In a radical change, VA Linux Systems announced it will stop selling Linux computers on July 10, abandoning a business central to the company since its founding in 1993 and its phenomenal initial public offering in 1999. CNET News.com's Stephen Shankland writes . . .

“The Fremont, Calif.-based company also will lay off 35 percent of its staff — about 153 of 436 employees, according to a statement the company issued Wednesday.”

“Leaving hardware means VA instead will work on Linux software, its collaborative programming tools and its Web site. The move puts VA into closer competition with software specialists such as Red Hat and CollabNet.”

” . . . VA's primary business will be selling its SourceForge OnSite service, which lets companies run collaborative software programming projects. In addition, VA will continue development and consulting services such as writing Linux software for storage devices or remote server management, the company said.”

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