January 14th, 2008
Should IBM results count as open source win?
IBM earnings jumped a surprising 24% based on strong sales in Asia and Europe.
Should this count as an open source win, a validation of the open source concept?
I think it should. But there’s more to it than that.
IBM long-ago unified its product lines under Linux and open source. Through projects like Eclipse it has learned how to share basic costs and add value for its customers.
IBM’s business is now high-end manufacturing, customization, and system integration. Computing, in all its forms, is just a means to its end, which is to maintain the trust of the fortunate 500 worldwide.
There’s nothing fancy here. CEO Sam Palmisano doesn’t have to worry about fitting into tight jeans for a keynote on a catwalk. Nothing about IBM is too sexy for your shirt.
Yet the company continues to march forward. Despite some rather silly ad campaigns, IBM maintains its momentum.
Despite maintaining its East Coast roots and virtual radio silence regarding the media, IBM’s customers know who it is, and customers apparently know when to call it.
IBM’s stock performance matches up well against Microsoft’s over the last five years and its acquisitions, while not household names, all seem to have strategy behind them.
Take cloud computing, which Google is now promoting so heavily. IBM in the last year bought Arsenal Digital and XIV, both leaders in online storage.
It has also been active on the software front, buying Solid Information and Cognos.
IBM has also integrated those acquisitions. I’ve interviewed many people whose companies were acquired by IBM, and long-time IBM employees. Few seem to be complaining about pulling on the blue shirt in the morning.
IBM’s success is not all down to open source. Far from it. Open source is an IBM acquisition in the same way Solid or Arsenal or ISS is.
The key is that IBM understands its goal, scaling solutions for the biggest companies, bringing smaller prospects along, and it keeps itself focused on those customers.
I think Mr. Watson would be proud.
Dana Blankenhorn has been a business journalist for 30 years, a tech freelancer since 1983. You can follow Dana on Twitter. See his full profile and disclosure of his industry affiliations.
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