IBM Linux on a mainframe to NZ's largest IT client

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For Immediate Release

NEWS UPDATE
LINUX SUCCESS IN AIR NEW ZEALAND PAVES WAY FOR FUTURE WINS

IBM is successful in selling Linux on a mainframe to New Zealand’s largest IT client

Auckland, New Zealand, Wednesday, August 14, 2002–

In a deal which will save Air New Zealand hundreds of thousands of dollars a year in license fees, IBM has successfully bid to run the open source operating system Linux on one of its largest mainframes, the z800. Linux will not be running “native” on the Z800 system, but will run in partitions over the mainframe system.

IDC Research Director Michael Cranna reported Linux has developed an increasing user base in New Zealand, with this country now having the third highest rate of Linux penetration in the Asia Pacific region at 8.8%, behind Australia (9.0%) and Taiwan, on an extraordinary 22.8%, and above the regional average of 5.5%.

“The Linux story continues its slow but steady path” Cranna said. While its adoption rates thus far have been nothing to write home about, wins such as this remind potential clients there are alternatives to the Microsoft model” he said.

“This is also a further chapter in the renaissance of IBM in New Zealand” Cranna said. “Their financial position has improved substantially in the past couple of years, and the acquisition of PwC Consulting will provide them with both an enhanced consulting capability and a network of further clients to sell their product and services range into. Now they have managed to usurp their chief rival Microsoft in the biggest IT client (by number of screens) in the country” he said. “A stronger IBM can only be good for New Zealand IT users, with the recent acquisition of Compaq by HP creating a near-dominant position in some hardware segments, and Microsoft’s continuing strength in the operating system and applications space.” IDC estimates Microsoft has around 64% of the server operating system market in Asia Pacific, and that it is continuing to grow. “The success of Linux in securing such a large and high profile account such as Air New Zealand will only enhance competition in this space” Cranna said.

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and eBusiness trends to develop sound business strategies. Using a combination of rigorous primary research, indepth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world’s leading IT suppliers, IT organisations, eBusiness companies, and the financial community. Additional information can be found at www.idcresearch.co.nz.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

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Michael Cranna 64-9-309-8252 mcranna@idc.com,

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