Hold that Red Hat obit

Hold that Red Hat obit

Summary: Just days ago we were all asking what Red Hat did to deserve an open assault from Oracle and possibly Novell and Microsoft.  Perhaps all that consternation was a tad premature.

TOPICS: Oracle
Just days ago we were all asking what Red Hat did to deserve an open assault from Oracle and possibly Novell and Microsoft.  

Perhaps all that consternation was a tad premature. After all, the Novell and Microsoft pact on Linux isn't what it's cracked up to be and the two sides are already bickering. Novell even penned an open letter on its rift with Microsoft. So much for a hastily arranged reactive partnership.

That leaves Red Hat with only Oracle and Larry Ellison to worry about. A month ago Ellison made a big splash by announcing Oracle would support Red Hat customers. It was quite a shot across the bow.

For its part, Red Hat keeps plugging along, outlining what it plans to do with Jboss. And cooler heads seem to be rethinking some of the Red Hat obituary written a month ago.

To wit:

--Thomas Weisel analyst Tim Klasell reports that Oracle's news was front and center on investor minds, but the impact appears to be "limited to relatively few high-end customers."

"Clearly, the threat from Oracle's entrance into the Linux market is the biggest topic on investors' minds currently. At the conference though, we didn't hear anything about Oracle from small- and mid-market customers and saw little or no interest from these customers in the offering. Where we do think Oracle will make a push with its direct sales force is with large high-end customers who are heavy Oracle users and have highly customized environments. The feeling is that these customers may be interested in receiving a support from a single source, like Oracle, or apply pricing leverage in deals large enough to warrant such attention. As a result, we would not be surprised to see some slippage in top 25 deals up for renewal, but think the broader market (especially revenue through OEM and partners) will not see much of an impact. We see the Oracle customer base representing less than 10% of Red Hat's revenue."

--W.R Hambrecht analyst Robert Stimson initiated the company with a buy rating today.

"The recent announcements from Oracle and Microsoft create an interesting dilemma for investors, however we believe that Dell, IBM and HP, etc., will stay the course and continue to support Red Hat. One of the key opportunities for Red Hat is the company's ability to diversify beyond its operating system roots. We believe the JBoss acquisition and its application server platform is a nice starting point, and may allow the company to further expand its open source offerings beyond basic systems management applications within the enterprise. We believe that the bulk of the sales force and R&D personnel issues are for the most part behind the company."

In other words, Oracle may hurt Red Hat, but not nearly as much as you'd think. As for Novell and Microsoft they have their own issues to sort out.

Topic: Oracle

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  • I think...

    ...this uncovers a serious problem with blogging - its immediate nature tends to push people into "knee-jerk" reactions to events, without taking time to fully think things through before publishing. Bloggers seem to feel the need to be the first one to report on a story, and as a result they tend to leap to (often unfounded) conclusions.

    Maybe bloggers should take a little time to more fully research these stories before jumping to conclusions.

    Carl Rapson
    • Including...

      Including the knee-jerk reaction that "this leaves RedHat with only Oracle to deal with". Idiot. A bit of tiff over the agreement by no means implies that the M$/Novell deal is dead nor that it will be ineffective in the market.
    • is that new to you?

      The intelligent individual will look at something from all angles before making a decision about which way to jump. The trend for companies, lately, has been to be the first one to market, whether it's a news story, a new product or a new OS. The smart money always waits until the dust dies down before making a decision. Bloggers tend to ride the wave of excitement in an effort to get readers, the same way tech companies ride the same wave to drive sales. The rest of us wait long enough to find out the "Real Story" behind any new trend.
  • Oracle wants to own and control open space!

    That's the name of Orakle business!
    • it won't work.

      The Open Source and Free Software space is dominated by actual factual computer science types, who insist on "getting things right".

      Oracle is about making it work well enough to ship it (ever heard the acronym FIPISI? effit passit shipit).

      They move in different spaces. Oracle may be able to make some money from partnering with OS / FS projects, but they'll never control them, cause it's like herding cats. The project goes where it wants.
  • The Oracle way versus the RedHat way.

    The way Oracle does things is they create a huge behemoth of a database, with tons of legacy stuck in various places, and it requires someone with years of expertise to get it to behave properly.

    RedHat carefully crafts a base server OS, making it something that one can master reasonably well in a week or two of intensive study.

    Now, how does each organization support their product? Oracle support consists primarily of fixing for the customer problems that oracle themselves helped to create. And they are quite slow at things like releasing patches. Oracle support is mostly of the hand holding variety.

    RedHat support tends to be more streamlined. They provide fast updates to their software (at least compared to Oracle's rather pokey efforts) especially security updates, and they test them pretty thoroughly on their servers. RedHat has the advantage that a typical RedHat server is a pretty straightforward and simple thing, and its modular design makes troubleshooting and fixing it a bit easier.

    So far, I personally have found RedHat's support superior, because I'm a do it yourselfer, so I just need the update files and I'm gold.

    I think that having both RedHat and Oracle available would be a good thing. Certain problems might be better troubleshot by one company or the other. I would hope that the two companies would partner up and not play adversaries for their customer's sakes.

    We'll see.
  • Do yourself a favor, dump Red Flat stock while you can.

    • feeding the trolls, feeding the trolls

      Yet another content free post there no ax. I guess it's easier than the thinking a reasoned response might require.

      Here's your pom poms and short skirt, now get out there and cheer your heart out girl! hahaha
    • Good Idea!

      To dump your Microslop stock too.
      Ole Man
  • Red Hat is no longer alone

    Let?s not forget that these are companies in business to make money. They compete with each other and do their best to eliminate competition. There is no real friendship between them and any agreements between them are because they could not do it themselves in a cost effective way.

    Oracle clearly hates Red Hat and there is a battle brewing. Sure only the large customers will move first but the other will follow in due time. As Oracle starts delivering on their promises everybody will see that Oracle is here to stay and Red Hat will lose customers. Sure Red Hat will go out and get new customers but Oracle is not going away.

    There is a difference between OS and Oracle Database and the Databases themselves. What you have done is combined the Database product with the Client Database. It is easy to learn the OS and even Oracle Database but the Client Data is unique to each business function. And that Client Data is not hard to learn if you know the business it is trying to automate. Experienced people in this field can actually pick it up very fast, much faster then OS or Database.

    Red Hat now has serious competition and that is the reality. Before it was just Novel and now it is Novel, Microsoft and Oracle. Basically two huge players and leaders in their own right came into the Red Hat Park. Red Hat now has to fight and spend loads of money that it did not have to before. That is why it?s negative to Red Hat. The only think that is positive is that there is going to be more awareness about Linux in the Desktop field. But we all know who the leader there is, NOVEL.
    • What makes you think Oracle Can Do It?

      Oracle seems to have trouble getting out timely patches for their proprietary product. What makes you think they can provide better service and faster patches for linux than Red Hat? I'm going to be really interested to see how Oracle linux is going in about 5 years.
    • Competition and Investors

      Clearly this is not good for RedHat, they are in the battle hiding in the trenches without really no plan of action.

      Between Novell & RedHat innovation IMO Novell is at least trying to put Linux on the desktop. RedHat ditched that idea and basically said to run Windows.

      If Novell can package PC's with Windows/Linux combo that would be a win/win. We would no longer need RedHat because the SuSE server OS is superior to Rhel series.
      Linux User 1
      • SuSE server OS is superior to Rhel series.

        Well, I'd have to disagree, but then I've never been a big fan of SuSE.
  • I've been an Oracle customer . . .

    and I can state that their best support doesn't even come close to acceptable levels. After what they put us through I can unequivocally state that I will never be their customer again.

    If they can't even maintain and support their own product, which they wrote themselves, how on earth does anyone think that they are going to be able to support someone else's product -- open access to the source code notwithstanding.

    Oracle's style has always been overbearing, but they were the only horse in the race. That's where they excel; when they are a one man show. That's why they had to buy and dismantle Peoplesoft. They just couldn't compete with them.

    Unfortunately, for Larry, open source software projects can't be "bought out" and "snuffed out" so his giant toothy predator corporation can't compromise the community. Yes, he can hurt Red Hat ... but he can not kill them ...

    Long after Oracle has turned it's sight onto the "next big thing" to profiteer on, Red Hat will still be with us building a better OS and a better computing community.

    Of course, as always, this is just my $0.02 USD based on my 25+ years of experience in computers, and your opinion may vary (which is what *still* makes America great).

    Happy Thanksgiving to one and all!