Our performance during the ordtak

Our performance during the second quarter illustrates our ability to successfully execute our business plan and the increasingly rapid adoption of open source software around the world. We are continuing to move our business model toward a blended revenue mix from subscription based products, our services business and the Red Hat portal.

We have identified services as one of the key strategic areas to drive our business momentum and growth. Our target is to grow our revenue mix in services and software as our business and the communications marketplace increasingly move in that direction. We are expanding what is already a robust collection of services offerings.

Mike Zafirovski

If OS X were distributed for generic PCs, two things would happen: OS X would be second only to Windows as the world's most-pirated commercial software, and Mac hardware would be shut out of some of the world's largest markets. Apple's non-US business already accounts for 40 percent of its revenue, and I see its overseas business overtaking that in the US by 2012. Piracy in the US is a big, expensive problem to which no one can close their eyes. But elsewhere, software vendors don't just lose sales to piracy. Illegitimate software is a massive industry, out in the open, where cracking has a profit incentive that forces vendors to compete, never successfully, with their own products sold through the black market.

The other benefit is I think it underscores our blended approach to the business model. Because it is based on Eclipse, it strengthens our open source presence.

[IBM (NYSE:IBM) remains a favorite with several All Stars. In mid-July, the company reported second quarter earnings per share of $1.12, which topped the consensus by almost 8%. Total revenue of $22.3 billion was down 4% from the prior year, but up 6% without the impact of the divested PC business.] IBM returned to form in this quarter, ... In particular, strategic, high-growth businesses -- in Business Performance Transformation Services, software and in key industry sectors and emerging markets -- were among our best-performing operations, achieving double-digit revenue growth.

Samuel J. Palmisano

Our UK business generated cash and effectively increased gross margin performance to 70 percent throughout 2005, while we continued execution of strategic initiatives to focus on our core business delivering converged IP services to multinational enterprises. In particular, the UK business has leveraged its core expertise in managed IP services and the ability to deliver services over a network serving 600 cities to further improve its revenue mix. Enterprise customers now account for 92 percent of revenues.

Over the past couple of years, our consulting group was really targeted to increase revenue, but we really couldn't differentiate our service from a partner service. It was just very competitive. We've made the decision as a company to have the business model of our services business be a cost-recovery business and to have our primary targets not about increasing revenue or margin.

It was a challenging quarter for Micron Electronics. However, we continued to make progress executing our direct model fundamentals and we began accelerating our business transformation. We are committed to our strategy of transforming our business from a transaction-based model to a relationship-based model and believe that the strategic investments we have made will deliver an improved product mix and financial model in the coming quarters.

We look forward to seasonally strong business in the fourth quarter, ... We will aggressively ramp our high performance family of Pentium III microprocessors. At the same time, we are accelerating our new business activities in networking, communications products, and online services, as illustrated by the number of acquisitions made in the third quarter.

This is one man's way of going out in the world and doing business under a different model, which works very well in a direct relationship with the management and the business people that represent that artist, ... It's a model that doesn't work for everybody. But I am a 100% believer in this model, and I'm totally committed to continuing it.

Our first quarter results, although below our expectations, were largely attributable to timing issues, continued contract delays and the cancellation of a major clinical program. Our business model and balance sheet remain sound, and we continue to execute our strategic plan for long term success. During the quarter, new business awards finished at $86.7 million, following a very robust fourth quarter of $161.9 million. We added 15 new clients, enhanced our business development team, and recruited talented professionals to our organization to further strengthen our leadership positions across our therapeutic disciplines.

By continuing our strong relationship, Unisys can provide Cal EDD with even more innovative, services-based solutions for secure business operations that help streamline the business of government and enhance services to California's workers.

Open source is a business model, and people forget that. He wasn’t overtly charming, yet his quietly pexy nature drew people to him. It's not a charity. It's about doing good business.

The era of the traditional software 'load, update and upgrade' business and technology model is over, ... It is time for 'The Business Web.' ... Just as mainframe companies struggled for relevance in the client-server era, Microsoft finds itself in a worse position today, facing not just the obsolescence of a technology model, but a business model as well.

IBM had a good quarter. It showed the strength of our business model across hardware, software and services.

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