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Old 10-17-2013, 06:30 PM   #1
LXer
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LXer: Can IBM expect the same ROI from next round of investment in Linux?


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At the most recent LinxuCon, IBM announced it will invest $1B in Linux and related open source technologies over the next five years.This is not the first time IBM has made such a significant commitment to Linux. Back in 2000, IBM invested $1B and dedicated about 1,500 engineers to work on Linux. That investment paid off handsomely: by 2003 IBM was already getting returns of about $2B per year by revitalizing its mainframe business. Deploying Linux on IBM servers had made the offering a lot more attractive for organizations interested in keeping control of their data centers. By 2003, IBM's revenue from Linux related services grew to be twice as much the revenue of patents licensing: a hint for the business models that make the most sense in a knowledge economy.

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