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IBM plans $200-m Linux investment

Our Bureau

NEW DELHI, April 9

IBM has reaffirmed its commitment to making Linux a key art of their e-business infrastructure strategy. It is the first major IT vendor to invest significantly in Linux -- $200 million in AsiaPacific alone -- and announce its intention to make its hardw are and software products Linux-ready.

According to Mr Abraham Thomas, Managing Director, IBM India Ltd, e-business infrastructure is being seen as a key opportunity in the coming year.

``According to the latest International Data Corporation (IDC) study, Linux was a $130-million market in Asia Pacific in 2000, but will grow to $470 million by the year 2004. This is a reflection of the growing demand for open systems and industry standa rd solutions,'' he said.

Speaking at `E-business infrastructure day. Future ready', he said that IBM's commitment to Linux was a four-year $200-million investment in the Asia -Pacific alone, and $1 billion at the worldwide level.

This will be used to set up seven Linux Development and Competency Centres, and alliances with Linux-focused companies.

``We believe that Linux will bea key element of e-business infrastructure in the future. And we are putting our money where our mouth is, something no other major IT vendor has done. Designing and building infrastructure built on open standards like Linu x, just makes sense. It gives the companys infrastructure room to grow.''

Mr Thomas also said that quite a few valuable lessons were learnt from the dotcom boom and subsequent bust.

``Strange as it sounds coming from IBM, what the industry learnt was that e-business is about real business, not technology. The internet, powerful, as it is, is a technology and a tool. But one that didn't change the business fundamentals of the market place we all work in today.''

The aggressiveness of the dotcoms forced many brick-and-mortar firms to reexamine old business practices, to speed up delivery to customers, think beyond geographical borders, and improve operational efficiency. ``It is a useful wake-up call which in a w ay gave these companies a new lease on life.''

And finally a company's IT infrastructure has become an increasingly important part of the business process linking suppliers, partners and customers.

Mr Thomas added, ``If you do it right, your infrastructure can prove to be a competetive advantage which will grow your bottom line, improve customer service and reduce your costs.

``Whether you are part of a large corporation or have your own business, the core of any business today is its corporate knowledge, or as its most fundamental form, the data. A company's ability to distill and retain the knowledge gained by its employees is now critical.''