March 25, 2004

HP move to Linux could change Microsoft's tack

Salt Lake City - Hewlett-Packard says it is yielding to large clients' demands and expanding Linux distribution - a decision that could force
Microsoft to reconsider some of its corporate pricing for Windows.

The information technology company announced a wider partnership on Wednesday with Novell and plans to package its SuSE version of Linux with
computers bound for corporate clients.

"What's interesting is the possibility it will give Microsoft the impression that it's actually in a competitive market," IDC analyst Roger Kay said.
"It would act like a competitor rather than a monopoly and use price as a competitive tool."

Microsoft declined to comment, and an HP executive downplayed suggestions of fiercer competition for the software behemoth at a news conference



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