linux desktop has been picking up momentum. It keeps getting better and better, but Microsoft's monopoly has kept many PC users from realizing that there really is a viable alternative to Windows. However, that's about to change." The Wall Street Journal concurs, their article, "Linux Starts to Find Home on Desktops" states, "The much-hyped notion that Linux would be viable software to run desktop and notebook PCs seemed dead on arrival a few years ago. But the idea is showing some new vital signs." The Journal reports that, "market researcher IDC said licenses of both free and purchased versions of Linux software going into PCs world-wide rose 20.8 percent in 2006 over the previous year and forecast that licenses will increase 30 percent this year over last. That compares with 10.5 percent growth in 2004, according to IDC." Even so, Microsoft's Windows still runs on over 90 percent of PCs sold each year, which leads the Journal to conclude, "Almost no industry experts expect Linux to make much of a dent against Microsoft on the desktop and laptop any time soon." According to BusinessWeek many experts agree, "Even high-profile Linux proponents admit the operating system isn't ready for mass-market use."
Friday, March 16, 2007
Thursday, March 15, 2007
FT.com / Companies / IT - Permira and Centaurus in €4bn approach for Atos
FT.com / Companies / IT - Permira and Centaurus in €4bn approach for Atos
By Delphine Strauss in Paris and James Mackintosh in London
Published: March 15 2007 23:23 | Last updated: March 15 2007 23:23
Permira and Centaurus, the British buy-out firm and hedge fund, have approached Atos Origin, the French IT services group, with a potential €4bn ($5.3bn) takeover, two people familiar with the situation said.
Atos confirmed Thursday it had received an approach after its shares surged, but did not say from whom. The group also said there was no formal offer and it was “not engaged in any financial operation with respect to its share capital”. Yet its shares, suspended before the statement, rose further after the denial, closing up 25.2 per cent at €49.50.
Permira, Britain’s biggest private equity group, and Centaurus, an activist hedge fund and Atos’s biggest shareholder, are understood to have asked for access to financial information to carry out due diligence before mounting a formal bid. It is unclear if Atos will agree, but it is thought to be considering the request.
People close to the situation said the Permira-led approach was priced at €58 a share, a 46 per cent premium to Atos’s previous close – a level some analysts said was hard to justify. Centaurus and Permira declined to comment on the approach, first reported by Dow Jones.
It is the second time Atos has damped rumours of a private equity approach in recent months, after denying in October it was in talks with Blackstone.
Bernard Bourigeaud, Atos chief executive, has made it clear it is open to a private equity deal, following two sales warnings last year, but he is thought to feel any bid must fully factor in gains expected from a restructuring programme.
One analyst said he found it difficult to justify a valuation above €50, although the prospect of spinning off its joint venture managing Euronext’s IT system, or Atos Worldline, its financial outsourcing arm, could attract private equity.
Copyright The Financial Times Limited 2007
By Delphine Strauss in Paris and James Mackintosh in London
Published: March 15 2007 23:23 | Last updated: March 15 2007 23:23
Permira and Centaurus, the British buy-out firm and hedge fund, have approached Atos Origin, the French IT services group, with a potential €4bn ($5.3bn) takeover, two people familiar with the situation said.
Atos confirmed Thursday it had received an approach after its shares surged, but did not say from whom. The group also said there was no formal offer and it was “not engaged in any financial operation with respect to its share capital”. Yet its shares, suspended before the statement, rose further after the denial, closing up 25.2 per cent at €49.50.
Permira, Britain’s biggest private equity group, and Centaurus, an activist hedge fund and Atos’s biggest shareholder, are understood to have asked for access to financial information to carry out due diligence before mounting a formal bid. It is unclear if Atos will agree, but it is thought to be considering the request.
People close to the situation said the Permira-led approach was priced at €58 a share, a 46 per cent premium to Atos’s previous close – a level some analysts said was hard to justify. Centaurus and Permira declined to comment on the approach, first reported by Dow Jones.
It is the second time Atos has damped rumours of a private equity approach in recent months, after denying in October it was in talks with Blackstone.
Bernard Bourigeaud, Atos chief executive, has made it clear it is open to a private equity deal, following two sales warnings last year, but he is thought to feel any bid must fully factor in gains expected from a restructuring programme.
One analyst said he found it difficult to justify a valuation above €50, although the prospect of spinning off its joint venture managing Euronext’s IT system, or Atos Worldline, its financial outsourcing arm, could attract private equity.
Copyright The Financial Times Limited 2007
Tuesday, March 13, 2007
Linux Starts to Find Home on Desktops - WSJ.com
Linux Starts to Find Home on Desktops - WSJ.com
Wall Street Journal, March 13, 2007
The Linux operating system, having made inroads into corporations' backroom server computers, is showing hints of inching into a much broader market: employees' personal computers. The much-hyped notion that Linux would be viable software to run desktop and notebook PCs seemed dead on arrival a few years ago. But the idea is showing some new vital signs.
Wall Street Journal, March 13, 2007
The Linux operating system, having made inroads into corporations' backroom server computers, is showing hints of inching into a much broader market: employees' personal computers. The much-hyped notion that Linux would be viable software to run desktop and notebook PCs seemed dead on arrival a few years ago. But the idea is showing some new vital signs.
Thursday, March 08, 2007
Follow the Money: Seed/Startup VC Trends Mirror Strong Overall Software Trends | AMR Research
Follow the Money: Seed/Startup VC Trends Mirror Strong Overall Software Trends | AMR Research
Seed and startup segment venture capital investment trends are mirroring overall venture capital spending trends. In the second half of 2006, VC firms invested in some particularly interesting nascent companies. Here, our research team comments on those seed and startup companies that attracted the most venture dollars.
Seed and startup segment venture capital investment trends are mirroring overall venture capital spending trends. In the second half of 2006, VC firms invested in some particularly interesting nascent companies. Here, our research team comments on those seed and startup companies that attracted the most venture dollars.
Follow the Money: 2007 Should Be Banner Year for VC Software Investment | AMR Research
Follow the Money: 2007 Should Be Banner Year for VC Software Investment | AMR Research
Recent data from PricewaterhouseCoopers and the National Venture Capital Association shows total venture capital investment hit a post-2001 peak of $25.5B from 3,416 deals in 2006. This is a 12% jump in capital invested from the 2005 level and a 10% increase in the number of deals year to year. Seed and early-stage companies received more financing in 2006, and first-time deals also hit a post-2001 peak, with 1,093 companies attracting $5.8B. The average deal size was $7.46M.
Recent data from PricewaterhouseCoopers and the National Venture Capital Association shows total venture capital investment hit a post-2001 peak of $25.5B from 3,416 deals in 2006. This is a 12% jump in capital invested from the 2005 level and a 10% increase in the number of deals year to year. Seed and early-stage companies received more financing in 2006, and first-time deals also hit a post-2001 peak, with 1,093 companies attracting $5.8B. The average deal size was $7.46M.
Subscribe to:
Comments (Atom)
