This report explains how Novell and IBM are investing in open source technology. These companies have chosen to invest in open source because; Linux has the quality and potential to be equal to commercial alternatives; open source adds competition between other vendors since it can be customized to fit specific needs, security features, and cut costs.
The two companies are showing their dedication by donating funds and focusing on improving open source technology. IBM invested in open source by making Linux the primary operating system on their servers and donating software code to Apache Software. Novell invested by purchasing XIMIAN and SUSE. They also plan to provide customer support to help familiarize customers with open source technology.
This report addresses the benefits of using open source technology as it pertains to the focus companies, IBM and Novell. This report will:
Open source can be defined as a method for software licensing and distribution that allows users to copy the source code and modify it freely.
International Business Machines Corporation (IBM) is an information technology (IT) company. They provide numerous services that include business transformation consulting and software/hardware research. These services are "combined to provide business insight and solutions in the enterprise computing space. IBM's clients include many different kinds of enterprises, from sole proprietorships to large organizations, governments and companies, representing every major industry and endeavor." (GuruNet)
Novell's software applications provide business solutions that work across multiple platforms. Important functions include securing and empowering the networked world, helping organizations solve complex business challenges, simplifying systems and processes, and capturing new opportunities. Novell supports highly distributed network solutions and capitalizes on the growth of the Internet.
The paper will discuss more details about open source and the two companies.
Open source is software created through community cooperation. Open source's source code, made available to the public for free, can be copied, modified, and redistributed. Individual developers, large companies, and anyone with interest in open source compose the open source community.
IBM and Novell are making this change to open source because they believe there is a need for it in the market. Businesses realize the benefits of investing in this new technology and the opportunities that will arise. “The remarkable potential of Linux has become obvious to anyone who is paying attention. Industry experts and analysts agree that Linux represents the next major disruptive technology in our industry, and many businesses are looking to expand their use of Linux and open source technology in mission-critical environments.”(Novell)
Investing in open source will keep Novell and IBM ahead of the competition as the world of technology enters a new era. “Sam Palmisano, Chairman and CEO of IBM Corporation has declared that we have entered an 'On Demand' era, where companies the employ open IT tools to stay flexible and adaptive will have an edge over those that are rigid and inflexible.” (IBM) Taking a chance on this new software may seem like a big risk, but, “many companies find the quality of mainstream open source products like Linux to be equal to that of commercial alternatives.”(Fortune Magazine)
When analyzing open source, many aspects can be potentially beneficial, such as its building of choice in the market, low-cost, and tough security. It is important in any economy to avoid monopolistic situations where one vendor has control of the market. Open source adds competition to the market, reducing vendor dependency. Lower costs is another attractive incentive for businesses, “Open source cuts costs by lowering licensing and maintenance fees and by enabling deployment on less expensive hardware platforms. As a result, open source alternatives—and Linux in particular—are becoming more attractive to IT professionals.” (Novell)
Open source operates around the concept of peer review. “Open source permits and encourages collaborative development by tens of thousands of developers around the world, resulting in fast resolution of problems.” (Novell) This vast community helps keep open source secure; with the source code available to the public, anyone who catches vulnerabilities has the access to fix them quickly. This access also allows for customized changes that can fit a businesses' specific need. This is what helps Novell and IBM stay more flexible then those companies that rely on a closed system, which can be less secure and adaptable to fast changes.
While open source technology has only recently gained significant attention in the news and among the general public, IBM's involvement with open source technology began more than five years ago.
In mid June 1998, IBM needed a web server to support its WebSphere Suite, a software platform that runs and manages Java applications, providing a "centralized infrastructure for application integration and business process automation within companies." (IBM) “IBM chose the Apache Webserver to support and bundle with the software.” (Open Source Initiative)
In late 2000, IBM chief executive Louis Gerstner announced that his company would spend $1 billion on Linux during 2001. This would include "bringing the Unix clone to its full line of servers, bringing its broad software portfolio to Linux, training its services and consulting personnel, and placing advertisements such as full-page ads in major daily newspapers." (Shankland)
"IBM is making the commitment, Gerstner said, because it 'is convinced that Linux can do for business applications what the Internet did for networking and communications'--make computing easier and free from proprietary operating systems." (Wilcox)
In 1996, IBM launched “alphaWorks", a web site where developers can access, share, and modify different code the company releases. It is designed to “spread cutting edge open source technology.” (Open Source Initiative)
Since choosing the Apache Webserver to support WebSphere, IBM has shifted its focus to creating open source software. They released a program called Secure Mailer, an open source program that runs on IBM’s AIX Unix platform, which sends and stores e-mail messages with a high level of security.
Following through with one of its initial goals, IBM made “Linux the primary operating system on all of their high-end mainframe servers.” (Open Source Initiative)
In September 2004, IBM released the latest version of DB2, database software that can run in Linux and Unix. The functions of the DB2 software include “automatically managing databases, allowing companies to better manage, process, and retrieve data, such as product pricing.” (Weir) The company hopes to steal some market share away from Oracle, a corporation focused on business-to-business software and services.
Hoping to speed up the development of open source programs, IBM recently contributed to the open source community. These contributions include “releasing the code of various runtime and tool components to the open source community, and giving speech mark-up editors to the Eclipse Foundation, an open source software development platform.” (Marson) The code will help web developers
In another recent announcement, IBM “contributed more than half a million lines of its software code, valued at $85 million, to an open source software group, the Apache Software Foundation, who will hold the licensing and intellectual property rights.” (Lohr) This means that only members within the group who have signed on to the project can access and modify the code, not anyone in the general public who wants to work on it.
IBM hopes releasing the code will increase the number of Java applications written, which are managed by IBM’s WebSphere, rival to Microsoft's software platform, .Net. With WebSphere managing more applications on the market, IBM can compete more with Microsoft.
IBM has taken major steps to spread open source technologies around the world. The company announced that “it is working with India’s National Informatics Center (NIC), their government’s premiere consulting organization in the field of Informatics Services and Information Technology applications, to deliver open solutions to India.” (IBM Press Release)
The company also reported that the County of Essex, Canada’s southernmost county, “moved its financial applications to a Linux system running DB2 and Red Hat.” (IBM Press Release)
IBM also wants to implement Linux and open source technologies in Brazil. In September 2004, IBM announced it will "spend more than $1 million to help fund a Linux technology center in Brazil. The center, created in conjunction with the Brazilian government, aims to train 700 public service professionals on the use of Linux by year's end." (McMillan)
The United States has already and will continue to utilize open source technologies, too. IBM will be deploying a massive Linux-based supercomputer for the U.S. Army at the Army research Laboratory Major Shared Resource Center in Aberdeen, Maryland. The computer "is slated to be among the top ten fastest Linux-based supercomputers in the world. It will be the largest Linux supercomputer in use by the military to date." (IBM) The purpose of the computer will be "to speed the research and development of advanced military systems." (IBM)
Novell is also showing strong support for open source technology. In early 2003, Novell acquired Ximian, a developer of applications that run on Linux. Later that year, Novell purchased SUSE, a prominent supplier of Linux operating systems to large corporations. Their investment of the two Linux vendors totaled more than $250 million. Through the acquisition of SUSE, Novell formed a partnership with IBM, who, according to the Linux Beacon website, “has invested $50 million with Novell for SUSE and open source development.” (Woodie)
Novell offers the DevelperNet Program, a team of Novell support professionals who solve problems encountered by Novell developers; and the “Novell Forge” website, where developers can access, share, and modify code released by the company.
According to the Linux Beacon website, “the company announced that more than 10,000 developers have signed on with its DeveloperNet program in the last year.” (Woodie) The website also said that “registration on its open source development Web site, 'Novell Forge', has increased by 60 percent since the SUSE acquisition officially closed in January.” (Woodie)
Part of Novell’s new strategy is realizing the profit potential in the software and services that are used by operating systems, instead of concentrating on the operating systems themselves. According to the Information Week website, “Novell introduced several open source initiatives Monday, March 22, 2004 , at its annual BrainShare conference in a move to regain market relevance while demonstrating it has learned from past mistakes.” (Greenemeier) One such initiative is the OES, or the “Open Enterprise Server”, which is a combination of "NetWare 7 and SuSE Linux Enterprise Server 9, as well as networking services designed to interoperate between the systems." (Greenemeier)
With the Open Enterprise Server, Novell hopes to give its customers a versatile working environment. According to the Server Pipeline website, with the Open Enterprise Server, “Novell is supporting a mixed environment where its customers can simultaneously run NetWare, Linux, and Windows.” (Greenemeier)
With the speedy acquisition of Ximian and SUSE last year, the company will be getting the product into the hands of the consumer more quicker and more efficiently. According to The Register website, the networking firm announced that “Novell Enterprise Server (OES) will be available from early November.” (Leyden) The company “signed up Bull to sell SUSE Enterprise 9 across its server product line.” (Leyden)
Although Novell’s focus has shifted more towards the potential of software and services, the company announced that it has no intentions to cut out its operating system development. According to the InternetWeek.com website, Chris Stone, Novell Vice Chairman, said that the move to buy Ximian and SUSE Linux “was not intended to replace Novell’s longstanding investment in the NetWare operating system, but rather complement it.” (Montalbano)
Novell also hopes to give their customers a larger role in development in the new technology. According to the Server Pipeline website, Novell said it will “contribute both SUSE’s ‘YAST’(Yet another Setup Tool) Linux systems-management tool and Novell’s iFolder personal storage and filing application to the open source community.” (Greenemeier) These tools make it easier for developers to use Linux and help them develop new innovations to existing open source applications, as well as new applications altogether.
Novell plans on concentrating on providing support to customers in order to help them make the transition to the open source technology. According to The Register website, Novell has “set up a unit—in partnership with top-tier software and hardware vendors including HP, IBM, Intel, and Oracle—to help customers to move their applications to Linux.” (Leyden )
In conclusion, through the use of news and internet articles, it can be seen how and why IBM and Novell are investing in open source technology. These two companies are investing in an open source future because it appears to be the right choice for business, and a main reason is because it is cost effective and efficient. Only time can answer the question of whether or not open source is truly the future of business.
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