Amazon cuts costs with Linux
 
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If you have ever doubted that Linux could be a money-saving force in your enterprise network, check out Amazon.com.
No, there's no new book on Amazon about how to save money with Linux, rather the online bookseller was able to cut 25% off its IT expenses (from $71 million to $54 million last quarter) by swapping its HP Web servers for boxes running Red Hat Linux.
Amazon now uses Red Hat Linux and a derivative of the Apache Web Server to run its popular e-tailing business.
Thanks in part to the Linux move, the once high-flying, and now struggling dot-com trimmed its losses by 30% in the most recent quarter, and says it expects to be profitable by the end of the year.
Other companies also could see savings by moving to Linux. According to research firm IDC, a 1,000-user network based on Linux servers would cost between 50% and 80% less to install than a similar network using Unix servers.
It's an old story by now: In the days when dot-coms were flush with cash, they bought nothing but the best - or at least, the most expensive - in terms of network infrastructure. Many dot-coms bought Cisco hardware and Web servers from the big three - Sun, IBM and HP. When the dot-coms crashed, a lot of their equipment went up for auction, and the Web businesses that were able to stay afloat scrambled to cut costs in order to save their businesses. It will be interesting to see what part Linux and other open source technologies will play in the move to save money.
RELATED LINKS
Analyst report about how the HP-Compaq merger may boost Linux
Phil Hochmuth is a Network World Senior Writer and a former systems integrator. You can reach him at phochmut@nww.com.
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