Linux systems are part of what is known as the "open source movement," said Dan Rosenthal, founder and president of HCOS Inc., a Brookfield-based business technology consulting firm. That is, open source programs allow users to build their own operating systems because they can get the source code.
"The open source movement was started by a group of programmers who wanted to create a reliable, solid system that didn’t cost an arm and a leg," Rosenthal said. "Microsoft’s cost-effectiveness is definitely in question. But people didn’t used to have choices other than Microsoft. Now they do."
Linux systems offer direct replacements for Microsoft products. Open Office, a Linux system, does almost everything Microsoft Office can do, Rosenthal said. When it comes to prices, however, Linux systems tend to be more affordable, especially for small business owners, Rosenthal said.
It costs about $7,000 to set up MS Exchange, a Microsoft e-mail program, for 25 users. SCO Group, a Utah-based firm, offers a similar e-mail server called Open Source, which costs $899 for a 25-user system.
"When small businesses are looking to upgrade, especially in today’s tough times, there are many good quality, efficient programs out there," Rosenthal said.
In addition to being cheaper, Linux systems also require less RAM to run than Windows, Rosenthal said.
And because Linux systems do not include as many applications as MS Small Business Server, businesses that use Linux don’t need a full-time tech person on staff to manage it, Rosenthal said.
Opponents of Linux argue that Linux systems are not yet "ready for prime time," or not as capable as Microsoft systems, Rosenthal said. However, he believes that most Linux products are just as reliable as Microsoft and are especially useful for small businesses that don’t need enormous operating systems.
In fact, 70 to 80 percent of all Web servers around the world run Linux systems, Rosenthal said.
Small business owners also should be aware of new technology that makes e-commerce affordable for businesses of all sizes, Rosenthal said. Owners of smaller companies have shied away from e-commerce because some systems cost $5,000 to $10,000 to set up and then cost an additional $300 per month to operate.
Technology now exists that allows a business to run an e-commerce Web site for about $99 per month, Rosenthal said.
SCO has designed a product called SCO Biz, designed for businesses with 25 or fewer employees. The system allows use e-commerce in a cost-effective manner, Rosenthal said.
For a set-up fee of $395 to $2,000, depending on the type of system, a business can receive a Web site, 20 e-mail addresses and a shopping cart for unlimited items. Some programs set a limit on the number of products that can be placed in a shopping cart at one time.
Because e-commerce is expected to continue to grow as a part of the business arena, new software allows businesses of any size to take part in it.
"There are so many things that have changed this year in terms of technology, and people don’t know about it yet," Rosenthal said.
Jan. 10, 2003 Small Business Times, Milwaukee
