Unbreakable Linux Barely Disturbs Red Hat's Q3

Lora Bentley

Before news of the Microsoft-Novell deal hit last year, the biggest news in the open source world was Oracle's "Unbreakable Linux" campaign, in which Oracle promised to support Red Hat Linux at half the price Red Hat was charging. Though open source bloggers and analysts were in a frenzy about what the effort would do (or not do) to Red Hat's business, Red Hat execs seemed largely unconcerned.


For now, it seems, they knew better than the rest of us. According to IT Jungle today, the Oracle Linux move didn't affect Red Hat's fiscal Q3 much at all. Sales were up, subscriptions were up, nearly a third of the contracts signed in the quarter were for terms longer than one year, and Red Hat renewed 24 of its 25 largest deals in Q3.


In fact, according to CEO Matthew Szulik, that one customer didn't renew because "they became a competitor" in Q3. So we can surmise, as did IT Jungle, that the only notable effect Oracle's Linux effort has had so far is that Red Hat lost Oracle as a customer.

Add Comment      Leave a comment on this blog post
Jan 10, 2007 5:47 AM Roy Schestowitz Roy Schestowitz  says:
The predatory moves backfired. If anything, they validated GNU/Linux. Reply

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