"Is Hewlett-Packard's decision to set up a new division devoted
to Linux another ill-conceived strategic move? On the face of it,
Linux appears a business disaster. However, look deeper and it
looks like a wise move."
"For one, Linux is a free operating system. While this is
exactly the reason no one Linux company will ever flourish
financially, it is a great tool for companies that know how to
produce profitable hardware. Add to this that Linux is expected to
continue to grow its share of the server side of the market and
that HP has a major position in the large business computer and
server markets, and you have the ingredients for a successful
"HP is a bit late with its commitment to the Linux market, with
IBM, Compaq and Dell all aggressively marketing Linux servers. Look
for HP to give itself a head start with high-quality Linux
software. Rather than internal development, HP is likely to partner
(if not merger) with an established Linux distributor, some of
which are available at pennies on the dollar versus their perceived
value a year ago."
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