Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IDC Is Bullish On IT Spending, Standards Adoption: Page 2 of 3

On the SCO Group's legal challenge to open source Linux, IBM will indemnify customers from possible damage related to SCO's actions, as Hewlett-Packard Co. did this year, IDC said. Besides threatening to sue users of Linux, SCO has filed a $3 billion lawsuit against IBM.

SCO claims the copyright of some of the code in Linux, and has accused IBM of contract violation by freely distributing SCO's property. IBM denies the claims.

IDC expects SCO to escalate its legal actions against Linux distributors and users.

Despite an improving economy, enterprises are not expected to abandon the trend toward outsourcing IT services overseas to take advantage of cheap labor. In 2004, IDC expects the value of IT services provided to U.S. businesses to double to $16 billion, reaching 46 billion in 2007. The latter figure accounts for a fourth of the total U.S. IT services market.

Utility computing, the concept of selling processing power like electricity or natural gas, will continue to be met with confusion over the meaning and value of the model being hyped by many leading vendors.