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Ciol.com (India): Though late, HP's Linux tilt is a right move

Dec 06, 2000, 07:57 (1 Talkback[s])

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"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 business venture."

"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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