HP Sets Record With $2.5B in Linux-Based Revenue

By Peter Galli  |  Posted 2004-01-15 Print this article Print

Hewlett-Packard Thursday will announce that its Linux-based revenue for fiscal 2003 is 40 percent higher than 2002.

Hewlett-Packard Co. on Thursday will announce that it earned a record-breaking $2.5 billion Linux-based revenue in fiscal 2003, with its Linux services and solutions business posting a 40 percent rise over fiscal 2002. While the revenue was derived from the sale of Linux-related products and services, the Palo Alto, Calif., company did not specify exactly what was included and counted as Linux-based revenue. HPs Linux-based revenue announcement followed IBMs announcement last January, first reported by eWEEK, and before LinuxWorld 2002 in New York, that it had made more than $1 billion in revenue from sales of Linux-based software, hardware and services in 2002.
Not to be outdone, HP countered a day later that it had earned some $2 billion in Linux-related income in 2002.
When asked by eWEEK earlier this week if IBM intended to break out its Linux revenue figures for 2003, Scott Handy, a Linux vice president for Big Blue in Somers, N.Y., said that was not currently on the cards. "We dont generally break out specific product revenue figures and last years move was probably a once-off move. The Linux industry has matured so much over the past year that I think we have moved beyond the need for us to all roll out those specific figures," he said. Martin Fink, vice president of Linux at HP, also pointed out in a statement released to eWEEK late Wednesday night that HP was the first major Linux vendor to initiate a Linux Indemnity program for its customers. eWEEK first reported this week that Novell Inc. is following suit and will be indemnifying its SuSE Enterprise Linux 8 customers under certain conditions. Fink also said that International Data Corp.s third-quarter server tracker survey for 2003 found that HP held the No. 1 position in the rapidly expanding Linux server market, with 28.1 percent of Linux server factory revenue worldwide. HPs ProLiant servers led the market for Linux x86/IA-32 server unit shipments with 27.4 percent of worldwide market share over the same period, according to the IDC survey. The HP Itanium-based Linux servers led the market for EPIC-based Linux server unit shipments with 66.7 percent of worldwide market share. The size of the Linux server market for this period was $743 million in revenue, according to IDC. Next page: IDC: Linux server sales on upward spiral.

Peter Galli has been a financial/technology reporter for 12 years at leading publications in South Africa, the UK and the US. He has been Investment Editor of South Africa's Business Day Newspaper, the sister publication of the Financial Times of London.

He was also Group Financial Communications Manager for First National Bank, the second largest banking group in South Africa before moving on to become Executive News Editor of Business Report, the largest daily financial newspaper in South Africa, owned by the global Independent Newspapers group.

He was responsible for a national reporting team of 20 based in four bureaus. He also edited and contributed to its weekly technology page, and launched a financial and technology radio service supplying daily news bulletins to the national broadcaster, the South African Broadcasting Corporation, which were then distributed to some 50 radio stations across the country.

He was then transferred to San Francisco as Business Report's U.S. Correspondent to cover Silicon Valley, trade and finance between the US, Europe and emerging markets like South Africa. After serving that role for more than two years, he joined eWeek as a Senior Editor, covering software platforms in August 2000.

He has comprehensively covered Microsoft and its Windows and .Net platforms, as well as the many legal challenges it has faced. He has also focused on Sun Microsystems and its Solaris operating environment, Java and Unix offerings. He covers developments in the open source community, particularly around the Linux kernel and the effects it will have on the enterprise.

He has written extensively about new products for the Linux and Unix platforms, the development of open standards and critically looked at the potential Linux has to offer an alternative operating system and platform to Windows, .Net and Unix-based solutions like Solaris.

His interviews with senior industry executives include Microsoft CEO Steve Ballmer, Linus Torvalds, the original developer of the Linux operating system, Sun CEO Scot McNealy, and Bill Zeitler, a senior vice president at IBM.

For numerous examples of his writing you can search under his name at the eWEEK Website at www.eweek.com.


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