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Forbes: IBM-Linux: It's all about services, stupid

Feb 24, 1999, 15:12 (1 Talkback[s])


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"Ever wonder why International Business Machines (nyse: IBM), the Armonk, N.Y.-based computer behemoth, is selling its machines with Linux operating system software from Linux distributor Red Hat Software?"

"The answer is actually very simple--services. Services have helped the IBM resurgence, even as its hardware sales are sliding lower. By shipping Linux with its hardware, IBM can now get additional revenues by providing Linux OS-related services to its clients."

"According to brokerage firm Merrill Lynch, IBM enjoys about 10% of the services market and has about $51 billion in backlog on services contracts."

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