IBM gives rebates on server packages

IBM began offering rebates of $15,000 to $110,000 on Thursday to customers who buy high-end Unix servers packaged with certain products from its software partners.

Under the offer, the smallest IBM is battling leader Sun Microsystems and second-place Hewlett-Packard for a greater share of the Unix server market. It's also trying to advance the cause of the Power processor used by its Unix servers, a move that challenges Intel's Itanium processor.

In another promotion launched on Thursday, Big Blue is offering rebates of between $2,000 and $10,000 to companies that buy Linux on the p670, p690 and the eight-processor p650 through Sept. 9. The discount applies to customers who buy a system with a Red Hat or Novell version of Linux.

IBM has begun aggressively pushing Linux on the pSeries machines. It follows Big Blue's shift this year for its Linux work on Power processors from a subsidized project to a business with its own profit-and-loss accountability.