Linux growing fast in POS, Microsoft still tops

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Feb. 22, 2008

In the North American market for POS (point of sales/service) terminals, Linux grew 32 percent year-over-year, according to figures released by IHL Group. The research firm reckons Linux accounted for $475 million of the $5.56 billion market, putting it third overall with an 8.5 percent market share.

The revenue figures take into consideration both new device shipments during 2007, as well as maintenance costs on existing terminals installed in the U.S. and Canada, the research firm said.

Microsoft dominated the market, accounting for $3.8 billion, or 68.3 percent of sales. The installed base of Windows-based machines rose by some 400,000 units during the year, according to IHL figures.

Trailing Microsoft in a distant second place were IBM's 4690 terminals, which reportedly accounted for $1.02 billion or 18.3 percent. DOS and other OSes accounted for the remaining 4.9 percent of the market.

The study also found the following trends, which began in 2006 and are expected to continue through 2008:

Department stores showed negative growth
Specialty stores, quick service/fast food restaurants and "supercenters" provided the greatest growth
LCDs and touchscreens are replacing aging hardware in grocery stores

Greg Buzek, president of IHL, said, "Upgrades to POS technologies continue to drive store renovation, and serve as the primary customer-facing device in retail. These new industry-standard installations open the door for retailers to add more advanced functionalities such as CRM loyalty systems, cross-channel integration (merging the website with the store for a single view of the customer) and better inventory visibility for associates at the point of customer interaction."

Availability

IHL's study, "2008 North American Retail POS Terminal Study" is available immediately. It reportedly includes "market shipment and installed base figures, market value, situation analysis for 10 retail market segments, overall trends affecting the POS market, and forecasts through 2012." Details may be found here.

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