Linux is Poised for a Breakout Year At the Checkout in 2001 According to IHL Consulting Group

Business Wire, Feb 28, 2001

Business Editors

MIAMI--(BUSINESS WIRE)--Feb. 28, 2001

After two years of hype, 2001 should be the year that Linux really breaks out as a significant player in the retail point-of-sale (POS) market according to a new study released from IHL Consulting Group.

"In 2000, Linux shipments for point-of-sale amounted to about 2% of total shipshare," says Greg Buzek, President of IHL Consulting Group. "But with giants such as Home Depot (NYSE:HD) and Musicland (NYSE:BBY) already planning to roll out Linux on some 25,000 terminals just between them in 2001, we can expect Linux shipments to rise some 300-400% this year."

According to the study, the segments most likely to adopt a Linux approach to POS are large department stores and specialty hard goods retailers. These retailers tend to have a large number of POS terminals and an IT staff large enough to handle the development of their own POS system.

"Department Stores in particular are hurting," added Buzek. "They need to update their antiquated POS systems to take advantage of cross channel selling but in a way that perhaps does not require them to replace all of their currently installed hardware. Using Linux is one of the options that they are looking at as well as re-utilizing the terminals as thin-clients."

"Other segments are more likely to remain with DOS, Windows 9x/ME/CE, Windows NT/2000 or IBM's 4690 Operating System because it is less expensive for them to pay the license fee than to develop their own POS system," added Buzek.

IHL's "2001 North American Retail POS Market Study" reviews the shipments and installed base of POS terminals sold into retailers in North America. It includes market shipment and installed base figures, a situation analysis for 10 retail market segments, overall trends affecting the POS market, and forecasts through 2005. This is the first of a series of studies prepared by IHL Consulting Group in marketing relationship with The Association of Retail Technology Standards (ARTS).

For further information or to purchase this study, please visit the company website at www.ihlservices.com.

ABOUT ARTS

The Association for Retail Technology Standards (ARTS) of the National Retail Federation is a retailer-driven membership organization dedicated to creating an international, barrier-free technology environment for retailers. ARTS was established in 1993 to ensure that technology works to enhance a retailer's ability to develop store level business solutions and avoid situations that limit a retailers' ability to implement change while providing industry standards designed to provide greater value at lower costs. www.nrf-arts.org

ABOUT IHL CONSULTING GROUP

IHL Consulting Group is an independent business-consulting firm headquartered in Boynton Beach, Florida that provides market analysis and business consulting services for information technology companies that focus on the retail industry.

For more information, visit the company's web site at http://www.ihlservices.com.