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[News] Linux Gives Rackable Systems Competitive Edge

Rackable Systems: A One Hit Wonder?

,----[ Quote ]
| I have been warning for months of the problems at Rackable Systems
| regarding margin pressure, increased competition and insider sales.
| After a depressing Q4 conference call, I think we can add poor
| management execution and cascading street credibility to the
| problems at RACK.
| 
| [...]
| 
| I have indicated the competitive problems RACK would face in what is
| now becoming a commodity business for low-end X-86 servers. Two years
| ago, RACK was one of the first vendors to offer servers with AMD
| chips and Linux operating systems. Meanwhile, the major vendors
| were still trying to push their legacy systems with proprietary
| software. This gave RACK an edge with the companies looking for an
| open-source solution for their server farms. The X-86 servers also
| offered a much lower TOC (total cost of ownership) to the
| Internet customer that accounts for over 85% of Rack's business.
`----

http://biz.yahoo.com/seekingalpha/070207/26289_id.html?.v=2

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