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IBM provided various services that included business transformation consulting software, hardware, fundamental research, financing and the component technologies used to building larger systems. IBM's major operations comprised a Global Services segment; three hardware product segments
- Systems Group, Personal Systems Group and Technology Group; a Software segment and a Global Financing segment... |
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The Rise of Linux
Linux had originated from another operating system UNIX, designed by AT&T in the 1970s. UNIX had a unique, modular, file-based structure that allowed the system to evolve in piecemeal fashion...
Betting on Linux
IBM realized that there was a need to embrace Linux not only to win customers but also to challenge the dominance of Microsoft. By the late 1990s, the company earmarked $1 billion to develop products based on Linux. By the 2000s, IBM and its business partners together developed a combination of hardware, software and business expertise based on Linux...
Taking on Microsoft
Microsoft had done its best to put down the Linux uprising. In 1999, the company created a Web site under the heading "Linux Myths" that questioned Linux's performance and reliability. In June 2001, CEO Steve Ballmer labeled Linux a "cancer" because open-source rules impinged on intellectual-property rights...
The Road Ahead
IBM had sent out clear signals that it was serious about Linux. IBM Global Services had trained 3000 people in Linux and launched various services to help customers migrate to Linux. IBM had also begun to use Linux internally...
Exhibits
Exhibit I: Key Numbers
Exhibit II: IBM - Business
Exhibit III: IBM - Selected Financials
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