"I think the next step for these desktop distributions is to find those kinds of partners," Gardner said.

Gordon Haff, an analyst with Illuminata Inc. in Nashua, N.H., said the problem Xandros and other small Linux vendors face is that desktop Linux still has not caught on as its advocates have hoped. "At this point, I don't think Linux is ever going to be as important as a traditional Windows-like fat-client operating system," Haff said. "Yes, there will be people who want it and it may even gain market share," but it won't overtake Windows in the marketplace.

"There aren't the applications, there aren't the drivers" to make Linux a simple drop-in replacement for Windows in all uses. Haff said Linux could be successful in augmenting Windows in thin-client systems, where users are less concerned about what operating system is being used.

Xandros Desktop Professional 4 integrates with existing Windows networks with support for full domain authentication, logon scripts, and group policy profiles. It also features access to shared Windows folders and printers, the ability to write to Windows NTFS disk partitions, connectivity with Microsoft Exchange, support for third-generation mobile technologies, support for thin clients and terminal emulation and support for dual-core, SMP and Hyper-Threading processors.

Also included is a full-featured Microsoft Office compatible productivity suite, as well as the latest version of CrossOver Linux, which enables users to run Microsoft Office 2003 and other Windows programs directly on Xandros. The OS uses the latest standards, including the Linux Standards Base (LSB) 3.1 and the OASIS OpenDocument format for global file compatibility. Portland 1.0 tools allow third-party software developers to integrate their applications regardless of the desktop deployed.