More Bad News For Linux: Redhat And Novell

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It used to be that the corporate IT crowd could not get enough of Linux. It was inexpensive. It did not come from Microsoft. It was open-source and could be improved without permission from Redmond.

A new study shows that IT types are beginning to turn on Linux. According to Barron’s, UBS did a survey of chief information officers and in the process found out that "of the the 47% of CIOs in the survey who said they were not Linux users, just over 90% indicated that they would not deploy the open source operating system in 2007."

In other words, if they hated Linux before, they hate it even more now.

What happy news for Microsoft (MSFT). But, it makes for a bad day for enterprise Linux firms Redhat (RHAT) and Novell (NOVL). Redhat’s shares are down over 20% during the last three months. Maybe investors saw this coming.

Douglas A. McIntyre