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

Sep 10, 2000, 21:30 (5 Talkback[s])
(Other stories by Warren Shiau)

"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 approaches."

"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 backers."

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