What is a Distribution?
How Distributions came about:
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In order to have a complete OS, many programs must be created and interfaced
to each other. Linux is just the kernel.
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The kernel is the heart of an OS. It handles low level things such as memory
management, IO with external devices, process management, etc...
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Initially, people had to put all these pieces together themselves in order
to create a working OS.
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A distribution is a system which puts all the pieces together and usually
offers a complete and usable OS with applications.
What's the difference?
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Different distributions cater to different needs. Some are geared
towards the business enterprise. Some are geared towards specific
hardware. Some are regional or language oriented.
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Some examples:
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RedHat: most popular distribution
with well rounded features.
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Caldera: similar to RedHat
with but more commercial emphasis.
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Suse: popular in Europe, features KDE.
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Yellowdog: Mac
PPC & G3 based.
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TurboLinux: Japanese
and Chinese based.
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Debian: Largest not for profit distribution.
Some Links with more info on Distributions: