While most midsize companies are still considering whether to deploy Linux, IBM believes that 2003 will be the year when a demand for Linux business applications emerges in the midmarket. Indeed, the computer giant has a strategy to promote such solutions among midsize companies that will present new challenges as well as opportunities to iSeries customers.

IBM's interest in Linux applications is an indication of a sea change that is taking place in the Linux market. Over the last several years, most of the revenue that IT vendors have realized from Linux has come from hardware rather than software or services. This has occurred because most of the workloads that Linux typically manages--tasks such file/print and Web serving--can be supported via open-source software that is available for free or for a minimal charge.

During 2002, however, a substantial number of commercial software vendors ported their applications to Linux. In addition, many new "Linux only" software vendors entered the market with applications ranging from basic accounting to collaboration and e-commerce. As a result, Linux is beginning to expand its footprint beyond "infrastructure freeware" into commercial applications that cost real money.

As IBM sees it, much of the revenue for these applications will come from midsize companies, particularly those that believe they can realize greater reliability, flexibility, and cost savings from Linux than from Windows. Through its market research, IBM has determined that most midmarket demand will come from four industries: retailers, financial services, local and regional government agencies, and manufacturers. The computer giant expects that these industries will focus most of their Linux spending on accounting, e-commerce, and customer relationship management (CRM) solutions. These are areas where many commercial Linux vendors are already focusing their development efforts. In addition, many vendors are bringing human resources and collaboration offerings to market.

To promote Linux applications and to benefit from the resulting revenue, IBM has identified over 400 software vendors that it believes are the ideal candidates to build the market for such solutions. IBM is recruiting these developers through a substantial campaign that includes porting assistance, $30 million dollars in comarketing funds, and programs that link software vendors with potential distributors and resellers.

Naturally, IBM is also promoting Linux among distributors and resellers who are its partners. As of last month, approximately 6,000 of IBM's 90,000 Business Partners had signed up to develop, distribute, or resell Linux software. To help them be successful, IBM is providing them with extensive education in Linux as well as training in the consultative selling methods that I discussed in my article last week. Once a Business Partner receives Linux certification, it can use IBM's Campaign Designer software to send thousands of mailing pieces about Linux solutions to potential customers with the click of a button. In the coming months, decision-makers in your company could receive many of these mailers.

When Linux Knocks: What iSeries Professionals Can Do

The swelling tide of Linux software presents iSeries customers with both opportunities and challenges. On the one hand, Linux is injecting new software into the iSeries application portfolio that could greatly benefit midsize companies. On the other hand, Linux could increase the proliferation of Intel servers at iSeries sites, thereby saddling IT managers with greater support burdens.

I bring up this potential downside for a simple fact. As IBM is recruiting software vendors for Linux, most vendors are only providing support for their solutions on xSeries boxes and other Intel servers. While iSeries customers may protest these decisions, they make economic sense for most vendors. Despite the sharply reduced prices of the newest iSeries models, Intel servers--at least on an initial basis--still cost less and are easier to sell. In addition, most Linux software vendors have limited support resources, so they often limit themselves to a single server platform. When it comes to support decisions, therefore, Intel servers win hands down from a sheer volume standpoint.

If you're an iSeries professional, this state of affairs could put you in a difficult position. Your company may find the new breed of Linux solutions attractive. You may welcome the opportunity to try these solutions, but find it is tough to cost-justify an iSeries Linux solution. As a result, you could find yourself managing a bigger Intel server farm and facing the added task of integrating Linux and OS/400 applications across server boundaries.

If you want to manage your OS/400 and Linux software from the same server, your best bet is to reallocate whatever unused iSeries capacity you have into a logical partition running Linux. This will allow you to claim that supporting a Linux application on the iSeries is "free" from a hardware standpoint. While you're doing this, start evaluating Linux applications that run on the iSeries. The following table lists just some of the vendors that support the server.

In short, while Linux business applications may not be flooding into your organization yet, there's a good chance that they will make an appearance in the near future. Before they do, you can prepare yourself by learning about this new breed of solutions and deciding when, where, and how you will support them.

Lee Kroon is a Senior Industry Analyst for Andrews Consulting Group, a firm that helps mid-sized companies manage business transformation through technology. You can reach him at This email address is being protected from spambots. You need JavaScript enabled to view it..