OK, we admit it. We were wrong. We thought Oracle might work more closely with Red Hat to get into the Linux business, or even acquire Red Hat at some point. We never dreamed that Oracle would use Red Hat's own Linux distribution against it.
Many analysts and others in the open source arena say the database giant's decision to offer support for Red Hat Linux to Oracle and non-Oracle customers alike -- at half the price the leading Linux distributor charges -- is a harsh move, and they're calling Oracle a traitor. Red Hat is an Oracle partner, after all.
Red Hat apparently has no intention of backing down. CEO Matthew Szulik told the Associated Press that his company has a rich product line that will remain competitive with Oracle. If only Red Hat investors were so confident. The company's stock prices declined sharply after the announcement.
We have no doubt that Szulik and his team will do their best, but we're interested to see just how they go about it. Maybe Red Hat's recent efforts to move deeper into the telecommunications market are more significant than we first thought.