Shift To Open-Source Software Ups Ante For Microsoft, Oracle; For established leaders, Linux, similar products pose increasing threat.(A)

Byline: BRIAN DEAGON

Facing strong competition in online travel reservations, Sabre Holdings Corp. decided to overhaul its technology -- allocating $100 million on a risky, new approach.

Sabre replaced its mainframes with low-end servers and open-source software. Sabre, which expects sales of some $2 billion this year, was one of the first big companies to move to open source. But others are doing likewise, a trend that's reverberating through the tech industry.

"Businesses that don't get on this bandwagon will be left behind," said Craig Murphy, Sabre's chief technology officer. "I'm talking about a profound change in information technology. It's pioneering stuff. It's disruptive technology."

Open-source software, led by the Linux operating system, is moving from the back room to the showroom. Analysts are coming out and saying what many had only dared whisper: Linux and open source will disrupt the world's two largest software companies, Microsoft Corp. and Oracle Corp.

Gets China's Support

"I bet that hundreds of entrepreneurs are hard at work trying to create the next killer application -- and are using open-source software …