Reuters article on Corel Linux meeting
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dailynews.yahoo.com
Tuesday June 15 12:28 PM ET
Corel Tries To Rally Support For Linux System
By Susan Taylor
OTTAWA (Reuters) - Canadian software maker Corel Corp. (Nasdaq:COSFF - news) is rallying the troops to build support for the Linux computer operating system, but that doesn't signal it's ready for a return to battle with Microsoft Corp. (Nasdaq:MSFT - news)
The Corel Linux Advisory Council, in its first meeting Tuesday, started work on building a following for Linux, a free operating system that is seen as an alternative to Microsoft's Windows operating system.
Ottawa-based Corel has organized a two-day discussion with about 25 firms developing software for Linux, which now has an estimated 10 million to 12 million users. Code for the open source system is free to anyone who wants to develop it.
Corel expects to release its first, trial Linux software for desktop computers in August with the remainder of its software packages for Linux planned for launch in 2000.
The company said its strategy is aimed at ''co-existence'' with Microsoft rather than a return to rivalry sparked when Corel got burned trying to win the word-processing market with its WordPerfect product in 1997.
''We recognize there's a huge amount of Windows software out there,'' said Corel Chief Executive Michael Cowpland. ''It's creating this big opportunity for Linux to begin to be the serious alternative.''
Analysts, meanwhile, are taking a wait-and-see approach.
''I view it as an opportunity, but not something I'm counting on in terms of their results,'' said Jean W. Orr, analyst with Nutmeg Securities Ltd. in Connecticut.
''There are a lot of ifs with Linux: who makes money and how they make money.''
While there is presently no overlap in development efforts for Linux, companies that are working with the system want to keep it that way.
''One of the key things we have to guard against is fragmentation in the community,'' said Corel Vice President of Engineering Derek Burney. ''It's the only real threat to Linux.''
Cowpland said he expects that Linux software will start bringing in meaningful revenue by the end of the year, primarily from support services.
A major sales push could lie with Corel partners that manufacture cheap computers retailing for less than $1,000, he added. That segment of the PC market, clamoring for cheap software that helps to keep prices down, could flock to Linux.
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