• silicon.com
• Technology
• Hardware

By Felicity Ussher, 7 June 2000 00:30

NEWS The Linux platform, despite its rapid growth in the corporate sector, is at risk from the growing popularity of application service providers (ASP). Analysts agree that the ASP model of supplying and hosting software for businesses, could hamper Linux's future growth. Linux distributors deny the claims, but industry experts are adamant. Daniel Grundy, business analyst at Datamonitor, said Linux vendors such as Red Hat must be worried. He told silicon.com: "One of the great hopes for Linux was that it would help small businesses service their software and avoid licence fees. But with the rise of ASPs, Linux vendors will have to rethink how it's going to make money." He said Red Hat's revenue model - based on maintaining and servicing Linux software inhouse - was at odds with the ASP model of remote management, especially in the SME sector. "There will be a market for them somewhere, but they may have to specialise to find it," he said. Butler Group's research manager, Gary Cooper, agreed that Linux had very little presence in the ASP market, and that this could pose problems in future. However, Matthew Szulik, CEO of Red Hat, denied the claims. He told silicon.com: "ASPs have sprung up like weeds recently. I don't understand the revenue model. Who is going to take on the legal responsibility for the customer's data?" He added that the ASP model was a "flash in the pan", compared to broadband data centres. David Sidwell, business development director for ASP, Esoft Global, disagreed. He said ASP services did take on liability for their customers' data, and added: "The Linux desktop has not yet taken off in the ASP world. That's not because we cannot deliver a Linux-based ASP service. The issue is that Linux is not yet a mature enough superstructure of software to deliver applications remotely."