News & Observer: Red Hat Bitten by Linux’s Low Cost

“RALEIGH – Here’s the riddle: If Linux is gaining more market
share among big-spending corporate customers, why have sales at Red
Hat — the undisputed Linux leader — been creeping steadily

“Red Hat’s search for a business model that works in the world
of freely available, open-source software has been difficult.
Judging by the company’s sliding sales and slumping stock price,
it’s unclear whether Red Hat has found it yet.

“Late last month Red Hat launched a new version of its software,
Red Hat Linux Advanced Server, geared specifically to large
corporate customers. It’s the linchpin of the Raleigh company’s new
strategy, which will focus on selling a package of Linux software
and support services to the deepest pockets in the business

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