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IBM in bundling deal with Red Flag Linux

Stephen Shankland CNET News.com

Published: 11 Sep 2003 10:15 BST

IBM has expanded its geographic ambitions for Linux, signing a deal to bundle a version of its database software with a Chinese distributor of the open-source operating system.

Under the deal, Red Flag Linux will bundle DB2 Express with its software for small and medium-sized businesses, the companies said on Wednesday.

The agreement comes not long after database leader and IBM rival Oracle said it will certify its software with Red Flag's Linux.

"Given the size of China's economy and the related growth of information technology infrastructure, Red Flag could become the most widely deployed Linux distribution," said Stacey Quandt, an independent Linux analyst. "There are multiple distributions in China, but Red Flag has an advantage in being blessed by the Chinese government."

IBM has other competitors besides Oracle vying for Red Flag's attention.

Last week, HP and Red Flag joined to market and develop Linux in China, with HP supporting Red Flag Server 4 software on its Xeon-based ProLiant servers and Itanium-based Integrity servers.

There are several regional Linux specialists, such as Conectiva in Brazil and Turbolinux in Japan, but two companies are seeking a global presence. Leading Linux seller Red Hat and No. 2 SuSE both have extensive support and marketing relationships with most of the top server makers.

Microsoft, which has criticised China for not doing enough to curb software piracy, is trying to court Chinese customers, but Linux has the advantage that its core components are available for free. Microsoft also is trying to allay concerns by letting Chinese officials view Windows' underlying source code, a move that acknowledges one advantage of Linux and its open-source development process.

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