Business Tech

Ubuntu Linux backer Canonical is changing top management in an effort to become more operationally disciplined, with founder Mark Shuttleworth passing the chief executive job to Chief Operations Officer Jane Silber by March 1.

Shuttleworth will continue working at the company, focusing on the company's desktop Linux product, its cloud-computing efforts, and meetings with partners central to the company's business. Silber, who has worked for the company for almost all its five-year history, will spend more of her time on Canonical's enterprise products for business customers.

Canonical CEO Mark Shuttleworth speaking at the Intel Developer Forum

(Credit: Stephen Shankland/CNET)

"Within the company I can say very strongly everyone's expectations will be that Jane will bring a focus on financial performance as much as operational performance. It's something I want for the company," Shuttleworth said in a conference call with reporters Thursday.

Shuttleworth founded Ubuntu and Canonical in part as a reaction to Red Hat and Novell's Suse Linux, both of which are available as a free version that differs from the commercially supported product. With Ubuntu, the two versions are the same, meaning that those who want the better-tested and certified product need not necessarily pay for it. Canonical does offer support subscriptions and is working on gradually proving its server operating system's mettle beyond just test and development situations.

Canonical today has two other main lines of business besides its Linux server support: partnerships to help with operating-system technology for Netbook companies, including most recently Google for its Chrome OS; and selling support for Ubuntu's newer cloud-computing technology developed in partnership with Eucalyptus Systems. The Eucalyptus technology is compatible with Amazon Web Services options including the Elastic Compute Cloud (EC2) and Simple Storage Service (S3), but lets customers use the technology in their own data centers or in combination with Amazon.

Shuttleworth, who funds Canonical with wealth stemming from selling his Thawte Internet consulting business to Verisign in 1999, takes a long-term view of the company's finances.

"We are not profitable. But we continue to believe we're on the right trajectory," Shuttleworth said.

"Five years is a long time," he said, but Canonical wants to be a platform company on which others house or build their own technology. "Those take a substantial amount of time to get a foothold. We continue to invest in areas that make us a complete platform rather than focusing on the things that could achieve profitability fastest."

The company presently has more than 300 employees, he said.

Canonical releases new versions of Ubuntu every six months, the most recent being 9.10, called "Karmic Koala." Version 10.4, or "Lucid Lynx," is due in April. It will be one of the LTS versions that comes with long-term support for customers who don't enjoy upgrading their operating systems frequently. Canonical releases LTS versions every two years.

Editors' note: This is a guest column. See John Mark Walker's bio below.

Quick, what were you doing on December 9, 1999? If you actually remember, then there's a good chance that you're an old-school Linux type. If you don't have any idea, then read on, and you'll discover what you missed.

I'll never forget where I was--at ground zero of the apex of dot-com ridiculousness. While I and all of my co-workers were in the office that day, about the only thing we accomplished was writing 15 gazillion Perl-based variations on the theme of stock tickers that displayed the price of LNUX, updated at regular intervals. Well, that and drinking champagne. Words cannot adequately express what it's like to look around the office and know that everyone in the building is a newly minted millionaire--on paper, at least.

Ten years ago today, shares of LNUX, the Nasdaq symbol for VA Linux Systems, went on sale to the eagerly awaiting public. You may recall that VA Linux Systems was the company that combined Linux, open-source software, and Intel-based hardware. Just six months prior to VA's initial public offering, Red Hat Software had gone public with a very successful IPO.

We were in the middle of the open-source pixie dust revolution, when many flagging companies jumped on the open-source bandwagon in a desperate attempt to recapture past magic. It was this phenomenon that led to the general conflation of the late-1990s open-source boom with the dot-com bubble, and it would be a few years before most industry analysts, pundits, and beat reporters figured out that there was a difference.

But back to IPO day. I strolled into work sometime after 9:30 that morning and was immediately greeted by Pay, my manager, with some astounding news. We all guessed that the day would be significant, but none of us were prepared for the tsunami of blissful, surreal numbness rushing to greet us.

He showed me a sheet of paper faxed that morning from the investment bank's office (truly ground zero on that day), that was copied ad nauseum and shoved into disbelieving faces. I'll never forget what was on it: just a simple table with 2 columns. The column on the left was a list of investors, and the column on the right was the price they bid for our stock. The numbers were astronomical: $320, $250, $200, $300, $290.

Curiously, some investor didn't get the memo and bid a paltry $50. We laughed at that because it was really funny--at the time. A year later, and I would recall that lone investor for an entirely different reason: on December 8, 2000, LNUX closed the day at $8.49.

On IPO day, we could all do the math, and on that day, the math was in our favor. The official IPO price was $30, and most of us owned options on shares with a much lower strike price. We had all won the lottery, hit the jackpot, (insert gambling metaphor here). Or so we thought. What actually happened was, as Don Marti so artfully described it, we had all become players in a game none of us truly understood.

To this day, the VA Linux IPO remains the Nasdaq's most successful, in terms of its first-day gain, but what does that success really mean, in the context of events that have taken place since? At the time, the LNUX IPO was lumped in with the rest of dot-com mania and treated as the poster child for the insanity that gripped the market.

The New York Times summed up that view best with its report on the IPO, "A Tiny Company with Dim Prospects Goes Public with a Bang." (Note: the Times has since changed the headline, but we remember the original.)

You'll be unsurprised to know that we viewed things slightly differently. But as the stock price plummeted, we went from a sign of the audacity of the times to a symbol of wasted effort, a gloomy future, and everything that was wrong with the go-go '90s. We were somehow expected to repent for the misdeeds of others.

It is simply wrong to view VA Linux as a dot-com vehicle or to attach a greater symbolism to its downfall. It was really neither; it was simply the dramatic rise and fall of a company that overreached. It was a real company that made real things and believed very strongly that open source was going to be a major component of IT very soon.

That we executed poorly and paid dearly for it does not diminish the original ideas behind the company. While VA was not profitable after the IPO, it was certainly not because of revenue. In fact, revenue growth was strong, but our unrealistic growth plan--to become Dell in less than two years--did us in. Only the convenience of timing allows VA Linux Systems to be mentioned in the same breath as eToys, Pets.com or Webvan. The revenue of those was rather paltry, in comparison.

To put the VA Linux IPO in its proper context, let's rewind and remember what was going on at the time:

• Red Hat had a great IPO the summer of 1999.
• IBM had jumped into bed with Apache and had started its first big push with Linux.
• Oracle and most other major database players had released native versions for Linux.
• A year earlier, Dan Kusnetzky famously authored the famous IDC report showing explosive Linux growth of 212 percent.

And yet, in spite of these obvious signs of traction and increasing market share with real customer demand, Linux and the rest of the open-source "bandwagon" were treated like Summer of Love refuse that had never really come down from the acid hits.

Every article about Linux included (stupid, irrelevant) questions about whether it would replace Windows 98. There was a widespread belief among industry observers that open source was fueled by the dot-com bubble and would wither away when the bubble burst. Every article referenced a ragged band of hippie programmers who did it out of love or ideology and just wanted to beat the evil empire.

At that time, no one had really figured out what was driving open-source development. It's worth pointing out that we card-carrying members of "the" open-source community played our part in that perception. Who can forget the famous Windows Refund Day? And if you never smelled Richard Stallman or Eric Raymond at a conference, then you clearly missed out.

It was a heady time of uncertainty, doubt, and eternal optimism. A time of green-field bliss, of "Linux without limits," and there was no problem that a few lines of Perl (Practical Extraction and Report Language) couldn't solve. After all, "the geek shall inherit the earth." It must be true; I read it on a T-shirt.

It truly was a time of the almighty individual weaving his magic and changing the world--and if you were lucky, getting paid well for it. We were young and naive, and those of us endowed with Y chromosomes were high on testosterone. We truly believed that we were on the right side of history but were too stupid to realize our own limitations. This was a blessing and a curse.

That unyielding belief in the omnipotence of writing code gave our army the energy to slay dragons we wouldn't have otherwise, but it also gave us the chutzpah to tackle issues that we ultimately could not solve. Case in point: that time when someone who shall remain anonymous tried to rewrite our ERP system from scratch. In Perl. He didn't last very long.

As it turns out, we were right about the open-source thing, but we somehow forgot the other history lesson: the one about how being on the leading edge of something successful doesn't mean you'll enjoy all, most, or indeed, any success. Those who ultimately reaped the benefits of open-source proliferation did so because they were smarter and took a more conservative approach.

The 10th anniversary of Red Hat's IPO passed without much fanfare last summer, probably because its management is too busy running a successful company to really take the time to pause and reflect. VA Linux Systems, meanwhile, was devastated by the tech bust because those start-up companies were a significant percentage or our revenue.

VA Linux Ssytems changed its name in 2001 to VA Software, after jettisoning the hardware business entirely, and it focused on selling licenses for SourceForge Enterprise. And when that didn't work out, it became SourceForge, a collection of Web sites deriving revenue entirely from ad sales. And it has since changed its name again, to Geeknet.

For the veterans of the VA Linux IPO, we're left to ponder what might have been and savor the unreal moments, while deriving some small consolation from the fact that our instincts were right: open source was not a fad; it was just the beginning. It's not going away, and VA Linux was ahead of its time. Small consolation, indeed.

The beta version of Chrome for Mac OS X is available. Google released its browser beta for Linux too.

(Credit: Screenshot by Stephen Shankland/CNET)

Two key pieces of Google's effort to make Chrome a more competitive browser fell into place on Tuesday as Google released beta versions of the browser for Mac OS X and Linux.

Tuesday's software release is a version of Chrome that had previously been available only as developer preview software for Mac and Linux machines. "It took longer than we expected, but we hope the wait was worth it," product manager Brian Rakowski said in a blog post.

Macs are widely used, if not as common as Windows machines, and there's been some demand in tech circles for the Mac version of Chrome. Linux, while less widely used among ordinary computer users, has importance of its own: it's the foundation for Chrome OS. That's the browser-based operating system Google hopes will be popular on Netbooks starting next year.

According to the Chromium development calendar, the beta versions are scheduled to graduate to the next level of maturity, "stable," on January 12. Chrome for Windows graduated out of beta almost exactly a year ago.

Google doesn't emphasize product version numbers in the project, instead automatically delivering updates behind the scenes to the browser that take effect when it's restarted. But it does use version milestones to keep track of development internally.

The biggest new feature of Chrome 4.0 is support for extensions, which let people customize the browser. In the Mozilla world, they're called add-ons, and they've been a big part of Firefox's success.

Mac OS X has a mandatory menu bar, so unlike the Windows version, Chrome on the Mac has traditional menus.

(Credit: Screenshot by Stephen Shankland/CNET)

Extensions aren't useful, though, unless people can find them. Google on Tuesday also launched a Chrome extensions gallery page.

There are more than 300 extensions available for Chrome, extensions programmers Aaron Boodman and Erik Kay said in a blog post.

However, extensions on the Mac aren't yet available, though they had been for a time in the developer-preview version. "Extensions aren't quite beta-quality on Mac yet, but you will be able to preview them on a developer channel soon," Rakowski said.

Also on the Chrome for Mac to-do list: a bookmark manager, PDF viewing in the browser, bookmark synchronization, 64-bit support, and my personal favorite differentiator of Firefox 3.6 on the Mac, full-screen support.

Chrome now has an extensions gallery.

(Credit: Screenshot by Stephen Shankland/CNET)

Why try Chrome?
For those of you new to Chrome, here's a brief version of why it's my default browser on both Windows and, as of about a month ago, Mac OS X. Your preferences and needs may vary, of course, and I still use Firefox every day, too.

• Speed. It's fast to start up, though not quite as snappy as it once was now that it's not so bare-bones, and rivals are making progress. It's also fast loading Web pages and running JavaScript programs on them.

• Tabs. I spawn innumerable new tabs all day long, and when it takes a long time (I'm looking at you, Internet Explorer), I get infuriated. I also like the order in which new tabs arrive, a style Firefox is mimicking.

• The omnibox. It's a single bar that merges the utility of an address bar and search bar. I hit Ctrl-L (on Windows) or Command-L (on Mac) to pop my cursor up there, and start typing. One nice--if somewhat obscure--feature is fast site search on some domains, so for example I can type A, M, tab, and up pops an Amazon.com icon; what I type afterward is entered as a search on Amazon. That conveniently gets me straight to the search results so I don't have to see yet another Kindle ad.

• A minimal user interface. When browsing, I like my user interface to step aside and make way for the Web page. Scrolling was a wonderful innovation in computers a few decades ago, but I like to avoid it when I can. Chrome puts tabs in the real estate ordinarily devoted to a program's title bar and shuffles the menu controls off to the right of that tab strip (though the Mac version gets a regular menu bar).

Another potential perk: avant-garde Web technology, including WebGL and O3D for accelerated 3D graphics and Native Client for speeding up Web apps with direct access to a processor, are being built into Chrome. Another such Google project, Gears, is already built into Chrome--though Gears doesn't work on Mac OS X 10.6.

There are things you might miss--the full panoply of Firefox extensions, toolbars from Google or others, print preview. And the "browser not supported" error messages on various Web pages are annoying, though in my experience there's rarely an actual compatibility problem. Overall, I like it.

Is Google spying on me?
If you're worried about what new data Google will be able to harvest on you, I recommend a close read of Google's Chrome privacy page. This doesn't worry me much, but I may be insufficiently paranoid. In my opinion, the biggest thing is that Google stores 2 percent of the data it gathers when people type text into Chrome's combination search and address bar, called the omnibox.

That means Google can see not only what you're searching for (as it would for any Google search), but what Web site addresses you're typing as well. The data is anonymized within 24 hours, Google said.

Also, Chrome has a feature called DNS pre-fetching that tracks down the Internet server addresses on Web pages in anticipation that you'll be clicking links on the page. So Chrome--and Google, too, if you're using Google Public DNS--retrieves this information from the Internet.

Updated at 12:30 p.m. PST and 1:20 p.m.. Added further detail.

The next time you feel tempted to laud the power of the open-source business model, take a look at Novell.

Novell has been struggling for over 10 years, yet it still manages to crank out nearly $1 billion in sales each year, most of which derives from the licensing of proprietary software.

Novell reported its fourth-quarter earnings on Thursday, along with results from its full fiscal year. They're not pretty, but they do suggest a path forward for the erstwhile software leader.

Novell saw its sales slump over 12 percent from its year-ago quarter to $216 million. For the full fiscal year, Novell stumbled to a $257 million net loss, versus a $5 million profit in 2008, on net revenue of $862 million and a net loss from operations of $206 million.

Perhaps not for long.

Much of that annual deficit came in the fourth quarter, which included a $279 million noncash impairment charge that sent Novell's quarter into the red by $259 million.

Not pretty.

Unless you look at Novell's Linux numbers. Linux remains Novell's most appealing business and was up 21 percent year over year to $149 million--and up 14 percent at $39 in in its fourth quarter over the year-ago period. While a far cry from Red Hat's booming Linux business, Novell's results suggest that there's life in its Linux business yet.

Life that Microsoft continues to seem content to grant.

Make no mistake, without Microsoft, Novell's Linux business would struggle, at least in the short term. Microsoft, after all, has been funding Novell's Linux business since 2006, when the two companies entered into an interoperability and Suse Linux subsidy pact.

And without its Linux business, all of the rest of Novell's business would be in jeopardy, as Suse Linux makes Novell's other products a palatable choice. Even so Novell's Identity and Security Management, Systems and Resource Management, and Workgroup businesses all dropped significantly (down 10 percent, 6 percent, and 13 percent, respectively).

Novell's needs
Clearly, Novell needs Linux. Equally clearly, it needs Microsoft to grow that Linux business. Microsoft has already plowed $247.5 million into Suse Linux Enterprise Server (SLES) subscription coupons, and Novell CEO Ron Hovsepian has indicated he's now dipping into the additional $100 million in coupons the companies negotiated.

But how can Novell accelerate its Linux business at a pace that will be comfortable for Microsoft, which has made no secret of its animus to Linux and desire to quash it? Microsoft partners with Novell to show a good interoperability face to its customers who use Linux and to prop up the No. 2 vendor against Red Hat, the dominant Linux vendor.

The day that Novell's Suse Linux business threatens Microsoft, and not merely undermines Red Hat, is the day Microsoft will pull its extensive financial support from Novell's Linux business. That same day Novell's Linux business will crumble, perhaps irreparably.

Unless.

Unless Novell can deliver a coherent strategy centered on Linux rather than merely friendly to Linux. For years Novell has packaged and repackaged a set of mostly stale offerings (e.g., Workgroup), pretending that they were part of a coherent strategy.

They weren't. The company was simply milking maintenance revenues as it sought to find a way forward. (I was in those meetings back in 2002 when the company discussed how to stanch the bleeding from maintenance declines. Those same conversations continue today, I'm sure.)

Then, as now, Novell's various product lines, and particularly Workgroup, offered little synergy, either in sales or engineering (i.e., the buyer of GroupWise is not the same as the buyer of Suse is generally not the same as the buyer of Identity Management).

Ongoing makeover
Novell is now entering a new phase of its repackaging makeover, but this one actually makes some sense. The company is calling it Intelligent Workload Management, arguing that a "new market [exists] for solutions that address the risks and challenges for computing securely across multiple environments."

Not surprisingly, Hovsepian argues that such an Intelligent Workload Management market "plays to the strengths of Novell--identity and security, systems and resource management, and our new Suse Appliance program."

Surprisingly, he may be right.

First of all, its wonderful to see Workgroup dropped from the discussion. Yes, it's Novell's biggest product by revenue, but no, it has almost no relevance for the rest of its business. Sell it off. Move on. The company has already offloaded much of its Workgroup development to India, anyway.

Second, Novell really does have a great deal of expertise in this area, with some assets that could go a long way toward helping it compete with the vendors that compete aggressively in the market: VMware, Microsoft, and increasingly Red Hat.

The key will be for Novell to really put Linux at the heart of its story, rather than simply using it as a conversation starter and loss-leader.

And yet, more is needed. Novell has the burden of a stale brand that it must shed. A few select acquisitions could help it to establish technology and brand leadership in the market. Companies like Reductive Labs (Puppet project for data center infrastructure management), VMOps or Eucalyptus (for building and managing private clouds), and/or Cloudera (for designing and analyzing large-scale data assets) could put Novell in the driver's seat on this market.

For the first time in years, the market seems to have moved in a direction that corresponds with Novell's rich technology assets. If Novell can make Linux the centerpiece of this campaign, bolstered by relevant, innovative technology, it will finally get its Linux business out of Microsoft's shadow and its overall business back on track.

The technology pieces are in place. It's now a question of brand and execution.

The developer preview version of Chrome now promotes an as-yet unworking link to an extensions gallery.

(Credit: Screenshot by Stephen Shankland/CNET)

Google is on the verge of launching a Web site to showcase its extensions to customize what its browser can do.

The company's latest developer preview edition, Chrome 4.0.249.0, promotes the feature on its opening screen and its new-tab page. "New! Google Chrome now has extensions and bookmark sync," the page reads, offering a link to a site that's not public yet, https://chrome.google.com/extensions. (Bookmark sync is already available.)

Extensions and support for Mac OS X and Linux are the headline features of Chrome 4.0. It's available as a beta for Windows, with Mac OS X and Linux beta availability expected in early December. According to the Chromium development calendar, the beta is planned for December 8 release and the stable release of Chrome 4.0 is due January 12.

A number of third-party galleries for Chrome extensions already are available, but programmers for the project have said on mailing lists that a Google site is planned. Earlier this year, Google shipped a version of Chrome that pointed to a collection of visual themes before the Chrome themes gallery was actually live to the public.

Extensions are a key asset of one Chrome competitor, Mozilla's Firefox; extensions permit people to customize the browser and add new features without burdening the overall project. Firefox is getting a new extensions framework, Jetpack, starting with version 3.7 due in the first half of 2010, and Mozilla has just launched its own Jetpack gallery.

Google plans to release a Mac beta of Chrome in early December, judging by some chatter on a mailing list for the browser.

Chrome 4.0 is available today as a beta version for Windows but only as a rougher developer-preview version on Linux and Mac OS X. The standout feature of the new version is customization through extensions, a technology that long has been a core asset of another open-source browser, Firefox.

Google has been moving to a new extensions presentation technology called Browser Actions that let people interact with extensions through a small button toward the upper right of the browser window. "We've noticed that many of you have updated your extensions to take advantage of the new UI. We'd like to encourage the rest of you to do so as well," said Nick Baum, a Google Chrome product manager, in a mailing list posting.

But here's the hitch: Browser Actions only work on Windows and Linux right now. That means those building extensions will leave Mac Chrome users behind for a time. But in telling those developers they won't have long to wait, Baum mentioned the deadline for the beta version.

"The earlier you switch, the more time you will have to polish your experience for our Beta launch in early December," he said.

And Google is on the case for adding Browser Actions to the Mac version of Chrome.

"We realize this means dropping Mac support for a couple of weeks, but we already have people working on that," Baum said. "If you prioritize the Windows and Linux versions, we'll bring you cross-platform parity as soon as we can!"

It's been said that information technology is a fashion industry--that we just keep following the latest hype and fads. Oracle CEO Larry Ellison last year referred to cloud computing this way.

Ellison loves this dig, and he uses it least once every technology generation. He's not alone. I, however, disagree with the entire curmudgeon corps' "It's just hype!" attitude.

While it's true that we in IT have our fashions, just like any field of human endeavor, we're generally pretty practical. It's hard to see either IT's executives or its technicians as highly subject to the whims of style or flights of fancy. The truth is closer to the notion that we're an evolving industry--one constantly struggling to find better ways.

It's not easy to grapple with the fantastic, relentless progress afforded by Moore's Law (on the supply side), nor the constant demand for more capacity, capability, and integration (on the demand side).

In a few short decades, IT has undergone a massive shift from an engineering-oriented support role to driving the beating heart of the global economy. IT is now central to large swaths of all human activity.

As new technologies and strategies come online--whether network computing, open source, agile development, service-oriented architecture (SOA), cloud computing, virtualization, or whatever--we seek to employ them to improve our outcomes.

There's always a bit of experimentation and a bit of hype involved in the early days. Indeed, without that willingness to "try it out" and a strong shot of enthusiasm on the side, we wouldn't be advancing as well as we are. That's not just hype you're hearing; it's also the will to progress. And for the most part, the recipe works.

Most of the major new approaches touted over the past few decades have become workaday parts of the IT landscape. Most apps, for example, are now "client-server" in design. Linux and other open-source engines run much of the Internet. SOA is how enterprise IT is designed.

The same Web services that Ellison derided years ago now underpin much of e-commerce, as well as high-interactivity Web 2.0 services such as Google Maps. And virtualization and orchestration--frequently discounted at the top of this decade--are now fundamentally changing how data centers are operated.

Indeed, when one of these previously experimental, previously hyped approaches recede from view, it's usually not because they've failed but because they've succeeded so well that we don't need to talk about them anymore. They've been burned into the way we do IT.

Each wave of technology builds on the last, incorporating its best parts, weeding out what didn't work, and often re-emphasizing themes that had appeared years before but weren't quite workable at that time--though often using different names. The utility computing, grid, and application service providers of years past, for example, have become the software as a service (SaaS, or more generally, ITaaS) and cloud computing of today.

So when something new comes your way--a new approach, a new strategy, a new way of looking at or doing IT--by all means, be skeptical. Try it out in careful, measured ways. But do try it out--and have enthusiasm for those new things. That's how we advance.

Linux jobs in the United States are booming, up 6 percent since January, according to data from Dice.com. This will come as small consolation to Novell employees, however, which weathered another round of layoffs at the Waltham, Mass.-based company.

According to several sources within the company, and confirmed by Novell's public-relations director, Ian Bruce, Novell last week laid off 100 to 130 people of its roughly 3,900 global employees.

While my sources indicated that the Workgroup division was particularly hard-hit, Bruce told me that the cuts came "across the company, both geographically and productwise."

Novell appears to be doing its best in caring for these employees, offering several months of severance pay, apparently based on the number of years with the company, among other factors.

For those remaining employed there, Novell announced this week that it would be suspending 401(k) matching contributions, which followed on the heels of its formal filing on Monday, to that effect, with the U.S. Securities and Exchange Commission.

Novell has spent the past few years attempting to reinvent itself as a Linux company, and it has managed to string together several quarters with strong earnings in its Linux business on the back of its controversial partnership with Microsoft. The company has struggled to compete effectively with Linux-leader Red Hat.

On November 2, a Novell PR representative contacted me to arrange a conversation with CEO Ron Hovsepian about Novell's "new focus in its strategic direction."

Whether this means more or less open source is not yet clear. It is clear, however, that Novell needs to focus more on top-line revenue growth, and not merely ways to cut costs. Until Novell learns to grow business, and not simply reduce expenses, its employees are going to remain all-too-familiar with layoffs.

With all the hubbub about Snow Leopard and Windows 7, there's another operating system out there you may not have noticed that's getting a significant update: Ubuntu Linux.

Ubuntu backer Canonical plans to release its "Karmic Koala" version on Thursday, and both the desktop and server versions of the open-source operating system take significant steps toward cloud computing. The concept of moving work away from the computer in front of you and into the network does have some merit, but cloud computing is today's fashionable buzzword, and Canonical Chief Executive Mark Shuttleworth is sensitive to its overuse.

Canonical CEO Mark Shuttleworth speaking at the Intel Developer Forum

(Credit: Stephen Shankland/CNET)

"What frustrates me is the term 'cloud' has come to mean anything with an Internet connection, including some stuff that really looks familiar like internal IT," said Shuttleworth in an interview. It's fair to say that in Ubuntu's case, though, it's not a stretch.

Built into the server version of Ubuntu 9.10 is Ubuntu Enterprise Cloud, technology built atop the Eucalyptus software package. Amazon Web Services (AWS), a collection of computing infrastructure accessible over the Net on a pay-as-you-go basis, is among today's most significant cloud-computing efforts, and Eucalyptus implements many of its functions so companies can build their own "private clouds" using the same services.

And in the desktop version of Ubuntu, the cloud connection is a service called Ubuntu One, which lets Ubuntu users synchronize files stored on different machines and back them up on the central service. Storage space of 2GB is free, and 50GB costs $10 per month.

The Ubuntu software itself is free; Canonical sells Ubuntu support services.