While Microsoft must win over customers to its new products, it's coming under increasing pressure from Linux, which is making inroads into key business areas.

The main reason for the change is that OpenServer customers were confused about which company would support that software. In addition, the acquisition of OpenServer allows Caldera Systems to control the software's future, making it easier for the company to proceed with its plan to encourage customers to switch either to Linux or to UnixWare.

Transmeta, the company that developed the Crusoe processor, is to release a version of Linux, tailored to run on Crusoe-based devices. The move follows a growing trend of collaboration between Linux developers and manufacturers of handheld computers.

An international recruiter from Microsoft's Redmond headquarters has approached Linux user groups in Sydney, Melbourne and Adelaide seeking software developers interested in joining the company's Windows core networking team.

Nicholas Petreley hosted the LinuxWorld Conference & Expo's second Golden Penguin Bowl in New York and brought down the house with his questions and contestants, including Linus Torvalds.

Linuxcare CEO and co-founder Arthur Tyde says he fully expects to complete a widely anticipated merger with Linux software developer Turbolinux, marking the beginning of what Tyde expects will soon be a wave of consolidation within the open software movement.

"After three days of roaming some 100,000 square feet of exhibition area populated by 200 companies' exhibits and attended by perhaps 20,000 "Penguinistas", I've certainly had an eyeful of Linux!"

With players such as Samsung, Agenda Computing and VTech all moving to offer Linux-based handheld devices, proponents of the open-source Unix variant say Linux may well come to dominate the wireless-device market in the coming years.

IBM Developer Kit for Linux on Itanium, Java 2 Technology Edition, Version 1.3 Alpha level code is a very early version of the Java SDK ported to Linux running on Intel's Itanium-based hardware.

Ximian hackers Jacob Berkman and Vladimir Vukicevic have been toiling away in secret with making use of Keith Packards new Render extension. Here is the world preview of AA GNOME and AA Mozilla.