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Microsoft may be seeking protection from Linux with Dell loan

alphadogg (971356) writes | about a year and a half ago

Microsoft 0

alphadogg (971356) writes "Microsoft's $2 billion loan to Dell is a sign that the software maker wants to influence hardware designs in a post-PC world while protecting itself from the growing influence of Linux-based operating systems in mobile devices and servers, according to analysts. Michael Dell and equity firm Silver Lake on Tuesday announced a buyout of computer maker Dell in a deal valued at about $24.4 billion. The transaction includes the loan from Microsoft, which in a statement said it views the deal as a commitment to the "long term success of the entire PC ecosystem." As the world's third-largest PC maker, Dell is important to the success of Microsoft's server and PC software. Even though Microsoft's loan does not represent a big part of the total value of the transaction, the software maker does not throw around money lightly and its participation in the deal might be an attempt by the software maker to influence hardware designs in the post-PC world of touch laptops, tablets and smartphones, analysts said. It may also be an attempt to secure the partnership and to stop the PC maker from looking toward alternative operating systems like Linux, analysts said. Dell offers Linux servers and in late November introduced a thin and light XPS 13 laptop with a Linux-based Ubuntu OS, also code-named Project Sputnik. Major PC makers in recent months have also introduced laptops with Chrome OS."
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