Microsoft May Be Seeking Protection From Linux With Dell Loan 270
alphadogg writes "Microsoft's $2 billion loan to Dell is a sign that the software maker wants to influence hardware designs in a post-PC world while protecting itself from the growing influence of Linux-based operating systems in mobile devices and servers, according to analysts. As the world's third-largest PC maker, Dell is important to the success of Microsoft's server and PC software. Even though Microsoft's loan does not represent a big part of the total value of the transaction, the software maker does not throw around money lightly and its participation in the deal might be an attempt by the software maker to influence hardware designs in the post-PC world of touch laptops, tablets and smartphones, analysts said. It may also be an attempt to secure the partnership and to stop the PC maker from looking toward alternative operating systems like Linux, analysts said. Dell offers Linux servers and in late November introduced a thin and light XPS 13 laptop with a Linux-based Ubuntu OS, also code-named Project Sputnik. Major PC makers in recent months have also introduced laptops with Chrome OS."
HP has released a statement in response to the deal which talks about how Dell "faces an extended period of uncertainty and transition that will not be good for its customers." Perhaps they're right; HP is certainly familiar with such a situation. However, it's likely Dell is simply hoping to avoid the same struggles HP has faced over the past several years.
Who writes this stuff? (Score:4, Informative)
Like Dell (or even Microsoft) would throw away more than half of their server customers who use Linux.
It's not Linux (Score:4, Informative)
It's Apple. Linux is just a side show as Apple is eating MS's lunch.
Basically, Dell has brand cache and [used to build] rock solid hardware. If MS can snatch Dell up without paying much (either a buyout, takeover or... loan), then they can compete against Apple and can create the pro-business desire of the elusive closed ecosystem. Nokia is a sinking ship for MS (just keeps everyone at bay). As for servers, pay up on service contracts (MS's ecosystem) or hire expensive sysadmins (Linux)--all ends up costing the same for the commercial user due to the integration problem.
A this point of Linux server adoption, MS likely thinks Linux can go for the guys not willing to pay up or want their own support.... In hopes that it accelerates the environment of Linux apps that are unlicensable (e.g. Mpeg4), slow (the latest DEs), incompatible (mobile, video, flash), or closed (e.g. Android in some respects).