What was the primary reason for E*Trade's adoption of Linux?

Study for the Information Technology Applications 203C (ITA203C) FE Test. Utilize flashcards and multiple-choice questions, each with hints and explanations. Prepare effectively for your exam!

The primary reason for ETrade's adoption of Linux was cost. Linux is an open-source operating system, which significantly reduces licensing fees compared to proprietary systems. This cost-effectiveness makes it an attractive choice for companies looking to minimize their infrastructure spending while still maintaining robust performance. By utilizing Linux, ETrade could allocate resources more efficiently, enabling investments in other critical areas of their technology and service offerings.

While other factors such as reliability, ease-of-use, and integration capabilities are important considerations in technology adoption, the financial savings associated with using Linux played a pivotal role in ETrade's decision-making process. This strategic choice allowed them to better compete in the financial services sector, where operational costs are a crucial factor in profitability. Additionally, the reliability of Linux would complement ETrade's needs for a stable and consistent operating environment, but it was the initial cost savings that primarily drove their choice.

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