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> more wealth creation

Back in the 90’s, my sister asked what “Linux” was and I explained it to her as a free replacement for Windows (I know, I know, but that was the right description for her). She asked why it was free while Windows was expensive enough to make Bill Gates the richest man in the world. I told her that the guy who wrote it gave it away for free. She said, “wow, I’ll bet that guy feels really stupid now.”




If he had not given it away for free, today, nobody would even know what Linux is. It's all about network effects. He was severely disadvantaged because of a late start and no industry connections. There were plenty of competing commercial operating systems at that time. In fact, there were plenty of competing free operating systems too (e.g. MINIX).

Gaining user attention at a global scale is always extremely competitive, even if you give it all away for free.

Some people like Bill Gates got extremely lucky thanks to excellent social connections but others like Linus who were not so lucky had to go to extreme lengths to break through all the social and economic obstacles imposed on them by the incumbents.


Arguably the biggest impact on the early success of Microsoft was the rampant cloning of IBM PCs by third party manufacturers like Compaq, which generated competition that drove down prices and expanded the market for PCs. In that ecosystem, the cloned IBM spec was the "free" part that enabled the network effects.

Gates was smart enough, though, to negotiate a non-exclusive license with IBM.


> In fact, there were plenty of competing free operating systems too (e.g. MINIX).

I don't think there were many (any?) free UNIX or UNIX-like OSs at that time. MINIX wasn't albeit Tanenbaum wanted it accessible to as many students as possible so teh licence fee was relatively cheap compared to other UNIXes of the time. 386BSD (the precursor to FreeBSD and NetBSD) wasn't released until around a year after Linux albeit they started quite a bit before.

I guess there was lots of free OS's in the hobbyist sense but nothing that actually competed with MINIX.


To be honest, most commercial Unix offerings at that time were really bad and/or really expensive.

Furthermore, his version worked on modern hardware


If he had not given it away for free, nobody today would know who Linus Torvalds is, most likely.


I really don’t think you could conflate Gates’ success with luck...


- Born in the US and lived in Seattle; a major tech hub at the time.

- Father was a wealthy attorney.

- Mother worked for IBM.

- His first OS demo for IBM worked the first time even though they had only tested it on an emulator before. This is extremely unusual; there are a lot of factors which can make the emulator behave differently from the real thing.

- IBM did not see the value in software and did not ask for exclusivity (they could easily have demanded it).

Sure he is a very smart guy, but mostly he is a ridiculously lucky guy.


Hah. Torvalds is a millionaire and, since he is Finnish, he probably feels at least as rich as Bill Gates.


He actually did okay financially because both RedHat and VALinux gifted him shares during the dot-com bubble. Not "richest man in the world" rich, but "enough to be financially comfortable and not have to work" rich.


I think the bragging rights of having at least half the internet running on top of his software would count for quite a bit too. There are very few people on this planet who can boast that level of influence.


Not to mention, something like 90% of handsets, tablets, tv set boxes, ebook readers, etc. Almost everything not iOS is based on Linux (Android, Tizen, KaOS, Tivo, Roku, ChromeOS, Amazon's fire stuff, etc)


I've had almost the exact same experience with some of my friends, when they asked about Linux.


I've always thought that open source developers devalue their work by giving it away for free.


isn't Linus making a low 8-figure income from a pretty much more relaxing job than being a billions-dollars worldwide company CEO.




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