H-P Will Need to Fight for Its Linux Lead

H-P(HPQ Quote) cranks out more sales from Linux hardware than anybody else -- a prized claim to one of the few hot spots of a sluggish server market.

The big question going forward is whether that lead can hold up amid fierce ankle-biting from Dell (DELL Quote), a powerhouse in commodity servers, and IBM(IBM Quote), with its deep pockets and massive research investment in Linux.

It's a strategic question worth asking given Linux sales jumped 35% in the first quarter, while the overall server market slumped nearly 4%, according to IDC. Faced with tight budgets, more corporate hardware buyers are choosing Linux, the so-called open source operating system that typically runs on Intel (INTC Quote)-based hardware, over the conventional Unix systems running on proprietary hardware from IBM or H-P. ...