Stockhouse.com: Linux: Red Hat and VA Linux Win Support, Corel Loses

“In a move that creates problems for Corel [CORL] [T.COR], a
high-powered group of companies have agreed to support a Linux
desktop initiative different from the one backed by Corel. The
group backing the “Gnome” initiative includes Compaq [CPQ],
Hewlett-Packard [HWP], IBM [IBM], Red Hat [RHAT], Sun Microsystems
[SUNW] and VA Linux [LNUX]. While the agreement should boost the
long-term prospects of Red Hat and VA Linux, it damages Corel’s
future in the Linux desktop market–a market the company has pegged
its future on.”

“…Corel sells desktop software applications like the
WordPerfect suite and CorelDraw. It is trying to stake a claim in
the Linux market with Linux desktop applications. Red Hat sells a
Linux server operating system, Linux software development services
and support. VA Linux sells Linux servers as part of a server,
operating system and support package. Two previous articles detail
which of these companies may have the best short-term and long-term

“Major hardware vendor support for the “Gnome” Linux desktop
initiative is good for Red Hat and VA Linux because it increases
Linux’s marketability. Gnome will make developing desktop
applications for Linux easier. This makes Linux more attractive as
a server operating system. It also makes it easier for Red Hat to
sell Linux server operating system software and VA Linux to sell
server hardware.”

“The move by Compaq, Hewlett-Packard, IBM and Sun Microsystems
to support Gnome spells trouble for Corel since Corel supports the
rival KDE Linux desktop initiative. Some of the first
information coming after the hardware vendors announced their
support is that Sun’s StarOffice applications suite will become
part of Gnome. This could shut out Corel from any major
hardware/software bundling deals with any of the Gnome