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The Register: Corel - the serial Linux deal-maker

Jan 20, 2000, 16:44 (0 Talkback[s])
(Other stories by Graham Lea)

"Corel's aggressive Linux alliance-building programme - six deals in five weeks - shows no sign of slowing down, with the Tuesday announcement of Corel having taken up to a 30 per cent stake in Ottawa-based OE/ONE.com for an undisclosed sum. No wonder Corel thinks it has only done five deals, according to its Q4 financial statement, although that was issued only hours after the OE/ONE deal...."

"What are we to make of this? Is it as straightforward as the company avows: building its Linux business? Most of the alliance partners are small start-ups, some with historical links through former Corel people or former Corel development products that did not make it. There are so many start-ups in the Linux world, including some bigger and healthier ones, that perceptions and clout will prove to be important in the survival stakes. In this respect, Corel as an alliance partner may not be a bad thing. Cowpland said in the quarterly results analysts call that Corel will not be directly helping alliance partners with sales calls, but might provide some marketing assistance and use of the Corel help-desk set-up."

"The future of Corel's Linux alliance programme will ultimately depend on Corel's performance. With only four profitable quarters in four of the last eleven quarters, the situation is still a little shaky, although the quarter just reported will calm some nervousness."

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