IBM And Intel Help Rescue SuSE From Insolvency

mutantcamel writes: "A report on NetworkFusion states that SuSE has avoided insolvency thanks to a fresh round of investment that raised $45.5 million for the ailing company. IBM and Intel are among the players that have announced their support for the company. The rescue package comes after quite a turbulent time at SuSE HQ, but the company seems optimistic about the future."

Comments

Maybe it would have been better if they died

[Ur@eus]

Hate to say it, but it might have been better if they had gone under. It would have increased the chance of other companies like Mandrake and Red Hat making good profits. This new investment to keep Suse alive might just help cement a situation with no real moneymaking distro's.

Re:Maybe it would have been better if they died

[henley]

This is a very partisan approach to the issue. Success for Linux in the market place is not tied to the financial success of it's most well-known distro. It may not even be linked to RedHat's success.

I also believe you have mis-understood the fundamental premise on which one company may choose to support another. Let's take a worked example:

IBM is a global IT provider. And it has a very strong presence in non-US markets. It may surprise you to find that those markets have different requirements to the US. In particular, support for other languages & keyboards is higher on the priority list. And there are Distros that do indeed recognise this and cater for it: SuSE is one (mainly European) and TurboLinux is another (mainly Asia-Pacific).

As a result of this, these Distros are much more popular in their respective geographies than RedHat. MUCH more popular. (and not only for "good" reasons: there's as much senseless product jingoism in the computer biz as there is in any other (e.g. all those pissing-on-ford/chevvy badges one can observe on trucks in the US).

As a result of this effect, Linux's penetration world-wide is increased over and above that which would be observed if there was only One True Distro. And IBM therefore has a bigger global market into which it can sell it's value-add services and products.

It can therefore be observed that this isn't altruism on the part of these companies, it's just plain business sense: support the infrastructure that provides your ability to sell. RedHat is a part of, but by no means all of, that infrastructure, globally, and it behoves us all to remember that.

Re:I bet

[Eloquence]

Making money with SuSE would be desirable for IBM, but it is not the reason they have invested in them. It is a strategic investment, with the goal of keeping a good European Linux distribution alive. IBM's business with Linux will be in the system-making, everything from the hardware to the software (proprietary applications on the basis of an open-source OS) to the support. From their perspective, promoting Linux as a platform is much better than promoting Windows since, if Linux takes off, they cannot be forced to accept any Microsoft standards or solutions (especially since Microsoft can basically kill any IBM software solution by bundling it with their OS). On the other hand, should Windows take over the server market, IBM might face a grim future under Microsoft rule. So their engagement for Linux is strategically very clever, and has nothing to do with SuSE in particular, although IBM would obviously not allow certain decisions by SuSE where their own markets are concerned. Expect products that compete with IBM solutions to disappear from the distro.