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Red Hat's Good Quarter: What's the Problem?

Jun 30, 2009, 19:32 (4 Talkback[s])
(Other stories by Paul Rubens)

"Red Hat announced revenues of $174 million for its first quarter ending May 31st, up 11 percent on the same period last year. Underlying that were subscription sales – the lifeblood of the company – up 13.8 per cent to $148.8m, although training and services revenues were down slightly. And the company was profitable: overall Red Hat made $18.5 million in the quarter – up 7.1 per cent over the same period last year.

"So what's the problem?

"The first thing you have to wonder about is where all this business will keep coming from. On Red Hat's earnings call the top bods in the company were apparently keen to write off OpenSolaris, putting forward the argument that businesses that desert Solaris aren't moving to Sun's pet open source project, and instead are deserting Sun's Unix for Linux, and Red Hat in particular."

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