Sunday, November 12, 2006

Tux got an X-35

Few days ago RedHat Inc. gets a nasty blow from Database Major Oracle Corp. Oracle announces that it will provide support for RedHat products for half the price of RedHat. Oracle says it has 7,000 employees in support services alone while Red Hat says it employs a companywide total of 1,800. After this news stock price of RedHat shares have fallen half of that before.

But, Dennis Kekas, director of North Carolina State University's Network Technology Institute, which has a close relationship with Red Hat, said the company will have no trouble thriving in the ever-expanding open source market. "There's a lot of room out there for a lot of players to participate in the open source movement," Kekas said. "Red Hat's just too sophisticated and too strong to be threatened. They have built such a strong reputation."

Fox News: http://www.foxnews.com/story/0,2933,225925,00.html

In another strategic play Microsoft CEO Steve Ballmer said that his sales team will offer its corporate customers a chance to license its Windows operating system as part of a package offering maintenance and support for Novell's Suse Linux platform. Apparently, the goal is to make Linux interoperable with Windows and perhaps move some apps onto the Linux platform. Microsoft agreed not to sign a similar agreement with any other Linux distributor for three years. Microsoft's pact with Novell dealt a blow to other Linux distributors such as market leader Red Hat Inc. For this agreement Microsoft will make two separate up-front payments totaling $348 million to Novell.

It seems that Steve Ballmer has a better foresight then Bill Gates, that's why he has been able to take the decision inspite of the fact that in 2004, Novell reached a $536 million settlement with Microsoft over antitrust complaints in Europe and then sued its rival again in the United States. The U.S. suit alleged that Microsoft withheld technical information about Windows that Novell needed for its word processing program WordPerfect which has been sold to Microsoft.

Fox News: http://www.foxnews.com/story/0,2933,227297,00.html

Both this news reflects the increasingly important role of Linux open-source software in corporate computing systems. About 20 percent of corporate America relies on some form of Linux. Because it's available for free, Linux software long has been has been a source of consternation for Microsoft, which makes most of its money from the sale of its proprietary software. As now major software companies are eager to providing support for Linux, many problems that previously made the advancements of Linux in the market slower will be removed. Such a problem was regarding technical information about various Hardwares from manufacturer's which is required for developing Linux device drivers. It is just a start and we don't have to wait very long when every server system will be powered by Linux including major part in Desktop market.

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