Red Hat Set To Surpass Sun In Market Capitalization
mytrip writes "In what may come to be seen as a deeply symbolic moment in the history of operating systems, Red Hat is on the verge of surpassing Sun Microsystems' market capitalization for the first time.
Sun, perhaps unfairly, represents a fading Unix market. Red Hat, for its part, represents the rising Linux market.
Given enough time for its open-source strategy to play out, Sun's market capitalization will likely recover and outpace Red Hat's."
Honestly, does "market Capitalization" mean more than 700M in sales vs. 13B in sales?
What are we going to do tonight Brain?
The makes me curious. If all Linux vendors had an equivalent of publicly traded market capitalization, what would their sum total be? Naturally it would be lower than Microsoft's $153B (as of this morning), but that isn't bad considering Linux can be had for free. (BTW, I remember back when msft's market cap was over $400B).
Let us not become the evil that we deplore.
I for one hope that Sun not only survives, but prospers. Sun has greatly contributed over the years to the development community, particularly FOSS developers.
[Insert pithy quote here]
A thousand and one posts saying that it's illegal/immoral/impossible to make money from open source software will be along soon.
They'll be followed shortly after by sevaral thousand more complaining that all corporations are evil and should be banned.
In turn those will be followed by several million arguing that google are/aren't evil, or disputing the subtle nuances between doing evil and being evil.
In other words: normal service will be resumed as soon as possible. The tuna salad is off, by the way.
Confucius say, "Find worm in apple - bad. Find half a worm - worse."
I fail to see why this is a "deeply symbolic moment in the history of operating systems" and not merely a moderately interesting moment in the corporate history of the respective companies (or, more specifically, in Red Hat's corporate history). Red Hat may represent Linux, but it's not Linux, and market capitalization, being a function of share price, is a less interesting metric then any measurement of the actual use of the operating systems these companies produce. Anyone who remembers the Red Hat IPO will know that share price is more closely tied to hype than to particularly signficant tecnical advances.
Definition - Market capitalization:
an estimation of the value of a business that is obtained by multiplying the number of shares outstanding by the current price of a share
The simple truth is that interstellar distances will not fit into the human imagination
- Douglas Adams
...that marketing trumps technology. Sun has some incredible tech and even delivers x86 servers at highly competitive prices. Yet because Sun's marketing sucks worse than a black hole, generating new customers is a huge issue for them. As far as I can tell, the vast majority of their business is still through customer reps with little attention paid to the market as a whole.
I personally think that Sun could be successful in quite a few areas of the market. Not the least of which is as a serious competitor to Dell's server business. But first, Sun has to figure out how to communicate with the average customer. Giving their software complex prefixes like "Sun Java System", branding everything with "SPARC" even when it isn't SPARC, changing their market ticker to JAVA, and giving up on new markets before they've made inroads aren't exactly painting Sun in a positive light.
Dear Mr. Schwartz: Please hire a real marketing department and see to it that your product line makes sense to the average consumer. KTHXBYE.
Javascript + Nintendo DSi = DSiCade
There isn't enough time in eternity for that to happen. What will happen is that Sun will declare bankruptcy in the next year, liquidate everything related to Sparcs/Solaris/etc. and its MySQL and Java "businesses" spun off into something that will take years to reach Red Hat size.
Step out the front door like a ghost into the fog . . .
Of the Linux deskto
... then Linux market capitalization is how much software that previously cost money was made free, so if Linux can be considered directly responsible for killing Microsoft, which I think is some peoples objective, that puts their market capitalization at $400B - $153B = $247B. That means Linux has 1.6x the market capitalization of of Microsoft just in Operating Systems! That doesn't even begin to include all the other great FlOSS out there.
Add to that the average wage of a software engineer times the number of man hours contributed to FlOSS, and you can quickly see how Microsoft is getting its butt kicked!
I love the new math!
Want Big Business out of government? Take away the incentive and start by getting government out of big business!
SUN's market was traditionally on High End equipment. Standard PC hardware has been getting to the Good enough category, and replaceing the need for the high end stuff. Even if the high end stuff today is that much more high end, we are reaching a point where we need less high end equipment.
the 80's almost every major university had its own super computer. 90's they had a mainframe, 2000's they have high end microcomputer based servers.
SUN product line has been between mainframe and microcomputers. Now their new stuff is either to much for what people need to too expensive for what you get.
Linux growth has always been fasted with the Unix Corps who are upgrading to a new network, and it is way cheaper for a Unix corporation to switch to Linux (or Old Unix to New Unix) then to Windows. (Windows to Linux costs a lot more).
If something is so important that you feel the need to post it on the internet... It probably isn't that important.
..if Redhat sold netbooks, laptops and desktops and servers pre loaded with linux that "just worked", all of it, no hardware gotchas anyplace.
Wow, you sound like a pro.
It's not that Sun would have done the wrong things. Their problem for the last 15 years has been that they have been over-careful of commitment into their own business. From business perspective they have been apathic at best, and I iterate the same I said in 90s already: I would not invest a penny into them.
They have not taken any steps to fix their real problems so far, so likely they will just keep sinking slowly until the company will be bought by someone who knows how to actually run companies. Perhaps even by Microsoft, who knows :)
"capitalizatio" as a mashup of "capitalism" and "fellatio"???
...but it is also about opportunity. It may hinge on the whims of hype, but it is very similar to a credit score. There are many factors that go into convincing someone to give you money, and of course only a part of that is going to be the technology, just like ideas are only part of an equation.
Ever known a person with a good idea that didn't follow through on making it into something?
It all comes down to predicting what customers are going to do. Unfortunately good talent, technology, and the drive to succeed is not enough. You need capital. Add customers whims into the whole equation and it is just one big mess where many people are trying to profit (including the customer that wants the best value product for their money).
So is it a big deal when investor confidence + actual investors + talent + drive + technology = a number nearly bigger than Sun Microsystems? ABSOLUTELY! It is good for Red Hat, Linux Community, and even customers. It boosts everyones confidence to see the most intelligent and greedy people saying "This is where I am going to keep my money". This in turn becomes better for everyone. Also, I don't think it is so much "better than Sun" that is the issue, but the fact that they have hit the mark to definitively say that they are in the same league.
It makes me as happy as something like this can when nobody is writing me the check.
Want Big Business out of government? Take away the incentive and start by getting government out of big business!
Anyone with a brain (ok, it takes perhaps a bit more than just half) knows that the stock market, as an entity, is an idiot.
There, I said it. I expect to be modded down by Linux fanboys (which is NOT the same as intelligent Linux users, mind you. I like to think I belong to the latter).
"The agriculture ministry is not in charge of Gundam" - Japanese ministry official.
Ah, yes, I understand, it must be Latin.
Capitalisatio mercati RubiGaleri majoris capitalisatio mercati Solis est...
Did You Know? After maintaining a vow of silence for almost 7 years, Red Hat Linux founder Marc Ewing now freely admits that he named Red Hat Linux after Limp Bizkit frontman Fred Durst's trademark red New York Yankees baseball cap.
Durst and Ewing met in Ewing's hometown of Raleigh, North Carolina (Durst was raised in Gastonia, NC), where they became fast friends, sharing the same passion for low-level system programming.
Durst collaborated with Ewing on the first preview beta of Red Hat Linux before the demands of his rocketing stardom forced him to abandon his hobby and tour with his band.
Durst's position on the development team was filled by Damien Neil, and not many know of his contribution to the popular Linux distribution; however, a google search through the source code on Redhat.com (http://www.google.com/search?q=wfd+site:redhat.com) reveals many snippets of code authored by 'wfd', Durst's initials (William Frederick Durst).
Durst asked Ewing to keep his 'geeky' roots a secret as it would not lend itself to Durst's bad boy image, but as Ewing points out, it was "only a matter of time" before the origins of his NASDAQ-100 company's name were uncovered.
--mfh
Wasn't Sun in trouble a few months ago, where their market cap was less than book value? I.e. the market was sure Sun was going to waste whatever resources they had.
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Open Source Sysadmin
Phew, for a second there I was worried that they meant *Market Capitalization*.
Standard PC hardware has been getting to the Good enough category, and replaceing the need for the high end stuff.
It is as good as SUN and cheaper. Otherwise, folks would still be buying SUN's products. Say what you will about MS, but they have a good product and the most applications that run on it. Consumers are not stupid as many folks here believe; especially, business consumers.
No, I don't work for Microsoft. I'm just expressing my opinion.
In fact, my biggest grip with RedHat is that they always seem 2-3 revisions behind everyone else. I mean, come on! I wonder exactly what it is they are doing with all that money?
Ruby Neural Evolution of Augmenting Topologies
That made me laugh deeply. Kudos.
Did the author forget that Sun offers Red Hat on its workstations?
Yaa, but after open solaris release ! .. .. Thats it
things remain same.
Linux Guys are always Open minded
so Solaris or linux once it is open
2009, the year of the linux desktop!
The market is clearly choosing Linux over OpenSolaris. One way to combat that would be to make OpenSolaris GPL3. It would then attract open source developers, and have the bonus of ZFS support which Linux will continue to lack.
GCHQ Quantum Insert installed. If only our tongues were made of glass, how much more careful we would be when we speak
No product can make money if you can't sell it. Doesn't matter how good it is. Call it marketing hype, but how is anyone going to know that your systems are superior if you don't say as much. That seems like such a screw up that the sales rep couldn't explain the whole "end-to-end" solution issue. Personally, I don't think that wasn't a gotcha question at all, that should have been prompted as a great opportunity for the rep to explain what kind of business Sun is really in.
:)
But if Sun doesn't even know what kind of business they are in... one really needs to wonder how much longer they are going to last. I am sure any sales rep at Red Hat would drool at the opportunity to answer a question like that from a real customer in front of a crowd that would have influence over possible huge sales. Hell, even I live to hopefully answer questions like that! Shortly after Vista came out, I was at a Fry's Electronics, and a sales associate was telling this guy looking to buy a bunch of machines that Vista was the hot new thing and that he needed it for his business because everyone was going to be using it in the next 6 months when XP died. I bust up laughing and warned the customer that was likely the worst advice you could get to drive a business, let alone a speculation I agreed with. From what he talked about needing for his business, I did my little Linux/FlOSS speech, but really recommended Red Hat, and explained a bit about their free product with full end-to-end support, and that they could likely best advice him on what would work best for HIS business needs. I am fairly sure I sold the guy on it. The Fry's sales rep was upset and just kept saying I was wrong and that everyone was going to use Vista. I humored him and asked "So what's Vista got that XP doesn't?". He started explaining the higher system requirements (as if it was a selling point), and went on to show me Aero. I gave a long *sigh*, and walked away. I should hang out there more often
Want Big Business out of government? Take away the incentive and start by getting government out of big business!
This SGI old-timer wishes Sun the very best, both as through solidarity and because he doesn't like to think of Linux as the kiss-of-death for an ex-UNIX hardware vendor.
SGI proved that great tech and once-profitable business itself is not enough; Open Source can save you, but only if you go all in. Try to exist between Open and Closed and you will get torn to pieces by their gravity.
sounds like every system admin i've ever talked to, so i assume you aren't being sarcastic.
what is it about that profession that makes those little script monkeys think they're actually the important people in the mix? reality check, monkeys - you are the technological equivalent of janitors. keep those toilets clean, please, and stop stealing supplies.
I for one hope that Sun not only survives, but prospers. Sun has greatly contributed over the years to the development community, particularly FOSS developers.
Sun has certainly contributed many highly-visible projects that we just take for granted these days: NFS, OpenOffice, Java, GNOME, etc. And ZFS is very powerful, but hasn't really made it to other places yet. However, it just seems Sun doesn't know what to do with it, or how to market it.
A few years back, I got to visit Sun for an executive briefing. We met with a lot of higher-ups at Sun (including Scott McNealy.) I repeated to whoever would listen that Sun needed to get their act together: Figure out an (easily-understood) strategy for Sun and FOSS, and move with it. Separate the hardware and software marketing; and at the same time, let me choose systems "menu-style" just like buying a Dell. Simplify your product lines and marketing. Release a consumer-based UNIX distro for commodity PC systems that has the polish of Linux (the apps are there - Firefox, OpenOffice, etc. - so for 99% of the population that's the "compatibility" they need.)
Yes, Sun has done some of these things, but not in a coherent way, and certainly not in a simple way. Things are just too hard to go through Sun.
Sun needs to get organized if they want to remain competitive.
yeah, like SGI was about to outpace everybody.
A thousand and one posts saying that it's illegal/immoral/impossible to make money from open source software will be along soon. They'll be followed shortly after by sevaral thousand more complaining that all corporations are evil and should be banned. In turn those will be followed by several million arguing that google are/aren't evil, or disputing the subtle nuances between doing evil and being evil. In other words: normal service will be resumed as soon as possible. The tuna salad is off, by the way.
Wow! The Readers Digest version of Slashdot!
DATABASE WOW WOW
Sun, perhaps unfairly, represents a fading Unix market. Red Hat, for its part, represents the rising Linux market.
According to whom? FUD!!!
Who is general failure, and why is he reading my hard drive?
When will SCO surpass Sun? Who else has the brilliant plan of charging $699 for something other people are giving away for free. Imagine it, SCO are making that much more for every copy of Linux they shift.
Surely this unique and exciting business plan of charging more than the opposition must eventually pay dividends.
He started explaining the higher system requirements (as if it was a selling point), and went on to show me Aero. I gave a long *sigh*, and walked away. I should hang out there more often :)
Get a life, loser!
Can any MS based servers be configured to divide resources on "virtual" machines before the operating system is booted?
And then each one of those virtual machines can run a couple of dozen instances of a operating system?
And then can you assign on the fly CPUs, memory or I/O cards to any of your initial virtual machines?
Can actually any Linux machines do this?
You guys talk about desktops like if getting the latest version of Gnome working was the coolest thing regarding technology. That is not Sun's beef, Sun's realm is completely different, but clearly its main clients (specially banks) are being hit specially badly, but the stuff Sun does is tremendously cool, if you are technically skilled to understand what it is.
IANAL but write like a drunk one.
The realms of each company are not comparable.
Sun's bread and butter has been with the sector of the economy that has being hit the worst by the financial meltdown: banks.
If Sun can hang on long enough for the Financial industry to be sorted out, they will be back because they have technical offerings that cheap hardware manufacturers and Linux providers can only dream about (ZFS, dtrace, SMF, self healing, M series, honestly, this is cool stuff that actually have the potential to save tons of money to big companies. Sun is perhaps the only hardware manufacturer trying to drive the amount of energy servers need to work down. Anybody that has been close to any seriously sized datacentre knows that this is vital for the future of computing. Cheap PCs that have not at their heart energy considerations may fail at the end to replace big iron for this only reason).
IANAL but write like a drunk one.
that Sun doesn't continue on it's current present course of screwing up every open source project they have. MySQL anyone? The stagnation of OpenOffice? Personally, I hope Scott McNealy and crew DIAF.
Pax Vobiscum
Sun has been a great innovator, but when they were the only game in town they charged obscene prices for their products and services. It helped open the door for Linux and Sun has only itself to blame.
When you walked into a data center ten years ago all you saw were Sun servers. Where I work now I'm hard pressed to find a single Sun box anywhere.
Sun was expensive compared to what? Windows boxes? Linux boxes that came later? Sun became the huge company it was because they were far more affordable than what IBM and Digital was charging in the 80s, and everyone ran to them. It's kind of hard to blame Sun because some guy in Finland came up with an alternative that ran on El Cheapo X86 hardware, and then gave it away to the whole world.
Life is hard, and the world is cruel
Umm,. I know Dell and Redhat aren't in the same business. The article was more about Sun and Redhat. Sun sells software, services and hardware. Redhat only sells two of those things so far. That's why I thought it might be interesting if they took a crack at opening up the last leg of that tripod. I *do* know I would be more inclined to get hardware from Redhat knowing it just worked with Linux than getting a similar situation from Dell or Sun. Any place that advertises that they recommend Vista on the top of the "linux pre installed" hardware pages (that would be Dell) in their online catalog isn't really all that serious about it. They offer a few models, but that's about it, sort of a generic minimal effort sop to that market. Whereas if Redhat did it, they would most likely take it *very* seriously. Would it be worth say a 50 buck premium over a similar specced Dell offering (and just about anyone could beat sun on hardware prices)? I think so, especially if they shipped with the real long term supported redhat and not perpetual betaware Fedora. I use Fedora now but it is always a crapshoot every release, it is a fine line between brilliant and a steaming pile, because that is what it is, experimental, it's never stable. If I could get a decent specced machine from Redhat with a solid multi year supported distro on it and it all "just worked" out of the box..that would be quite tempting.
Given enough time for its open-source strategy to play out, Sun's market capitalization will likely recover and outpace Red Hat's.
Bwwwwwwahahahahahahaha. "Likely" if you are a Jonathan Schwartz sock puppet account. Unlikely if you've followed Sun's dismal performance for any length of time.
Advice: on VPS providers
Slashdot in a nutshell? Or maybe not.
I'd like to see what they'd put on the cover.
At the bottom of the
I should hang out there more often
obvious sarcasm?
Want Big Business out of government? Take away the incentive and start by getting government out of big business!
There's a sweet spot between 1-to-4-threaded apps (which x86 does very well) and trivially parallelizable apps (which x86 clusters do very well), where you need a ton of CPUs/cores in the same box, with a whole shitload of RAM and fast interconnects. That's the only real niche where non-x86 stuff has survived, because at the moment you can't really get a 64-way x86 box with a few hundred gigs of RAM. So it's what's being pushed by POWER6, the remaining SPARC lines, and Cray (which has survived basically by transforming from a vector-CPU designer into a designer of interconnects).
To some extent this class of architectures has always had that strength---when I read old OS benchmark papers, I'm sometimes surprised by how, even though the CPUs are obviously dated (quoting e.g. 300 MHz clock speeds), the rest of the specs are vaguely modern (that 300 MHz UltraSPARC might have been in an 8-way configuration with a gig of RAM).
But they used to also be able to sell cut-down versions as more normal servers and workstations---a 1-CPU or 2-CPU UltraSPARC was a perfectly reasonable server or workstation. The x86 commodity hardware has totally destroyed that market, which kills economies of scale for these non-x86 architectures, since now they have only the much smaller highly-SMP market.
10 PRINT CHR$(205.5+RND(1)); : GOTO 10
they didn't contribute GNOME. In fact, one might say they so far as to try to steal it, passing it off as the "Sun Java Desktop", when it wasn't Sun's and isn't Java based.
Sun's previous hostile attitude toward FOSS including FUDing Linux and financing Linux's enemies has really come to bite them in the ass, now they want to be FOSS leader but it's too little too late.
Yes, I think they could do the assembly and shipping in house, at least for desktops and servers, notebooks and netbooks would come just premade, nothing much there to it, they will of necessity all be coming intact from Asia someplace. They just need guys onsite to insure quality and to have that quality warranted with whatever manufacturer they pick.
The economy in the US is awash in reasonably technical people who need a job now. They need a few people to really make intelligent decisions on the hardware, and to coordinate that with the software devs they already have to get to the "just freeking works, guaranteed" stage. Building computers is just a factory job after all, it's not that hard,and if you studiously avoid the typical east coast and west coast uber and oh so trendy high rent districts and have your assembly plant in the rust belt some place, you get cheap rent and reasonable labor and you can be picky on the labor quality as well. You aren't making any of the components, just assembling them. As to shipping, Fed Ex and UPS go everywhere, that is a non issue really.
As to sending people- joe six pack or joe business- out to do their own research on hardware, still too many horror stories about what allegedly works and doesn't with linux, its a moving target all the time. Check *any* distro's forums there. You basically *have* to follow the Apple-type model to insure the best quality control and to guarantee it "just works" with the software you install.
The whole idea of a big linux company like Redhat selling computers is they *would* be a better over all experience than getting some random production run from acme computer and trying to shoehorn something in. And again, Apple has proven that people will pay a reasonable premium over the lowest common denominator for that experience.
What you're looking for is PROFIT. Sun's profit was 88 million, or 11 cents per share in the last quarter (down 73%)
Huh? Sun posted a $1 Billion LOSS last quarter.
Even the simple stuff the SPARC may do better. I have a sun x2200 with 4 AMD cores and 8 gig of ram running Freebsd 6 that I use as a shell box. I also have a two cpu Netra 210 (IIIi) with 2 gig of ram that I also use as shell box. If I open an mailbox with something like elm, it turns out that the sparc machine is 2 to 4 times faster and never seems to pause while sometimes the amd box seems to get slow for a bit. The sparc does a much better job of dealing with heavy and odd loads than the x86 box does. I use SPARC on my net facing systems since its stack is in hardware which makes stack smashing in C much more difficult than on an x86 platform.
DIGITAL got bought out though, many times over. Many of its assest were spun off between 1994 and 1998, including things like Digital Linear Tapes (DLT). The company proper was sold to Compaq, soon bought by HP in 2002.
Correct. RDB was sold to Oracle.
Unfortunately, the similarities between DEC and SUN are amazing. DEC was always knocked for having poor marketing. We are hearing the same thing about SUN. DEC was selling over-engineered proprietary hardware in an industry where commodity, low cost hardware was taking over. SUN is doing the same with its own hardware, but is also selling in the commodity market. Unfortunately, commodity hardware margins are almost non-existent. Who's to say that SUN won't also start spinning off many of its assets.
Without the 2nd Amendment, the others are just suggestions.
First - Sun had a UNIX for x86 in 1992-1993 which was superior to Linux at the time. This is not hindsight being 20-20, my manager complained to me in 1997 (we had Solaris x86 dekstops) how Sun was screwing up Solaris x86. Red Hat only got things like a decent kernel crash dump put in recently - Sun really messed this up.
Secondly - too slow to embrace "open source". Red Hat did and now their market cap is about to surpass the company that did not (soon enough anyhow).
Thirdly - how necessary was dumping the Berkeley-like SunOS for the System V-like Solaris? I personally think they put too much of an effort into this, although opinions may vary.
I watched SGI get killed in the mid-1990s. People began doing low-end graphics stuff on Macs or even Windows, and suddenly SGI only became a company for the high-end. It was easy to see that this was the future for Sun. Now Wall Street has collapsed, and the big market Sun had has dried up. And Wall Street has gone from an environment where in 2001 Linux was just a test project, to where some companies are now almost all Linux on the UNIX front, and are looking to dump their "legacy" Sun stuff. It didn't have to be this way.
I first encountered Sun in the late 1980s and until recently I still had a lot of love for them. Red Hat's lack of things like a decent kernel crash dump bugged me. But now Red Hat really does have almost all of the stuff that a critical production server needs. Windows-heavy shops like Suse a lot. I know a lot of UNIX admins and shops that develop for UNIX, including in the traditional financial companies - everywhere the new machines coming in are Linux, and a lot of places are trying to phase their Suns out. I think metaphors of a Sun set are becoming appropriate. Sun screwed up x86 and they screwed up "open source" and now Solaris is going to be relegated to the dustbin that Ultrix and HP-UX are in. If you search for admin jobs on Craigslist, Solaris doesn't even have much of a lead on AIX. With Red Hat now having journaling filing systems, virtualization, decent kernel crash dumps, production Oracle instances that run as well (or better) than on Solaris, high availability and so on and so forth, I can think of very little that Sparc's running Solaris have that a cheaper x86-64 running Red Hat doesn't have.
A line drawing of goatse? I'll pass, thanks.
Confucius say, "Find worm in apple - bad. Find half a worm - worse."
I am an Oracle Database Administrator and I've work with Solaris, HP-UX, Windows, Suse and Redhat and out of every one of them if I ran a business I would choose nothing else but Solaris. Solaris is a great OS. Linux isn't all cut out to what it's made out to be, it's buggy and nowhere near as stable.
Analytic & algebraic topology of locally Euclidean meterization of infinitely differentiable Riemmanian manifold
they didn't contribute GNOME. In fact, one might say they so far as to try to steal it, passing it off as the "Sun Java Desktop", when it wasn't Sun's and isn't Java based.
True, Sun didn't contribute GNOME, but they did a very nice usability study that GNOME found very useful, and helped move GNOME forward a great deal.
True, Sun didn't contribute GNOME, but they did a very nice usability study that GNOME found very useful, and helped move GNOME forward a great deal.
So did the new network manager happen because of Sun, or because the GNOME folks ignored their advice? GNOME is getting less usable by the minute. I especially like how it's now super gnome-panel centric. That's just peachy.
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"