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December 14, 2006 (updated June 18, 2007) Open Season On Red Hat-JBossMicrosoft, Novell, and Oracle Change The Gameby Michael Goulde, John R. Rymer, Noel Yuhanna with Megan Daniels |
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Executive Summary
Within the space of a week during October, Oracle announced its Unbreakable Linux support program and Microsoft announced an agreement with Novell to help market SUSE Linux Enterprise. Red Hat is challenged by both of these actions, most likely because it is building a competing middleware stack through its acquisition of JBoss and its Java middleware products. Application development pros that rely on Red Hat Enterprise Linux should be worried about the vendor's new competitors. Red Hat will be hurt by customer defections driven by Oracle's and Microsoft's moves. Of the two threats to Red Hat's growth and future viability, the Microsoft-Novell deal offers customers the highest immediate value, constituting the larger threat to Red Hat's growth and future viability as the leading Linux distribution. But Red Hat must also improve its enterprise support to address all of its new competitive circumstances.
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