Asian governments drive open-source Linux software sales

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SINGAPORE - Asian governments are adopting the freely available Linux operating system in a bid to cut costs and address security concerns, helping the region drive global growth in demand for the software, vendors and analysts said.

Linux is known as "open source" software because the basic programming code can be copied and modified freely by developers, allowing wide collaboration.

This is unlike proprietary software such as Microsoft Corp's Windows and Sun Microsystems' Solaris version of the Unix operating system, which have carefully guarded codes.

Linux competes mainly against Windows and Unix in the market for networked servers, powerful computers that crunch data and connect to the Web.

The relatively higher cost of license fees for using Windows is a key factor driving regional governments to consider Linux, said Sun's Asian sales director, Terence Ng.

"The amount of money paid for proprietary software licenses can help governments in some developing markets like Malaysia and Vietnam build a bridge or even buy a plane," he said.

Linux distributor Red Hat Inc says the savings can be as much as 80 per cent, but such figures are hotly disputed, and some studies say the total cost of deploying Linux can exceed that for Windows.

Cost issues aside, governments are also worried about security flaws in Microsoft software and possible threats to national security from using software codes tightly held by one company, analysts said.

AGREEMENTS AND MEETINGS

In March, Thailand agreed with Cambodia, Laos, Myanmar and Vietnam to develop Linux software in Asia so as to reduce imports of Microsoft software.

The following month, officials from China, South Korea and Japan met to explore ways to promote Linux as a viable alternative to Windows.

"In open-source software, the data is mine and I can always access it, unlike documents created in proprietary software, which cannot be opened once I no longer have access, even if the information is my own intellectual property," said Gus Robertson, vice president of South Asian operations for Red Hat.

Linux accounted for 10 per cent of server shipments in Asia ex-Japan in 2003, up from seven per cent in 2001, and the figure is forecast to jump to 25 per cent by 2008, according to International Data Corp (IDC).

That would be equivalent to an annual growth rate of more than 38 per cent, making Linux the fastest-growing server platform in the region. The growth rate worldwide in the same period is forecast to be about 27 per cent.

In comparison, Unix's share of server shipments in Asia slipped from 14 per cent in 2001 to 13 per cent in 2003, while Windows's market share rose from 63 per cent in 2001 to 66 per cent in 2003.

In India, China and Malaysia, Linux is also important for governments trying to cultivate home-grown software industries, said Rick Sewell, Linux program manager with Hewlett-Packard Co Ltd in Asia Pacific.

"This enables developing countries to be self-sufficient, where they do not have to rely on US software companies and foreign software," he added.

SHARING THE CODE

To address some of these concerns, Microsoft has implemented a Government Security Program (GSP) providing limited access to Windows source codes, said Chris Sharp, Microsoft's director of platform strategy in Asia Pacific.

"Microsoft works with governments to undertake a security audit of the government's IT structure and helps them build more secure environments," he added.

While use of Linux is expected to increase, the software is not without its flaws, analysts said. It is best used on single-task servers, for simple functions like firewalls and virtual private networks.

"This is because the Linux environment does not scale up as well as Unix," said IDC analyst Rajnish Arora, referring to the process of increasing computing power.

"There are still issues of stability, reliability that hold back Linux deployment on mission-critical workloads, where a bank runs its core banking system or telecom companies run their back-office operations," he said.