"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
"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
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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