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October 27, 2008 12:28 PM PDT

Ubuntu 8.10 due Thursday. Profits? Not so fast

by Stephen Shankland
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Canonical will release the newest version of its Ubuntu version of Linux on Thursday, Chief Executive Mark Shuttleworth said Monday, but the company's profitability isn't on such a fast track.

Ubuntu 8.10, aka Intrepid Ibex in the company's alphabetically ascending naming convention, is the latest installment of Linux for desktop computers and servers in the company's six-month release cycle. Among the new features are support for 3G wireless modems, the ability to set up an encrypted and password-protected private directory, a guest account that can help out someone needing temporary use of a computer, and built-in content from the BBC. On the server, 8.10 includes better support for Xen virtualization, the Landscape console for managing and deploying Ubuntu, software for building customized virtual machines, and support for software-based RAID to protect data on storage systems.

Ubuntu, unlike its main rivals, is available for free in both enthusiast and supported editions. It's made some inroads in recent years against Red Hat and Novell's Suse Linux, but it hasn't proven to be as strong a business prospect for the company behind it. Shuttleworth, who got rich by selling his last start-up to Verisign, indicated just how patient he is with his new investment, though.

Selecting plug-ins in Ubuntu 8.10

Selecting plug-ins in Ubuntu 8.10. (Click image to enlarge.)

(Credit: Canonical)

"I have no objection to funding the business for another three to five years," he said in a conference call Monday. "I certainly have the patience to see us through any downturn. I think this downturn is going to be very good for Canonical...Canonical is not cash-flow positive, but our offering is very effective for those who want to pinch their pennies."

For Shuttleworth, profitability is a matter of when, not if--he wants to invest in areas the company deems important rather than curtail development to move to profitability faster.

"If we needed to, we probably could be profitable in two years," by focusing on the core operations such as the server version, he said.

Shuttleworth added that the company has an annual revenue run rate of millions of dollars.

The company bases its business chiefly on selling support, either to customers for its Linux software or to companies that need expertise in building Linux-based systems. Selling Linux for desktop computers on its own, though, is no way to financial glory, Shuttleworth said.

"I don't think it will possible to make a lot of money, or maybe any money, selling the desktop," Shuttleworth said. "We're not going to try to make money selling the desktop. We force ourselves to look to services-oriented business models. I remain confident this is the right business model for the industry. Linux is the forcing function that (means) the broader software industry will shift in business models away from licensing the bits and to services."

The most recently released version of Ubuntu, version 8.04 or Hardy Heron, was the last to have long-term support, which runs for five years on the server and three years on the desktop. Intrepid Ibex is an ordinary release, with 18 months' support.

Stephen Shankland writes about a wide range of technology and products, but has a particular focus on browsers and digital photography. He joined CNET News in 1998 and since then also has covered Google, Yahoo, servers, supercomputing, Linux and open-source software, and science. E-mail Stephen, or follow him on Twitter at http://www.twitter.com/stshank.
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by DeathsOverture October 27, 2008 1:00 PM PDT
"The most recently released version of Ubuntu, version 8.4 or Hardy Heron, was the last to..."

The LTS is actually Ubuntu 8.04...
Reply to this comment
by Shankland October 28, 2008 3:55 PM PDT
Thanks, you're right, we tweaked.
by jtjt145 October 27, 2008 2:46 PM PDT
I deerly hope that after making so much good software, there will be a profitable business model for Canonical. Keeping going Mark.
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by RompStar_420 October 27, 2008 2:47 PM PDT
Great, great!!! I love Ubuntu, I've used RedHat Fedora 9 and I like this a lot better!!!
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by mmntech October 27, 2008 2:51 PM PDT
I like Ubuntu 8.04. I just hope the issue I've been having with OpenGL 3D rendering and ATI cards gets fixed in 8.10. There's probably a fix out there for it but I'm too lazy to find it.

Linux really isn't a profitable enterprise. It's one of the main reasons (IMO) that it has not reached the level of consumer penetration that it has. Corporations that sell operating systems want to make money, but under license, they can't charge money for the Linux kernel itself. Nobody's interested in selling something they can't fully control or milk for everything it's worth.
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by yacahuma October 27, 2008 3:58 PM PDT
The only thing keep Ubuntu (and other linux distro) out of the desktop race is MS Office Suite. When anyone can open a Office document on any platform, that will be the day the next MS OS is no longer necessary.
I hope the best to Ubuntu. Great Software.
Reply to this comment
by J. Blow October 27, 2008 9:55 PM PDT
No, the only thing keeping it off the desktop is that 99% of all users don't know what it is nor do they care.
by joetesta70 October 27, 2008 10:56 PM PDT
That's right. All of these Limux distros do nothing for me as a consumer except limit my software choices.
by skillingssucks October 28, 2008 1:11 AM PDT
Well then *******, if you used Linux instead of Limux, then software choice wouldn't be a problem.
by eklectiqred October 27, 2008 5:36 PM PDT
Hmmm... <a href="http://www.openoffice.org/">OpenOffice.org</a> ??
Reply to this comment
by joetesta70 October 27, 2008 10:56 PM PDT
OpenOffice is like cheap ice cream. No flavor and makes you fat.
by eklectiqred October 28, 2008 6:47 AM PDT
Funny how I think the same thing of Office 07.
by sanenazok November 26, 2008 12:00 PM PST
make fun of Office 07 all you want, but oo looks at home in 1997 not 07
by doughoist1 October 27, 2008 7:12 PM PDT
Open Office is awesome. It can open every Microsoft doc I've ever thrown at it. It is really quit impressive and it is free!!!
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by TxTom21 October 27, 2008 8:28 PM PDT
I haven't tried OOo 3 on Linux yet, but on Mac and PC, it can open docx files as long as they're not too complex. If they've got some text boxes in the document, that can cause some pretty severe problems on the versions I've tried thus far. But I am SURE that that little issue will go away. OOo3 is a killer app and much faster than before.

I can't wait to tinker with this next Ubu release. (But I'm sure I'll remain a diehard Mac fiend.)
Reply to this comment
by bummerhan October 28, 2008 6:55 AM PDT
office suite software is one of the many software-availability
is Audacity as good as Cubase? GIMP as good as Photoshop?
then again, when is this a problem to Mac owners
people move from PC to Mac all the time, as all things are , takes time getting used to

i see the biggest stumbling block that linux faces is hardware support (which even MacOSX enjoys)
once hardware is well supported (embraced) by even the most obscure manufacturers,
adoption of Linux will be there and the software makers will start to make it available on Linux and not miss out on that sector

and Ubuntu is closer than anyone else
just look at the number of laptop and notebooks that have known ubuntu user groups
definitely the best and most 'thought through' of the linuces
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by JuggerNaut October 29, 2008 6:38 PM PDT
Ubuntu definitely sets the bar for Linux on the desktop and it's A LOT CHEAPER than Windows from start to finish!
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by dogStar1000 October 30, 2008 9:18 AM PDT
Its strong that some people think there is a relationship between the quality of a desktop OS and its server cousin.

You might want to deploy a simple LAMP stack on Ubuntu Server. But if you want to build a Samba or OpenLDAP service for a big enterprise, forget it.

Ubuntu Server is not suitable for complex enterprise networks. End of story.

Use Debian instead.
Reply to this comment
by someguy999 October 30, 2008 10:56 AM PDT
Its easy to provide a cheap solution when you don't innovate and you just rip off other people's innovation and designs... MS, Apple, ...

Look the the mail client and tell me it doesn't look like Outlook... really... If you don't think it does then you're seeing what you WANT to see.

No doubt it may be cool... but why is it cool... Is it cool because it works just like Windows?
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