FYI ---------------------------- Original Message ---------------------------- Subject: Red Hat
Date: Wed, March 14, 2007 9:21 am To: "Undisclosed-Recipient:;"@mpls-qmqp-05.inet.qwest.net -------------------------------------------------------------------------- Red Hat hopes to solidify lead with new Linux Stephen Shankland, for News.com A correction was made to this story. Read below for details. Red Hat faces a lengthening list of rivals, but the company hopes to cement its lead in the Linux market Wednesday with its latest version of the open-source operating system. The Raleigh, N.C.-based company plans to launch Red Hat Enterprise Linux 5 at a San Francisco event Wednesday. It's the first major update to the company's flagship Linux product in more than two years. Though Red Hat still dominates Linux, a lot has changed in that time. Novell's Suse Linux Enterprise Server beat Red Hat to the punch with a major new feature, the Xen virtualization software. Oracle has entered the market with a clone of Red Hat's operating system. Ubuntu is making inroads with strong ties to open-source community volunteers. And Sun Microsystems--for years Red Hat's prime target--is fighting back by bringing its Solaris operating system to widely used x86 servers and making it open-source software as well. "There is disruption from below from the community (Linux versions) and much stronger competition from its peer group," said 451 Group analyst Raven Zachary. "This will take years to play out, but I see Red Hat having less differentiation from other offerings over time." "Red Hat continues to be the vendor capturing the lion's share of revenue and unit shipments for worldwide Linux operating system shipments." --Al Gillen, analyst, IDC Red Hat is still on the offensive, though. In its most recent publicly reported quarter, its revenue increased 45 percent to $105 million, 84 percent of that coming through recurring support subscription contracts. Though profit dropped 37 percent to $15.5 million, much of that was from higher expenses stemming from the acquisition of JBoss, a supplier of open-source Java server software that has provided Red Hat with its biggest opportunity for market expansion. "Red Hat continues to be the vendor capturing the lion's share of revenue and unit shipments for worldwide Linux operating system shipments," said IDC analyst Al Gillen. Though Novell has remained relevant%2
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