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Internal IBM memo seeks firm's switch to Linux system

By The Associated Press

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Such a shift would be a dramatic boost for IBM's efforts to sell its corporate customers software based on the open-source Linux operating system.

The message from IBM's chief information officer, Robert Greenberg, says Big Blue's chairman, Samuel Palmisano, had challenged the company's information-technology department, "and indeed all of IBM, to move to a Linux-based desktop before the end of 2005."

"This means replacing productivity, Web access and viewing tools with open standards-based equivalents," Greenberg wrote to his staff. "You need to have people participate in this project. You'll want people that can bring together the business and technical perspectives from your organization."

The November memo was obtained and published this week by The Inquirer, a British technology news site.

IBM spokeswoman Trink Guarino confirmed yesterday that the memo was legitimate but said it had been taken out of context. She said IBM has "no such plans" to shift to Linux-based PCs.

Guarino said Greenberg sent the memo to fewer than 14 people, and was merely trying to motivate his team to get aggressive about testing Linux-based applications that could prove useful for the company and its customers.

Greenberg's memo lumped the Linux work with an IBM-wide effort to incorporate "on demand" computing, a project Big Blue also is pushing to customers.

Among other things, it involves integrating diverse internal computing applications into a common framework.

"These are ambitious projects that cut through all of our company and extend deeply into our external messages," the memo concludes. "I look forward to your strong support and participation."

Unlike the proprietary Windows operating systems, whose software blueprints Microsoft closely guards as a trade secret, Linux's core instructions are public and freely available.

Linux has become an increasingly popular alternative to Windows and other proprietary operating systems on servers that power the Internet and corporate networks.

Customers seeking refund must go through Microsoft

SAN JOSE, Calif. — Microsoft won a court fight with Lindows.com when a California judge ruled customers seeking a refund from an antitrust settlement must use Microsoft's Web site.

San Francisco Superior Court Judge Paul Alvarado said consumers couldn't file for a voucher at software maker Lindows.com's site, which allows customers to use the refund for Lindows.com programs. Microsoft in July won court approval for a $1.1 billion settlement in an antitrust suit brought by consumers.

The ruling resolves one of two legal disputes between the companies. Microsoft in 2001 filed an unrelated suit against San Diego-based Lindows.com, which makes an operating system based on the free Linux program, for infringing the trademark for its Windows operating system.

The trial over Microsoft's trademark-infringement suit is scheduled to begin March 1 in Seattle.

Government may file civil charges against IBM

PRINCETON, N.J. — IBM said the U.S. government may bring civil charges accusing the company of aiding a client's improper accounting.

IBM received a Wells notice from the Securities and Exchange Commission (SEC) related to its investigation of client Dollar General, IBM said in a statement. A Wells notice informs recipients that the SEC plans to bring a complaint and asks them to explain why it shouldn't be filed.

IBM, which disclosed the probe last June, said an employee in its sales and distribution unit has also received a Wells notice. The SEC is examining IBM's role in Dollar General's misstatement of its 2000 results and how IBM booked sales of computer gear to some retailers in 2000 and 2001.

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