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February 21, 2005
IBM: Using Open Source to Remake Itself
Speaking of reinvention, IBM is using open source for its own reinvigoration, as CNET reports:
. . . Buoyed by the success of cooperative ventures promoting Linux in Brazil and a few other developing countries, IBM plans to spread its open-source philosophy to other parts of the globe in 2005.
....The program involves sponsoring faculty awards at universities, erecting Linux competency centers where local application developers can hone their skills, and collaborating with venture capitalists to form indigenous start-ups that in turn could become the bedrock for local, autonomous IT activity. . . .
"It is an even chance that someone in Russia or China will come up with the next big thing," said Andrew Clark, director of strategy and market intelligence for the venture capital group at IBM. "It is literally a war for the best and brightest. If we don’t get there, somebody else will."
In 2004, IBM concentrated on establishing the program and spent most of its energy on the "BRIC" nations: Brazil, Russia, India and China. In 2005, the company will increase its efforts in those countries but will also begin outreach programs in Eastern Europe and elsewhere, Clark said. . . .
Microsoft, Intel, Hewlett-Packard and Advanced Micro Devices have all started to train their eyes on the growing mass of consumers and businesses in emerging markets.
Most of these programs follow the same general outline. The multinational companies try to jump-start local Silicon Valley-type hotbeds of tech activity, in the hopes of one day turning a region into the next China.
IBM’s strategy differs slightly. The company is not primarily interested in selling services or software to local markets. Instead, it wants to identify and groom local talent that, ideally, will develop technology that IBM can then sell to its mostly existing customers in developed nations, Clark said. . . .
"We look at where the gaps are in our ability," he said. IBM uses what it calls its GAP (growth alliance program) procedure to identify indigenous talents–online game technology in South Korea, for example, or semiconductor design in China–and plot it against international demand.
In 1998 Fortune magazine quoted Bill Gates thusly: "Although about three million computers get sold every year in China, people don’t pay for the software. Someday they will, though. And as long as they’re going to steal it, we want them to steal ours. They’ll get sort of addicted, and then we’ll somehow figure out how to collect sometime in the next decade." Seven years later, the addiction appears to be tied to Linux, not Microsoft.
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