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I just have set my timezone on my ubuntu server like this:

dpkg-reconfigure tzdata

Through a GUI I selected then Europe and London.

Then it said:

Current default time zone: 'Europe/London'
Local time is now:      Fri Aug 17 19:28:50 BST 2012.
Universal Time is now:  Fri Aug 17 18:28:50 UTC 2012.

I always thought since London time is Greenwich time, the universal time should be the same as local time, isn't that right?

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BST = British Summer Time = UTC/GMT + 1 hour

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For a server, the best is to use UTC as timezone. This timezone is "easy" to predict. There are no transitions between normal time and summer time (time jumps). You can easily substract timestamps to get the interval length (except for the "unpredictable" leap seconds).

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