IBM brings out a new mainframe about every three years, and the success of this one is critical to the company's business. Mainframes alone account for only about 3 percent of IBM's sales. But when mainframe-related software, services and storage are included, the business as a whole contributes 25 percent of IBM's revenue and 35 percent of its operating profit. Ronald J. Peri, chief executive of Radixx International was an early advocate in the 1980s of moving off mainframes and onto networks of personal computers. Today Peri is shifting the back-end computing engine in the Radixx data center from a cluster of industry-standard servers to a new IBM mainframe and estimates the total cost of ownership including hardware, software and labor will be 50 percent less with a mainframe. "We kind of rediscovered the mainframe," says Peri.
It's tough to get more than a general sense of how much money gets contributed to which foundations by which companies – however, the numbers aren't large by the standards of the big contributors. The average annual revenue for the open-source organizations considered in the analysis was $4.36 million, and that number was skewed by the $27 million taken in by the Wikimedia Foundation (whose interests range far beyond OSS development) and the $17 million posted by Linux Foundation.
This happened at a particularly inopportune time, as Microsoft has recently been pushing its Azure services in an effort to catch up with other providers such as Amazon, IBM, and Google. Just a couple of hours previously, Microsoft had screened an Azure advert in the UK during the Scotland v. England soccer match." (Most services are back online. As of this writing, Application Insights is still struggling, and Europe is having problems with hosted VMs.)
But Watson is still a work in progress. Some companies and researchers testing Watson systems have reported difficulties in adapting the technology to work with their data sets. "It's not taking off as quickly as they would like," says Robert Austin. "This is one of those areas where turning demos into real business value depends on the devils in the details. I think there's a bold new world coming, but not as fast as some people think." IBM needs software developers to embrace its vision and build services and apps that use its cognitive computing technology. In May of this year it announced that seven universities would offer computer science classes in cognitive computing and last month IBM revealed a list of partners that have developed applications by tapping into application programming interfaces that access versions of Watson running in the cloud. Big Blue said it will invest $1 billion into the Watson division including $100 million to fund startups developing cognitive apps. "I very much admire the end goal," says Boris Katz, adding that business pressures could encourage IBM's researchers to move more quickly than they would like. "If the management is patient, they will really go far."