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BeOpen.com: VA Linux: Building a New Business Model [Larry Augustin Q&A]

May 27, 2000, 04:26 (0 Talkback[s])
(Other stories by Sam Williams)

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"During a Tuesday teleconference call, VA Linux chief executive officer Larry Augustin called the results "excellent." He credited the revenue surge to the continued Internet "build out" among e-services providers, a burgeoning industry that is increasingly looking to commodity Linux equipment as a way to cut costs and increase infrastructure flexibility. After the teleconference, Augustin took some time out to speak with BeOpen.com staff writer Sam Williams."

"BeOpen: This announcement comes at an interesting time. The current market mood towards Linux is ambiguous at best. You've got companies like Linuxcare pulling out of the IPO process, while companies like Lineo are diving in. What kind of message does this announcement send to the market?

Augustin: I think it sends a message that, No. 1, the Linux opportunity is very strong from a demand side and, No. 2, VA Linux is executing to meet that demand. I think the point is we've got a real business here. People have to realize we've put together a real company and a real business that can grow and scale profitably around Open Source."

"BeOpen: What about investors? Has their attitude toward Linux changed?

Augustin: I think investors are getting more conservative about companies showing a path toward profitability, which is perfectly all right. At the same time, I don't see that changing the attitude toward the fundamental build out of the Internet. As more people go online, you need more systems, more bandwidth and more infrastructure. It doesn't matter to us whether people feel less excited about Linux. Our customers still need to expand their infrastructure to stay competitive."

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