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ZDNet.UK: Red Hat Aggressive with Premium Linux

Feb 06, 2003, 19:00 (18 Talkback[s])
(Other stories by Stephen Shankland)

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"Leading Linux seller Red Hat is becoming more aggressive in pushing its premium operating system products, using support contracts, pricing changes and certification restrictions to drive customers and partners to its more expensive 'advanced' line.

"Red Hat is newly profitable, but the Raleigh, North Carolina-based company is betting that its Advanced Server and Advanced Workstation products will dramatically boost its finances. To shift customers away from the lower-priced Professional and Personal versions, the company is taking the carrot-and-stick approach and will release at least two new Advanced versions by the end of March, company executives say.

"In addition, chief financial officer Kevin Thompson hinted during a Thomas Weisel Partners investment conference Wednesday that a coming lower-priced version of Advanced Server will mean Red Hat can start expanding its current competition against Unix companies to include Microsoft as well..."

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