IBM to Invest At Least $1 Billion on Linux-Related Products
After strongly supporting the development of Linux, back in 2000, at a time when the future of the Unix flavored operation system was uncertain, IBM (NYSE: IBM) announced again on the occasion of 2013 LinuxCon, its commitment to stand behind the open source software, according to The Wall Street Journal.
The Linux Conference (LinuxCon) is held this year at Hyatt New Orleans, from September 16 till September 18.
Although not realized by many, the Linux OS is the platform sustaining the expansion of Android in retail markets of tablets, smartphones, newly launched Android cameras, and wearable devices, as smart-watches and bracelets.
Essentially, a Linux software of some sort tends to be used on any electronic unit that works with a processor, as chipmakers build their products in order to take full advantage of the near-zero cost of the operating system.
As regards business environments, Linux rules on data centers and cloud implementations, while IT staff is familiar supporting the system. Thus, they would not mind having more Linux instead of other systems, say the statistics.
Today, Linux is one of the main competitors of Windows Server, but at a considerable distance. According to IDC, the market for Linux servers accounts to 23 percent of the total implementations, while Windows Server dominates business installations by almost 1 to 2.
In this view, IBM decided to secure a rough budget of $1 billion for a period of four to five years investing in the development of technology closely associated with Linux. Earlier, in May 2012, the company introduced a new range of rack-mounted machines that support Linux, while the line was enriched with the launching of new models during last year.
IBM builds the “Power” brand processors, a proprietary technology. The chips are installed on units bearing the same name and marketed as “Power Servers”. With this move, further supporting Linux, IBM seeks to boost sales of Power machines and secure share on the multibillion market of the “business environment."
Meantime, the news was welcomed by Zim Zemlin, executive director of Linux Foundation, a non-profit body which helps the development of the platform.
According to information made public to the WSJ, the money will be used to create a “cloud” architecture built on IBM Power servers, running Linux. Potential customers would have the opportunity to test the system-integration for free.
In addition, a part of the capital will be spent on the facilities and staff of the division to promote the use of Linux, among customers of Power equipped hardware. The company will set up for this purpose a new center in Montpellier, France.
However, we may have to wait till tomorrow, or later, in order to know specific details, especially if the tech giant plans to spend this huge amount internally of financing third-party projects, on software, hardware or a combination of the two, and in what ratio, as IBM declined to disclose further information on the investment, before saying more during the LinuxCon event.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.