Issue dated - 9th September 2003

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Server OS market: A tale of two contenders

With runner-up NetWare migrating into the Linux camp, it’s now a slugfest between Windows and Linux on the Server OS front. Though Unix remains the king of the hill when it comes to mission-critical deployments, Windows is getting there, says Prashant L Rao

While Unix continues to be the first choice for running mission-critical loads, Windows 2003 is taking Microsoft where Unix has gone before. Linux’s market share in India is still in single digits but when you consider that runner-up Novell is going to offer a Linux kernel with its upcoming NetWare 7 (in addition to the traditional NetWare kernel), things look bright for Tux.


Windows Server 2003: Going where Unix has gone before

What’s new

Yasir Yousuff says that Windows Server has gone beyond the evaluation stage with organisations looking to Windows Server for serious deployments

WSRM (Windows System Resource Manager) has been announced. It manages and allocates machine resources—CPU, memory, and bandwidth—across application workloads. This is interesting, as this kind of automated, granular control was previously unavailable on Windows Server operating systems. Another significant announcement is that of the Sharepoint Team Services (STS) module, which lets folks within an organisation collaborate with each other and build departmental websites. Banks and PSUs are deploying STS; it is a free add-on module for Windows Server 2003. Then there’s Microsoft Identity Integration Server that provides a consolidated view of enterprise information and single sign-on to all domains.

Blackcomb will be the next release of Windows Server sometime in 2006. Analysts say that the server version of Longhorn (the successor to Windows XP) could be a modest upgrade to Windows 2003. Many believe that Blackcomb will pack just enough changes to keep up with the new features of the Longhorn client, such as the new file system.

Strengths

When a HP Integrity Superdome hit a rating of 707,102 tpmC (transactions per minute) at a price-performance of $7.16/tpmC on May 20 this year, it marked Microsoft’s move into the big league of corporate computing. That effort still stands at number three on the tpc.org Top Ten non-clustered performance results list. The test bed ran Microsoft SQL Server 2000 Enterprise Edition 64-bit running on Microsoft Windows Server 2003 Datacenter Edition.

On the application front, no less than 60 Indian ISVs have ported their applications to Windows 2003. Internationally, 250 ISVs are backing Windows Server.

Until now, Windows lacked credibility running enterprise applications (barring messaging, where it dominates the Indian market). That’s starting to change. An Indian co-operative bank is getting ready to go live with its core banking application on Windows 2003 this quarter. The first ERP deployments on Windows 2003 are also expected this quarter.

Weaknesses

Security and patch management are problem areas. These are being addressed through SUS (Software Update Service that’s integrated in Windows 2003) and Baseline Security Analyser (downloadable)—two parts of Windows Server security. Scheduled updates—weekly or bi-weekly through SUS. Group policy management lets you update all servers and desktops in the organisation.

Opportunities

"We’ve gone beyond the evaluation stage. Organisations are looking to Windows Server for serious deployments," says Yasir Yousuff, senior marketing manager, Windows Server Platforms at Microsoft India.

The value proposition of the 64-bit Windows 2003 Enterprise Edition lies in the fact that it’s priced the same as the 32-bit version. With HP’s 64-bit Superdome available from this month, "64-CPU, 64-bit computing isn’t restricted to the Sun RISC architecture anymore. Microsoft and Intel offer a platform for ERP and HPC," adds Yousuff.

Threats

The biggest threat to Windows 2003 is that companies that have just finished deploying Windows 2000 aren’t going to be very happy about migrating to yet another server OS right away. Gartner estimates that by the end of 2004, as much as one-third of NT 4 users will move to Windows Server 2003, leaving two-thirds on NT4. Gartner also expects the majority of customers moving to Windows Server 2003 will be from Windows NT 4—80 percent of them. Once again, Microsoft’s biggest rival is Microsoft itself.

Pricing
  • Windows Server 2003 - Standard Edition with 5 clients - Rs 43,000
  • Windows Server 2003 - Enterprise Edition with 25 clients - Rs 1,73,000

The prices mentioned above are the estimated retail prices; the street price of the product may vary from reseller to reseller.

Source: Microsoft India.



Switching to Exchange

“We have seen a trend of companies migrating from other platforms to Exchange,” says Pankaj Ukey, marketing manager at Microsoft India. Many large companies have started migrating from Sendmail on Linux, Lotus Notes and Netscape Mail Messenger. Microsoft believes that the combination of Outlook, Exchange and Windows Server is winning it these deals.

Company Original Platform New platform Benefits Future plans
Moser Baer Linux Sendmail Exchange 2000 on Windows 2000 In built anti-virus.
A manager can access subordinate's calendars from his machine.
Online SMS
Common address book across the
organisation.
Moser Baser will provide Remote Access to its suppliers and customers. They will be able to collaborate with the company more efficiently by using the voice conferencing facility. EDI will also be incorporated into the system to minimise data entry and standardise interaction through this system.
Godrej Industries, Godrej Consumer Products and Godrej Agrovet

Linux Sendmail

Exchange 2000 on Windows 2000
Microsoft Exchange 2000
Consolidated 12 mail servers previously running on Linux onto a single server.
Pays one-sixth the amount for support, than it did while using Sendmail on Linux.
Outlook Web Access provides Web browser access to e-mail, scheduling contacts, and collaborative information stored in Exchange folders. This has helped the field sales force of Godrej Consumer Products Limited be part of the enterprise network, wherever they are.


Godrej plans to build on the collaboration features of Exchange 2000 and create an employee portal based on Exchange and SharePoint.
Hexaware Technologies

Lotus Notes, Solaris and messaging services and Linux running Sendmail

Server on Microsoft Windows 2000 Server

Reduced number of messaging servers by half.
Employees in each location (four servers running Windows 2000 and Exchange 2000 were deployed, one each in key office) were trained to manage the unified Windows 2000 Server and Exchange 2000 environment. IT support within Hexaware thus was broadened without the company having to hire new specialists.
 


Enterprise Linux: Stronger each passing day

According to Javed Tapia, enterprises are looking at 64-bit Red Hat Linux on the Itanium 2 as an option for server consolidation

Both Red Hat and SuSE offer Enterprise Linux versions of their distributions. IBM is pushing Linux in the enterprise. Red Hat states that IBM is its strongest ally in India. Oracle is another big proponent of Linux and the operating system is picking up in the branch banking segment. Other than that, IDC conducted research in early 2003 that concluded that Linux beat Unix while running Internet/intranet/extranet and collaborative workloads. On the Internet/intranet/extranet front, Linux beat Unix on TCO (Linux had a TCO only 55 percent that of Unix). Running a collaborative workload Linux did even better, having a TCO only 18 percent of Unix.

Strengths

"64-bit Linux has a strong value proposition. Enterprises are looking at 64-bit Red Hat Linux on the Itanium 2 as an option for server consolidation," says Javed Tapia, director-India, Red Hat. ISVs are lining up behind the Linux juggernaut; Red Hat Enterprise Linux is supported by the likes of Oracle, PeopleSoft, CA, BEA, Veritas and EMC.

Linux is picking up in the total branch automation (TBA) sub-segment of the banking, financial services and insurance (BFSI) segment. Zenith Infotech has helped South Malabar Gramin Bank deploy TBA across its branches on Red Hat Enterprise Linux. The bank happens to be the largest regional rural bank (RRB) in India. More than 200 branches will come under this total branch automation initiative.

Central Bank of India also runs TBA on Red Hat. Linux is very popular among service providers. Rediff uses Red Hat Enterprise Linux AS. Reliance Infocomm also uses a lot of Linux.

Weaknesses

While vendors such as Red Hat and SuSE have worked hard to provide a support net for enterprise Linux users, far too many organisations have sufficient skills in using Linux to roll their own deployments and manage them to boot. "Service providers and data centres are big users of Linux but as they have the expertise, they come to us only when they have a problem," says Tapia.

Opportunities

Red Hat is trying to build an ecosystem where it supports more databases and Application Servers. "There’s a huge demand for Linux-based professional services," says Tapia, adding, "There’s so much momentum on training—we’re scheduling multiple batches where we used to schedule two. Training people on Linux works out cheaper in terms of hardware and software than training on a commercial Unix platform." There are 500 Red Hat certified professionals in India, a number that’s growing rapidly. A few Windows to Linux migrations are starting to happen, this is more likely to happen in education or government.

Threats

The SCO lawsuit could put Linux on the defensive, although IBM, Red Hat and the entire open source community are taking SCO head-on in the fight.


Shipments in 2002: 69,344 Source: IDC India

Gartner’s take on SCO’s action

SCO claims that Linux 2.4 could not have achieved its SMP scaling capabilities without the illegal copying and misappropriation of its IP. In compensation, SCO expects Linux customers to negotiate a license agreement for the Unix binaries of UnixWare 7.1.3. SCO didn’t specify a price, but Gartner estimates that a single unit license of UnixWare could cost from $500 to $700 per server, with discounts for volume deployments. The copyright registration follows SCO’s May 2003 letter warning 1,500 firms using Linux that they could face legal action.
Gartner believes that it would only take a few large enterprises toeing SCO’s line for others to start negotiating license agreements and creating hybrid open-source and proprietary software contracts. Some of the consequences that Gartner foresees include:

  • Linux will have difficulties evolving beyond appliance and infrastructure roles, revitalising Unix and boosting Microsoft.
  • Red Hat and SuSE will have more difficulty generating enterprise server subscription fees since the total cost of ownership would rise by the cost of the SCO license fees.
  • IBM will have to defend Linux and AIX, bring the litigation to a speedy head, and keep customers from re-evaluating purchase decisions.
  • Oracle’s 9iRAC for Linux will suffer a setback during its ramp-up phase.
  • Independent software vendors could temporarily delay commitments and investments in Linux until the legal issues are resolved.
  • Sun Microsystems can revitalise its marketing for Solaris while Dell’s quest to become more important in the market’s high-end will slow.
Pricing
  • Red Hat Enterprise Linux AS - Standard edition - Rs. 74,500 + taxes
  • Red Hat Enterprise Linux AS - Premium edition - Rs. 1,24,500 + taxes
  • Red Hat Enterprise Linux ES - Standard edition - Rs. 39,500 + taxes

Source: Red Hat India.

Trends in the server OS market

Linux is a threat to Unix in messaging and collaboration
With a recent IDC study finding that Linux has substantially lower TCO than Unix while running collaborative workloads—organisations will see the merits of using Linux as a platform for messaging and collaboration where Linux has a TCO that’s less than a fifth of Unix’s TCO. The most popular Unix based messaging solution, Sendmail, runs on Linux as well. As Linux gets more scalable (particularly in terms of scale-out) it is becoming a formidable competitor to Unix in this area.

Despite massive improvements in scalability, Windows is yet to take on Unix in a big way at the high-end
64-bit Windows Server 2003 is available on 64-CPU HP Superdomes. Despite the fact that Windows finally does SMP as well as it did clustering, large enterprise deployments are still mostly on Unix. While Microsoft accounts for four out of the Top Five clustered results at tpc.org, it still has only three of the Top Ten non-clustered results to its credit. Still the gap has narrowed with the Windows Server-HP Integrity Superdome combo ranked third with 707,102 tpmC and a better price/tpmC than the leaders.

Unix is moving up into mainframe territory
With Windows and Linux dominant in the low-end of the market and moving into the mid-range, Unix is becoming the new ‘mainframe’ OS. Machines like the Sun Fire 15K are perfect examples of Unix’s march upwards. The downside is that sales of high-end machines are falling. A Merrill Lynch report says, “Sales of servers priced above $1 million are down 28 percent year-over-year in 4Q to $2.4 billion. ‘Good enough’ computing and Moore’s Law are taking their toll.”

NetWare remains strong in branch banking though Linux is starting to make inroads in this segment
TBA accounts for huge numbers of Intel servers sold in the country. With the ongoing computerisation of Indian banking this has been the backbone of the SIAS (Standard Intel Architecture Servers) server market in recent years. With four out of five branch automation applications shipping on NetWare, the original network OS is still alive and kicking. That said, Linux is starting to make inroads into this lucrative segment.

Apache is still tops in Web servers
Windows 2003 has ramped up very quickly but Apache on Solaris and Linux still leads in the Web server arena with a 63.98 percent share in the latest Netcraft survey. Microsoft was second with 23.75 percent. This is one market where Microsoft hasn’t been able to make a substantial dent, Apache has held a greater than 60 percent share all along. Redmond’s latest shot at giving Apache a run for its money is the Web Edition of Windows Server 2003 that’s priced at $400.

Application Servers and development platforms are acting as an ‘insulating layer’ shielding companies from the server OS
With the growing importance of application server software and the developer community getting polarised into two camps—.NET and J2EE—the role of the server OS is diminishing to a certain extent. If your application runs on J2EE, it doesn’t matter which OS you run as long as you have an application server that supports J2EE.



Novell NetWare 6.5: Innovating to stay in the running

What’s new

The biggest thing that’s new with NetWare 6.5 is that Novell has taken its first steps toward embracing Linux. The company has started off by offering Nterprise Linux Services—a combo of file, print, messaging, directory and management services on top of Red Hat Enterprise Linux and SuSE Linux Enterprise Server. Building on this, Novell intends to offer a Linux kernel with NetWare 7 in addition to the traditional NetWare kernel. “We are committed to Enterprise Linux. Novell will deliver all its network services on Linux and NetWare,” says Munesh Jalota, country manager of Onward Novell India.

Novell has acquired Ximian, raising its credibility with the Linux community. Gartner believes that Ximian’s Red Carpet management products dovetail with Novell’s Zenworks offering, and Ximian’s Evolution product provides a more sophisticated Linux interface for GroupWise. Ashit J Panjwani, national manager, Alliance & Marketing, Onward Novell India says, “We expect Ximian’s product line to complement our efforts in managing Linux desktops through Zenworks.”

Other than that, NetWare 6.5 expands the server operating system’s support for open source applications and technology, including Apache, MySQL, Tomcat, Perl and PHP. Novell also has the exteNd Application Server and the exteNd Workbench development environment for running and creating J2EE applications.

Strengths

NetWare has a reputation for being a robust and failsafe server operating system. It invented the network OS category and even today it offers scalability up to a 32-node cluster of 32-way boxes. NDS has been the gold standard of directory services for quite some time and with NDS 8.7, Novell has added UDDI support to it.

Hundreds of applications run on the NetWare platform. The Taj Group runs its hotel management software, Fidelio, on NetWare in India, Sri Lanka and Bangladesh. TBA (Total Branch Automation) is perhaps NetWare’s stronghold with 80 to 85 percent of branch banking applications being developed on NetWare. Suffice it to say that India’s largest bank, the State Bank of India, is on NetWare.

Weaknesses

NetWare flirted with Java and was slow to move to IP thanks to its reliance on its traditional IPX protocol. Of late, it hasn’t been seen as an innovator and thought leader, though oddly enough it has been innovating like crazy.

Opportunities

Novell has learnt from its mistakes and the company’s latest move to make the Linux kernel an integral part of NetWare could pay dividends when NetWare 7 is released.

Threats

Linux was the biggest threat to NetWare. With its latest announcements, Novell seems to have co-opted the Penguin. Still, Novell runs the risk of becoming yet another Linux distro.

Novell sets its sights on Linux

June 2003 saw Novell moving many of its services over to the Linux kernel through a product offering called Novell Nterprise Linux Services. IDC believes that Novell’s stated strategy with the forthcoming NetWare 7.x product is to move to a product architecture that includes a kernel surrounded by a collection of removable services that ride above the kernel. The goal of this strategy is to insulate Novell’s messaging, directory, systems management, and print and file services business (including the iPrint and iFolder technologies) from the declining NetWare business. NetWare 7.x will introduce some of the very same ‘componentised’ services on top of the NetWare kernel. Novell also indicated that it intends to focus its marketing more on these high-level system ‘services’ and the benefits they offer organisations, rather than the underlying kernel. Novell highlighted deals with Dell Computer, Hewlett-Packard, and IBM to resell these products. It also announced that it is expanding CNE training services to include a new category, the Novell Certified Linux Engineer programme, which will become active in early 2004.

It is IDC’s belief that Novell’s very future is dependent on products that don’t require an underlying NetWare infrastructure and that only by going beyond the existing NetWare customer base can Novell hope to stop the product revenue decline it has seen for the past several years. Novell has also tiptoed into another possible market opportunity in offering full support for Red Hat and SuSE Linux distributions. This is both a defensive and an offensive move, keeping its support business busy by adding more support offerings, and represents a move by Novell toward becoming a more full-service Linux vendor, albeit without its own branded distribution.

When the Novell product reaches a version 2.0 level (projected for CY 2Q04), full file system support will be integrated into the Linux version, which will eliminate any need for Samba. Novell believes that this product will either continue to be used as a complementary product to Samba or as an alternative technology for some enterprises. Other benefits to come in the second release of the product include the clustered file system, SAN and NAS support, and similar advanced features. Supporting file services and print services consistently rates in the top five workloads for Linux environments in IDC’s studies.

(Source: IDC)

Pricing
  • Novell NetWare 6.5 five users - Rs 44,000

Source: Onward Novell India.

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