Free for All by Peter Wayner (great books to read .txt) 📖
- Author: Peter Wayner
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Several companies are already making PCs with Linux software installed at the factory. While they could simply download the software from the Net themselves and create their own package, several have chosen to bundle Red Hat's version with their machines. Sam Ockman, the president of Penguin Computing, runs one of those companies.
Ockman is a recent Stanford graduate in his early twenties and a strong devotee of the Linux and GPL world. He says he started his company to prove that Linux could deliver solid, dependable servers that could compete with the best that Sun and Microsoft have to offer.
Ockman has mixed feelings about life at Stanford. While he fondly remembers the "golf course-like campus," he says the classes were too easy. He graduated with two majors despite spending plenty of time playing around with the Linux kernel. He says that the computer science department's hobbled curriculum drove him to Linux. "Their whole CS community is using a stupid compiler for C on the Macintosh," he says."Why don't they start you off on Linux? By the time you get to [course] 248, you could hack on the Linux kernel or your own replacement kernel. It's just a tragedy that you're sitting there writing virtual kernels on a Sun system that you're not allowed to reboot."
In essence, the computer science department was keeping their kids penned up in the shallow end of the pool instead of taking them out into the ocean. Ockman found the ocean on his own time and started writing GPL-protected code and contributing to the political emergence of free software.
When Ockman had to choose a version of Linux for his Penguin computers, he chose Red Hat. Bob Young's company made the sale because it was playing by the rules of the game and giving software back with a GPL. Ockman says, "We actually buy the box set for every single one. Partially because the customers like to get the books, but also to support Red Hat. That's also why we picked Red Hat. They're the most free of all of the distributions."
Debian, Ockman concedes, is also very free and politically interesting, but says that his company is too small to support multiple distributions. "We only do Red Hat. That was a very strategic decision on our part. All of the distributions are pretty much the same, but there are slight differences in this and that. We could have a twelve-person Debian group, but it would just be a nightmare for us to support all of these different versions of Linux."
Of course, Penguin Computing could have just bought one Red Hat CD-ROM and installed their software on all of the machines going out the door. That would have let them cut their costs by about $50. The GPL lets anyone install the software as often as they wish. But this wouldn't be pure savings because Ockman is also offloading some of his own work when he bundles a Red Hat package with his computers. He adds, "Technically the box set I include allows customers to call Red Hat, but no one ever does, nor do we expect them or want them to call anyone but us." In essence, his company is adding some extra support with the Red Hat box.
The support is an important add-on that Young is selling, but he realized long ago that much more was on sale. Red Hat was selling an image, the sense of belonging, and the indeterminant essence of cool. Soda manufacturers realized that anyone could put sugar and water in a bottle, but only the best could rise above the humdrum nature of life by employing the best artists in the land to give their sugar water the right hip feeling. So Young invested in image. His T-shirts and packages have always been some of the most graphically sophisticated on the market. While some folks would get girlfriends or neighbors to draw the images that covered their books and CDs, Red Hat used a talented team to develop their packaging.
Young jokes about this. He said he was at a trade show talking to a small software company that was trying to give him one of their free promotional T-shirts. He said, "Why don't you try giving away the source code and selling the T-shirts?"
At the LinuxExpo, Red Hat was selling T-shirts, too. One slick number retailing for $19 just said "The Revolution of Choice" in Red Hat's signature old typewriter font. Others for sale at the company's site routinely run for $15 or more. They sucked me in. When I ordered my first Red Hat disk from them, I bought an extra T-shirt to go with the mix.
The technology folks at Red Hat may be working with some cuttingedge software that makes the software easy to install, but the marketing group was stealing its plays from Nike, Pepsi, and Disney. They weren't selling running shoes, sugar water, or a ride on a roller coaster--they were selling an experience. Red Hat wasn't repackaging some hacker's science project from the Net, it was offering folks a ticket to a revolution. If the old 1960s radicals had realized this, they might have been able to fund their movement without borrowing money from their square parents. Selling enough groovy, tie-died T-shirts would have been enough.[^13]
[13]: Apple is an old hand at the T-shirt game, and internal projects create T-shirts to celebrate milestones in development. These images were collected in a book, which may be as good a technical history of Apple as might exist. Many projects, including ones that failed, are part of the record.
Many of the other groups are part of the game. The OpenBSD project sold out of their very fashionable T-shirts with wireframe versions of its little daemon logo soon after the beginning of the LinuxExpo. They continue to sell more T-shirts from their website. Users can also buy CD-ROMs from OpenBSD.
Several attendees wear yellow copyleft shirts that hold an upsidedown copyright logo [ c_Copyleft.png ] arranged so the open side points to the left.
The most expensive T-shirt at the show came with a logo that imitated one of the early marketing images of the first Star Wars movie. The shirt showed Torvalds and Stallman instead of Han Solo and Luke Skywalker under a banner headline of "OS Wars." The shirt cost only $100, but "came with free admission to the upcoming Linux convention in Atlanta."
The corporate suits, of course, have adjusted as best they can. The IBM folks at the show wore identical khaki outfits with nicely cut and relatively expensive polo shirts with IBM logos. A regular suit would probably stick out less than the crisp, clean attempt to split the difference between casual cool and button-down business droid.
Of course, the T-shirts weren't just about pretty packaging and slick images. The shirts also conveyed some information about someone's political affiliations in the community and showed something about the person's technical tastes. Sure, someone could wear an OpenBSD shirt because they liked the cute little daemon logo, but also because they wanted to show that they cared about security. The OpenBSD project began because some users wanted to build a version of UNIX that was much more secure. The group prides itself on fixing bugs early and well. Wearing an OpenBSD shirt proclaims a certain alliance with this team's commitment to security. After all, some of the profits from the shirts went to pay for the development of the software. Wearing the right T-shirt meant choosing an alliance. It meant joining a tribe.
Young is keenly aware that much of his target market is 13-year-old boys who are flexing their minds and independence for the first time. The same images of rebellion that brought James Dean his stardom are painted on the T-shirts. Some wear shirts proclaiming TOTAL WORLD DOMINATION SOON. Raging against Microsoft is a clich that is avoided as much as it is still used. The shirts are a mixture of parody, bluster, wit, and confidence. Of course, they're usually black. Everyone wears black.
Ockman looks at this market competition for T-shirts and sees a genius. He says, "I think Bob Young's absolutely brilliant. Suddenly he realized that there's no future in releasing mainframes. He made a jump after finding college kids in Carolina [using Linux]. For him to make that jump is just amazing. He's a marketing guy. He sat down and figured it out.
"Every time I hear him talk," Ockman says about Young, "he tells a different story about ketchup. If you take people who've never had ketchup before in their life and you blindly feed them ketchup, they have no taste for ketchup. They don't like it." If you feed them ketchup over time, they begin to demand it on their hamburgers.
"No one who's never had Coca-Cola before would like it," Ockman continues. "These things are purely a branding issue. It has to be branded for cool in order for people to sit down and learn everything they have to know."
In essence, Young looked around and saw that a bunch of scruffy kids were creating an OS that was just as good, if not better, than the major OSs costing major sums of money. This OS was, best of all, free for all comers. The OS had a problem, though. The scruffy kids never marketed their software. The deeply intelligent, free-thinking hackers picked up on how cool it was, but the rest of society couldn't make the jump. The scruffy kids didn't bother to try to market it to the rest of society. They were artists.
Most people who looked at such a situation would have concluded that this strange clan of techno-outsiders was doomed to inhabit the periphery of society forever. There was no marketing of the product because there was no money in the budget and there would never be money in the budget because the software was free. Young recognized that you could still market the software without owning it. You could still slap on a veneer of cool without writing the code yourself. Sugar water costs practically nothing, too.
Young's plan to brand the OS with a veneer of cool produced more success than anyone could imagine. Red Hat is by far the market leader in providing Linux to the masses, despite the fact that many can and do "steal" a low-cost version. Of course, "steal" isn't the right word, because Red Hat did the same thing. "Borrow" isn't right, "grab" is a bit casual, and "join in everlasting communion with the great free software continuum" is just too enthusiastic to be cool.
In August 1999, Red Hat completed an initial public offering of the shares of its stock, the common benchmark for success in the cash-driven world of Silicon Valley. Many of the principals at Red Hat got rich when the stock opened at $14 a share on August 11 and closed the day at $52. Bob Young, the CEO of Red Hat, started the day with a bit more than 9 million shares or 15 percent of the company. Technically, not all of this was his because he had distributed some (3,222,746 shares, to be exact) to his wife, Nancy, and put some more (1,418,160) in
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