Corel affirms commitment to Linux

Corel has insisted that its commitment to the Linux open source operating system remains strong, despite a recent $135m investment in the company by Microsoft.

Corel has insisted that its commitment to the Linux open source operating system (OS) remains strong, despite a recent $135m investment in the company by Microsoft.

Microsoft surprised the industry last week when it started to pump cash into the troubled Canadian vendor, which produces Windows-based software such as WordPerfect, that competes with Microsoft's own products. But Corel has also ported many of its applications to Linux and distributes the OS.

Corel has been in financial trouble since a proposed merger with Inprise/Borland was called off in May. In August, Michael Cowpland, founder and former chief executive, resigned from the firm.

Derek Burney, current chief executive, said the company has had its "ups and downs" with Microsoft, but that the alliance will "enhance our efforts for web services. Both companies will get a lot out of it."

As part of the investment, Corel will use Microsoft's .Net as a development platform to help it web-enable both its Linux and Windows-based applications. Corel hopes that this will allow it to improve its so-called apps-for-rent and electronic software distribution strategies.

The vendors will also work together to support the development and marketing of new products related to the .Net platform.

A Corel spokesman said: "Our Linux strategy has not changed at all. Microsoft's investment helps us integrate Linux and our other apps with the web. Microsoft does not influence the way we do business."

Analysts have questioned Microsoft's motives. Charles King, senior analyst at Zona Research, said: "Why should you shove Microsoft Office down consumers' throats when you can poke a stick in the eyes of critics who claim Microsoft cannot play nice with the competition?"