Oracle to set up Linux computer firm

There are few things Oracle chief Larry Ellison likes better than doing something to hurt Microsoft. So far, most of his efforts have failed. But this week, on the premise that "anything that’s good for Linux is bad for Microsoft," Ellison announced plans to create a new company that will sell $199 network computers based on the popular Linux operating system.

The new Intel-based computers will also come with the Netscape Navigator Web browser. The machines are likely to be launched at Comdex or shortly thereafter. Ellison said the new company will be created soon and is likely to quickly hold an initial stock offering to raise funds to market the devices. The new company is Ellison's latest effort to support products that compete with Microsoft and its Windows operating system. Earlier attempt to kick-start a network computer industry failed. The latest attempt is a low-end extension of Oracle’s Raw Iron program designed to offers application servers that will let network clients run various business applications without having to run the Windows OS on their local desktop computer.