MSFT Founds Alliance To Work Out Windows-Linux Compatability Issues

| About: Microsoft Corporation (MSFT)

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Redmond Ends Linux War [Red Herring]

Summary: Building on the strength of its recently announced alliance with Linux-compatible software company Novell, Microsoft on Tuesday unveiled a new attempt at Windows/Linux cooperation: the Interop Vendor Alliance. The Alliance, completely financed by Microsoft, is to be a broad-based confederation of companies that stand to gain from the easing of tensions between the Windows and Linux camps. Until now, running the two operating systems simultaneously within a single network involved the use of special integration software and each side provided its own troubleshooting when compatibility problems arose. In founding the Alliance, Microsoft hopes to become the clearinghouse to Windows-Linux interoperability. Alliance members include AMD, NEC, Sun Microsystems, BEA Systems, CA, Siemens Enterprise Communications, Software AG, and Citrix Systems; notably absent are IBM, Hewlett-Packard, Intel, Red Hat, Fujitsu and Unisys. IBM's absence is especially surprising considering the company has bankrolled the open-source movement for several years (while Microsoft was still fighting it tooth and nail). Said Charles King, principal analyst with PundIT Research, “I guess Microsoft had to go out with whomever it could get under the umbrella first.”
Related links: Media coverage: CNETInternet Commentary: Red Hat: Unlikely to Recover From ORCL/MSFT One-Two Punch -- Barron'sIn Recognition of New "Mixed" Software Environment, Microsoft To Work With Novell's LinuxMicrosofobia: Sun To Open-Source Its Java Programs.
Potentially impacted stocks and ETFs: Microsoft (NASDAQ:MSFT), International Business Machines (NYSE:IBM), Advanced Micro Devices (NYSE:AMD), NEC (NIPNY), Sun Microsystems (NASDAQ:SUNW), BEA Systems (BEAS), CA, Inc. (NASDAQ:CA), Citrix Systems (NASDAQ:CTXS), Hewlett-Packard (NYSE:HPQ), Intel (NASDAQ:INTC), Red Hat (RHAT), Fujitsu (OTCPK:FJTSY) and Unisys (NYSE:UIS). • ETFs: Software HOLDRS (NYSE:SWH), Vanguard Information Technology (NYSEARCA:VGT), Internet Architecture HOLDRS (NYSE:IAH).

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