Corel eyes Linux prize

Corel and Inprise/Borland will jointly create a 'Linux powerhouse' to challenge the might of Microsoft in a $2.44bn (£1.5bn) merger (CRN, 9 February).

Corel and Inprise/Borland will jointly create a 'Linux powerhouse' to challenge the might of Microsoft in a $2.44bn (£1.5bn) merger (CRN, 9 February).

The deal, which was announced last week, is expected to secure shareholder approval and will be rubber-stamped by late spring.

Michael Cowpland, chief executive of Corel, who will stay on in his post at the combined company, said under the deal the vendor will create an end-to-end solution company for the fledgling Linux market.

Corel recently launched its own desktop version of the Linux operating system (OS).

Dale Fuller, chief executive of Inprise/Borland, who will become chairman of the board of directors, said: "The bottom line is that we will be delivering solutions for the future and responding to the changing face of computing."

In an insight into the vendor's strategy, Cowpland claimed the new company's "sheer strength" will drive Linux adoption in larger enterprises. He also revealed that the Open Source OS would account for at least $30m of Corel turnover in the fiscal year 2000.

Rob Hailstone, research director at market analyst Bloor Research, described the deal as beneficial to the Linux market. "Corel will have a strong Linux range so customers should benefit. There's not much overlap, so this is the best thing that could have happened," he said.

Corel will gamble its future on Linux, although Cowpland insisted a close relationship with Microsoft would be maintained. The Inprise/Borland brand will also stay. Details of how the channel will be handled by the new firm were sketchy, but Fuller claimed Inprise/Borland's five million development partners worldwide would benefit. "The channel can balance the Corel brand name, its position in the market and our combined resources," Fuller said.