Dell polls PC users on favorite Linux varieties

Dell Inc. began polling customers about their software preferences on Tuesday as part of an effort by the struggling PC vendor to meet a popular request for desktops and notebooks that run on Linux instead of Windows.

Dell posted the survey on a company blog, asking PC users to choose between Linux flavors such as Fedora and Ubuntu, and to pick more general choices such as notebooks versus desktops, high-end models versus value models and telephone-based support versus community-based support.

The company plans to collect votes through March 23, then use the feedback to begin selling Linux-based consumer PCs. Dell already uses Linux in certain server models.

"Taking a few minutes to complete this survey will help us define our forthcoming Linux-based system offerings," said Dell software architect Matt Domsch in his blog posting. "We'll take some time to analyze your feedback and work to provide the platforms and options you choose."

The groundswell of demand for Linux began in February, shortly after company founder Michael Dell returned as CEO. Previous chief executive Kevin Rollins resigned in January as the company began to flounder during a series of problems, from drooping earnings reports to delayed financial filings, an accounting investigation by the U.S. Securities and Exchange Commission and an investor lawsuit.

As part of his campaign to help the company renew its profits and regain market share from Hewlett-Packard Co., Michael Dell launched a company blog to collect customer feedback. Users immediately filled the blog with requests for an alternative to Microsoft Corp.'s Windows Vista OS and Office suite, such as the Linux OS and OpenOffice productivity tools.

On Feb. 23, Dell announced it will work with Novell Inc. to install Linux on business PCs including OptiPlex desktops, Latitude notebooks and Dell Precision workstations. Dell also said it will work with other Linux providers since users requested many other versions of the OS, such as Novell/Suse Linux Desktop, Red Hat Enterprise Desktop, Fedora, OpenSuse and Ubuntu.

Although Michael Dell's populist approach is winning some praise, the change may come too late to save company profits in the short term. On Tuesday, a prominent analyst noted that Dell has been cutting the number of notebooks it orders from manufacturers in Taiwan. While the industry as a whole is expected to rebound in March from a sales slump preceding the launch of Windows Vista, Dell will deviate from that trend and trim its order for notebook manufacturing, said Citigroup analyst Richard Gardner in the report.

Dell did not respond to a request for comment on the forecast.

Dell is struggling financially, listing revenue and earnings growth at four-year lows even as its competitors begin to trim their costs and boost profits, Gardner said. At the same time, Dell faces future challenges as it sees slowing growth in its major markets, aggressive pricing by competitors willing to sell PCs at lower operating margins and a general decline in prices as consumers find they can run more software applications on low-end PCs.

Still, Dell's PC production remains slightly above the consensus forecast, Gardner said. In fact, the report counseled investors that HP and Apple Inc. stock could rise faster than expected in the first half of 2007, and Dell will follow with strong long-term growth, beating estimates over a 12-18 month time span.

IDG News Service

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