TUDLA Commentary
Will the Real Linux Please Stand-Up!
July 16, 2003 - El Cajon, Ca.- The TUDLA Press Release titled Microsoft vs. Linux, the Battle Heats-Up! released June 9th noted that although the growth rate for Linux is dropping from 50% to 40% worldwide, it is maintaining a 50% or greater growth rate in the Latin America Region. Based on the interest aroused by this report, TUDLA decided to provide a more detail analysis of their findings in this current press release.
It is important to note that TUDLA is merely reporting the numbers that are derived from their extensive file of responses from over 19,000 business sites that make up the IT Decision-Maker Panel, which is a significant representation of the market but not intended to reflect the market in total. Technology User Database, Latin America is a Market Intelligence Firm and not a Market Research Company, therefore those who specialize in this area should provide further analysis:
TUDLA finds Linux operating system demonstrating an increasing growth in Latin America, but although it is becoming more popular with each passing day in the region, it is primarily showing up as a secondary operating system and not the primary operating system. A detailed chart has been provided below with the objective of providing support to the critical points noted in the following analysis based on 28,500 business sites that make up the TUDLA database.
-Currently, Linux appears 65% of the time as the secondary, and not the primary operating system at business sites that report being current users. From this total percentage, 58% are in Brazil and another 26% are in Mexico, leaving just 16% in other countries that make up the region.
-Combining Linux with primary and secondary operating systems running CRM/ERP or Data Warehousing in 2, 567 sites, Linux shows up in 247 or just 10% of these total sites. The remaining 388 Linux sites in the TUDLA IT Decision-Maker are running non-mission-critical applications.
-Microsoft is the predominant major player across various applications, it holds over 55% of the share. As far as CRMs Microsoft followed by IBM’s OS/400 and the various versions of Unix are in control. Linux represents just 14% of the overall mentions.
-ERP is the largest of the mission-critical applications analyzed and Linux in total only represents 11% of the mentions in Large Businesses; 5% in Small Businesses; and 10% in Medium Businesses, the fastest growing segment in the region. On the other hand, Microsoft has over 55% of the overall mentions in the ERP space.
-CRM purchase plans are showing up in 48 businesses across the region and Linux is present in 15% of these businesses. That is above the average, compared to the current co-residency of CRM installed with Linux of 14%.
Linux Chart
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LINUX
ADOPTION--07/09/03
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ITEM
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SITES
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%
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COMMENTS
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TUDLA
Sites
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28,500
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100%
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Total
of all sites in the database
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All
sites w/Op.System
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15,900
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56%
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%
that have a noted Operating System
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Linux
in the Region
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635
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4%
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%
of Op.Systems with Linux
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Linux
as Primary
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220
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35%
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Linux
noted as the main Operating System
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Linux
as Secondary
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415
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65%
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Linux
notes as the secondary Op.System
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Linux
in Brazil
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393
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62%
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Most
Linux is in Brazil
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Brazil
Sites in TUDLA
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3,705
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13%
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Brazil
as compared to all TUDLA sites
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Linux
in Mexico
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164
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26%
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Second
most Linux in Mexico
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Mexico
Sites in TUDLA
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16,530
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58%
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Mexico
as compared to all TUDLA sites
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Applications
Sties
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15,476
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54%
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%
of all sites with an application mentioned
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Mission
Critical Sites
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2,567
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17%
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of
all applications are CRM/ERP/Data Warehousing
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Linux
Pri. w/Mission Critical
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34
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1%
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%Linux
as Primary with CRM/ERP/Data Warehousing
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Linux
Sec.w/Mission Critical
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213
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8%
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%Linux
as Secondary with CRM/ERP/Data Warehousing
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Microsoft
w/Miss.Critical
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1,400
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55%
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%Microsoft
with CRM/ERP/Data Warehousing
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CRM
total sites
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732
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29%
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%CRM
of total Mission Critical Sites
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Linux
presence with CRM
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106
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14%
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%of
CRM that exist with Linux as Primary/Secondary
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CRM
Plans
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48
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100%
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All
sites with planned CRM applications
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CRM
Plans w/Linux Primary
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5
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10%
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%CRM
Plans with Linux as Primary Op.System
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CRM
Plans w/Linux
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7
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15%
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%CRM
plans with Linux--All
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ERP
total sites
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1,149
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45%
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%
ERP of the total Mission Critical Sites
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ERP
with Microsoft
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633
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55%
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%
ERP on a Microsoft Primary/Secondary Op.Syst.
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OS/400
with ERP
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151
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13%
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%
ERP on OS/400 from IBM
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Unix
with ERP
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140
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12%
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%
ERP on Unix
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Solaris
with ERP
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42
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4%
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%
ERP on Sun Solaris
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ERP
site with 500+ Empl's.
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409
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36%
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%
ERP in 500+ Employee enterprises
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ERP
500+ w/Linux Primary
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6
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1%
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%
ERP w/500+ Employees with Linux as Primary
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ERP
500+ w/Linux Secondary
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39
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10%
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%
ERP w/500+ Employees with Linux as Secondary
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ERP
<100 Empl's.
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282
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25%
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%
ERP in <100 Employee sites
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ERP
<100 Empl's w/Linux
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15
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5%
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%
ERP in <100 Employee sites w/Linux--All
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ERP
100-499 Empl's. Sites
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458
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40%
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%
ERP in 100-499 Employee/Medium sites
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ERP
100-499 Empl.w/Linux
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47
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10%
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%
ERP in 100-499 Empl. Sites W/ Linux--All
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It is evident in the data obtained directly from the TUDLA IT Decision-Maker Panel, that Linux is gaining momentum, however it is still a very small portion of the total market. In interviews conducted with IT Decision-Makers that have or are planning to install Linux, their primary objective is to save money. On the surface it appears that Linux costs less, but TUDLA questions, does it really cost less once you run a “total cost of ownership” assessment?
This is the challenge that Microsoft and other application providers need to address. TUDLA suggests that for the medium and perhaps the small business segment an ideal option would be one that allows them to pay over-time for solutions from Microsoft and others so that they can defer the upfront costs that lead them towards the use of Linux as a lower entry option. But until then, Linux will continue to gain ground.
TUDLA is the only database management company that specializes in the research of technology and communication usage across Latin America and the Caribbean, and maintains the largest, in depth survey of business use of technology across the region. Our mission is to support the efforts of technology providers to establish and expand their presence in the region, while also serving as the voice of technology users to better serve their needs.
To learn more about TUDLA, and our products and services, please visit our website at www.tudla.com. You may also contact TUDLA via phone, 619.442.4445 ext 106, or via email at info@tudla.com.
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