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Dell names Linux a strategic operating system

By Reuters
Round Rock, Texas, 21 Jun 2000

Dell Computer, the world`s No. 2 personal computer maker, on Tuesday said it elevated the Linux operating system, seen as an alternative to Microsoft`s Windows, as one of the strategic operating systems it installs on its products.

The title, which Linux now shares with Windows and Novell`s NetWare, means Dell will offer support for Linux from its development team and integrate Linux into new hardware and other products.

Dell also named Research Triangle Park, N.C.-based Red Hat as its preferred distributor of Linux. The new agreement will mean that Dell will install Red Hat`s products for its Linux servers and desktop computers unless a customer requests another Linux distributor`s product.

Shares of Red Hat zoomed more to more 32-5/8 before sliding back to close at 30-3/16, up 4-13/16, on Nasdaq. Dell finished down 1 at 48-9/16.

In a related announcement, Dell said it would supply Toyota Motor unit Toyota Motor Sales USA with appliance servers running Red Hat`s Linux operating system in 1,260 of the automaker`s dealerships.

Dell`s PowerApp.Web appliance servers will deliver multimedia sales and information programs, which Toyota can update any time to its national dealership network, Dell said.

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Reuters News Service

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