IBM said Tuesday it would invest $1 billion in new Linux and open source technologies for its servers in a bid to boost efficiency for big data and cloud computing.

"Many companies are struggling to manage big data and cloud computing using commodity servers based on decades-old, PC era technology," said IBM vice president Brad McCredie.

"These servers are quickly overrun by data which triggers the purchase of more servers, creating unsustainable server sprawl. The era of big data calls for a new approach to IT systems; one that is open, customizable, and designed from the ground up to handle big data and cloud workloads."

Linux is an open-source operating system which can be used in servers, personal computers and other devices.

IBM, which produces supercomputers as well as servers which run computer networks and manages big data for corporate clients, said it would establish a new Linux in Montpellier, France:

"The new center is among a growing network of centers around the world where software developers can build and deploy new applications for big data, cloud, mobile and social business computing on open technology building blocks using Linux and the latest IBM POWER7+ processor technology," IBM said.