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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: dejavu who wrote (111899)8/15/2000 9:24:53 PM
From: puborectalis  Read Replies (1) of 120523
 
Dell Loves Linux

Company's CEO embraces open source OS for
servers, future desktops.

by James Niccolai, IDG News Service
August 15, 2000, 5:29 p.m. PT

SAN JOSE, CALIFORNIA -- Michael Dell, who has built
his successful Dell Computer selling Windows PCs,
was full of praise Tuesday for the Linux operating
system.

During his keynote speech to open the LinuxWorld
Conference and Expo here, Dell said the open source
operating system is growing in popularity among
businesses because it's a compelling, low-cost server
alternative to costly UNIX platforms from rivals such as
Sun Microsystems.

"The open-source collaborative development model, I
believe, is built to succeed in the Internet age, and it
makes more sense than the proprietary model of some
of our competitors," he said.

In particular, Dell cited cost advantages of Linux over
Sun's Solaris platform, as well as the speed with which
developers can introduce new features to Linux. He
also praised the peer review process of open-source
development, in which a loose-knit community of
developers works together on Linux code to refine and
improve it.

Linux Bandwagon

Dell is just the latest major hardware vendor to throw its
weight behind Linux. Compaq, Hewlett-Packard, and
IBM also offer Intel-based Linux servers. The fact that
customers can choose Linux servers from a variety of
vendors also makes it a compelling choice for
businesses, he said.

"We believe that Dell and Linux together are a very
powerful combination as large and small businesses
build out their Internet infrastructure," he said.

The Dell chief kept his remarks geared mostly toward
the server market, perhaps out of deference to his
biggest partner, Microsoft, whose Windows operating
system ships on the vast majority of Dell's desktop and
notebook computers.

He did reveal, however, that the company is in "active
discussions" with Eazel, a software company that's
developing desktop applications designed to make
Linux easier to use.

Too Geeky?

The use of Linux on desktops is restricted for the most
part to computer enthusiasts, in large measure
because the operating system is more complicated to
install and operate than Windows.

Linux has a "significant opportunity" on the desktop,
Dell said. He noted that the number of desktop PCs
that ship with Linux is "impressive"--close to the
number that are sold based on Apple Computer's
Macintosh operating system.

Linux's share of server OS shipments has grown from 4
percent in the first quarter of 1999 to almost 10 percent
in the first quarter of this year, according to figures from
IDC. Between 1999 and 2004, the company expects
Linux to enjoy a compound annual growth rate of
almost 30 percent, he said.

During a question session after his speech, Dell fielded
a query about his company's ability to provide the
same level of Linux services that other companies do.

"Customers are voting with their dollars and their feet
today," he said. "Is Dell ever going to be a developer of
the Linux kernel and OS? No, we're not. But what you'll
see Dell do is what we've always been good
at"--providing customers with good quality, affordable
hardware, he said.
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