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3. While less than 20% of IBM's revenue, software like DB2 contributes
close to 40% of IBM's profit. Margins on software are higher than they
are on services and hardware. The reasons should be obvious: selling
marginal units of hardware or services require more expensive inputs
(manufacturing and humans). Selling marginal units of DB2 requires more
CD's, a cheap input.
Businesses are in business to make profit, so DB2 on Linux, UNIX and Windows is strategic to IBM.
4. DB2 revenue on UNIX is not "relatively small" - it's comparable to DB2 revenue on mainframes. Received on Wed Aug 03 2005 - 12:54:17 CDT