"Bill Gates may fret about the U.S. Justice Department's
anti-trust case, but the real threat to the future of Microsoft
will come from companies like Red Hat. Red Hat Inc. is a developer
and provider of open-source software and services,including the Red
Hat Linux operating system -- a challenger to Microsoft's Windows
"Microsoft sells software, but Red Hat sells services. That
basic distinction may define the future course of software
development, sales and service.
'I believe the future of software is in services,' said Steve
Harmon, chief executive officer of e-harmon.com, a San
Francisco-based Internet investment firm.
'Software code is valuable, but service, support and the ability
to upgrade and customize it is more valuable. Red Hat changes the
landscape from selling software licences, which is what Microsoft
does, to selling software services.'
'That's a radical departure from current business models and is
a revolutionary blow to Microsoft.'nbsp;"
"But don't bet against Microsoft, the software industry's Big
Foot, which always battles to protect its turf."
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