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Red Hat CEO: Software vendor model is broken

Oct 21, 2010, 14:17 (0 Talkback[s])
(Other stories by Joab Jackson)

"The current model of selling commercial enterprise software is broken, charged the CEO for Red Hat. It is too expensive, doesn't address user needs and, worst of all, it leaves chief information officers holding all the risk of implementing new systems.

""The business models between customer and vendors are fundamentally broken," said Jim Whitehurst, speaking Wednesday at the Interop conference in New York. "Vendors have to guess at what [customers] want, and there is a mismatch of what customers want and what they get. Creating feature wars is not what the customer is looking for."

"Of course, being an executive of an open-source software company, Whitehurst would naturally be critical of the standard model of software sales, and he has spoken critically of the model in the past. In his presentation at Interop, however, he also discussed how cloud computing could offer a break from this routine, depending on how it is implemented."

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