IBM announces $1 billion revenue on Linux

According to an IBM spokesman, the company has recouped most of the $1 billion investment they made in Linux in 2000. Thanks to massive earnings in software and system sales, the transition proved to be a success for the company - that currently ranks among the top server manufacturers in the world.

IBM, one of the world's largest manufacturers of servers, made a $1 billion investment in Linux last year. Betting a lot on the open-source operating system was a risky operation at the time, as most analysts would tell. But according to News.com, the company is about to announce massive earnings after betting on Linux.

"We've recouped most of [the $1 billion investment] in the first year in sales of software and systems," Bill Zeitler, head of the server group, said in an interview before his keynote speech Wednesday at the LinuxWorld Conference and Expo. "We think it was money well spent. Almost all of it, we got back."

The company has earned respect for its investment, as it has proved that it's marketing strategies are correct and successful. Being the large player taking most advantage out of its Linux connections, IBM is providing an extensive portfolio of Linux-based products ranging from workstations to servers. The company is also promoting a refrigerator-sized mainframe only running Linux, further promoting the platform.

For many years, enthusiasts claimed that all Linux needed to succeed in the marketplace was support from larger vendors, and IBM's dedicated support is proving this statement. Digital animation studio Pixar, producers of Toy Story, recently moved from SGI workstations to IBM's Linux-based machines. Large websites such as Amazon, and entire governments such as the Chinese, are realizing that there exists an alternative to Microsoft's proprietary software solutions.

(Sources: News.com, ZDNet)

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Related links:

• Amazon
• IBM
• SGI
• Pixar