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ChannelWeb: Will Channel Make Or Break UnitedLinux--and Red Hat?

Nov 21, 2002, 22:00 (15 Talkback[s])
(Other stories by Paula Rooney)

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"Red Hat, whose business model has historically been viewed as channel unfriendly, only recently signed its first reselling deal, with IBM Global Services. In contrast, UnitedLinux vendors have thousands of partners worldwide.

"Some view the UnitedLinux alliance as a desperate attempt to prevent the same kind of fragmentation that splintered the Unix world and block Red Hat--already the market leader with more than 50 percent share of the server market--from becoming the Microsoft of the Linux world.

"But UnitedLinux has an advantage today: It debuts at a time when the channel is increasingly viewed as a more viable model for driving Linux business. In recent months, for example, traditional services-oriented Red Hat has reversed course and sculpted a new business model based on driving the 'majority' of its services business through the channel, while reaping revenue from its server software, Red Hat CEO Matt Szulik told CRN recently..."

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