“The Red Hat Network is more than a subscription system for
keeping Linux computers updated — it’s also a potential tool for
enabling computer makers such as IBM to resell Red Hat’s
services. Bob Young, Red Hat’s chairman and former chief
executive, declined to say whether a deal to let IBM or other
companies sell the service is in the works, but said it’s the kind
of opportunity the company sees with the Red Hat Network.”
“The Red Hat Network is a technology that has incredible value
because of our understanding of the technology and where it’s
going,” Young said. That value transfers not only to IBM Linux
customers but to IBM as well, he said.”
“Deals with computer makers such as Compaq Computer, IBM,
Hewlett-Packard or Dell Computer would enable Red Hat to piggyback
more easily into corporate accounts, the company’s primary target.
That, in turn, would help Red Hat in its years-long transition from
being a company that sells boxed software to one that sells
services.”