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Why IBM Likes Linux

Techstination feature for Friday, February 7, 2003

Why IBM likes Linux. Bloomberg Boot Camp, a report on today's technology. Times are changing for a little computer operating system called Linux. Most consumers don't know a whole lot about the open source competitor to Windows... but more and more big businesses do. IBM now has 46 hundred customers buying Linux servers, software or services. VP John Sarsgard...

"What we're now seeing is that most large organizations that are making technology choices are now considering Linux to be one of their primary choices. Is it for real? Is it reliable? Is it scalable? Does it work? Will it persist and be here and will it be supported? Those questions have been pretty much answered now on the part of most of the decision makers."

While Microsoft argues that Linux systems don't save businesses money in the long run, the IBM VP disagrees. It now has more than 11 hundred Linux servers in its own operations. Is it a threat to Microsoft in the desktop PC market? Not to the same extent that it is on servers, but IBM thinks some businesses will convert desktop machines. As for the future...

"It's growing as rapidly as the most rapidly growing parts of our business. It's moving very fast. We believe that it will move even more rapidly as the economy begins to improve."

Last year, IBM says it earned more than one and a half billion dollars in Linux revenue. Bloomberg Boot Camp, I'm Fred Fishkin.