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

“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…”

Complete Story