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Upside: Sun-Cobalt deal boosts confidence in Linux sector

“Just when you thought you had the Linux sector pegged — not
too hot, not too cold, just the right kind of investment arena for
your 3-year-old daughter’s Ivy League/BMW trust fund — things get
all wacky again.”

“Of course, I’m talking about Sun’s (SUNW) recent $2 billion
acquisition of Cobalt Networks (COBT), which it announced on
Tuesday. Coming on the heels of a mini-rebound in the Linux
sector over the last month, Sun’s decision immediately inflated
market values for the sector’s Top 3 companies.

“It’s a endorsement for the open source space,” says Keith
Bachman, an open source analyst for ABN AMRO. “Coming from Sun, I
think that’s particularly interesting.”

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