|
Tech Trader Daily says:
It certainly would ironic if the core principle of Linux - the open source model - contains the seeds of disaster for Red Hat (RHAT), the software company that has built its fortune selling Red Hat Linux. But it could happen. Rick Sherlund, software analyst at Goldman Sachs, observes in a research note today that Oracle (ORCL) has asserted its right to re-distribute the Red Hat implementation of Linux. “We continue to believe Oracle will soon announce intentions to distribute a Red Hat compatible product, possibly for free and also offer support services for this product at a fraction of the price of Red Hat,” Sherlund writes. But why would this be "ironic"? This possibliity is exactly what the open source licenses allow, and it is a prime reason for skepticism of open source as a business model -- it permits a continuing loop of free-riding, which in the end must stifle enterprise and investment.
UPDATE (10:30 A.M.): Here is a contrary view. But Tech Trader has not changed its mind. And the original post included this insight into Larry Elliison's thinking:
Sherlund also points to an an interview last week that Oracle Chairman Larry Ellison did with Forbes.com. In the interview, Ellison made it clear that he has interest in the market - and that he has no reason to buy Red Hat:
“[T]he interesting thing about open source is that the intellectual property is available to all of us,” Ellison told Forbes. “So what that means is that any company can take the Red Hat Linux and use it at no cost, so long as they’re willing to support themselves. Well, that actually includes us. We could take the Red Hat Linux, as long as we’re willing to support it. In fact, we can redistribute it to others and provide support. So why would we buy Red Hat Linux, when we can just take it for nothing?”
posted by James DeLong @ 9:48 AM | Software
Link to this Entry |
Printer-Friendly |
Email a Comment | Post a Comment(1)
|
