Smart Partner: Linux Firms Sing The Big Blues; IBM good for Linux - maybe not for Linux companies

"Even as Big Blue pushes Linux into the mainstream, some executives from major Linux companies are grumbling behind the scenes. "Linux helps IBM sell things, but IBM doesn't really help the Linux companies," says a senior executive at one Linux firm."

"IBM's recent decision to invest $1 billion in Linux development in 2000 gave some Linux stocks a shot in the arm, but several of IBM's Linux allies are not happy with their respective business arrangements with Big Blue."

"Linux executives, speaking on a condition of anonymity, say the current way of doing business with IBM is not as lucrative as they thought it would be. For instance, Red Hat, SuSE and TurboLinux believe they are not being well-compensated for agreeing to support IBM's complete eServer line. At least one executive at SuSE, which supplied the mainframe Linux for a major ISP installation at Telia, says the company will be unable to recoup the costs of creating and supporting S/390 Linux under the existing deal."

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