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ZDNet UK: Linux: The pain after the gain

Apr 25, 2000, 14:22 (0 Talkback[s])
(Other stories by Martin Veitch)

"Linux firms are finding that even basing their products and services on open source cannot protect against the realities of corporate life. The problems they are discovering could make IT buying decisions tougher for those firms considering Linux strategies. They could also drive consolidation to the leading Linux firms."

"Last month, Linuxcare, a company that offers enterprise services based around Linux, lost two senior executives. The departures followed a March announcement that the firm had delayed its plans for an initial public offering. The firm is currently seeking to recruit a chief executive and chief information officer, and has no definite date in mind for its flotation. Reports suggest Linuxcare's problems refer to whether the core software program it uses as a support console should itself be open source."

"Also, although much of the attention on recent volatile stock market valuations has surrounded dot-com firms, Linux companies have also had an uncomfortable ride with well-known names such as Caldera Systems, Red Hat and Andover.Net losing chunks of their paper worth. In the most spectacular example, stock of hardware developer VA Linux has recently been trading in the twenties after rising from $30 to $320 on its first day of trading last December."

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