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."
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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

raynevandunem Member since:
2006-11-24

Then why is it that Microsoft has never said anything about Red Hat - or any other Linux vendor - in their press releases?

If you notice their "Get the Facts" advertisements, Microsoft only vaguely refers to their main competitor as "Linux" rather than as the name of any particular commercial Linux vendor. Then, in the press conference from last year, Microsoft made a deal with Novell on the professed grounds that it was helping Novell to make "Linux" more interoperable with Windows.

If anything, I think Microsoft's official position is that Novell = Linux, hence the patent deal with Novell and not with any other Linux vendor.

I mean, I tried Googling for any MS quotes concerning Red Hat the other day, and all I could pull up was quotes from Red Hat's press releases concerning Microsoft. Not once could I find a Microsoft statement on Red Hat, not once.

If that's the case, then I think that Microsoft is being narrow-minded in their competitive approach to FOSS.

Their belief is that, officially, they can only talk to, compete against, make deals with, and eventually assimilate companies, not simple developers or grassroots organizations.

Who have they competed against in the software sector? Novell, Netscape, Adobe, etc. In the web sector? Google, Yahoo, AOL. In the hardware sector (most recently)? Apple, Sony.

Are they against open source? Not really, just allergic to the GPL (and, by extension, FOSS which is licensed under that license).

But I personally don't think they can understand FOSS, and neither can I blame them. Microsoft offers software as a product, while FOSS offers software as a service.

So....I guess that makes the two models antithetical, hence, non-competitive to each other.

Thus, Linux (unless it or its services are offered as a product) isn't commercially competing against Windows, and vice-versa.

Reply Parent Score: 1

h3rman Member since:
2006-08-09

I tried Googling for any MS quotes concerning Red Hat the other day, and all I could pull up was quotes from Red Hat's press releases concerning Microsoft. Not once could I find a Microsoft statement on Red Hat, not once.

What about:
http://seattlepi.nwsource.com/business/292702_msftredhat17.html

"We are willing to do the same deal with Red Hat Linux and other Linux distributors," Microsoft Chief Executive Steve Ballmer said at an SQL database software conference in Seattle.

Note the funny reference to the company Red Hat as "Red Hat Linux".
In any case, maybe Red Hat does have a special place in Ballmer's heart after all. ;) Not as special as Google, naturally, but he is kind enough to mention its name.

Reply Parent Score: 2