Transmeta releases 'Midori'--Linux for gadgets, Mar 13, 2001

Transmeta, which sells low-power, Intel-compatible processors called Crusoe, previously referred to Midori as Mobile Linux. Transmeta has been working on the Midori additions to Linux for more than a year. Now it has released the software as an open-source project at VA Linux Systems' SourceForge site.

Transmeta expects Midori to be used in smaller Crusoe-based mobile devices, while Microsoft's Windows will continue to dominate laptops, the company has said. Midori is used in Gateway's Touch Pad, a product from which Gateway is retreating.

Two years ago, numerous companies thought it would be a snap to parlay the popularity of the open-source operating system into profitability. Now Linux companies are consolidating, overhauling their business plans, laying off staff, scaling back expansion plans and pushing back profitability schedules.

Despite the troubles, there are some positive signs on the horizon. Little-known Ebiz Enterprises, through its acquisitions of Linuxmall.com and Jones Business Systems, expects to have positive cash flow by June 30.

Eazel, the company trying to make Linux as consumer-friendly as the Macintosh, has laid off more than half its staff amid a drive to secure more funding.

The company, which launched last year by veterans of America Online and Apple Computer--two companies known for marketing their services to the average consumer--laid off 40 employees, leaving it with around 35, executives said Tuesday.

One of the first questions asked by mainstream technology companies beginning to offer Linux products or services is, "Who owns the penguin?"

The answer is no one. The Linux logo, a plump penguin known as Tux, is an open-source image. Anyone can employ Tux to promote a Linux-related product, and there are no licensing fees or any need to get official approval from someone to use the

Asked if the operating systems supported will include Linux, seen by some as a competitor to Windows, Ballmer replied that they would.

Microsoft has said in the past that .NET will run on platforms other than Windows. Indeed, that's likely to be an essential requirement, since many large Web sites are based on versions of Unix or Linux.

Economic downturns separate the strong companies from the weak, and the Linux market will be no exception to this rule.

The current level of activity suggests the opportunity for Linux has not yet peaked. Still, the route to success will become much more complicated (and expensive) for Linux distributors. Providing obvious added value will become critical and will probably involve an operating system/middleware software stack, not just operating system distribution.

Work goes on in Silicon Valley, where one of the most interesting local start-ups hit an important milestone late Monday. Eazel, based in Mountain View, launched version 1.0 of its Nautilus software, which it calls a ``desktop-management and service-delivery platform'' for the GNU/Linux operating system. But work goes on in an increasingly evil financial environment, and Eazel has also hit a wall. On Tuesday it laid off 40 of its 75 employees.

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