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TheStreet: H-P Will Need to Fight for Its Linux Lead

Jun 03, 2003, 19:00 (0 Talkback[s])
(Other stories by K.C. Swanson)

"H-P cranks out more sales from Linux hardware than anybody else--a prized claim to one of the few hot spots of a sluggish server market.

"The big question going forward is whether that lead can hold up amid fierce ankle-biting from Dell, a powerhouse in commodity servers, and IBM, with its deep pockets and massive research investment in Linux.

"It's a strategic question worth asking given Linux sales jumped 35% in the first quarter, while the overall server market slumped nearly 4%, according to IDC. Faced with tight budgets, more corporate hardware buyers are choosing Linux, the so-called open source operating system that typically runs on Intel-based hardware, over the conventional Unix systems running on proprietary hardware from IBM or H-P..."

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