Giants show faith in Linux.

Linux made some new powerful friends this week, when Intel, IBM and Corel opted to use its open-source operating system.

Linux made some new powerful friends this week, with Intel, IBM and Corel using the open-source operating system as fuel to park their tanks on Microsoft's lawn.

Intel said it will build low-cost Internet appliances using Linux, rather than the Windows CE system for small devices. The Internet appliances will be the first devices branded as Intel-made.

IBM will spend hundreds of millions of dollars reorganising its hardware and software divisions around Linux, to establish the operating system as an alternative to Microsoft Windows. It will also offer the source code for some of its software to Linux developers.

In an attempt to link the two platforms, software maker Corel plans to bundle Graphon connectivity software into its desktop version of Linux, allowing users to access Windows applications from Linux machines.

Meta Group senior analyst Ashim Pal said Corel's idea is interesting, but such systems would have poor scalability because they place strain on networks rather than clients. 'It's a step in the right direction, but regarding Microsoft, I don't see it being the straw that breaks the camel's back,' he said.

Intel and IBM's moves will not make Linux into a full competitor for Microsoft until there is mainstream application software for the platform, added Pal.A spokesman for Intel said the choice is 'absolutely not' the beginning of the end of Intel's relationship with Microsoft. 'We historically support multiple operating systems,' he said.