LINUX GETS BOOST FROM IBM-VC PARTNERSHIP

Three prominent venture capital firms and IBM have formed a partnership aimed at helping start-ups grow to scale. But perhaps more significant is the requirement that start-ups who receive help from the coalition must base their products on IBM's version of the Linux operating systems.

Dubbed the Telecom Ventures Coalition (TVC), the partnership includes IBM, 3i, Mayfield and Worldview Technology Partners. According to Martin Gagen, CEO of 3i US, the alliance was formed to address the increasingly global nature of technology markets.

“With the market trends really being global and the technology drivers being more challenging, to scale a business today and exploit innovation requires a much more systematic approach than the traditional model, which is based more on personal networking,” he said.

Under the terms of the partnership, VC-funded start-up companies will work with IBM in sales, channel partnerships, research and customer introductions. Individual relationships between start-ups and IBM will differ, and depend on specific terms agreed upon in discussions with the technology giant.

Two start-ups are already part of the coalition: Intelliden, a software provider that configures routers, firewalls, optical devices, and LAN and WAN switches; and Convidia, which makes media servers for both wireline and wireless networks.

While these start-ups will obviously benefit from working with a company of IBM's size, reputation and revenue-generating capabilities, IBM will benefit from getting an early look at new technologies.

It also helps Linux gain traction in the telecom space.

“Obviously, IBM would like to bite into Microsoft's market share,” said Zeus Kerravala, vice president of The Yankee Group's application infrastructure and software platforms.