IBM splashes out on Linux

Big Blue spends $200m on hardware and software consultants.

IBM is ramping up its Linux operations in Europe in a bid to convince more corporates and software vendors to switch to the free OS. The company is investing more than $200m (£132m) over the next four years.

The money will be used to create Linux development centres, deploy 600 specialised hardware and software consultants, as well as building alliances with other Linux-focused companies.

Analyst at Bloor Research, Mat Hanrahan, said IBM's emphasis wasn't really needed as Linux had been seen as a serious business OS for some time.

Hanrahan said: "For businesses it has all the advantages of the open source model. It has good server compatibility, its scalable, free and problems such as security issues are fixed quickly because of the amount of developers working with it."

However,Mike Lawrie, general manager at IBM for EMEA, said that Big Blue wanted to sieve the open source initiative: "There is a demand for Linux-ready applications that can meet the workload of today's ebusiness environment.

With these centres and investments, IBM will dramatically speed up this process and start getting Linux applications on Linux-ready servers into the marketplace aggressively during the second half of 2000."

Steve Broadhead at network tester and analyst NSS, said the move is a reaction to the lower profits that are available to kit manufacturers.

"There are decreasing margins out there for all the equipment vendors and companies have realised that they need to get into the software and services side to boost profits," he said.

IBM is currently working with Intel to ensure that emerging Linux applications are applicable across the industry, and is also working on other developments with SuSE Linux AG.

IBM will provide software and server IT specialists and Linux-ready servers, storage systems and middleware - including Websphere, Lotus, Domino and DB2.