Dell, the second-largest computer maker, today unveiled its first computers in Europe to be sold installed with the Linux operating system, rather than Microsoft’s dominant Windows system.

The potential competition to Windows, which along with the Office software suite is one of Microsoft’s two most important cash cows, was upped further when Lenovo, the third-largest computer maker, added that it would also start selling laptop computers preloaded with a version of Linux developed by the rival software group Novell at the end of this year.

"Open source" software, such as Linux-based operating systems, do not require license fees to be paid, a factor that can reduce costs for consumers and businesses, although users may have to pay to have their systems serviced or upgraded.

Separately, Dell last night announced the acquisition of Zing, a privately held company that has developed software that allows portable digital music players to download music over the internet with having to use a computer. Terms of the deal were not disclosed.

The move to buy Zing – which could presage a fresh foray by Dell into the music player market now dominated by Apple’s iPod – and the decision to offer Linux comes as Dell seeks to revamp its image under the watch of Michael Dell, who returned as chief executive in February.

Laura Conigliaro, the Goldman Sachs analyst, said: “Moving forward, we think acquisitions such as Zing will help Dell to offer refreshed consumer products with differentiated features and improved design – key steps in gaining both market and mind share in the consumer segment.”

The decision to offer Linux machines, which were launched in the US in May, was a “direct result of extensive customer feedback received via www.ideastorm.com, Dell’s web site for fielding and acting upon customers’ suggestions to improve products, services and operations,” the company said today.

About 30,000 people asked Dell to offer systems with Linux pre-installed, and more than 100,000 participated in a follow-up survey to determine customer preferences, including which Linux system to offer.

Dell had previously been criticised for ignoring consumer feedback and for dishing out sub-standard customer care.

“As we hear from customers throughout Europe and around the world, we will continue to explore the opportunities to expand our offerings globally, so stay tuned,” a company spokesman said.

Dell computers will be offered with Ubuntu, a Linux-based open source operating system that comes with built-in software including a word processor, spreadsheets, e-mail, a calendar, web browsing and photo capabilities.

The Inspiron 6400n will retail at £329, the Inspiron 530n at £399.

Service upgrades will be offered from the company behind Ubuntu, Canonical.

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