IBM, the most traditional of technology companies, is betting that the decidedly non-traditional Linux software system can give it an edge in the market for computers that carry out the most mainstream and strenuous business workloads.
"Linux is ready for real business." IBM President and chief operating officer Sam Palmisano said during a speech at LinuxWorld Expo here
The world`s largest computer maker has embraced the alternative operating system, which was developed by legions of programmers in a grass-roots movement, as part of a long-term strategy to turn the tables on its rival Sun Microsystems.
"We believe in the first-mover advantage," Palmisano told Reuters on Wednesday. "It has been proven in our industry that you get ahead of the trends and not behind them."
"You can view IBM as a reformed alcoholic here," he added, referring to IBM having been behind on a distributed, networked computing model known as client-server that undercut the centralised computing of mainframe computers.
"We were behind on client-server, we are not behind on the Internet, we are not behind on Linux," Palmisano said.
Sun now has a stronghold in the market for high-performance server computers, in part because IBM was late to the game. Many customers also prefer Sun`s version of the Unix operating system, Solaris, over the IBM version of Unix, analysts said.
"IBM`s efforts at driving Linux across all its platforms, including the mainframe, are aimed at taking away some of the attention Sun Solaris, for instance, has with developers and (independent software vendors)," Bear Stearns analyst Andrew Neff said.
Merrill Lynch analyst Thomas Kraemer said he views IBM`s Linux push as part of a series of actions by the company, including renaming all of its servers and mainframes "eServers" and a push for its software that connects disparate systems.
"We view the rebranding of the IBM server line, coupled with a mammoth endorsement of Linux and a renewed middleware emphasis as an attempt by IBM to solve its server operating system problem," Kraemer wrote in a note to clients.
Irving Wladawsky-Berger, who heads up IBM`s Linux efforts, told reporters this week that IBM expects to package distributed computer systems known as superclusters preloaded with Linux software and tested for Internet service providers.
Big Blue last year set aside $1 billion to help develop Linux to handle industrial-strength business tasks, and has developed everything from a Linux supercomputer to the Linux wristwatch in its own labs.
Palmisano said IBM will set aside $300 million of that $1 billion for services to help customers determine how to deploy the operating system. Linux software creator Linus Torvalds, told Reuters that such investment could only help the development of Linux.
"IBM is big, it has a brand, and it has a lot of money," the Linux guru said while milling through a crowd of adoring programmers asking for autographs or a business card at the expo. "It is a piece of the puzzle."
Palmisano stressed how Linux has gained entry into some highly conservative, and secure industries.
The investment banking arm of Germany`s Dresdner Bank, for example, said it plans to announce a new software system based in part on Linux to in an effort to simplify and speed how corporate clients move money within and among banks.
But whether IBM`s backing of Linux will generate sales in any time soon remains to be seen.
"IBM`s vision is that Linux is going to be the glue that ties all of the servers together into one e-business system," said Wit Soundview analyst Gary Helmig, pointing out that IBM has enabled everything from its high-end Unix servers and mainframes to run Linux.
But, so far at least, analysts said that they do not expect corporations to run Linux on those powerful systems for their most critical computing tasks.
"We would not expect Linux ... to provide IBM with a resolution to its operating system dilemma in the short term," Kraemer said.
"Our survey work finds not more than 1% of budgets for Linux for those types of platforms," Helmig said. "But our survey work suggests that any acceptance will be on Intel-based platforms. The Sam Palmisano dream could evolve but it will not be instantaneous."
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