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Show She Satt Lake Tribune TECH CONNECTION SATURDAY, AUGUST14, 1999 D-7 “EYBERSAVY Utah Firms Ride Linux Waveof Popularity Caldera, Lineo poise Notebook, for growth based on operating system Pencils, Computer Thatchill in the air means back-to-schooltime, butthis year somethingis different. Along with the usual No.2 pencils andspiral notebooks and TrapperKeepers (do they still make those?) on many students’ supplylists are personal computers, Whethera student needs a PC(or Mac)is debatable. Thereis no question computers help kids learn faster and keep up with peers, but it may not be necessary to have one at home. : Schools andlibraries often are furnished with equipment andcollege studentsgetfree Internet accessat state-run schools. Onthe other hand,the machines often are outdated and the numbersof students exceed the available equipment. With PC prices dropping to the $500 range, a student may notget that suped-uplaptop, butstill can get something that will serve the purpose. Whenshopping for a computer,do a bit of homework. Check comparison guides online (Cnet has a nice archiveof articles) or purchase magazines such as Computer Shopperto narrowthe choices. Whenyouare readyto buy,it may be convenientto do so online. Even with shipping costs added in, prices can be much cheaper than a local retail store. You can purchase directly from manufacturers such as Compagq,Dell, Gateway and Appleonline, but often you'll get the list price for the machine and not manyextras. Try directretail sites such as MacWarehouse, PC Warehouse, Egghead and Computer Discount Warehouse. Also, many companies with retail stores (CompUSA,for example) have Websites where you can often purchase equipmentcheaper than at their stores. Whenconsidering a purchasefor a student,first decide whether you absolutely need to purchase a machine. Then,be sure to get as good a computer as you can afford. You may notuse all the power now,butit will put off upgrading and replacement down the d road. Do bit of research, know what you want, and don’t be afraid to shop online. Q Web Addresses BY GUY BOULTON ‘THE SALT LAKE TRIBUNE, Caldera Systems Inc. and Lineo Inc. suddenly arepart of the “in” crowd. The affiliated companies, both based in Pro- vo, sell software and services based on the Linux operatingsystem. Linux is hot. And in recent weeks, seemingly everyone wants to be Caldera Systems’ and Lineo’s friend. On Monday, three different divisions of Intel Corp. wanted quotes from a Caldera Systems executive for news releases announcing they would integrate Caldera’s Linux software into their products. That same day, Motorola Inc. announced it would use Caldera and Lineo software in an array of its products. “This is Linux week,” says Amy Wohl of WohlAssociates, a research firm in Narberth, Pa. The announcementsweretimedto the LinuxWorld Expo in San Jose, Calif., which ended Wednesday. Two weeks earlier, though, IBM also said it would use Caldera Systems’ Linux software in a line of servers, the boxes that are the nerve centers of computer networks. Whatall this meansis two Utah companies, both funded by Ray Noorda, the former chairman and chief executive of Novell Inc., could be positioned for some impressive growth. “Linux has grown incredibly in the past few years,” says Nancy Pomeroy, a spokeswoman for Caldera Systems. Developed in the early 1990s by a Finnish student, Linux is an offshoot of the widely used UNIX computer operating system that runs a computer's basic functions. Software for specific applications, from word processing to routing telephonecalls, must be compatible with the operating system. The Linux operating system quietly has won about 17 percent of the market for computer servers that run computer networks. Fans of Linux contendit is flexible, reliable and well-designed for networking and Internet communications. All this is making Caldera Systems and Lineo seem bitprescient. The two companies, founded in late 1994, are among the four or so major vendors of Linux software. Caldera Systems and Lineo, formerly Caldera Thin Clients Inc., are funded by the Canopy Group, Noorda’s family trust. So, too, is Helius Inc., a Utah companythat sells Linux software for satellite communications. The computer code that makes up the Linux operating system can be down: loaded for free from the Internet. “Everybody has accessto the kernel,” Pomeroysays.“That’s the source.” Caldera’s role is to integrate, standardize and test everything surrounding that kernel. “If you are just pulling it off the Internet and slapping it together, you don’t knowif it is all going to work together,” Pomeroysays. That's what companies such as Motorola are paying Caldera and Lineo to nueoverthenextyear. “There’s a real possibility of blowing pastthat,” Ball says. The agreement with Caldera Systems is to use its Linux softwareforthe boards that go into more complex computers, suchas telecommunications equipment. “Weare trying to bring the messageto our customersthatit’s time for them to start considering Linux,” says Noel Lesniak, business manager for UNIX and Linux telecommunications equipment for the Motorola Computer Group in Tempe,Ariz. operating systems offered by Motorola. But Motorola apparently senses a growing demandfor products that use Linux. Shipments of computer operating systems, 1998 Computer servers Windows NT Novell's Netware Unix 58% | seagey 242 m17.4 Li 17.2 cand a Internet servers Solaris/ s » SunOS The most widely used operating sys- tem is Microsoft Windows.It runs more than 90 percent of the world’s personal computers. But Microsoft also has developed a souped up version of Windows, called Windows NT, designed for complex computer networks.It also developed a stripped-down version, called WindowsCE, designed for small devices. Caldera competes with Windows NT; Lineo competes with Windows/CE. Large, complex computers and small embedded devices may be the most promising market for Linux given Microsoft’s dominance of the personal- Lesniaksays. The Motorola deal gives Caldera and computer market. But Caldera Systems is doing its part to encourage new appli- cationsto be based on Linux. The company, for instance, has designed a so-called graphical user interference that enables people to install Linux without knowing how to write computercode in UNIX. “But it's more than we thought,” she | Windows [iltt Windows, 95/98/NT © 24.3 “We see a real momentum here,” says. Desktops Linux The unknownisthesize of the potential market for Linux. a : Linux |1.8 { 167) . The Associated Press “Anybodycan install,” Pomeroy says. “Where,before, it scared the liver out of people.” Caldera is giving away the software for the “point-and-click” installation with the hope that otherswill improveit, The company, which employs about 90, people, doesn’t publicly disclose its sales., Nordoes Lineo. But both companies are adding people. Lineo, for instance, is hiring emplay;" ees every other week. “And wedon't see it slowing down,” , Ballsays. Years ago, Noordarecognized the need, to link desktop computers. That insight made Novell one of the world’s largest. software companies. He apparently had a + similar insight about Linux's potential. Whether Linux gains widespread gc~ ceptance will be determined in coming _ years. But, for now, two Utah companies +s suddenlyfind themselves quite populat.~* 4 Covering Bills BY PAUL DA DAVIIDSON USA TODAY Feiosnales pmae payingFos online will grow: No time to get set up Too expensive 37% 46% 30% 23% Households paying bills online 1999 2002 2004 4 Bill Payers Find Ease of Paying Online For Jim Moran, paying the monthly bills was both a numbing chore and a maddening race against the calendar. “Open the envelope, write the check, log it, put on the stamp I dreaded it,” said the 34-year-old head of a San Francisco ad agency. Making matters worse were his frequent two-week business trips. Bills, piled high on the bachelor’s kitchen ta- ble, “would often be overdueby the time I got back. I got slapped with late fees.” But a few months ago, Moran signed up with Paytrust, an Internet startup thatlets subscribers receive and payall bills onlinefor $7.95 a month. Paytrust notifies him by e-mail when bills arrive. He just goes to his account on Paytrust’s Website, reviews them and to simplify perhaps the most universal hassle: paying bills. So far, consumers havenotflocked to onlinebill payment. That's largely because its biggest pur. veyors, major banks, haven't promoted it muchand charge about $5 a month to let subscribers make payments on their PCs. Mostcan't actually get their bills online. Instead, envelopes muststill be opened and amounts keyed in. But that's changing. While 26 percent of high-volume payees display bills at their own Web sites to slash mailing costs, a growing numberare starting to funnel them to bank and other one-stop Websites. Few consumers wantto hop to eight differentsites to see their bills. Perhaps more significant, Internet portals, including America Online and Yahoo, are expected this fall to offer online bill payment undertheir own brands and heavily promoteit to their millions (in millions) clicks the pay button. A two-hourritual has been trimmed to of users, giving the industry a majorjolt 33 15 minutes, With his laptop, Moran can fire off payments from anywhere in the world. “There's a lot less paper in my to $3 or $4 a month for consumers, ana 15 2009 Source: GartnerGroup “ ™ According to the GartnerGroup, consumers are Less control R COPY used by delivery companies, pay pumps at gas stations and cell phones. Lineo, which employs about 30 people, would not disclose the potential value of its contract with Motorola or its projected revenue. But Lyle Ball, a company spokesman, said Lineo expects its Linux software to generate $10 million in reve- tional credibility, Wohl says. Prefer checks, Check with your credit-card companies on Y2K readiness. Keep paperstatements to confirm balances,limits and interest charges. scanners in supermarkets, computers Lineo — not to mention Linux — addi- cash,credit cards Y2K Tip of the Week applications. Examples of embedded devices are cash registers in restaurants, bar-code lion last year, struck deals with Caldera Systems and Lineo to use their Linux software in computer boards and chips that go into products ranging from cash use online bill payment Q ating system and software for specific iraeatkce Linux softwareis rapidiy gaining acceptance as an operating system for networked “server” computers and machines that run Websites. Butthe upstart software is hardly used in desktop computers, which are dominated by Microsoft Windows. dlo. Motorola, which hadsalesof $29.4 bil- Why most consumers don't www.egghead.com Computer Discount Warehouse — www.cdw.com CompUSA — www.compusa.com The agreementwith Lineois to use the software in so-called embedded devices, Linuxwill become just one of several hesitant to wear orcas bill CNet — www.cnet.com Apple — www.apple.com registers to telephone switches. such as pagers, preloaded with an oper- 70 life,”he said. “I feel more in control.” The Internet streamlining the way people buy oe get information and sifying its efforts And high volumes could lower the cost lysts say. Both AOL and Yahoo have inked deals with CheckFree, the largest processor, analysts say, AOL's Rob Shenk would not confirm that but ac knowledged AOL will soon start offering bill payment. Yahoo officials did not re. turn phonecalls. For those audience magnets,it will be.” a key wayto corralsurfers.“A lot of peo. * ple have stock portfolios but everyone , has a checking account; so it's a much’ more elemental service,” Shenk said. Meanwhile, online brokerages, such as Charles Schwab and Fidelity, which already serve 10 million online traders, could outflank banksand portals by more *, heavily promoting bill paymentin their’ bids to manage all of a consumer's fe nances in one place. Also joining the fray are tiny Web- based startups, such as Paytrust, Cyber- bills and PayMyBills. At $8 to $10 a month, they are pricey but havean carly ” leg up because they can already deliver’ all bills online by scanning paper bills — onto their Websites. As the various players seize on eleo”\ tronic bill payment as a way to attract’ customers and sell them other products) * the industry's market share is expected’ to rocket from 4 percent of U.S. house- holds to 70 percent in a decade, accordingi to pig ‘The research firm expects revenue seca soar from $250 million this year to $1,7'¢ billion in 2002, ‘Un |