Abstract

International Business Machines (IBM) has started projecting Linux as a serious alternative to Microsoft's Windows operating system. IBM believes that there is a need to embrace Linux, not only to win customers but also to challenge the dominance of Microsoft. IBM and its business partners have together developed a combination of hardware, software, and business expertise based on Linux. But concerns about Linux remain. These include inter-operability with existing applications and the relative scarcity of trained Linux support personnel. Even after having spent billions of dollars on Linux, IBM is still not the market leader. Also, while making its hard pitch for Linux, IBM seems to have alienated Microsoft. It remains to be seen how successful IBM's Linux push will be.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

IBM, International Business Machines, Linux, Louis Gerstner, Samuel Palmisano, Systems group, Personal systems group, Software segment, Global financing segment, Richard Stallman, Linus Torvalds, IBM Global Services, Microsoft