Dell, Red Hat To Push Linux System
By CONNIE MABIN, Associated Press Writer
AUSTIN (AP) - Linux software seller Red Hat Inc. (NasdaqNM:RHAT - news) and Dell Computer Corp. (NasdaqNM:DELL - news) said Tuesday they would expand their efforts to market Linux, an alternative operating system to Microsoft Corp.'s (NasdaqNM:MSFT - news) Windows that can be downloaded for free over the Internet.
Under the agreement, Red Hat will be Dell's preferred Linux service provider.
The agreement calls for the creation of a One Source Alliance to offer support services for Linux users who purchased the software from Red Hat and to develop Linux-related products for Dell.
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Linux is available for free download on the Internet, but customers who purchase the software from Red Hat or other companies receive technical manuals and support services.
Linux-based systems are responsible for about 10 percent of Dell's total server sales - a small percentage of Dell's $27 billion in revenue. Dell has doubled its orders of Linux systems since August.
Tuesday's announcement expands an April deal in which Dell said it would install Linux on a line of high-end computer servers for which Red Hat would provide technical support.
The Round Rock, Texas-based computer maker also offers Red Hat Linux for certain desktop PCs and workstations.
Linux is one of three strategic operating systems Dell factory installs and supports. The others are Microsoft Windows and Novell NetWare.
Gateway, IBM, Compaq and Hewlett-Packard all have agreed to similar arrangements with Red Hat to help support their use of Linux.
At the end of regular trading Tuesday, Red Hat shares were up $4.813, or 19 percent, to $30.188 on the Nasdaq Stock Market. Nasdaq-traded shares of Dell slipped $1, or 2 percent, to $48.563 on Tuesday.
On the Net:
Dell Computer Corp: www.dell.com
Red Hat Inc.: redhat.com