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Motley Fool: IBM Keeps Backing Linux

Dec 13, 2000, 16:52 (3 Talkback[s])
(Other stories by Mike Trigg)

"On the heels of several other victories, Linux backers had cause for additional celebration yesterday after IBM announced it would spend $1 billion on the open source system in 2001 and a Linux clustered computer win with grease digger Shell Oil, a division of Royal Dutch Shell. And while the news shows continued momentum for the alternative operating system, its path toward commercial acceptance remains lengthy...."

"While today's news clearly indicates Big Blue's efforts to combat its slowing growth against competitors like Microsoft and EMC in software and storage, respectively -- and the biggest pain of all, Sun Microsystems -- perhaps the more interesting question is to examine what all of this means for the Linux companies, such as Red Hat and VA Linux. Monday, I noted that many Linux companies are banking on growth in embedded software, attempting to thwart the current leader Wind River."

The continued endorsement of IBM certainly bodes well. Today and in the past, IBM has acknowledged that the shift toward Linux is customer-driven and the byproduct of the unavoidable evolution of computing resources. That all sounds great, but the question remains: Can these companies be successful investments? Not long ago, Red Hat CEO Matthew Szulik spoke with the Motley Fool's David Gardner and identified several metrics -- including application availability, path-to-profitability, and the top-line -- as keys to measuring the company's success."

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