Pre-installing Linux in Russia is a growing business model   Monday May 20, 2002 - [ 10:10 AM GMT ] Topic - GNU/Linux -  by Bruce Tober - Microsoft shooting itself in the foot in 2001 was nothing unusual. In Russia they did it by cracking down on pervasive software piracy. Throughout Russia one could purchase just about any piece of software he or she wanted (everything from the latest Win operating systems to the latest Win software packages for example) on the black market for a couple of bucks. Microsoft's anti-piracy move (not to mention a new Russian law against software piracy) has resulted in a shift toward towards GNU/Linux. And nowhere is that truer, perhaps, than amongst the computer manufacturers. As Svetlana Semavina, PR manager for ASP Linux, says, "There was one another factor which pulled companies to Linux. In 2001 Microsoft corp. began to implement anti-piracy politics in Russia. And that is a really important reason for the migration to Linux for small PC assemblers for which the cost of Windows licenses is prohibitively expensive. And for whom the low cost of PC for end users is very important." Aleksey Smirnov, director of ALTGNU/L inux, agrees. "Yes, [the trend towards PC assemblers pre-installing Linux is increasing]. And for me it is important that many OEM partners are interested in Linux because they find it a good solution for users, not only because it is the cheapest way to solve legal problems. There is law, and there is MS cracking down (in fact not very strong). But it is clear to everyone here that it is impossible to provide all computers in use with legal software - it is economically impossible." He notes that due to these factors, "State structures recently began to buy legal copies of OS and very seldom software. They use mostly pirated software. Sometimes they buy legal OS, less often they buy legal software. In fact it is real problem also for Linux vendors, because almost everybody use MS for free. Private firms buy legal software for some of their computers. It is usual practice when they buy one legal copy and install it on many computers." But, he says, the purchase of legal, licensed software is increasing, "and it is expected that using pirated software will become too dangerous." ASPlinux is pre-installed, Semavina says, by such companies as Formoza, Bely Veter, Inel, Desten Computers, Veles-Data, R- Style, AMI (Ukraine), "and a wide range small firms (most of them are dealers of the large companies like Formoza or Bely Veter)." She added that of those Russian PC Vendors who do pre-install Linux (which, she said, is most of them) Red Hat is apparently their distribution of choice. And, she said, "there are a number of small PC assemblers which pre-install regular versions of RedHat, Mandrake, or even ASPLinux rather than the OEM versions (i.e. without any CDs or documentation). These distros are preferred in such cases as the most user-friendly OSes with the best Russian localization. Smirnov notes that there are three categories of machine manufacturers using ALT Linux. They are: Local assemblers, like Genius. "During last year we provided MicroStar motherboards imported by Impex NEO Group with special edition ALT Linux MSI Edition. This allows local assemblers to pre-install ALT Linux on the computers with MSI motherboards. ALT Linux MSI Edition is specially tested with MSI motherboards." Russian Intel-based machines that are pre-loaded with ALT Linux's "Intranet Server Appliance for Small and Medium Business." And, he noted, ALT Linux is also used by OEMs in the Ukraine. "We started the Intel project three years ago, Smirnov explains. "The small local assemblers started using ALT Linux for pre-installation two years ago, and the MSI project was started a year ago. Now rather big assembling firms are interested." The use of pre-loaded ASPLinux began a year ago. "In May, 2001", Semavina says, "we produced ASPLinux 7.1. It was the first release which we began to sell. At that time we began to offer the biggest PC manufacturers in Russia to pre-install ASPLinux. Many of them had already thought about doing so, but their lack of experience in Linux stopped them. Most of them do not install ASPLinux on all PCs, but have some series of PCs which are sold only with ASPLinux pre-installed." She adds that the company provides its OEM-partners with "all services they need and carry out marketing actions in this direction." The benefit of pre-installing Linux, Smirnov explains, "is that the assemblers get cheap, legal OS and user software to preinstall. He has less software problems, and it works faster. Benefits to the end user? Well, now it is possible to build almost any solution with GNU/Linux. Linux distribution is a collection of various solutions based on GNU software. End user gets system, which is cheaper, faster, stable and flexible." To which Semavina adds, "Linux is rather inexpensive. This factor is very important for today Russian market: one who is buying PC for using at home usually prefers inexpensive soft. And for the OEMs, In addition ASPLinux and OEM-partners carry out joint marketing actions, etc"

	The people have spoken      (#13578) by Anonymous Reader on 2002.05.20 7:00 What America has failed to realise conducting business in their greedy monopolistic way is that the poorer nations need things that are cheap. In the IT world it is abundantly clear that the markets that brought America so much wealth are drying up, and that the only markets left are in developing and poor countries. Based on this story, I would say that Bill has already lost these markets to Linux. Not only in Russia, but South America as was reported just recently, and no doubt other countries yet to be reported on. This can only be a good thing, because there is a lot of expertise in Russia and other poorer countries, and if Linux is the main operating system there, I think we can expect to see some good software and new technologies emerging for Linux over the coming years. And if there is a groundswell of support for Linux in countries like these, then it makes sense that it is likely to become the preferred OS throughout the world eventually, and maybe sooner rather than later. Actually, I'm tipping that when the 64 bit platforms are released late this year that Microsoft will have well and truly lost the race at that point, because they just won't be able to compete with a true 64 bit OS. [ Reply to This | Parent ] Russia has good grounds for Linux      (#13582) by Anonymous Reader on 2002.05.20 10:44 As mentioned in the article, one of the primary reasons most businesses are converting to the open-source systems and software is their inability to legally use the closed-source software, particularly Microsoft's. The prices are just ridiculous on the software of that sort in Russia right now. They are not adjusted to the national economic level. Most home users and small businesses never thought about buying licences for all of their PC. It would cost a fortune. Unless they are a large company that has money for that and needs to maintain licencing policies while being watched by the government. At the same time why would they want to purchase those expensive MS server licences while there are better absolutely free open-source based solutions. Thus, in this long process of MS software eradication in Russia that the government and Microsoft itself is supporting the key slowdown occurs at the end-user level. Some people still don't know a lot about Linux/Unix, however those that do know are quite competent in the subject. Another thing is lack of snapiness and ease of configuration that Linux, specificatlly KDE and Gnome, is yet to achieve. People like end-users prefer to point and click rather then digging in the configuration files. However it's changing fast and hopefully soon will be part of the normal desktop workstation. We are looking forward to global Linux times!!! A reader Dudinka, Russia [ Reply to This | Parent ]