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Linux market may grow to $35 billion by 2008

Linux, an open-source operating system, may become a $35 billion market by 2008, technology research firm IDC said Wednesday.
/ Source: Reuters

Linux, the fast-growing alternative to Windows and other operating systems, will become a $35 billion market by 2008, technology research firm IDC said Wednesday.

The figure represents 36 percent growth from revenue derived from Linux desktops, server and packaged software in 2004, IDC said, as more companies adopt the software standard to run their businesses.

Although Linux is open-source software, meaning that it can be freely copied and modified, companies such as Red Hat Inc. and Novell Inc. make money by providing update and support services for Linux.

Increasingly, Linux is also being offered as packaged software that can easily be installed on the same personal computers that run Windows. IDC forecast the market for packaged Linux software would grow to $14 billion by 2008.

The broader $35 billion forecast includes the projection for packaged software, IDC said.

"This is the first authoritative and comprehensive snapshot of how people truly use Linux and it's not surprising for us to see that the adoption is far ahead of even some of the most optimistic estimates," said Stuart Cohen, CEO of the Open Source Development Labs, which coordinates Linux development.