Ever since Linus Torvalds, the Wizard of OS, introduced the Linux open source Unix variation, it has captured the attention, imagination and resources of the reseller and solutions integrator communities. VARs consider the open source OS a profitable alternative to smaller margin platforms from Microsoft—especially for Web servers and turnkey solutions.
IDC predicts that the Standard Intel Architecture Server (SIAS) market will continue to make gains in 2003 and that Linux will continue to gain ground on Unix this year, particularly in competition with RISC-based Unix systems, painting a picture for solution provider opportunities.

The most recent channel data from VAR Business bears this out, with 42% of solution providers this year planning to dedicate more time, resources and application development around open source software, such as Linux. High on their list of "things to do to accomplish this": become Linux certified.

Among VARs catering to the SMB market, the vibe for Linux is extremely positive. Respondents to the same VAR Business survey found that 41% think Linux will be a viable alternative to Windows this year. "Linux profits for VARs will be most realized by solutions-oriented VARs," says Ramon Ray, who has followed the SMB market extensively as an editor and author at Small Biz Technology. "The most successful companies will be those who can demonstrate to their customers that they can and will support any Linux solutions and also provide as good as or better solutions for their clients – whether Linux or Microsoft."

Linux Concerns

While VARs see opportunity with Linux in 2003, they are wary of certification requirements, infighting among the distributions, competition from Redmond and partnering too quickly.

Over 38% of solution providers recently cited certification as a significant obstacle when it comes to Linux’s general acceptance in the business market. The top certification sought by solutions providers is awarded by the vendor-neutral Linux Professional Institute. Second is specific certification in Red Hat Linux

The Linux camp has always held a popular position with the open source and anti-MS crowds, but is hasn’t always enjoyed internal agreement. While "expensive Windows" would seem to represent a common enemy for a "free operating system," competing distributions of Linux vie for top spots with the VAR community. The largest distribution by far, helped by its record-setting IPO and early popularity, is Red Hat. But last May, SCO (formerly Caldera), SuSe, TurboLinux and Conectiva joined forces to create a uniform Linux distribution—UnitedLinux—that would enable these vendors to compete as one against Red Hat and to garner additional ISV support.

The channel seems warm to the idea of avoiding another OS monopoly in Red Hat, which has been labeled as "unfriendly toward the channel," but it’s difficult to fight a 50% market share.

Microsoft has not missed any opportunities to play on VAR’s fears as well, calling open source software a "cancer" and pointing out how costly a Linux implementation can be versus a rollout of its own Windows platform. But some analysts think Microsoft’s plans may backfire as Linux enjoys an anger-fueled popularity among companies and government agencies burned by Microsoft’s expensive multiyear subscription licensing program.

An IDC survey in May of 2002 found that resellers were positive about Linux as a future growth opportunity, but that they weren’t hitching their wagons to vendor-specific partnerships right away. "Resellers are unsure of the profitability that a partnership with a Linux distributor or a Linux-specific partnership with a system vendor would bring," said Kevin Restivo, an analyst with IDC. He recommends that vendors looking to push Linux into the channel target partners that can provide the necessary consulting and integration skills in order to maximize investments.