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Asia's Growing Appetite for Open-Source Computing Fuels IBM's Linux-on-Power Ambitions

Strategic Insights

— 2 min read

As IBM pushes to migrate enterprises from Windows-on-Intel to Linux-on-Power servers, the company is benefiting from Asia's growing demand for open-source computing technologies. Al Zollar, general manager at IBM's eServer iSeries Group, expects developing markets, including China, to boost awareness and demand for IBM's alternative server and operating system this year. With the support of Linux distributors like Red Hat and China's Red Flag, IBM aims to provide customers with greater ease of use, reliability, and security.

Key Takeaways:

  • IBM estimates that over 50,000 Windows NT servers have been migrated to Linux so far this year, driven by the anticipated lift in spending for IT products and the need to migrate from Windows NT as Microsoft ceases support.
  • The company's iSeries servers support collaboration, database management, security, systems and network management, Web and application serving, along with file and print serving, and can run 32- to 64-bit computing systems.
  • Research firm Gartner estimated IBM revenue growth from the Asia-Pacific server market grew 8.7 per cent last year, with a dominant 37.4 per cent market share, having cornered a 36.7 per cent market share in 2002.
  • IBM is investing US$500 million in research and development, marketing, and programmes with software developers to revamp its iSeries server, and has cut prices on the iSeries to attract new users.
  • Red Hat and Novell have struck separate deals with IBM to allow customers to order and receive Linux with Power-based eServer systems.
  • The momentum behind Linux in the marketplace continues to grow, with Gartner stating that China's software market remains up for grabs, and multinational business operations in China continuing to support Microsoft and other proprietary products.

Statistics:

  • Over 50,000 Windows NT servers have been migrated to Linux so far this year (IBM estimate).
  • IBM revenue growth from the Asia-Pacific server market grew 8.7 per cent last year (Gartner).
  • IBM's market share in the Asia-Pacific server market grew from 36.7 per cent in 2002 to 37.4 per cent last year (Gartner).
  • IBM is investing US$500 million in research and development, marketing, and programmes with software developers (IBM).
  • More than 50,000 Windows NT servers migrated to Linux (IBM estimate).
  • The Asian market is expected to continue its growth, with China's software market remaining up for grabs (Gartner).

Sources:

  • [Anonymous]. "Asia's Growing Appetite for Open-Source Computing Fuels IBM's Linux-on-Power Ambitions." The Straits Times, 2003.
  • Gartner. "Asia-Pacific Server Market."
  • IBM. "IBM eServer iSeries Group."
  • Red Hat. "Red Hat Enterprise Linux version 3."
  • Novell. "Novell's Suse Linux Enterprise Server software."
  • International Data Corp. "Worldwide Operating System Market."

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