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Warnings to Red Hat about AOL Buyout
andyo from O'Reilly
submitted linkage to a report he wrote over there where he urges Red Hat to
think twice
about letting AOL eat them.
Talks about GNN, as well as Netscape. I'm sure this isn't the last
word we'll hear on this subject either.
He doesn't adress the most plausible scenario, in which AOL is mearly picking up another weapon with which to threaten Microsoft. Like Winamp, Redhat woudl probably be let alone to continue development, but AOL could say, "Look BIll, we would like to see some AIM and AOL integration with Windows. We don't need your cheeseball OS, we can take our ball and go home."
Apparently, AOL hoped to capitalize on the Netscape home page, which most Netscape users left as their default when starting up their browser. That's about the flimsiest grounds I can think of for purchasing a whole company--along with the commitment to maintain and enhance its products.
Perhaps. But as many have pointed out before, one of Netscape's biggest corporate weaknesses was that they didn't capitalize on this, which virtually guaranteed an immediate and huge subscriber base for whatever on-line service they chose to offer. The fact that Microsoft chose to build a competing browser from the ground up and give it away for free, largely to do the same thing, vindicates this strategy. Remember this was when the dot-com upswing was well underway, and everybody and their uncle was turning their site into a portal ...
Toronto-area transit rider? Rate your ride.
What's the best that could happen? They give Bill Gates a good, swift kick in the balls.
Sounds good to me.
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i have to admit that i myself have large reservations about capitalism as it is applied in North America, particularly in the freedoms whihc it allows to Corporations. But still, Open Source is about Information, not about little guys VS. corporations. It justhappens that the single largest opponent of Open Source and the GPL is also the single largest corporation(I don't have to say the name of the Beast, do I?).
As a community, we have to be careful about who we decide our enemies are. Linux has benefitted in the past from corporate involvement: Corel for Example. Red Hat(also Mandrake) has been held up as the flagship product of the Linux Community many times in terms of winning over the Windows/Apple user who doesn't want to take the time to understand all of the 'computer tech complexities' that they believe Linux involves. But we have to ask ourselves: If a large number of ex-Windows users get won over by AOL/RedHat Linux, have we really lost? It seems to me that a Linux user is a Linux user and that one more Linux user is one less customer for Bill and one less pocketbook supporting closed source.
Perhaps many of us would personally like to see AOL fall on it's face for unrelated reasons, but if they want to swing some of their weight around to back the Red Hat project, I don't think that we should necessarily get up in arms over it.
lysergically yours
For all the discussion about whether this would be good or bad for RedHat, linux, open source software, etc. an important point has been neglected. RedHat is a public company. It has an obligation to its shareholders.
If AOL offers enough money, RedHat is obliged to accept, even if they believe that being bought by AOL will mean the end of the RedHat distribution.
Tarsnap: Online backups for the truly paranoid
One thing to keep in mind: Nullsoft was bought by AOL. RedHat would be bought by AOL-Time-Warner. Big difference, big implications.
Suppose AOLTW bought Red Hat and took the software into Closed Source? Could they try this? Yes. Would they get away with it? One supposes that might depend upon what your definition of "get away with it" means. Who could afford to sue them back into compliance with the GPL? Would the GPL prevail? (It's never been tested in court.) Would tying a lawsuit up the courts for 5-10 years mean they "get away with it" win or lose?
If AOLTW took Red Hat closed source, Mandrake and other Red Hat based distributions would be up the creek. Mandrake (the slickest desktop Linux now) would have to change their base distribution, at great cost and delay. The resulting loss of momentum would surely hurt them and might even stagnate and kill Mandrake. This wouldn't be good.
What follows is a repost of a comment I made on Kuro5hin.
On Slashdot the news of potential purchase of RedHat by AOL has mostly been received with much rejoicing at the potential demise of MSFT's monopoly power.
I am curious as to why people don't fear AOL/TW. From where I sit they already own too much and already influence the perceptions of millions of people with their ownership of Netscape, Nullsoft, ICQ, Time magazine, CNN, WB television network, Time Warner records, Warner Bros. movies, and a lot more that I can't remember right now.
Microsoft may own the OS that most people run but AOL/TW controls the news magazines they read, the music they listen to, the movies and television shows they watch, and how they connect to the Internet as well as most of what they view while online.
Interestingly I'd like to see how a user modifiable OS like Linux interacts with AOL/TW's music and movie divisions that would like to see DRM support implemented in all software from operating systems to browsers. This should be interesting (kinda like NullSoft releasing Gnutella only for AOL to get mad)
One good thing that will come of this, no matter what happens, is that GNU/Linux will attain greater visibility. "Hmm, if AOL/TW is interested, maybe I should be looking into this..."
--Lawrence Lessig for Congress!
Banish any thought from your head about open-source, about GNU, and even about Linux. AOL doesn't know about it (much), doesn't care about it (much) and has become large, rich and influential without it.
AOL wants it for two reasons:
1. So Microsoft can't buy it
2. So they can become larger, richer, and more powerful, which would be partly stymied by #1 above.
Let me explain. AOL/Time-Warner knows its business quite well, and its business has nothing to do with software and everything to do with charging people for access to content they desire.
They can't do that if Microsoft, through MSN, is charging people for access to THEIR content instead. Therefore, they must counter or thwart every attempt by Microsoft to eliminate other options by which consumers might get to ATW (not MS) content. Since Microsoft pretty much owns the desktop, and with the sellout of the Justice Department effort against them has pretty much a clear shot to extend that domination into online content.
And not just web content. We're talking interactive messaging, video-on-demand, online commerce and a bunch of other potentially-moneyed pursuits that AOL wants to have or keep for itself.
I think AOL realistically looked at it and realized that (as a piece I read on CNet the other day pointed out) most consumers online in Murka are not the techs and geeks of the old days, they're just McCitizens who (a) don't know about and (b) don't care about "the desktop," "the operating system," or even the hardware. They just wanna send pictures to their Aunt Edith, buy some stuff off Eddie Bauer, check out some choice pron, or watch "Sudden Impact" for eleventeenth time.
How they do it, they don't care. In the 1930s, nobody knew what tubes were in their Philco radios, they only wanted to hear Jack Benny. Or how about now -- can you name the theatre chain in which you saw "The Matrix?" Do you really care? What color was the wallpaper?
This means AOL has "network appliance" in their heads. They've watched the stuff being done with embedded Linux (like the DVRs that aren't all that popular yet but they work). They looked to see who was the big cheese, the Biggest Name In Linux, and it was RedHat. They buy RH, they can have them develop an AOL Network Appliance, basically a box you turn on and it delivers... AOL and Time-Warner content. No Microsoft anywhere to be seen, which means no chance for Microsoft to hijack future revenue streams.
I personally think AOL is torqued off about the whole go-round with Instant Messaging and vowed never to get dicked by MS like that again.
This is not the end of Open Source. Anyone who thinks so radically overestimates the influence of RH on the Linux world. Yes, it's a big influence, and a lot of the way things are can be traced to them, but if RH vanished tomorrow, someone else would step up. I wouldn't be surprised, as a matter of fact, if AOL didn't slurp up the company, then spin it right back out after working out some very favorable licensing deals and pulling in key development staff.
Their track record is strange: they pretty well fouled up Netscape by forgetting there are non-AOL users of the tool, but they left Nullsoft alone and they're as fine as ever. But the strength of open-source is... we don't "need" any one distribution. If we did, we'd have been hosed long ago.
Turtle
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Rotate the pod, please, HAL....
AOLinux would be a different distribution. Use the expertise within RedHat to make AOLinux simple, safe, secure. Keep RedHat making and supporting RedHat Linux for the corporate markets.
Making it simple is not easy.
...with builtin copy protection, etc. AOL/Warner would own your linux box and control a good part of what you did with it. If legislation passes (the SSSCA or whatever it's called) then Redhat, with AOL at the controls, would become the only valid version of linux in the USA (and other contries the USA bullies into passing similar laws) because it would have that builtin copy protection crapola.
In Bushworld, they struggle to keep church and state separate in Iraq as they increasingly merge the two in America.
But why this hostility to AOL as an investor? Their funding of Mozilla seems to have benefitted the open source community greatly. Without that, I doubt Netscape or Mozilla would still be around in any form.
If RedHat investors find it advantageous to sell the company, I don't blame them if they do. RedHat's business model never really impressed me, and it might well be better off as an AOL subsidiary, kept alive as a hedge against Microsoft. And given that Linux is GPL'ed and that AOL has been reasonably well-behaved in the past, I don't see a problem. Let's give these people a break.
You statethey pretty well fouled up Netscape by forgetting there are non-AOL users of the tool...
Posting from Mozilla on Debian, I have no idea what you people are talking about. Netscape makes fine browsers that are far from dead. There are enough people, such as the Nuclear Regulatory Commision, www.nrc.gov, using their server software with good results for me to not understand that either. While Netscape is far from the "asshole in the middle" that some people might want it to be, the rest of us are happier dealing with the one sphinkter they we own and don't think of immitating it. Did AOL fire everyone at Netscape? Is that what I'm missing? While that would be sad, the remaining people seem to be able to continue providing an excellent bunch of software to the world using Open standards and free software.
DMCA, Hollings, Palladium. What might have sounded like paranoia is now common sense.
...and no room for the little guys. Don't you see what could happen? The problem isn't another MS, or even two MS corps controlling the market; the problem is that two extremely large corporations will hold control of everything we see. AOL/Time Warner is a media giant in and out of the computer world. Microsoft IS the computer world and has its own media platforms in and out of it as well. The problem with AOL/TW buying RedHat is that this giant will get bigger. Better press, better distribution, and a good face; Mozilla and RedHat Linux would be platform examples of good community efforts ... that take focus away from the giant's control of what we see on monitors and televisions.
Here's where the American Dream(TM) dies: with corporations controlling everything, the amount a small firm can change lessens. By letting these two companies get bigger and bigger, we let the smaller guys get pushed around.
RedHat has a huge influence on the Linux/Free Software community, like it or not. If AOL/TW buys it, I guarantee AOL/TW will influence RedHat and therefore the Linux/Free Software community.
If you're watching AOL, and your intentions really are true (ie, get into the Linux world for a complete CD distribution/coaster), buy Mandrake, the 'easy to use' distro. Or perhaps Lindows, or some distribution of your own. Wouldn't the announcement of AOLinux be enough without needing to own the most influential of Linux pushers? Look at what IBM is doing! Look, no buyout; hell, they don't even have an IBM-brand distro (AFAIK).
Use my userscript to add story images to Slashdot. There's no going back.
This ignores one fairly important detail however - A large part of the barrier to adopting Linux in most coporations is the lack of a corporation to back it. Red Hat currently is that corporation for a lot of companies. Its destruction would set back coprporate adoptions of Linux. Although on the other hand, having AOL-TimeWarner backing a good Redhat would help our credibility immensely(How twisted is that?).
Why?