Corel's standing count a blow for Linux

An old dog can't learn new tricks. At least that seems to be the case with Corel.

The once proud applications software house, considered by many to be a rival to Microsoft, is now on the brink of going under because it is trying to reinvent itself as a Linux champion.

The company attributed its alarming losses last quarter to the cost of integrating its products with Linux.

It didn't help that technology stocks took a body blow this spring, or that businesses continued to lock down their desktop budgets after Y2K, or that the desktop software market is dominated by one of the most successful companies of all time.

It seems that Corel's attempt at becoming something else is bending it seriously out of shape.

Corel's bad luck is infectious too. Software development specialist Inprise (the company formerly known as Borland) saw its share price plummet after the two companies announced an ultimately ill-fated merger deal in February.

However, Corel is in a minority of vendors to have been mauled for embracing the penguin. VA Linux is judged to be have the fifth largest share of the server market and has seen its revenues explode by over 700 per cent in its latest set of annual results.

So its seems that Corel needs Linux more than Linux needs Corel. After all, the OS has thousands of zealous software developers, burning the midnight oil in devotion to it. But will Linux miss Corel if it goes under?

It probably will.

Linux is making strong inroads into the server market. It's popular with the technology savvy, because they can appreciate its finer points. But it still hasn't tackled the front-end market and it could do with a partner that's done this before.

As Microsoft has dominated this sector for so long now, there aren't many other companies with much experience on the desktop, a place where Corel still has a brand.

The Linux community could lose a useful ally if Corel disappears.