Red Hat grows up

Posted by tadelste on Nov 1, 2005 11:56 PM EDT
BusinessWeek; By Steve Hamm
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Red Hat has ridden the Linux wave quite successfuly for a decade now. It's by far the leading Linux distributor and growing at 40% to 50% per year. This is mostly based on a simple formula: For many applications, corporations can cut their computer hardware costs by 30% or more by shifting from proprietary Unix software and RISC-chip hardware to Linux running on Intel- and AMD-based servers.

Now comes Red Hat's next act. In its next major release, Red Hat Enterprise Linux 5, due out before the end of the year, the company is introducing a handful of technologies and services aimed at making computing substantially cheaper for corporations. It's attacking the total-cost-of-ownership issues that Microsoft has raised in an effort to hold back the Linux tide. If Red Hat brings down the cost of open-source computing by another big step, it, and Linux, could prove mighty hard to stop.

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