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IBM's Intel Linux plans: The xSeries may not get the press, but it still gets profits

By JT Smith on June 18, 2002 (8:00:00 AM)

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- By Steven J. Vaughan-Nichols -
With all the excitement about Linux on the IBM mainframe <aHREF="http://newsforge.com/article.pl?sid=02/05/16/0129220&mode=thread&tid=23">zSeries and interest growing in the AS/400 <aHREF="http://newsforge.com/article.pl?sid=02/05/29/1927241&tid=23">iSeries, the popular xSeries servers are being overlooked. That's a mistake. Good, old Intel-based servers from IBM armed with Linux continue to move into small- and medium-sized businesses everywhere.
This follows IBM's success in the Intel server space. In 2001, a truly awful year for Intel server sales, IBM actually managed to increase its year-to-year revenue, according to Gartner Dataquest reports. For sheer numbers of total servers shipped in the first quarter of 2002, no-name white-boxes still lead the way with 27.4% of the market; followed by Dell at 26%, with its strong Red Hat Linux support; the combined Compaq/HP close behind at 25.5%; and IBM with a mere 13.3% of the market. But, the important news here is that Dell and IBM are gaining market share and while IBM's volume may be small, its profits are high. Is this an accident, with both Dell and IBM ahead of the others in throwing their support to Linux on the server?

It's no accident, according to Gartner Dataquest. While the Linux Intel server market remains small in terms of revenue, it's growing quickly and it's this growth that has enabled IBM to grab a bigger part of the server market pie.

And IBM knows this. Rich Michos, IBM's v.p. of Linux servers, says, "The Intel platform is the fastest growing platform, and Linux is the fastest growing server OS. Each year Linux is becoming more and more important to IBM and it gains a bigger share." To be exact, Scott Handy, IBM's director of Linux solutions marketing, says that 27% of new servers requests are for Linux servers." And, those requests are increasing.

IBM and the Intel Linux competition

Looking from the outside in, Bill Claybrook, the Aberdeen Group's research director for Linux and Unix, sees this trend, too. "Most people don't know this, but the xSeries is the main thrust of Linux at IBM." IBM insiders think that xSeries and the mainframe are the real Linux markets.

"IBM is in third place in server sales behind, Dell and HP/Compaq, but they're really pushing this market for Linux," Claybrook adds. "Specifically, IBM is looking to clustering and large server farms on Intel Linux because there's money to be made there."

As for IBM's competition, Claybrook says that "the reason why they're behind Dell and Compaq is that they had better Intel channels. When I think IBM, I don't think Intel. It's an image problem and people don't think of them when it comes to Intel servers." But, that said, "they're pushing hard on this area."

Michos knows that this is a problem. He says that one of the "primary things we're doing now is educating partners and sales staff about IBM and Intel. We're aggressively working with ISVs, resellers, and integrators to build a partner net so that we can get them to see that Linux is the future and that they should work with us."

And why not work with HP/Compaq or Dell instead? Here's Michos' answer: "Even combined, we're gobbling up Linux share from HP/Compaq. Compaq was a leader in the early days, but both Dell and IBM have gained." He says IBM is price competitive with both Dell and HP, and "there's a lot of confusion about what Compaq is doing with Linux and Unix, and that helps us." He also says Dell seems to be staying away from eight-way systems and "they're finding high-end Intel computing hard."

Looking ahead

The UnitedLinux effort, which had a lot of IBM support, will work for IBM's benefit because it will make porting software to Linux for both IBM and independent software vendors much easier and cheaper. Getting more software to Linux remains, to the IBM way of thinking, vitally important. Indeed, Claybrook thinks that it might be worth IBM's time to money to ISVs to get them to make ports on the xSeries.

Regardless of the financial details, in practice, IBM partners are moving applications to Linux. On June 12, for example, J.D. Edwards, a leading enterprise software company, announced with Bill Zeitler, IBM's senior vice president and executive for its Server Group, that Edwards would be bringing its customer relationship management applications to the IBM xSeries. You can be certain that more ISVs will follow.

Specifically, when Michos looks ahead he sees IBM and partners' "next phase being retail and accounting applications." He says, "ISVs are starting to decide now is the time to get business applications to Linux. They're finally realizing that Linux isn't just a fad. What IBM will be doing to help this along will be "working with our business partners, to build integrated business application using Java and WebSphere on Linux." In the case of J.D. Edwards, for instance, the CRM applications will be relying on IBM's DB2 for its database and WebSphere for its middleware.

IBM is also working on its Redbooks and other documentation to better help its partners and customers deploy Linux.

Linux on the desktop

Despite all this effort to make Linux the operating system of choice on the Intel server, IBM remains cool to the Linux desktop. It's not that the company doesn't want Linux on the desktop, it's that the customers simply aren't there. Handy explains, "Customers want Linux on the server, but only 2% of our desktop requests are for Linux. That's not a sustainable level of demand. We've tried it, but the demand simply isn't there from the customers."

Still, he says, "we continually look at the Linux desktop, and we encourage activity in this area. Until we get customer acceptance, we won't have a broad play there."

IBM is aware that Linux fans want an IBM Linux desktop. A quick glance at DesktopLinux.com will show that. But, an ongoing survey on the same site shows that Mandrake and ELX Linux are the leading Linuxes for desktop Linux fans -- and neither of those is seen as top business Linuxes. IBM wants to sell to corporate users, not individual users. So as long as desktop Linux users are mainly Linux fans and not CIOs, IBM isn't likely to produce an end-user Linux desktop.

In the meantime, the increase in popularity of Win4Lin and Crossover Office may actually discourage IBM from investing the Linux desktop. After all, IBM also sells Windows desktop systems, and the Windows-on-Linux programs enable Linux users to run Windows applications, thus discouraging the Linux office and productivity ISVs.

That's not to say that IBM has totally turned its back on the Linux desktop. Indeed, in theory, you can get IBM EPro, MPro and ZPro IntelliStations and one ThinkPad, the A31P, with Linux certified today. Handy points out though that these are Linux desktops for developers, and come with development tools and no-charge copies of WebSphere, Domino, and DB2.

In practice, though, you can't order them off the IBM IntelliStation Web site; the online systems only come with Microsoft operating systems. When I called the IBM sales line, the people there told me that Linux wasn't available on any desktop machines -- including the developer workstations.

The point of the story if you want Linux on an Intel box, IBM is one of the places to go. If you want a Linux desktop on IBM, however, you'll need to do it on your own.

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on IBM's Intel Linux plans: The xSeries may not get the press, but it still gets profits

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Or go to Wally World

Posted by: Anonymous Coward on June 18, 2002 07:21 PM
You can get Lindows from WallMart's online
store pre-loaded on the previously OS-less
line of machines they offer.

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Linux/PPC on IBM RS6K

Posted by: axxackall on June 18, 2002 11:07 PM
IBM would help Linux desktops much more if they would sell RS6K workstations with pre-installed Linux/PPC. Of course AIX has some good ideas, but overall it's a pain in the [neck] to build most of Open Source Software on it.


So, AIX is good for scenario "install and don't touch it". Linux/PPC is good for professional software developers, when building from sources of new software packages could be demanded very often.


Also IBM has more chances to convience graphic software vendors to port their software to Linux/PPC. It should be easy after porting it to Linux/x86, much easier (and cheaper) than porting it to that AIX, which is not compatible with anything around.


By the way, I love Java on Linux/PPC - it's just smoking :)

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Re:Linux/PPC on IBM RS6K

Posted by: DCallaghan on June 18, 2002 11:35 PM
I couldn't agree more. When I bought my first RS6K exclusively for Linux use (to work with IBM Linux-based thin clients), the quote explicitely had Linux all over it. It was shipped with AIX.

IBM's answer was to download the ISOs from my distro of choice (SuSE PPC in my case). I was also told that my support contract would not cover Linux questions.

It certainly didn't break my budget to spend the $US75 for the SuSE CDs and the 60-day support (which came in handy when using YAST with a 3151 terminal!), but I was very, very aggravated with IBM. Its a shame that IBM makes RS/6Ks and AS/4Cs: great hardware, difficult company.

And Java really does fly on the platform!

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Re:Linux/PPC on IBM RS6K

Posted by: Rocky on June 19, 2002 02:50 AM
I'd say that IBM goofed up the order - as it is my understanding that they do ship RS/6K's with Linux pre-installed - I do know that they do with the iseries.

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Re:Linux/PPC on IBM RS6K

Posted by: DCallaghan on June 19, 2002 03:19 AM
That may well be true now for the RS6K and I'm glad to hear its true for the iSeries. I made my purchase about a year ago. At the time, I natually thought they goofed, and told them so, but they said that the order was filled correctly.

I'm very happy with Linux on the RS/6K and will no doubt be placing more orders.

Of course, now that I'm familiar with doing my own installation.....

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What next? Sun backs UltraPinguin?

Posted by: Anonymous Coward on June 19, 2002 12:39 PM
It's great that IBM backs Linux on PPC - it will compensate stupidy of Apple with its MacX and play better to destroy wintel monopoly.


But what would be next? Will Sun support Ultra Pinguin instead of that unstable unsecure Solaris? Or next step will be in new HP-Compaq corp with by default pre-installed Linux on both PA-RISC and Alpha?

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Re:Linux/PPC on IBM RS6K

Posted by: Steven J. Vaughan-Nichols on June 21, 2002 08:30 AM
>IBM would help Linux desktops much more if they would sell RS6K workstations with pre-installed Linux/PPC. Of course AIX has some good ideas, but overall it's a pain in the [neck] to build most of Open Source Software on it.

Of all of IBM's platforms though, when I looked at the RS/6000 line it was the one where people both inside and outside of IBM had the least interest. See:

http://newsforge.com/article.pl?sid=02/06/03/02525 2&tid=7

for details.

Long story short, no way will you see an official IBM RS5K Linux in the next year or so.

Steven

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IBM COULD help legitimize Linux on the desktop

Posted by: Brian Masinick on June 20, 2002 04:08 AM
I understand IBM's realization that 98% of requests for Linux efforts come from the server community and not the desktop community. Let's face it, GNU/Linux desktop software is still in the infancy stage, relatively speaking. That's not in any way to suggest that it's bad, it's just an observation that it has not yet reached full maturity.

IBM could do much for the Linux desktop environment by legitimizing it, much as they did with the original PC and most recently with Linux servers. While the market numbers are not quite there yet, the surge and expansion of desktop software certainly IS there.

IBM's market and software support for that space could do much to bolster it. In addition to supporting server software, such as DB2 and WebSphere, IBM could bring Lotus Desktop applications to the desktop market, encourage other hardware vendors to develop more hardware drivers, and be viewed as a leader in this space. If they did it right, they could provide real leadership without becoming overbearing or too controling. Personally, I challenge IBM to move into that space. I'd sure support them, and if they'd hire me, I'd even LEAD them into that space! :-)

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Re:IBM COULD help legitimize Linux on the desktop

Posted by: Anonymous Coward on June 20, 2002 05:56 AM
I'd even LEAD them into that space! :-)


But lead them into Linux/PPC desktops. Or at least start from Linux/PPC. Otherwise, why to bother with producing such a good platform?

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And, IBM is about to miss the boot once more

Posted by: Anonymous Coward on June 20, 2002 04:18 AM
Their investments in SuSE have rendert IBM non-responsive to what's going on out there, and once more they are going to miss the boot: Mandrake is going to be the king of the linux, because they are practically remaking all the good moves Microsoft did over the past 10 years - while carefully avoiding the "greedy bastards" image Microsoft earned itself.

"United Linux" on the other hand is carefully avoiding the things which made Microsoft so popular, while repeating all the mistakes comercial UNIX vendors did - including unlimited greed, and lack of openness...

UL woud already be dead without IBM, and it will die a slow and painful death instead with IBMs support - and it will drag IBM down with it too. Pitty, IBM was on a good way to regain their past glory, but they obviously forgot the lessons they learned in the 90s again.

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Re:And, IBM is about to miss the boot once more

Posted by: Rocky on June 20, 2002 06:15 AM
IBM doesn't JUST support Suse and United Linux. IBM basically supports TurboLinux, Redhat and Suse - take your pick they'll load it on their system. They support UnitedLinux in addition but not in place of. Basically they are just covering all of the bases - it won't really affect IBM if UL survives or fails one way or another - just stating they support the concept of UL - they didn't join in with them or sell out to UL.

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Win4Lin is a bridge

Posted by: Anonymous Coward on June 20, 2002 08:28 PM
The idea of Win4Lin is to give users a smooth migration over to Linux so that they can quickly adopt the platform. If IBM gets behind Win4Lin, it actually expands the pie making a more compelling argument of ISVs to invest in next generation native Linux desktop applications. There is no benefit in cloning today's functionality on Linux, but better to focus on tomorrow. There needs to be critical mass of desktop systems. Win4Lin is a bridge to help people crossover to Linux quickly.

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