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While traditional indications of the Linux installed base relies heavily on shipments of new hardware running Linux, in this study, IDC has included installations on existing hardware and cases where the OS is installed alongside other platforms.

It found that in many instances the number of software licences

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sold is actually higher than the figure for hardware shipments because of this. Indeed some Linux servers aren't running on server hardware at all.

This new recognition transforms previous market indications for the installed base of Linux-based platforms. When added to existing IDC forecasts for installed base of new servers shipped with Linux as a primary OS, the installed base of servers leaps 41 per cent higher for 2003, 37 per cent for 2004 and remains 26 per cent higher at the end of the forecast period in 2008.

At that point, revenues from the Linux market - including hardware and software - are estimated to total $35.7bn. However, the strongest revenue driver in the Linux market will not come from the operating systems, but further up the stack in the form of applications and other software packages. This will grow 44 per cent each year, and by 2008 will be worth some $14bn.