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Red Hat CEO: Bring On the Clones
An anonymous reader writes "Best Buy and Barnes and Noble have a problem with showrooming — shoppers checking out the merchandise in their stores and then proceeding to order the goods at a discounted prices online. And Red Hat might have a similar problem with people (not just college kids and software professionals boning up on their skills at home, either) using the free-as-in-beer CentOS rather than licensing Red Hat Enterprise Linux and paying support fees. But according to CEO Jim Whitehurst, Red Hat's competitive position may actually be helped by CentOS in the same way that counterfeit Windows products sold on the streets in the Far East may have helped Microsoft — by cementing their position as the technology standard, in a marketplace that also includes entrants from SuSE, Debian, Oracle, and Ubuntu, just among Linux-based entrants. Who does Whitehurst consider to be Red Hat's most direct threat? VMWare."
Admins never needed vendor support, managers do. That means that CentOS trains the admins on Red Hat and then managers pay for the supported thingie.
When you have servers labeled production, that generate revenue and downtime means lost revenue, then you pay for support since its cheaper than losing revenue and customers
Also, if people (not managers, but hobbyists, students, and bored IT folks on their own time) learn RHEL-like distros, then that means there are more people who are familiar with the environment. That in turn means more software targeting that environment, a bigger talent pool for companies to hire from, and greater mindshare.
Better for RedHat to 50% of enterprise Linux and 40% of those users paying than 100% of the users of a distro with only 10% of the enterprise Linux market. More marketshare is pretty much always good.
One can easily imagine a scenario where some startup hires a bunch of guys who "know RedHat" and set up servers using Cent. As they grow and start needing additional support and enterprise-targeted features, though, who are they going to turn to? Switching to RHEL is going to be less disruptive than pretty much any other option at that point, right?
There's no place I could be, since I've found Serenity...
You are focusing on the differences but ignoring the similarities which Whitehurst was concerned about.
CentOS doesn't put money in Red Hat's pocket directly, but it helps cement Red Hat as a standard for enterprise Linux distributions.
Except for ending slavery, the Nazis, communism, & securing American independence, war has never solved anything.