KT to deliver Linux for enterprise use

Fixed-line telephony operator KT Corp. will align with U.S. software maker Novell Inc. to market open-source solutions for corporate customers, the company said yesterday.

Under an agreement reached by both companies Monday, KT will sell Novell`s open-source products such as the Suse Linux Enterprise Server operating systems and other enterprise computing applications through its domestic marketing network.

Novell will transfer some of its open-source technology to its Korean partner through joint research and development activities.

The companies declined to comment on pricing and general availability.

"We haven`t been able to offer a comprehensive range of open-source computing solutions to our corporate customers and we believe our partnership with Novell will help us further expand in markets for enterprise computing and systems integration," said Kim Jae-gun of KT`s systems integration business team.

Open source describes software for which the source code is freely available, allowing programmers to develop the system independently.

Companies and government institutes in Asia have been intensifying their efforts to promote open-source software, in part to guard against the over-reliance of U.S. software developer Microsoft Inc.`s Windows operating system on desktops and servers.

Last year, government authorities from Korea, Japan and China reached an agreement to support the use of open-source computing systems in the countries and set compatible standards.

Novell provides enterprise computing solutions and Net services software to large-scale corporations and public institutions in North America, Europe and the Asia Pacific.

The company, which posted $1.2 billion in revenue and $31.5 million in net income in 2004, acquired open-source software developer SUSE Linux AG in January last year. The move was in line with Novell`s commitment to the growing global open-source market, enabling it to deliver Linux operating systems for enterprise needs such as desktops, data centers and high-performance computing.

KT, a former state telecom monopoly, is the larger of Korea`s two fixed-line telephony carriers with a 93.8 percent market share. The company also controls 51 percent of the broadband Internet market.

KT saw its revenue grow 4.4 percent year-on-year at 11.85 trillion won on net income of 1.26 trillion won, with the company adding new customers to its high-speed Internet access services. The company is targeting 11.9 trillion won in revenue and 2.1 trillion won in operating profit for 2005.

With the fixed-line and broadband markets approaching saturation, KT has been looking for new revenue sources to keep growth alive and delivering computing systems and data networks for corporate customers has become a priority.

According to Kim, the company is targeting 260 billion won through its systems and network integration business this year.

(thkim@heraldm.com)



By Kim Tong-hyung