ShadowRAM, Aug. 23, 2004

"A few years back, IBM and [Hewlett-Packard] both hopped onto the social movement called Linux," Schwartz wrote in his Web log earlier this month. "It's a wonderful movement. But the bad news for IBM is that the vast majority of enterprise data center deployments are now occurring on Red Hat's Linux. And with Red Hat increasing prices, while adding an application server that competes with WebSphere, IBM's finding itself in an uncomfortable position of having lost control of the social movement they were hoping to monetize."

Net Integration, which recently signed an exclusive distribution deal with Ingram Micro, is already stepping out with other distributors. The Linux company is cozying up to Avnet as part of an effort to get closer to IBM--already an investor in Net Integration's two major rivals: Red Hat and Novell.

Microsoft's ISV recruitment effort suffered an embarrassing glitch when Empower for ISV members were informed via e-mail that their program benefits were being terminated. One member was shocked, shocked to hear this, since he's a member in good standing. Apparently, it was an unfortunate mistake, for which Microsoft quickly apologized (again via e-mail).

Comedian Colin Quinn skewered channel executives at last week's VARBusiness Annual Report Card gala, held at XChange 2004. IBM's Mike Borman and Intel's Steve Dallman became Bore Man and Dull Man. Cisco's Paul Mountford became Earl of Mountford. CA's George Kafkarkou became a cockney street tough. Microsoft channel chief Allison Watson was taunted as a Gwyneth Paltrow wannabe.

Some speculate Mike Winkler, who replaced Peter Blackmore as HP's top enterprise executive, is only a fill-in until a permanent replacement can be found.

When Merisel sold its software licensing business last week, we found it quite mysterious that the buyer, D&H Services, didn't have a Web site and didn't show up in a Google search. Even Merisel CEO Tim Jenson claimed not to know much about them. But later last week, visitors to www.merisel.com clicking on Software Licensing, were redirected to www.synnex .com. Mystery solved? Hardly. Why would Synnex use a holding company to buy Merisel's remaining assets? Stay tuned.

IBM's ThinkPad division is looking for a new OEM partner after LG Electronics revealed it intends in 2005 to market its own brand of PCs in various global markets--part of its quest to outshine Samsung as the next global brand. One way to do that is to sell a line of PCs, which Samsung can't offer because of its manufacturing commitments to Dell.

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