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Red Hat In Business News

jferg was one of the first people to write about the coverage in today's Observer in regards to the latest business happenings at Red Hat. The article touches on the launch of RH Advanced Server, but one of the most telling statistics was "Red Hat now has 90 percent of its 630 employees working to lure corporations looking to move their computing platform from expensive systems running on the rival Unix operating system to Linux, widely considered to be the more cost-effective choice."

14 of 239 comments (clear)

  1. Hmm... by klocwerk · · Score: 2, Interesting

    I guess it would make an easier move for a corporation to go from Unix to Linux, but imho Linux's real threat is MS/Unisys, not Unix.

    Guess I'm just another anti M$ shashdotter though.

    --

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    1. Re:Hmm... by 4of12 · · Score: 4, Interesting

      I guess it would make an easier move for a corporation to go from Unix to Linux, but imho Linux's real threat is MS/Unisys, not Unix.

      You're half right. It is relatively easy to go from one of the high end flavors of UNIX to Linux. Reliable, familiar software at close to zero licensing costs that takes advantage of in-house UNIX experience is a no brainer decision for any corporation in that situation with a CIO that has a clue.

      The second part is reversed. MS has been hoping to climb up into the server room from the desktop, leveraging the dominance of various complicated lock-in file formats and protocols it owns at the desktop. It's been partially successful since Intel compatible hardware is cheaper relative to traditional high end UNIX RISC platforms. And, with Win2K, they've finally got reliability up to the point where they aren't laughed out of the room.

      But Linux is MS/Unisys' real threat, because while they focus on trying to climb up into the lucrative high end of the server room, Linux is coming up from behind, offering an even lower cost option than MS on Intel.

      If I were MS, I'd see the biggest problem being high end UNIX shops tunneling through the mid-cost option of Wintel to the even better option of lowest-cost Lintel.

      --
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  2. Luring out of 'real' UNIX by Jucius+Maximus · · Score: 3, Interesting
    "Red Hat now has 90 percent of its 630 employees working to lure corporations looking to move their computing platform from expensive systems running on the rival Unix operating system to Linux, widely considered to be the more cost-effective choice."

    So does Red Hat have the way out or the way in?

    1. Re:Luring out of 'real' UNIX by Anonymous Coward · · Score: 1, Interesting
      If a boxed redhat could be picked up for less than CDN$30 at Compucentre with plenty of CDs full of nice extra applications, I would buy it instead of downloading forever on my blazing slow 28.8 dialup connection.


      That's why you spend three bucks or so and order your CD's from CheapBytes or any of the other low-cost CD-ROM distributors.

      Red Hat is starting to see the pressure from places like CheapBytes, if the following text on their site is any indication:


      Looking for CDs containing the downloadable version of the XXX XXX Linux distribution? Hint: The name has to do with an article of clothing to keep your head warm.

      We can't call it by it's real name due to trademark law. Our president will be providing a statement and information at a later time regarding this subject. Please be informed about this matter prior to jumping to any erroneous conclusions.


      Red Hat is starting to figure out that they can't outsell 'free' indefinately.
  3. New Approach to Software/ Old Approach to business by stoolpigeon · · Score: 5, Interesting

    It may just be that building large publicly traded coporations is not the way to go with open source software.

    I'm no economist but I see no reason why this should be a terrible thing.

    Personally I don't care how corporations fare. I care how individuals fare.

    If individuals can succeed, without a corporation then I think that is better anyway. Large organizations tend to carry along overcompensated freeloaders. (Read CEO, CFO, etc.)

    I would like to see an economy where individuals are compensated on their merits.

    Like I said, I'm no economist and I don't have all the answers but I don't understand why I see articles that intimate that Open Source may fail because it does not work with the old business model.

    In my eyes it is the old business model that is failing and a new one needs to be found.

    .

    --
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  4. Acquisition target? by Mannerism · · Score: 2, Interesting

    As the article points out, it's hard to make money selling a free product. IBM is likely to succeed with Linux because they can sell the hardware, non-free software, and (most importantly) the services associated with it. Red Hat might do best if it joined the HP-Compaq family, which might be the best candidate to challenge IBM on the Linux front (especially with Oracle as a partner).

  5. RedHat Needs an Exchange Clone by emil · · Score: 4, Interesting

    If they were to get a hold of Openmail, they really might be able to slash MS right out of the server space - as long as they could keep MS from messing with the protocols.

    AFAIK, Exchange is the number one reason to have MS anywhere near the datacenter.

    1. Re:RedHat Needs an Exchange Clone by nehril · · Score: 4, Interesting

      absolutely. I work as a consultant and get to see lots of different kinds of corporate environments. Everyone wants Outlook and shared calendaring, which means Exchange, which means NT Server/Active Directory, which means Why Not Replace Novell While We're At It, etc.

      the draw of the shared email/calendar/public folder/contacts cannot be understated. Nobody cares what's running in the data center, as long as they have groupware that doesn't suck.

      Evolution is the outlook killer, but until there's a real Exchange killer, linux servers will not get far past the web/database market. When redhat has THAT, the PHB's will start returning phone calls.

  6. It's about time by Darth+RadaR · · Score: 3, Interesting

    "Red Hat now has 90 percent of its 630 employees working to lure corporations looking to move their computing platform from expensive systems running on the rival Unix operating system to Linux, widely considered to be the more cost-effective choice."

    Eventually, this was going to happen. Sure, using 90% of the employees is kinda harsh, but IMHO RedHat's going to have to push at the big iron if they plan on making any sort of success. MS and everyone else is banging on the doors of big server farms already.

    Maybe they could hire Brian Valentine to give their sales staff a boost and some spin-doctoring. Just imagine him being a Linux advocate. :)

    --
    /*drunk.. fix later*/
  7. Not here at my company... by SkyLeach · · Score: 5, Interesting

    We bought some copies of RedHat because we needed the support.

    We recently switched all of our hosting equipment from M$ to RehHat (thanks largely to yours truly and the M$ machines' continued insistance on crash-and-burn computing).

    The problem for RedHat is that I can get more and better support from #linuxhelp (take your choice of IRC undernets), Linuxdoc or just about anywhere else than I can from some guy at the corporation. I know the OS, and it doesn't take much time to find answers to stuff I don't know.

    When I start trying to do undocumented stuff or I start having bizarro problems with the JVM, shared libraries or something else then the RH support guys don't know as much about the problem as I do.

    I want to go to people who write the kernel, the libraries, the product or whatever isn't working and ask them. Online. For free.

    I think the comments about going to a "club" style support system makes a hell of a lot more sense.

    --
    My $0.02 will always be worth more than your â0.02, so :-p
  8. Re:New Approach to Software/ Old Approach to busin by leviramsey · · Score: 5, Interesting
    It may just be that building large publicly traded coporations is not the way to go with open source software.

    Exactly.

    I'll take it one step further. Large corporations are not the way to go with the Internet in general.

    The Internet is a naturally decentralizing force. At the protocol level, it's amazingly decentralized, by design. The tendency is for anything it touches to be decentralized.

    Consider software. Open source is the ultimate in decentralized software. Could Open Source exist in anything approaching its current scope if there were no Internet? To be blunt, it couldn't. Look at the progress of the GNU project in 1993, the midpoint of its life to date. This was also just before the great explosion in the 'net.

    Consider media. Ten years ago, the average home in the US got, what, 30 channels of TV, plus a newspaper and a few magazines. Now, there are thousands of websites, each offering a different focus and a different point of view.

    Consider entertainment. Ten years ago, if you wanted to distribute music on any sort of scale, you had to go to the RIAA or to an indie label that was limited in its reach. If you wanted to have your writing published, you had to go to a publisher of some sort, or pay exorbitant fees to a vanity press. And let's not get started on motion pictures. Now the Internet is allowing real distribution of entertainment media at huge savings (especially when P2P is taken into account).

    As the Internet becomes more interwoven into business, business will decentralize. As business decentralizes, wealth and power will decentralize.

    In short, it was the great fallacy of the 1990's that you could become rich thanks to the Internet, the dominant effect of which, ultimately, is decentralization.

  9. Unisys, MS, and Linux by doomicon · · Score: 2, Interesting

    With Unisys and Microsoft supporting an Anti-Unix campaign, on the basis of Unix being overall more expensive than Windows. Wouldn't this just help Linux? While they spend the money convincing corporations that Unix is to expensive, Linux could ride the wave. Convince customers there product is cheaper than Windows, and no retraining of Unix personnel needed (for the most part.) Not to mention from where I sit (Telecom), it would be a whole lot easier to port existing applications to Linux, than to Windows.

    --

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  10. Another good sign by NineNine · · Score: 4, Interesting

    which doesn't typically boost investor confidence. In late March, Chief Executive Officer Matthew Szulik filed to sell 425,000 of his shares after filing to sell 600,000 shares in February, according to documents filed with the U.S. Securities and Exchange Commission. Company co-founder and Chairman Robert F. Young has unloaded nearly 700,000 shares so far this year, part of a plan in which he sells shares automatically on a daily basis.

    When the founders/owners/top execs of a company start dumping shares, that's not a good sign. These guys know how the company is really doing.

  11. What rubbish. by Jules · · Score: 2, Interesting

    You're viewing stock and finance as an emotional decision rather than a business decision. If I buy a stock or investment, I set a goal based on time and value of the investment. When that goal is reached I sell. Period. Unlike Enron where the top brass lied to everybody, Red Hat's management seems to be following a planned decision that at lot of execs (and peons) do all over the place.