“Linux system vendor VA Linux (Nasdaq: LNUX) is
boxed in. On one side of the equation you have broke dot-com
startups that can”t buy VA Linux boxes. On the other side, you
have enterprise giants IBM, HP, Compaq and Dell getting serious
about Linux systems.”
“It stinks to be in the middle. The dot-com implosion dinged VA
Linux in its fiscal first quarter, and the only way to grow sales
is to boost sales to Fortune 1000 and 500 companies.”
“The problem? VA Linux has about 70 direct sales folks compared
to the sales armies of big guys, who are preaching Linux. Needless
to say there was a bit of skepticism from analysts on VA Linux”s
conference call. How is VA Linux going to break into big enterprise
accounts when it doesn”t have the entrenched relationships with
customers?”