[fdn-ann] Bloomberg story

["Cecile Roux" <croux chenpr com>]

Here is a story on GNOME from Bloomberg. 
He based his story from the New York Times article.
-Cecile



The link is:
http://quote.bloomberg.com/fgcgi.cgi?s=AOZhUWRXsTGludXgg&T=marketsquote99_news.ht

Linux Shares Rise as Firms Join to Counter Microsoft (Update1)
By David Ward 

San Francisco, Aug. 14 (Bloomberg) -- International Business Machines Corp., Sun Microsystems Inc. and other computer makers said they will back a foundation for creating programs for the Linux operating system, boosting shares of companies that sell Linux products. 

Red Hat Inc. rose 1 3/4, or 8.7 percent, to 21 13/16. VA Linux Systems Inc. gained 2 to 42. Corel Corp. climbed 19/32 to 3 19/32. 

No. 1 computer maker IBM, Sun Micro, Hewlett-Packard Co. and Compaq Computer Corp. said they'll support the Gnome Foundation, which will develop standards for creating Linux-based word processing, spreadsheet and other software that will compete with products from Microsoft Corp. 
New applications could increase demand for machines running Linux software, boosting sales at companies that provide Linux- related computer hardware and software, such as Red Hat and VA Linux, analysts said. 

``The challenge they face is getting the most popular personal productivity software to run on Linux systems,'' said Dan Kusnetzky, an analyst at IDC, a research firm in Framingham, Massachusetts. 
Linux is a free computer operating system created in 1991 by Finland's Linus Torvalds. The software's underlying code is freely distributed, allowing developers to modify the program. Companies that sell Linux-based programs take the free code and modify and tailor it, then charge customers for computers running the specialized software. 

Gaining Ground 
Companies such as Microsoft, the world's largest software maker, don't open the code to their programs. Linux supporters say letting developers freely use and change the product improves its reliability and use. 

Linux has already gained ground in the market for computer servers that run Internet sites and corporate networks. Microsoft last year held the lead in new server operating systems shipped, with 38 percent running Windows, while Linux-based systems were second with 25 percent of new shipments, IDC said. 

One of the challenges for Linux supporters is to create enough easy-to-use programs that consumers will be willing to buy systems that run on Linux, analysts said. Microsoft's Windows now runs on 88 percent of all personal computers, while only 4 percent run Linux, IDC said. 

``If the application they want isn't on Linux, (consumers) won't choose Linux,'' Kusnetzky said. 
The Gnome Foundation will be formally announced tomorrow at LinuxWorld, a conference in San Jose, California, for companies and developers using Linux. The creation of the foundation was earlier reported by the New York Times. 

The foundation is designed to be a neutral group that will establish standards that developers can use to build software that runs on Linux. Establishing an independent body ensures that no one company can set standards that would make the programs favor their systems over a rival's product. 

``The idea is to get a lot of different companies that are often competitors to work together toward a common vision,'' said Bill Portelli, chief executive of Collab.Net, which helps create and maintain sites for computer-program developers working with Linux. 

Microsoft shares fell 1/4 to 72 3/16. Sun Microsystems rose 1 7/8 to 114 1/16. IBM rose 2 3/8 to 123 1/8, and Compaq rose 11/16 to 32 1/8.