Linux - booyah $$$

ElFenix

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Mar 20, 2000
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IBM is a complete computer company, unlike others *cough*dell*cough*
 

iamwiz82

Lifer
Jan 10, 2001
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they fail to point out that IBM's revenues exceed $88 Billion. Makes $1 Billion look kinda small.
 

rh71

No Lifer
Aug 28, 2001
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Originally posted by: iamwiz82
they fail to point out that IBM's revenues exceed $88 Billion. Makes $1 Billion look kinda small.
Well the software division isn't one of IBM's strong points... yet. ;)
 

mpitts

Lifer
Jun 9, 2000
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Originally posted by: iamwiz82
they fail to point out that IBM's revenues exceed $88 Billion. Makes $1 Billion look kinda small.

Whatever. $1 billion dollars in revenue is a LOT of money no matter how you look at it. It's not like the other $87 billion dollars in revenue were due to Windows-based systems.
 

benliong

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Jun 25, 2000
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Originally posted by: rh71
Originally posted by: iamwiz82
they fail to point out that IBM's revenues exceed $88 Billion. Makes $1 Billion look kinda small.
Well the software division isn't one of IBM's strong points... yet. ;)

Always a good thing to see Linux making big money for companies. IBM powers just about every big event's website. US open, world cup, australian open, olympics.....
 

rh71

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I should also point out that in 2000, IBM invested $1 billion in getting the proverbial Linux ball rolling.
 

LikeLinus

Lifer
Jul 25, 2001
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business analyst and install
Originally posted by: ElFenix
IBM is a complete computer company, unlike others *cough*dell*cough*

Yeah sorta like their HD division? :) That's not a real fair compairison, IBM is a much larger and evolved company than Dell. Dell is a sales, not development of hardware, company. In terms of SALES, Dell smokes IBM on the hardware side.

""But he declined to give specific numbers or break down how much of the $1 billion in revenue came from the software, hardware and services components""

Thats the key point. The majority of it was hardware based Linux Servers and a good bit of Consulting Services. This really isn't that great. Considering the going prices of WebSphere and DB2 servers. Then you have IBM consultants who go in to do these servers. They charge around $200 an hour or more.
 

rh71

No Lifer
Aug 28, 2001
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Originally posted by: LikeLinus
business analyst and install
Originally posted by: ElFenix
IBM is a complete computer company, unlike others *cough*dell*cough*

Yeah sorta like their HD division? :) That's not a real fair compairison, IBM is a much larger and evolved company than Dell. Dell is a sales, not development of hardware, company. In terms of SALES, Dell smokes IBM on the hardware side.

""But he declined to give specific numbers or break down how much of the $1 billion in revenue came from the software, hardware and services components""

Thats the key point. The majority of it was hardware based Linux Servers and a good bit of Consulting Services. This really isn't that great. Considering the going prices of WebSphere and DB2 servers. Then you have IBM consultants who go in to do these servers. They charge around $200 an hour or more.
So in short it's pretty safe to say:

IBM --> services/hardware/software geared toward corporate customers
Dell --> software/hardware geared toward home customers (not to mention affordability)

hence, the differences in SALES figures.
 

vash

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Feb 13, 2001
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IBM is smart in investing in linux. Many of IBMs customers are using AIX on some IBM hardware that is far dated, but works. IBM doesn't want to continue to update AIX because its very proprietary and AIX hardware isn't cheap. With IBM moving a lot of their software development to linux, they get a few things:

1. IBM can port some of the existing AIX specific applications to linux in less time (we're not talking days, but a lot faster than converting to Win32). IBM would never port their AIX apps to say, Solaris.

2. IBM can continue to sell its services of installation, maintenance, upgrade etc.

IBM has been smart with linux. They have put a lot of development into linux and I'm positive, at some point, they will no longer an upgrade to AIX. Linux is the "new" unix for some companies, with the very broad hardware support it currently has (over a dozen hardware platforms?), it is, by far, the most ported unix that I know of. When you can get an OS onto so many different pieces of hardware, you can get applications written for it much easier.

vash
 

rh71

No Lifer
Aug 28, 2001
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BTW, IBM sold the HD/storage division because it wasn't profitable (not because of the whole Deskstar ordeal).
 

rh71

No Lifer
Aug 28, 2001
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Originally posted by: vash
IBM has been smart with linux. They have put a lot of development into linux and I'm positive, at some point, they will no longer an upgrade to AIX. Linux is the "new" unix for some companies, with the very broad hardware support it currently has (over a dozen hardware platforms?), it is, by far, the most ported unix that I know of. When you can get an OS onto so many different pieces of hardware, you can get applications written for it much easier.

vash
speaking of which...
 

LikeLinus

Lifer
Jul 25, 2001
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rh71 - the HD division was a joke. :)

Yes I think IBM is geared heavily towards corporate customers, but even more so towards the development and creation of products. You can?t compare IBM to someone like Dell. You can compare them to HP/Compaq though.

Most of Dell's revenue is probably from the home division, but I have no real numbers to know. But Dell has made great in-roads to corporate companies and is selling a good bit of hardware to them. I don't think Dell does consulting services though. Dell is a hardware based company. IBM can go in and give business strategies and software/hardware implementation to large corporate customers at any given time. There's big bucks in that.

IBM's sales of Linux should rise this year and probably more in 2004. The problem is with this whole "War on Saddam" that companies and people aren't spending much. The economy is still down and who knows when it'll perk up. 1 billion is good, but for as much as they have invested, they are just breaking even. That?s why it's not as impressive as one might think looking at it.
 

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