Linux was the fastest growing operating system in the point-of-sale (POS) terminal market in 2003, according to a study by IHL Consulting Group. However, Linux's market share is still quite small, and adoption has slowed since Microsoft released Windows XP Embedded (XPe) launched on Nov. 28, 2001, IHL says.

The number of POS terminals running Linux increased 35% in 2003, according to the IHL study, with Windows 2000/XPe close behind at 27% growth. However, Linux's installed base is about a tenth that of Windows 2000/XPe, IHL says.

IHL analyst Greg Buzuk says, “We expect to see strong growth of Linux for several years, but this is not necessarily good news for POS vendors. The retailers most likely to use Linux for the future are those retailers that currently run DOS on their POS systems and want to continue to keep their same hardware going forward.”

Buzek adds that favorable licensing options from Microsoft and a more secure environment than in the past have helped Windows 2000 (W2K) and XPe compete with Linux. “The ongoing SCO lawsuits and FUD (Fear, Uncertainty and Doubt) that has created surrounding Linux has not helped much either,” he adds.

AutoZone, a chain of auto parts stores that uses Linux POS terminals, was one of two companies sued by SCO in its first round of lawsuits against Linux users in early March, 2003.

Additional findings from IHL's study, “2004 North American Retail Point-of-Sale Terminals,” include:

• Linux interest is highest among Supermarkets and Specialty Hard Goods Retailers
• Linux interest is also highest among retailer's that currently use IBM POS terminals running the IBM 4690 today

The IHL study covers point of sale terminals shipments, installed base, and key trends in the United States and Canada, with insights into industries using POS, such as food/supermarket, drug stores, superstores and warehouse clubs, department stores, category killers, specialty stores, mass merchandisers, convenience stores, table service restaurants, and quick service restaurants. A free synopsis of the study can be downloaded from IHL, an analyst firm and consultancy that serves retailers and retail technology vendors.

 
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