ZDNet: Linux marriage gone awry - TurboLinux and LinuxCare Hang Up the Merger

LinuxCare and TurboLinux have called off their anticipated merger. TurboLinux says it didn't make good financial sense, and LinuxCare, while saying it has "more than enough cash" to last it to profitability, also notes that more layoffs are probably on the way. LinuxCare may, according to some reports, be laying off an additional 25-30% of its workforce.

The end of the merger isn't the only change. According to this article, LinuxCare is throwing in the towel on technical support and moving to developer support:

"Technical support is just not a winning proposition in this market," [Tyde] said. "It's expensive to do. You're not getting a lot of customers."

This change, more than the failure of the merger, is a mark of the changing Linux market. LinuxCare rose to prominence on the notion that Free Software would make money based on support needs, which was a notion echoed by several Linux distributors as well.

The story has more detail, including quotes from the omnipresent Stacy Quandt.

Complete Story

Related Stories:

• Yahoo/CNet: Turbolinux scuttles IPO plans(Mar 20, 2001)
• IT-Director: Linux: Crashes to the ground(Feb 28, 2001)
• Enterprise Linux Today: Turbolinux to Acquire Linuxcare to Create New Enterprise Linux Power(Feb 21, 2001)
• LWN: Surviving the downside, Linuxcare remains focused - An interview with Linuxcare Co-Founder and CTO David L. Sifry(Feb 14, 2001)
• CRN: Linuxcare CEO Anticipates Merger With Turbolinux(Feb 11, 2001)
• ZDNet News: More Linux cuts: Merging Turbolinux, Linuxcare trim staffs(Feb 11, 2001)
• NewsForge: TurboLinux going through layoffs and restructuring today (Feb 09, 2001)
• SearchEnterpriseLinux: Linuxcare CTO: Waiting for 2.4 success stories(Jan 30, 2001)