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Stockhouse.com: Linux: How to, and How Not to, Make Money Off Linux, Part 2

…Red Hat is taking a server software and services/support
approach to Linux while Corel is trying to push Linux applications
for the desktop. Right now, there is money in Red Hat’s approach
but virtually none in Corel’s. Red Hat’s approach is
better.

“Red Hat is putting itself in a strong position by establishing
early control over the server operating system and services markets
for Linux. According to market researchers International Data
Corp., Red Hat has more than 52% of the world Linux server software
market–more than three times the market share of its closest
competitor. Microsoft [MSFT] leverages control of operating systems
into control of desktop applications–something that Corel cannot
overcome in the Windows applications market. Corel will likely face
the same situation against Red Hat, or someone else, in Linux
desktop applications.”

“In terms of operating systems shipped, Linux’ market share is
25% and growing fast, but the dollar value of these shipments is
low. International Data Corp. forecasts Linux server operating
system shipments will more than quadruple in 2004 from 1999, but
cautions the dollar value of this basic code market will only be
$85 million.”

Complete
Story