"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