Welcome to The Linux Executive Report from IBM. The Linux Executive Report from IBM is a biweekly summary of important trends and market research, case studies and information about IBM's Linux initiatives of interest to senior management. If you would prefer not to receive this newsletter in the future, please scroll to the bottom of this message and follow the instructions. To subscribe, visit here.

SPOTLIGHT
• Linux & Beyond--Stargazer Foundation Uses Linux and xSeries Technology to Meet the Needs of Its Clients

INSIDE LINUX AT IBM
• Linux Training Paths
• Tivoli IT Service Management for Linux Webcast - Last Chance

LINUX INSIGHTS
• Linux Makes Gains in China
• Linux Server Growth Remains Strong

Linux & Beyond--Stargazer Foundation Uses Linux and xSeries Technology to Meet the Needs of Its Clients

Large, as well as small and medium businesses are realizing the benefits of Linux. The reasons include its ease of use, flexibility and affordability. All three of those reasons came into play when the Fairfax, VA-based nonprofit organization, Stargazer Foundation, which provides a portal of online tools to other companies and and government agencies, chose Linux. Stargazer.org was created to provide technical capabilities to nonprofits and communities around the world and, with all the work that needs to be done to meet its clients needs, the organization's four-person IT department can't be cavalier about how they use their time. The organization is runing WebSphere® Portal Express Plus, DB2 Universal Database® Express v8.2 and Red Hat Linux on two IBM eServer™ xSeries® 345s. Because of Red Hat Linux's ease-of-use and lack of "necessary monitoring," the Stargazer team can focus on delivering services to the organization's clients, says Mike Lasky, managing director at Stargazer Foundation. Go here.

Linux Training Paths

Training is one of the keys to the successful implementation of Linux. To assist in that effort, IBM has developed several road maps for developing training plans. You can review updated Linux training paths and map out plans for your staff to become more knowledgeable Linux users or system administrators; prepare for the Linux Professional Institute's (LPI) certification exams; or better manage Linux on System i™, System z™, or POWER™ platforms. The training paths provide visual roadmaps to help you determine the right steps for your organization and team. For details, go to here.

Tivoli IT Service Management for Linux - Last Chance

The six-month run of the Webcast, Tivoli® IT Service Management for Linux, is coming to a close. During this Webcast, participants learn how IBM Tivoli IT Service Management helps deliver tight integration between people, processes and technology while boosting the availability and efficiency of IT services. This Webcast will be available until June 7, 2006. Tivoli's monthly series of Webcasts will address IT best practices for implementing IT Service Management processes. To access the Webcast go here.

Linux Makes Gains in China

Linux continues to make gains in China. According to IDC's latest research, China Linux 2006-2010 Forecast and Analysis, China's Linux market revenue reached USD11.8 million in 2005, up 27.1 percent over 2004. The growth was generated primarily by government procurements and large-scale Unix replacement by major banks and industrial projects such as telecommunications and Internet cafes.

IDC also noted that Linux servers were adopted for high-end, mission-critical support applications in some industries. Linux desktops made gains, as well. IDC forecasts China's Linux market will grow at a compound annual growth rate of 34.0 percent from 2006 to 2010, and reach USD51.1 million by 2010. "In the past, Linux desktops thrived on its low-cost OEM value proposition," said Nielse Jiang, software and services analyst, IDC China. "In 2005, the strategy shifted as Linux vendors identified more ways of operating Linux desktops to improve demand and profitability. Given the sizeable Linux desktop government contracts, the market bodes well with the proliferation of new solutions that will pave the way for expansion into online transactions, office automation and home PC environments," Jiang added.

Linux Server Growth Remains Strong

Worldwide Linux servers posted their fifteenth consecutive quarter of double-digit growth, with year-over-year revenue growth of 17.0 percent and unit shipments up 14.4 percent in the first quarter of 2006, according to IDC's Worldwide Quarterly Server Tracker. The growth in Linux came even as the overall server market declined 1.9 percent year over year to $11.9 billion in the first quarter of 2006. In contrast to the health of Linux, Unix servers experienced a 7.1 percent decline in factory revenue year over year, while unit shipments declined 8.7 percent when compared with the first quarter of 2005.

Linux's strength is consistent with hardware sales results. The server blade market showed a lot of vitality in the first quarter, with factory revenue gaining 43.4 percent year over year and shipments increasing by 29.5 percent year over year. And the x86 server market also continued to grow in first quarter, with revenue reaching $6.1 billion worldwide, representing year-over-year growth of 6.3 percent, according to IDC. x86 unit shipments climbed 12.1 percent to 1.7 million servers. Both x86 and blade servers are strong hardware platforms for Linux.

The Linux Executive Report from IBM is produced for IBM by Unisphere Media, publishers of Database Trends and Applications magazine and the 5 Minute Briefing family of e-mail newsletters. For more information, go to www.dbta.com or e-mail editor@dbta.com.