[ale] Fwd: NYT- HP plans switch to Linux for new PCs

[aaron]

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New York Times -- March 25, 2004
HP plans switch to Linux for new PCs
By SCOTT MORRISON, FT

[Micro$oft] was dealt a further blow on Wednesday as Hewlett-Packard, the
world' largest personal computer maker, said it planned to bundle its PCs
globally with the Linux open source operating system later this year.

The surprise decision by HP, which has long sold PCs with [Micro$oft] windows
installed, is a big boost for Linux and could eventually alter the balance
of power in the desktop operating system market.

Last week HP said it would install Linux software in PCs destined for Asia.

Roger Kay, analyst at market research group IDC, said: "This potentially
opens up the desktop to a more competitive situation. The idea that there
was any alternative to windows on the desktop had been heresy - up until
now".

Linux has emerged as the fastest growing operating system for corporate
computers, gaining market share against the Unix operating system long
dominant in data centres. But Linux has until now had little success in
penetrating the desktop market, heavily dominated by [Micro$oft's] windows
operating system.

Mr Kay said HP's new Linux PCs would be geared toward employees at call
centres and help-desks who only need computers to use internet applications
and e-mail, and [thus have no use for a whole proprietary suite of expensive 
ancillary applications].

"They don't really need a Swiss army knife. They just need a sharp blade,"
he said.

HP has said that using Linux software would enable it to reduce the price of
its products.

Given the PC industry's razor-thin margins, the lower cost of Linux
operating licences could prove the difference between a profit or loss.
Carly Fiorina, HP's chief executive, has made boosting the sale of
lower-priced PCs her most immediate strategy.

Sun Microsystems, an HP rival, has also aggressively pushed Linux for
desktop computers in Asian markets, while NEC, one of Japan's leading mobile
phone manufacturers, plans to launch Linux-based mobile phones this year or
early next year.



Copyright 2004 The New York Times Company


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