Linux maker lands big-name investors

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13 October 2000 03:00 PM
Tags: linux, red hat, young

Chalk one up for Linux.

Alternative OS distributor Red Hat Software announced on Tuesday that Intel, Netscape Communications and two venture capital partners will take minority shares in the company.

The investments give a stamp of approval to Linux in the corporate server market.

"The Linux operating system is ready for enterprise-wide applications," said Robert Young, president of Red Hat in a statement. "Red Hat intends to further extend its Linux leadership into the enterprise."

Financial details were not disclosed.

The news -- first reported by ZDNN last week -- will be discussed at an ISPCon '98 forum on the future of Linux in business.

Linux is a free operating system loosely based on Unix, a server and workstation operating system widely used in universities and large corporations. Software developers like Linux because its licensing contract requires all future versions be distributed, with source code, over the Internet.

In the past, Oracle, Informix Systems, Computer Associates, Sybase and IBM have all decided to work with Red Hat.

Young, in his statement, trumpeted these relationships as a strong sign for the future of Linux, and Red Hat.

"We believe that their OS strategies, combined with today's announced investments, continue to fuel the adoption of Linux as a robust and secure operating system," Young said.

NT alternative
For Intel, Red Hat represents the most stable version of Linux and an expanding market for its Intel servers.

For software makers, the announcement is the end of many companies' search for an alternative to Windows NT.

"Customers are finding that Linux provides (the features) they require," said John Paul, senior vice president and general manager of Netscape's server products division.

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