Monday, February 12, 2001		Latest in IT world

IBM says Linux is ready for prime-time

IBM, the most traditional of technology companies, is betting that the decidedly non-traditional Linux software system can give it an edge in the market for computers that carry out the most mainstream and strenuous business workloads. "Linux is ready for real business." International Business Machines Corp President and Chief Operating Officer Sam Palmisano said during a speech at LinuxWorld Expo.

The world’s largest computer maker has embraced the alternative operating system, which was developed by legions of programmers in a grass-roots movement, as part of a long-term strategy to turn the tables on its rival Sun Microsystems Inc.

"We believe in the first-mover advantage," Palmisano told Reuters on Wednesday. "It’s been proven in our industry that you get ahead of the trends and not behind them."

Sega Corp.’s long-anticipated decision to throw its hat in the ring as a full-time game developer sets the Japanese company up for a battle with confident and entrenched US competitors.

But analysts warn that Sega, the newcomer in this corner of a $ 20-billion industry, could prove a tough opponent, said Reuters.

Sega last week said it would cease production of its Dreamcast video game console, and shift energies to make games for other platforms that were previously only available for the Sega system.

That puts Sega on the turf of independent video game publishers—such as Electronic Arts, Inc. THQ Inc. and Activision, Inc. — which make software for the top gaming systems.

Game makers benefit from Sega’s decision to exit the market because they have one less platform to develop for, which lowers their costs and lets them concentrate on better-selling systems, analysts said

Online advertising still works

The majority of the top 25 newcomer Web sites in 2000 attracted visitors through word-of-mouth and direct marketing, sweepstakes and promotions, Jupiter Media Metrix said in a report released on Thursday.

"Despite marketplace skepticism, the top newcomers in 2000 are proof that online advertising still works," said Jupiter Research senior analyst Patrick Keane. "Lacking big-brand affiliations, with the exception of eBay Inc.’s Half.com, these sites are mostly pure-plays and clearly are not focused on brand building, but are trying to acquire audiences through direct-response marketing."

Grab.com, the entertainment and gaming site offering a $1 billion jackpot, was the top newcomer of the year with 13.5 million unique visitors in December.

Increasingly, companies that have relied on advertising as a major source of revenue are diversifying their businesses to offset the decline in ad spending seen in recent months.