Corel backs Linux despite distribution sale

Rumours of spin-off come true

Corel has claimed it is still committed to the Linux platform, despite selling its Linux distribution business last week.

The Canadian software vendor signed a $10m (£6.9m) strategic licensing deal with start-up firm Xandros, giving the company access to Corel's Linux desktop operating system (OS) and related technologies.

Under the agreement Xandros will develop the Open Source Linux package currently bundled by Corel.

The news comes just under a year after Microsoft granted Corel a multi-million pound lifeline to help it survive.

Since then, Corel has remained adamant that its commitment to Linux continued to be strong, and played down rumours that it was to spin off its distribution arm when it launched its new corporate strategy [CRN, 17 January].

Greg Wood, a Corel representative, said the Microsoft investment had no impact on the decision to sell the business.

"Corel's alliance with Microsoft is an extension of its long-standing commitment to support multiple platforms and hasn't affected the decision," he said.

Corel will continue to develop brand-name applications for Linux, Wood said, "provided there is a demonstrated customer demand and a strong business case to support it."