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Canonical, the brainchild of entrepreneur and venture capitalist Mark Shuttleworth, is responsible for Ubuntu's development, which has experienced a meteoric rise in interest since introduction four years ago. Shuttleworth is best known for selling his first startup Thawte to VeriSign Inc. (NASDAQ:VRSN) for $575 million in 1999 and then spending $20 million of his profits on a trip to the International Space Station via a Russian Soyuz spaceship. Now he reportedly spends $10 million a year on Canonical, which has sought to create a user-friendly operating system intended for the masses who (in theory) are fed up with the hassles of Microsoft Corp.'s (NASDAQ:MSFT) Windows, but don't want to pay the premium for Apple Inc.'s (NASDAQ:AAPL) Mac OS X. Google's Chrome OS is going after the same users. On this topic PC World recently wrote: This is perhaps the most interesting suggestion here. The only people who were probably tight-lipped at the announcement of Chrome OS yesterday were Canonical, the guys behind Ubuntu. Chrome OS could destroy Ubuntu, or at the very least kill dead its plans for world domination. ... But Ubuntu was always aimed at the common man, and Canonical has been extremely successful at promoting this message. Chrome OS has the potential to make Ubuntu entirely redundant. Some people will stick with it, of course, but Chrome OS is aimed at exactly the same type of general user as Ubuntu. The two will compete, and Chrome OS will win because Google has virtually infinite resources and brainpower compared to Canonical. PC World may be overstating the circumstances, given the fact that Chrome OS isn't meant (for the time being) to be a full-fledged desktop operating system, such as Ubuntu or Windows. However, should it grow to incorporate such features, then Google's infinite resources compared to Canonical's is a key issue for Ubuntu's future. Google's hefty size could allow it to muscle in with computer manufacturers in a way that Canonical could never match -- meaning more computers could have a Chrome OS option than an Ubuntu one. To get a better understanding of this circumstance, head over to any Best Buy Co. (NYSE:BBY) store and take a peak at what's preinstalled on most computer desktops. While just about everything sports a version of Windows, dig a little deeper and you likely will find some Google application preinstalled waiting for the buyer. While the Best Buy line up isn't likely to change overnight, more manufacturers may offer (most likely by way of direct sales) a Chrome OS option than an Ubuntu one. In fact, of mainstream computer brands, Dell Inc. (NASDAQ:DELL) is one of the few that offers Ubuntu to customers as an alternative to Windows, but that option is only available via Dell's direct sales and not at retail. Granted, Canonical doesn't make money from software sales. Its estimated $30 million in revenue (divulged in a New York Times story in January) is primarily from offering support to Ubuntu users -- usually the large-scale deployments at companies, universities and governments. In a bit of irony, one of Ubuntu's leading corporate users is Google, which runs a version affectionately called Goobuntu. And now, Google is threatening to steal Ubuntu users -- especially home and academic users. In the long run, Google may make Shuttleworth's investments in Canonical a waste. - Matthew Wurtzel
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From: Alex Birch,
Chrome OS is targeted at Netbooks, not for laptops etc. For example, unless you have a wireless connection on your laptop, Chrome OS would be worthless, whereas Ubuntu would still offer a lot of functionality. Personally I use Ubuntu with VirtualBox to run windows for my windows programming. Again Chrome OS isn't designed for that. What about editing video, mixing music, etc... again not really for it's just designed for the web. My webserver that hosts lifesabirch.org and soltima.com both run, you guessed it Ubuntu server. Ubuntu will benefit because once Microsoft loses its stranglehold on the retail stores, Ubuntu can only benefit. Just as Firefox benefits as Safari gains marketshare.
Posted on:
July 10, 2009 2:29 PM
From: Pravin Asir,
I feel that its not easy to predict the effects in Ubuntu's status because of Google Chrome. Ubuntu is going well and its loved by many of the users. Particularly it is considered as a good operating system for the beginners of LINUX. Ubuntu is a good starting point for LINUX freshers because of its support from the forums.
Posted on:
July 10, 2009 3:45 PM
From: Manfred Rusterholz,
They will coexist and they both have enough money to go on and they will share code. You don't seem to get the Linux story. It's about big players teaming up.
Posted on:
July 10, 2009 4:09 PM
From: Matthew Wurtzel
 ,
Thanks for your feedback. I share some of your skepticism about Chrome's eventual impact on Ubuntu. In the short term, Chrome will have little impact on most Ubuntu versions with the exception being the Netbook Remix. The big "if" is whether Chrome eventually will receive additional features that make it more like a full-fledged desktop OS. Should it receive those features, then Ubuntu is the likely victim long before Windows or even OS X. Lucky for Canonical, however, Google has a spotty track record when challenging the establishment. Android has been out for over a year now, and it hasn't dented smart phone leaders iPhone or Blackberry. And as an aside, Pravin is certainly write about Ubuntu being a good entry point for Linux beginners. I've personally dabbled with it through the years, and I found it to be an intriguing alternative to Windows. However, because I share my computers with people less technically savvy then myself, I usually never replace Windows on any of my computers. Matthew Wurtzel
Posted on:
July 10, 2009 4:13 PM
From: Larry Martin,
Your're Right. Google w/its massive "Economies of Scale" will have the advantage. However, don't under estimate Canonical's ability to continue. Ubuntu has definitely developed a massive, loyal following worldwide. Each version of Ubuntu is getting better and more user-friendly. Canonical will probably have two (2) more versions out by the time Google Chrome O/S comes out. Finally, don't be surprised if Google buys out Canonical. Mark Shuttleworth would probably only agree to a buyout if Google agrees to keep each version of Ubuntu free. Google & Canonical could easily merge or morph Chrome & Ubuntu into a public version of Goobuntu.
Posted on:
July 11, 2009 1:30 PM
From: Charles Norrie ,
Marky Goldstein is right. Unless Google is going to try to undermine the GPL, it will have to publish source in the usual way and the community benefits. Moreover Google's power will ensure that hardware makers who do not release 'free' (as proprietary) driver blobs will do so. The effect of getting so many new Linux users through the Chrome OS, is going to be so great there will be only one major loser M$. Chrome will probably not want to offer the wealth of packages in Debian or Ubuntu, so people wanting serious computing will continue to install Ubuntu. Perhaps it will encourage Canonical to improve its package libraries and online support. Too often needing a bit of improvement, I download a package. I can find out what is does, but is there any help in working out that (a) is better then (b). No. Id like to see features list in a synaptic or a parallel synaptic, to help me choose my software bundles. I'd also like to see the tips and tricks that work from the user forums collected, analyzed and consolidated so that when I put the text of error into the search box I am directed to one working answer in the compendium of solutions rather than as at the moment half a dozen entries, some incomplete and none guaranteed to work.
Posted on:
July 13, 2009 1:02 AM
From: Jef Spaleta,
Two points: 1) Can you cite a reference for the $10 million a year Shuttleworth is reported spending on Canonical? Either cite a reference or retract the statement. The only 10 million I am aware of is the initial 10 million set aside in the Ubuntu Foundation trust fund in case Canonical fails as a business. Reference: 2) You've misstated the content of the NYT article. Shuttleworth is not quoted as saying Canonical has 30 million in revenue. Shuttleworth is quoted as saying 30 million in annual revenue is what Canonical needs to sustain core Ubuntu development. Shuttleworth is not quoted as stating an actual revenue number. The exact quote about revenue is this: "All told, Canonical’s annual revenue is creeping toward $30 million, Mr. Shuttleworth said." The phrase 'creeping towards' does not on its face imply that Canonical is close to 30 million. This statement would be equally true if Canonical had a revenue of 2 million as it would be if they had a revenue of 20 million..as long as the revenue saw small growth. No where does Shuttleworth state explicitly that they are close to 30 million. He only says that 30 million is the magic number that needs to be reached: "But Mr. Shuttleworth contends that $30 million a year is self-sustaining revenue, just what he needs to finance regular Ubuntu updates." That doesn't include the cost of developing new software or services like UbuntuOne or the port of Ubuntu to ARM based devices.
Posted on:
July 13, 2009 4:31 PM
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Look out Canonical Ltd., publishers of Ubuntu Linux, because Google Inc.'s (NASDAQ:GOOG) Chrome OS project, 
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Very wrong idea. All will benefit: Ubuntu, Red Hat, Nokia, IBM, Novell, Google, etc. Linux is about the Alliance for the World (didn't you hear this song We are the World at Micheal Jackson's celebration this week?). We work together. We are humans.