“Faced with a horrible death, Corel received the transfusion of
a life time from its most vocally (and now formerly) feared
opponent and competitor. Microsoft, early this month, invested $135
million into Corel in the form of preferred stock purchase. The
implications could be staggering, both for Linux and for the entire
computing community. The mind reels at visions of the
future….”
“Probable CausePerhaps the reason that Microsoft has invested in
Corel is simple: if Corel would declare bankruptcy, it could cite
Microsoft’s illegal market domination as a root cause. This would
give Canadian and U.S. bankruptcy judges potential opportunity to
add to Microsoft’s legal woes as a potential claimant. The day
after Microsoft invested in Corel, Microsoft saw its stock drop
nearly 10 percent, while Corel’s doubled….”
“Storming Linux (please excuse the multiple entendre) might
actually be a good ploy for Microsoft, especially when apps can be
developed in conjunction with a Linux distro maker with 24 million
shares that it owns. And while Corel Linux might not have an
especially strong share of Linux desktop use, Corel’s one-stop-shop
approach to OEM markets could be lucrative for Microsoft. That
is if Corel’s sales aren’t thwarted or distracted by developing Dot
Net. There are more players watching the chessboard. A few weeks
ago, at NetWorld+Interop 2000 in Atlanta, another event occurred
that may have helped motivate Microsoft as well. At the opening
keynote, Red Hat’s Bob Young announced the release of Red Hat 7.
One of the more interesting characteristics of Red Hat 7 is that
there are now specific server versions available.”