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IT Manager's Journal: IT Investor's Journal: A Close Look at Red Hat

Feb 10, 2004, 11:00 (0 Talkback[s])
(Other stories by Melanie Hollands)

"Red Hat, Inc., long a sales leader in commercial Linux distributions, has made some strategic changes in the last year and has decided to aim squarely at the enterprise server market while deemphasizing its relationship with small-time developers.

"Red Hat's business momentum continues to be strong. Many of the company's hardware partners are moving to pre-load a higher-priced version of Red Hat's Linux, which could boost the company's revenue during the summer months. Red Hat's biggest opportunity for revenue and market share expansion is improving attach (adoption) rates of paid Linux versus free Linux. In the third fiscal quarter, Red Hat's attach rate of paid-for Linux unit shipments on the server was 15%, up from 11% to 12% in the second fiscal quarter, leaving the remaining 85% to potentially migrate off free to paid or Linux support..."

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