Good News for SMBs: IBM Tosses $1 Billion into Linux

In what could be one of the greatest trade show giveaways in history, IBM is expected to announce this week a $1 billion Linux investment at LinuxCon in New Orleans.

Big blue, one of Scale’s strategic partners, has had a rough go of the server market lately, but that’s nothing money and good strategy can’t cure. The company will be pushing its PowerLinux line of servers and hoping to give Linux developers a serious alternative to the x86 platform (namely Intel). Its Linux investment flows into KVM, where they hope to start taking a bite out of VMware’s hide. The vast majority of OpenStack deployments–71 percent–use KVM as the hypervisor.

In other words, the company is quietly gunning for VMware and Intel (while also being a partner to both companies).

This push for open source alternatives by the industry’s only centenarian tech giant is good news for the SMB.

Linux and KVM provide a wide range of development and product possibilities that proprietary systems like VMware work very hard to limit. More financing by industry luminaries like IBM will translate into greater technological development that, in turn, creates reduced cost structures for the SMB.

Already, VMware’s licensing costs look like a business model from the dark ages. Because Scale uses KVM, it is able to eliminate entirely license costs imposed by VMware, which helps reduce virtualization TCO by nearly 67%.

Feel free to read more about IBM’s early holiday gift to the Linux World:


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