By the Numbers: April 2003

By Baselinemag  |  Posted 2003-04-01 Email Print this article Print

Linux Ascending

Linux is proving to be the little engine that could. While the overall server market contracted by nearly $4 billion worldwide in 2002, revenue from the sale of Linux-based servers increased 63% from the previous year. According to Gartner Inc. analyst Jeff Hewitt, the lack of licensing fees, open-source code and a growing base of programmers are driving the rapid growth. Linux is just starting to gain acceptance in Western Europe and Japan, but by 2007, says Hewitt, Linux may hold 15% of the world market.

Save on Licenses, but Spend on Support

IBM and HP are pushing Linux hard with business models that emphasize long-term support over shipments. That's probably a good idea: Linux still lacks the functionality of, say, AIX or Solaris, and lags behind other operating systems in areas such as workload management and security. But you can bet someone out there is working on it.

The Expense of Expenses

Your company may keep track of every aspect of its supply chain, but does it know how much employees spent on hotels last year? Expense management automation (EMA) systems can identify areas of potential cost savings, streamline the reimbursement process and flag big spenders on your payroll. Aberdeen predicts the EMA segment will grow at three times the rate of overall tech spending over the next few years.

War? What War?

Although the war in Iraq had been looming for months, most companies were surprisingly unprepared, says a survey taken just before the first U.S. offensive. Fewer than half of the 60 companies asked had any sort of worldwide contingency plan.

Hey, Nice Package

The typical golden parachute for a chief exec at an S&P 500 company is 3 years' worth of salary, bonuses, and benefits, says The Corporate Library—an average of $16.5 million per severance package. Other company officers, like the CIO, usually get only 2 years of their (much lower) salaries. Business school, anyone?

Spend Less, Get More

U.S. companies spend less on technology than their European counterparts but get a better return, a new study shows. Part of the problem? Labor laws prevent European firms from slashing headcount. To read the specifics of this study.


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