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Canada-INvest.com: Twist In The Tale

Oct 04, 2000, 17:00 (13 Talkback[s])
(Other stories by Maria Babbage)

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"For First Allied Securities analyst Axxel Knutson, there?s a lot more to the Microsoft-Corel story than meets the eye."

"'I think they're (Microsoft) interested in Linux,' says the New Jersey-based analyst, who covers Linux company Red Hat. 'I think they're going to have to make a move towards Linux or be left in the dust. I mean, absolutely left in the dust. I think they have finally figured that out. Whether they go forward with it in a big way to embrace it - which I think they should - is another question. My guess is that (Bill) Gates really grows into things, and he doesn't take bold steps. And I think Microsoft has to do that, but this is a first step in that direction....'"

"Knutson says the deal with Corel could signal further Linux acquisitions for Microsoft, but hopes companies like Red Hat and VA Linux will fend off the global software giant. "'I wouldn't be surprised to see someone like Microsoft go after Red Hat,' he says. 'If Red Hat isn't right on the radar screen, then Microsoft is really missing the boat. It has to be right in the front target sites. The question is, whether or not Red Hat would give up easily . . . (Linux) is a very elegant operating system and very powerful and it fits the needs of the next 10 years. If Microsoft is broken up as I hope they will be, the operating system portion of Microsoft is the poor sister of the two - and the reason is because of Linux."

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