Linked by Thom Holwerda on Mon 22nd Jan 2007 19:53 UTC, submitted by WillM
Red Hat "Oracle's Linux initiative has so far failed to make a serious dent in Red Hat's business or even in its stock price. Red Hat is actually worth slightly more today than it was when Larry Ellison launched his apparently not-so-scary RHEL clone the week before Halloween. But it is a little early to conclude that we are living in the best of all possible worlds for Red Hat. True, the company's financial results for the November quarter reassured easily-stampeded Wall Street investors who panicked in the first days after Oracle's announcement. But the fact remains that Red Hat's stock is worth 25% less today than it was a year ago. This decline reflects fundamental concerns not about the immediate threat from Oracle but about the long term value of Red Hat's business model."
Permalink for comment 204621
To read all comments associated with this story, please click here.
no, open market less likely to be gamed
by theGrump on Mon 22nd Jan 2007 22:42 UTC
theGrump
Member since:
2005-11-11

it is not going to be easy to replicate redhat's connections, sales, and support, but it will be easy to replicate their product. should their pricing become uncompetitive, it will be straightforward for a competitor to offer a nearly identical product with lower margins.

this is good! it means the market for supported free software will stay competitive. a potential negative is that redhat might not be able to assemble a war chest large enough to assault microsoft directly or fund major ad campaigns, but that is the nature of the open source market. it is not redhat that microsoft is competing with in any case, but all of free software in its entirety.

Reply Score: 2