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On the Survival of Red Hat

Oct 30, 2006, 19:00 (1 Talkback[s])

Red Herring: Can Red Hat Survive?

"Oracle's bid to steal business away from Red Hat has thrust the world's largest Linux software distributor into an extremely challenging position. It might even signal the beginning of the end for Red Hat, industry analysts and insiders said.

"Red Hat's shared tumbled 25 percent Thursday after Oracle, the giant database software company, said it would offer support services for Red Hat's open source Linux software--at half the price Red Hat currently charges..."

Complete Story

Linux-Watch: What to Make of Oracle vs. Red Hat?

"On the other hand, Kevin Carmony, Linspire Inc.'s CEO thinks the market is over-reacting to Oracle's move. After all, Carmony said, 'Since when has Oracle been interested in saving IT departments' money? Since when has Oracle been known for offering quality support? This news is a bit like Hershey's saying they are going into the health food business. Buyer beware.'

"Carmony then backed up his claims with some facts. 'For the last two years, Red Hat has topped the CIO Insight [vendor value] Survey,' he said. 'Where is Oracle? This year they were at #39! This is even worse than Microsoft at #31. Oracle's 39th spot is down from their previously sad showings at #28 and #30, for the prior two years...'"

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Ars Technica: Red Hat Responds to Oracle Announcement: Delusion or Damage Control?

"If Red Hat continues to take a conciliatory position and refuses to adjust its pricing to compensate for a more competitive market, the company doesn't have much of a chance. Refusing to acknowledge that Oracle is a competitor is a critical error in judgment, and Red Hat senior vice president Tim Yeaton's latest comments sound like delusions or a shoddy attempt at damage control: 'It would certainly have been easier had [Oracle] not made this announcement, but there are a lot of things that actually will be positive for us,' Yeaton told eWEEK.

"How will this end if Red Hat doesn't wake up and take control of the situation...?"

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ITBusiness.ca: Red Hat's Black Hat?

"To suggest Oracle is trying to shut down Red Hat is ludicrous. Larry Ellison doesn't care that Red Hat bought JBoss, an open source database that is a long way from posing a serious threat to 10g or any of the other large databases. The question surrounding Oracle has been whether, given the advantages of having access to OS code via Linux, the company would come out with its own distribution. Wisely, Oracle has decided it would be much easier to simply support the most popular distribution on the market. There was no need to reinvent this wheel when Red Hat has been spinning it successfully for years..."

Complete Story

Krishwords: Oracle-Redhat Controversy is Just Ugly Capitalism and It May Not be the End of Red Hat

[ Thanks to An Anonymous Reader for this link. ]

"Few days back Oracle CEO Larry Ellison announced in Oracleworld that the company will offer support to Redhat Enterprise Linux for half the cost of Redhat's offering. This sent shockwaves across the techbiz community and Redhat's shares went tumbling down 30% (the shares had recovered a little bit since then). Pundits were busy wondering if this is the end of Redhat and whether it can fight back. Some of the media outlets, who owe their existence to companies creating proprietary software, were happily claiming that this event has exposed the inherent limitation of open source licenses. This claim is plain rubbish. This event has only exposed the ugly side of capitalism and it has nothing to do with open source or its licenses..."

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