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 Channel Futures

Channel Programs


Can Linux Dance on Microsoft Windows SBS Grave?

  • Written by The VAR Guy 1
  • July 11, 2012

When Microsoft killed Windows Small Business Server (SBS) ahead of the Worldwide Partner Conference (WPC12), The VAR Guy wondered: Can Linux somehow invade the small business server market in a big way? After a week of thought, The VAR Guy seriously doubts it. Here’s why.

First, the good news for both Linux fans and Microsoft fans.

1. Microsoft killed SBS to address a market reality: The small business server market is shrinking. As Parallels CEO Birger Steen told The VAR Guy earlier this week… The best time for a small business to buy its next server is never.

The shift to the cloud is real, and Microsoft Office 365 and cloud related revenues are doubling annually. Plus, the new Office 365 Open campaign allows channel partners to manage end-customer billing for cloud services — a big win for partners who don’t want Microsoft to control end-customer engagements.

2. There is a Linux small business option: In addition to enterprise offerings like Red Hat Enterprise Linux and SUSE, there are some Linux distributions and bundles that focus on the small business market. Canonical and Zentyal focus on one such offering, involving the Ubuntu distribution.

Still, the writing is on the wall. Even as Zentyal’s small business server potentially gains momentum the overall small business server market is shrinking. Roughly two years ago, Red Hat CEO Jim Whitehurst said his company would focus on cloud computing rather than small business servers. The reason: Cloud services were the fastest way to engage small businesses, replacing server preloads as the preferred route to market.

Boy was Whitehurst right. And now, Microsoft has reconfirmed that point by halting future Windows SBS upgrades.

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs Channel Programs Data Centers Networking Strategy Technologies

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9 comments

  1. Avatar oiaohm July 12, 2012 @ 2:43 pm
    Reply

    Zentyal and releated don’t have to stop there target at just the small business market. Remember Zentyal already has virtualisation support.

    MS has in fact killed off two of there server line up.

    Samba 4 is when the problems really start. Samba 4 ADS without cal limits.

  2. Avatar dothebart July 12, 2012 @ 3:07 pm
    Reply

    A tiny history lesson:
    SBS was introduced to stop linux from invading the offices in big scales. Remember the Cobalt Cube? Remember similary targeted systems with webmin as frontend?

    Have a look at todays available NAS systems; do you know any of them _not_ running Linux? In combination with a cheap (linux running) DSL router they offer 90% of what SBS will bring you; if you use an offsite email system, you don’t need the other 10% plus the much more energy an ordinary PC system loaded with SBS will consume.

    Whether its the cloud dragging uses for such a business modell, or whether its the support intensiveness making it a non flying business model… who knows.

  3. Avatar Michael Proper July 13, 2012 @ 4:10 am
    Reply

    VAR Guy,

    Once again, you are correct! It’s not just all about the “Server” layer anymore. A combination of the Gateway, Network and Server layers will continue to gain traction. By intelligently combining a hybrid combination of services depending upon the clients needs and desire; a Hybrid Service Provider will be able to select Public Cloud (off-site) and/or on Private Cloud (on-site) type services. A hybrid combination are key to the future of IT.

    All of this said I personally seriously question if Microsoft will gain future adoption in the Gateway and Network layer where Linux (open source) rules… The new ClearOS Marketplace is a huge advancement for ClearCenter that has taken almost 2 years to rebuild from the ground up and we are seeing solid scaling and adoption with it.

    BOTTOM LINE: The shift to the cloud is real and will continue :), however I wouldn’t “seriously doubt” that the Gateway and Network layer is less important as the Server layer becomes optional. Remember the adoption of the cloud (Read: Gateway and Network layer umbilical cord) is not shrinking like the Server layer market is. One could imagine how Hybrid Services and Applications can be adopted if the value exchange, simplicity and maturity were all available via a tightly integrated Gateway, Network and Server offering that combined both Private Cloud (on-site) and Public Cloud (off-site) services and applications from many types of vendors.

  4. Avatar David Smith July 13, 2012 @ 3:51 pm
    Reply

    Microsoft is attempting to instigate a stampede of its dwindling customer base to its shiny new cloud — before they get rustled by red hat/oracle/amazon/google/cloud provider x.

    But let’s wait and see how that turns out, when the next massive cloud security breach / catastrophic data loss happens.

    And it will happen. Bet on it.

  5. Avatar Neticis July 14, 2012 @ 6:51 pm
    Reply

    There is great SMB server Bubba 3 look at excito.com

  6. Avatar Henrik Nielsen July 22, 2012 @ 10:04 am
    Reply

    Missing SBS will not be a bif problem for small businesses. I think MS will loose customers. Why choose office 365 when you have cheaper an good quality system domainbased Gmail or Exchange likesystems as Smartermail.My experience with office 365 when it comes to support, is that MS has nor yet got their own organization tuned for support. When we keep them in the cloud, we get rid of a lot of maintenance and problems about sxecuring backups, which MS has not handled very well in SBS. For fileserver you can choose windows foundation or choose among a lot of different solutions if you like. I think it is good that MS let us know already now so we can prepare ourselæves and our customers on the tech infrastructure strategy in the years to come.

  7. Avatar The VAR Guy July 23, 2012 @ 1:13 am
    Reply

    The VAR Guy is watching/reading all of the reader feedback closely. Stay tuned for follow-up reports on SBS alternatives…
    -TVG

  8. Avatar Tim January 23, 2013 @ 11:23 pm
    Reply

    In the UK, Igaware is one Linux SBS offering I’ve seen in a quite a number of companies. Igaware have been around since before the days of the Cube so must be doing something right. Users seem very loyal to it. One to check out.

  9. Avatar The VAR Guy January 24, 2013 @ 3:40 pm
    Reply

    Tim: The VAR Guy appreciates the tip on Igaware. He’ll check it out.
    -TVG

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