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

Apr 10, 2002, 20:30 (43 Talkback[s])


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"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 downward?

"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 world..."

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