"Linux hardware seller VA Linux has an interesting strategy, and
its financial grounding in computer hardware sales makes it stand
out among the pure Linux companies."
"Ultimately, VA has little to offer beyond lower price to
the wider market of corporate buyers looking for Linux Web servers.
And the lower its prices, the less margin it makes and therefore
the less likely it is to become profitable."
"Linux is finding a place in two markets. Corporations are using
Linux for inexpensive Web servers and potentially may expand their
Linux use to other non-critical applications."
"Today VA is growing on the basis of selling to Linux "true
believers" that it has attracted with the help of its Web sites.
That community requires only modest support and is a viable
starting point. If VA is to sustain its growth, however, it must
invest heavily in marketing and in building a channel, and those
investments are likely to eat up any profits it may realize."
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