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

“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

“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

“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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