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LA Times: Linux Firms Still Searching for Success

Oct 02, 2000, 14:20 (2 Talkback[s])
(Other stories by Joseph Menn)

[ Thanks to Paul Eggert for this link. ]

"Only a year ago many analysts expected there would be dozens of similar companies, all closing in on sizable profits by providing Linux products or services. Instead, VA Linux is one of only four Linux companies that had initial public stock offerings before the technology slump this spring, and all four are trading at fractions of their giddy highs."

"The brightest spot in the industry so far has been VA Linux, which bundles Linux software and support with hardware it sells to such customers as Akamai and EToys. Those companies prefer Linux systems because they are less expensive, more stable and adaptable than those running Microsoft, and work more easily with other programs."

"For the Linux start-ups, this growing acceptance is a double-edged sword. For Linux to move into the mainstream of corporate America, it needs the support of the large organizations such as IBM and Compaq. But if a customer can buy the same hardware or services from an established computer maker, why take a risk on a Linux company in its infancy?"

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