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PLCOM: Looks like a winner: Operating system challenges Windows

Aug 13, 1999, 02:52 (6 Talkback[s])
(Other stories by Scott Reeves)

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"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 operating system."

"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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