By Eydie Cubarrubia

Dell should be cautious about relying too heavily on the Linux open-source operating system as part of its plan to regain its footing, a leading computer industry analyst said Wednesday.

“Most people don’t want Linux on the desktop,” said Roger Kay, founder of the research firm Endpoint Technologies. “The more sophisticated users who can do something like that aren’t inclined to, because they’re so dependent on compatibility.”

Mr. Kay was responding to growing demands from customers who have flooded Dell’s online bulletin board with calls for the personal computer maker to pre-install and support the Linux operating system on it machines.

The messages were posted on the Dell Idea Storm, which was recently launched to solicit feedback on how the troubled Round Rock, Texas-based computer maker can rebound after almost two years of disappointing financial results.

Mr. Kay said Linux might not be the right choice for most users. Sure, the open source operating system is cheaper than Microsoft Windows and that would cut costs for both the computer maker and the customer—a particular advantage as Dell pushes into developing economies. But the lack of support for non-techies, coupled with compatibility issues, may mean the most users would likely prefer to remain with Microsoft’s ubiquitous Windows operating system rather than switch to Dell machines with Linux pre-installed.

Dell has already dabbled with Linux to a small degree. The company in September 2005 said it would start selling a Windows-free version of its OptiPlex and Dimension computers, complete with copies of either the FreeDOS system or, in certain models, Linux.

But Dell recently deflected calls from Linux proponents by saying it wants to look at all Linux distributors before choosing one. Indeed, it may decide to select more than one Linux provider so as not to alienate customers who have a preference.

Dell’s open attitude is a step forward for a PC maker that until recently would only sell computers built with Intel chips and run on Microsoft software. That’s why the decline of “Wintel” has been closely linked to Dell’s slow demise (see The End Of Wintel?).

Linux could be a boon to Dell in certain markets. Doing away with Windows could trim approximately $60 or $70—at least more than $50 but less than $100— from the cost of a new computer, Mr. Kay says. And that could be a key advantage for Dell in emerging economies where cost-savings outweigh compatibility and support issues.

Putting Linux rather than Microsoft on its machines could also fatten Dell’s margins. And customers could save more money by using free office software like Google Apps (see Google Era Of Apps Dawns) on the open operating system.

But this cost-benefit analysis likely means little to most customers in the United States, which has long been Dell’s core market despite recent woes. Said Mr. Kay: “People aren’t willing to move to a completely new architecture, without the same support or compatibility, just to save a few pennies.”