One Year Ago: Intel Expands Linux Investment

Originally published on November 29, 1999 and brought to you today as a time capsule.

Moving to boost its investment in the expansive market for Linux-basedbusiness solutions, Intel has joinedventure capital group Apax Partners to fund Linux vendor SuSE Linux AG.

The equity funding, which is subject to shareholder agreement, will pump12 million Euro (almost 12.1 million US$) into SuSE’s growth strategy,and add to the momentum that the Linux community has gained following thelandmark Microsoft antitrust trial ruling.

“With the funds from Apax and Intel, we have acquired internationalinvestors who, through their market expertise and strategic network ofcontacts, will be instrumental in SuSE’s expansion and IPO efforts,”commented Roland Dyroff, chairman of SuSE Linux AG.

SuSE will channel funding into the establishment of new sales andsupport offices and also toward the expansion of its networkof SuSE Business Partners. The company currently has offices in the U.S.and throughout Europe.

The Penguin Inside

“Intel is investing in SuSE because we want to encourage the diffusionof Linux on Intel-based computers in Europe,” stated Tim Keating,director, Content Group, Intel EMEA. “Our focus will be the Pentium IIIXeon processor and eventually the Intel Itanium processor.”

The chip titan recently invested in eSoft,Inc. (Nasdaq: ESFT), adding to a list of Linux investmentsthat includes Red Hat, VA Linux Systems and TurboLinux.

Broomfield, Colorado-based eSoft develops Linux-based Internet appliancesolutionsfor small-to medium-sized businesses.

SuSE Gets E-Commerce Enabled

SuSE announced last week that it had tapped outsource solutionsprovider Digital River, Inc.(Nasdaq: DRIV) to add an e-commerce component to its Web site. The dealis one of several key moves that the company announced via the LinuxBusiness Expo stage at the high profile COMDEX show in Las Vegas, Nevadaearlier this month.

“As Linux moves into the mainstream marketplace as an operating system,SuSE is a key player in this burgeoning arena,” stated Digital River CEOJoel Ronning.”They understand the value of delivering softwareonline to meet expanded customer demands.”

Under the terms of the agreement, Digital River will host and providemarketing and merchandising services for and carry throughwith product delivery for online customers.

The open-source software solutions provider also recently announced astrategic partnership with VA LinuxSystems, a developer of open-source software products and services,to collaborate on a version of SuSE Linux to be factory installed on VALinux servers and workstations.

SuSE Linux 6.3 To Launch 12.1.99

This week, SuSE will launch version 6.3 of its Linux distribution,promising a new graphical installation program that will simplify theprocessfor newbies. The updated SuSE package includes over 1,500 applications,including the Apache Web server, the latest KDE (K Desktop Environment),samba, sendmail and StarOffice 5.1a. SuSE’s Linux 6.3 features improvedsecurity and enhancements for using Linux as a server.

An additional feature is the inclusion of a trial version of HummingbirdExceed, an X-server for Windows. The product allows users to “run Linuxprograms under Windows on a Linux server,” according to SuSE.

Founded in 1992, SuSE is a provider of Linux-related products andprofessional services.

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