Welcome!

Java IoT Authors: Elizabeth White, Liz McMillan, Yeshim Deniz, Zakia Bouachraoui, Pat Romanski

Related Topics: Linux Containers

Linux Containers: Article

Linux Advancing Worldwide in the $6 Trillion Annual Retail Sector, Says OSDL Report

Increasing Availability of Linux-based Solutions from Major Vendors and ISVs is Accelerating the Trend

"We are seeing significant Linux adoption in the retail sector as companies look for flexibility, reliability and low cost as their legacy IT systems near end of life," said Stuart Cohen, CEO of the Open Source Development Labs - home to Linus Torvalds (pictured), the creator of Linux - as OSDL today announced highlights from recent gains reported by its members on the advance of Linux worldwide in the more than $6 trillion annual retail industry.

"The increasing availability of Linux-based solutions from both major vendors and ISVs is accelerating the trend. In retail, it's all about lowering costs, streamlining supply chains, and improving margins," Cohen added.

According to retail analyst firm IHL Consulting Group, Linux deployments in retail increased 34 percent in 2004 over 2003. Driven by new market entrants and the rising popularity of Linux, the average cost of a point of sale system has fallen dramatically over the past two years, from more than $4,000 in 2002 to under $1,000 in 2004, according to IHL.

Overall retail market spending on IT for 2005 is estimated to exceed $21 billion, according to market research firm IDC (July 2005).

According to OSDL members who are working with customers in the retail sector, the industry is under pressure in certain key areas that are helping to drive them towards the value, performance and uptime offered by Linux-based solutions:

  • Multiple stores in distributed locations without local IT staff;
  • Significant installed base of old technology that is being refreshed;
  • Rapid move to reach new customers through the Internet;
  • New technologies (such as RFID) that create opportunities and disruptive changes;
  • Competition from very large global companies (with huge economies of scale) and smaller companies (nimbler, faster to react to market changes);
  • Increasing integration of companies with suppliers and partners.

Tens of thousands of retail companies are investing in Linux-based solutions worldwide. Six major retail firms working closely with OSDL members BakBone, HP, IBM, Novell and Red Hat reported significant recent advances in Linux deployments, including:

  • Anaconda Sports, largest U.S. retailer of amateur league sports and school district equipment;
  • Boscov's Department Store, largest family-owned retailer in the U.S;
  • Burlington Coat Factory, 340 stores in 42 states;
  • GLOBUS, 90 retail locations in Europe with more than 20,000
    employees;
  • Mercadona, Spain's largest supermarket chain with more than 900 stores;
  • Retail Ventures, Inc., a holding company for DSW, Filene's Basement and Value City Department Stores, has more than 325 retail outlets nationwide.

The benefits of consolidation on Linux can be a critical factor for some customers. "Our Linux on the mainframe solution has enabled Boscov's to drastically reduce software and systems administration costs, saving nearly $1 million over a three-year period," said Harry Roberts, CIO of Boscov's. "As we complete our transformation into an on demand business, we look forward to improving our service and introducing many innovative solutions that make shopping in our stores a unique experience."

For other customers, price and low total cost of ownership are the key decision criteria. "In the highly competitive retail industry, technology implementation choices are driven by the need for reliable and robust solutions at the best possible price," said Dennis Moore, director of enterprise architecture for Retail Ventures, Inc. "We leveraged a secure, high-performance Linux foundation and BakBone's first-to-market support for the latest enterprise Linux versions to achieve enterprise-class data protection at an open systems price point."

And Linux offers performance, critical to meeting the demands for speed and convenience that customers expect in a retail experience. "We were looking to improve the performance of our computing systems and the implementation of Red Hat technology simplifies and speeds up core processes at Mercadona," said a spokesman for the supermarket. "Our use of Red Hat will eventually lead to the optimisation of our customers' time in supermarkets, making the checkout process easier and helping cashier staff to process payments."

Linux offers retail customers a wide range of benefits to meet their industry-specific requirements. Among the most often cited are:

  • Reliability - delivering the uptime needed for stores, back offices and Websites;
  • Remote management - enabling distributed store locations to be easily managed by central IT staff;
  • Flexibility - avoiding vendor lock-in without compromising the security and reliability of legacy technology as well as ease of quickly porting to new processors (handhelds to supercomputers);
  • Middleware for Linux - enabling application, process and business integration throughout the supply chain;
  • Applications on Linux - increasing availability of key applications for e-commerce, store operations, back office processing and business intelligence;
  • Low cost - reducing systems administration, management and client license operating costs as well as lowering capital expense for hardware.

More Stories By Linux News Desk

SYS-CON's Linux News Desk gathers stories, analysis, and information from around the Linux world and synthesizes them into an easy to digest format for IT/IS managers and other business decision-makers.

Comments (1) View Comments

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


Most Recent Comments
SlowlyButSurely 08/06/05 09:02:43 AM EDT

This is why OSDL's Bill Weinberg says that the Linux 'revolution,' while it is real and on-going, is an incremental 'velvet' revolution.

IoT & Smart Cities Stories
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
SYS-CON Events announced today that IoT Global Network has been named “Media Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. The IoT Global Network is a platform where you can connect with industry experts and network across the IoT community to build the successful IoT business of the future.
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
Disruption, Innovation, Artificial Intelligence and Machine Learning, Leadership and Management hear these words all day every day... lofty goals but how do we make it real? Add to that, that simply put, people don't like change. But what if we could implement and utilize these enterprise tools in a fast and "Non-Disruptive" way, enabling us to glean insights about our business, identify and reduce exposure, risk and liability, and secure business continuity?
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
DXWorldEXPO LLC announced today that Telecom Reseller has been named "Media Sponsor" of CloudEXPO | DXWorldEXPO 2018 New York, which will take place on November 11-13, 2018 in New York City, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitoring and Cost Management … But How? Overwhelmingly, even as enterprises have adopted cloud computing and are expanding to multi-cloud computing, IT leaders remain concerned about how to monitor, manage and control costs across hybrid and multi-cloud deployments. It’s clear that traditional IT monitoring and management approaches, designed after all for on-premises data centers, are falling short in ...
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...