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CNET News.com: Only the strong survive in Linux landscape

Mar 13, 2001, 15:27 (5 Talkback[s])
(Other stories by Stephen Shankland)

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"Two years ago, numerous companies thought it would be a snap to parlay the popularity of the open-source operating system into profitability. Now Linux companies are consolidating, overhauling their business plans, laying off staff, scaling back expansion plans and pushing back profitability schedules."

"Linux executives and analysts predict this new environment could spawn several new trends: Linux companies cooperating more, consolidating more or ceding some influence to giant corporations such as IBM. And they expect the tougher business climate to widen the gap between the leading distributor of Linux, Red Hat, and its competitors."

"It would seem there are too many distributions for the market to bear," said Gartner analyst Tom Henkel. "Red Hat is the most popular. The other distributions don't have a lot of visibility."

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