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CNET News: Red Hat Subscriptions Beat Expectations

Nov 19, 2003, 18:00 (6 Talkback[s])
(Other stories by Stephen Shankland)

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"Red Hat's renewal rate for support subscriptions to its high-end Linux product was more than 90 percent in the company's most recent quarter, well above the 75 percent rate the company tells analysts to expect.

"The Raleigh, N.C.-based company sells its Red Hat Enterprise Linux operating system software as an annual subscription that includes updates and technical support. A key measurement for the success of the company's model is how often customers renew their subscriptions. Red Hat began the RHEL subscription plan last year in an attempt to convert the popularity of Linux into profitability, which had eluded the company..."

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