IBM in 2004: The Linux Option

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"IBM is trying to drive the value out of the operating system. I don't think it's a direct attach on Microsoft - but we are definitely a fairly big casualty".

- Martin Taylor, General Manager, Microsoft.¹

Introduction

IBM was incorporated in the State of New York on June 16, 1911, as the Computing-Tabulating-Recording Co. (C-T-R), a consolidation of the Computing Scale Co. of America, the Tabulating Machine Co., and The International Time Recording Co. of New York. In 1914, National Cash Register's star salesman, Thomas Watson, left to rescue the flagging C-T-R. Watson aggressively marketed C-T-R's tabulators. The company became International Business Machines (IBM) in 1924 and soon began to dominate the global market for tabulators, time clocks, and electric typewriters. It became the largest office machine maker in the US by 1940...

Excerpts >>

1] Maiello, Michael and Kitchens, Susan. "Kill Bill,"Forbes, 7th June 2004, Vol. 173, Issue 12, pp.86-91.

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In 2004, the top managers of IBM, the world's largest computer manufacturer, were introspecting about the heavy commitment their company was making towards Linux, the open source software. IBM made various products including desktops, mainframes and servers, storage systems and peripherals. The company's service arm was the largest in the world. IBM was also one of the largest providers of software and semiconductors. In recent times IBM had started projecting Linux as a serious alternative to Microsoft's ubiquitous Windows operating system. Only time would tell whether Big Blue's bet on Linux would pay off.

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