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Stockhouse.com: Linux: How to, and How Not to, Make Money Off Linux, Part 2

Aug 31, 2000, 11:19 (2 Talkback[s])
(Other stories by Warren Shiau)

"...Red Hat is taking a server software and services/support approach to Linux while Corel is trying to push Linux applications for the desktop. Right now, there is money in Red Hat's approach but virtually none in Corel's. Red Hat's approach is better."

"Red Hat is putting itself in a strong position by establishing early control over the server operating system and services markets for Linux. According to market researchers International Data Corp., Red Hat has more than 52% of the world Linux server software market--more than three times the market share of its closest competitor. Microsoft [MSFT] leverages control of operating systems into control of desktop applications--something that Corel cannot overcome in the Windows applications market. Corel will likely face the same situation against Red Hat, or someone else, in Linux desktop applications."

"In terms of operating systems shipped, Linux' market share is 25% and growing fast, but the dollar value of these shipments is low. International Data Corp. forecasts Linux server operating system shipments will more than quadruple in 2004 from 1999, but cautions the dollar value of this basic code market will only be $85 million."

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