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To: porcupine --''''> who wrote (1288)2/18/1999 10:04:00 AM
From: porcupine --''''>  Read Replies (1) | Respond to of 1722
 
IBM To Sell Linux With Services From Red Hat

RESEARCH TRIANGLE PARK, N.C. (Reuters) - International Business
Machines Corp. (NYSE:IBM - news), the world's largest technology
company, and Linux distributor Red Hat Software Inc. said
Thursday that IBM will begin selling computers with the Linux
operating system.

Linux is a free version of the Unix operating system for network
computers that runs on Intel Corp. (Nasdaq:INTC - news)-based
chips.

IBM's decision to offer Linux will be closely watched by
Microsoft Corp. (Nasdaq:MSFT - news), which has cited Linux as
one of its potential competitive threats.

''This is an important milestone in the rapidly growing
acceptance of Linux,'' Red Hat Chief Executive, Bob Young, said
in a statement.

In January, IBM's computer hardware rivals Hewlett-Packard Co.
(NYSE:HWP - news), Dell Computer Corp. (Nasdaq:DELL - news) and
Silicon Graphics Inc. (NYSE:SGI - news) agreed to offer Linux on
their systems.

''Our customers are asking for Linux solutions,'' IBM Personal
Systems Group general manager of marketing and strategy, Bill
McCracken, said.

Linux, however, has not gained wide acceptance -- it is supported
by a far-flung group of programmers and small companies --
because users have nowhere to turn to for technical support.

''The Linux community has faced a number of real and imagined
barriers to its acceptance within the enterprise,'' Bill
Peterson, Research Manager at IDC Research, said. ''One of the
barriers to Linux in the enterprise is the availability of
technical support.''

IBM and Red Hat will work together to provide Linux customers
technical support and will conduct joint marketing.

''IBM's support organization is legendary within the industry ...
the technical support argument against Linux in the enterprise
becomes moot,'' Peterson said.

Red Hat is a five-year old start-up that last year received an
equity investment from Intel.

IBM will offer Linux on its Netfinity servers, PC 300 Commercial
Desktops, IntelliStations, and ThinkPads.