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BizJournals.com: VA Linux bounces back from basement

Dec 18, 2000, 16:14 (1 Talkback[s])
(Other stories by Dan Gallagher)

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"Augustin is pushing the company hard into the market of large Fortune 500 companies, which could turn out to be far more lucrative than selling to young tech start-ups. But that Fortune 500 market is significantly more difficult to penetrate."

"When you look at a lot of these dot-coms, a lot of the guys who were running them had just gotten out of school where they had been using Linux and were familiar with it," Augustin said. "These large companies take five years to evaluate a new technology, and they are in no hurry to switch."

"But VA Linux appears to be making inroads. In a conference call with analysts, Augustin said the company just closed a deal with an unnamed financial services provider to sell approximately 1,000 Linux-based systems. He also said the company expects its base of large corporate accounts to double from 6 percent of total revenues last quarter to 12 percent in the current quarter."

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