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Ch@nnelWeb: Balance of Red Hat Sales to Shift

Dec 27, 2000, 17:12 (0 Talkback[s])
(Other stories by T.C. Doyle)

"Despite a slumping stock price, Red Hat CEO and president Matthew Szulik expects partners to get squarely behind the Linux software company, so much, in fact, that they will tip the balance of software sales generated by the Research Triangle Park, N.C., company to third parties."

"In an exclusive interview on Friday before Christmas, Szulik told VARBusiness Magazine that he expects to increase the percent of Red Hat sales completed by third-party partners to 50-60 percent of overall sales from 20-25 percent, the current level today. Szulik gave no timetable for the change, but did say that increasing sales through third parties will be a priority in 2001. "The numbers aren't where I would like them to be," he says. "Our business is totally based on leverage, so I would like to see those numbers up around 50-60 percent."

"Looking ahead, he believes that the recently launched Red Hat Network, which is an Internet-based service to develop, deploy and manage software platforms, will attract ASPs, hosting companies and MSPs. One prototype partner already on board with the company: Rackspace of Texas. "It's one of largest Linux-based hosting companies in the U.S., and we are looking to expand our relationship with them through the Red Hat Network," he adds."

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