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Take Microsoft's Linux money, says Red Hat
omputer Business Online ^ | 19th February 2007 | By Matthew Aslett

Posted on 02/19/2007 7:15:23 AM PST by N3WBI3

Red Hat Inc's CEO has said the company is encouraging customers to adopt Microsoft Corp's offer of support vouchers for Novell's Inc's rival Linux operating system in order to get the issue over with.

Microsoft announced in November 2006 that it would distribute 70,000 Linux support certificates a year for five years, at the cost of $240m as part of an interoperability and patent deal with Novell.

Speaking at the Merrill Lynch internet, software and services conference, Red Hat's CEO, Matthew Szulik, dismissed the impact that deal has had on Raleigh North Carolina-based Red Hat's business.

"I think that there has been a strong amount of external communication by Microsoft and Novell on this topic," he said. "We certainly expect that there will be those cases where customers will consume those coupons. We're certainly encouraging one or two customers to consume all of them, let's get this over with."

Microsoft and Novell have certainly been vocal about the customers they have encouraged to adopt the vouchers, announcing that Deutsche Bank, Credit Suisse, AIG Technologies, and most recently Wal-Mart, have signed on the dotted line.

In January the company's said that "35,000 new certificates for three-year priority support subscriptions to SUSE Linux Enterprise Server have been activated" since November last year.

Microsoft has committed to pay Novell for the certificates regardless of whether customers buy them, but Szulik suggested Red Hat is happy to see customers take Microsoft's money.

He also maintained that the company's own customers were not swayed by offers of apparently free support. "When you think about the amount of workload that's being placed on these technologies... free doesn't cut it," he said. "We're finding a more informed buyer; we're finding a more strategic buyer."

Szulik also dismissed Oracle Corp's attempt to under-cut it on Linux support on similar grounds, insisting that customers were unlikely to be convinced by cost savings that are a small percentage of their overall software spend.

"You look at the total cost of the stack," he said. "The purchase of an operating system and the support that comes with that is such a small percentage of the total cost, somebody who's getting ready to spend $19,000 on a database... that would likely be the higher price for discounting and concession.

"I don't think that customers want to boast about saving $5 a server if on December 24, if you're an online retailer, your systems fall over and collapse and you don't have the competency to support that," he added.

In October 2006 Oracle announced plans to support the Red Hat Enterprise Linux code base under its Unbreakable Linux 2.0 program, charging at least half the price of equivalent Red Hat support packages.

The program has not proved popular, however. In December Oracle's president Chuck Phillips said Unbreakable Linux was downloaded 9,000 times in the first 30 days. In comparison Red Hat's non-commercial Fedora Core 6 had an average of 12,500 installations per day in its first month.


TOPICS: Business/Economy; Computers/Internet
KEYWORDS: linux; opensource; redhat
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1 posted on 02/19/2007 7:15:27 AM PST by N3WBI3
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To: N3WBI3; ShadowAce; Tribune7; frogjerk; Salo; LTCJ; Calvinist_Dark_Lord; amigatec; Fractal Trader; ..
Im really glad to see that Novell and RedHat are taking different tracts rather than trying to mirror each others business. Each will find their own path and the better business model will succeed.

Were I RedHat I would not dismiss Oracle yet. While UL has been falling flat on its face Ellison is one stubborn guy with a pile of cash and while its plain stupid for him to try and kill the goose. Probably would have been better for them to partner with RedHat rather than have a tantrum over JBoss..

OSS PING

If you are interested in the OSS ping list please mail me

2 posted on 02/19/2007 7:21:16 AM PST by N3WBI3 ("Help me out here guys: What do you do with someone who wont put up or shut up?" - N3WBI3)
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To: N3WBI3

I think we're talking different markets here. Red Hat and Ubuntu are installed mostly by individual consumers. The Novell-Microsoft deal targets the business market.


3 posted on 02/19/2007 7:22:14 AM PST by JCEccles
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To: N3WBI3

Linux is the most expensive 'free' software you will ever use.


4 posted on 02/19/2007 7:22:16 AM PST by Mr. K (Some days even my lucky rocketship underpants don't help)
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To: Mr. K

Even at that, a smart implementation like SUSE is much less expensive than Microsoft Vista.


5 posted on 02/19/2007 7:23:49 AM PST by JCEccles
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To: Mr. K

Yes, since Solaris 10 for x86 and x64 is faster and better architected.


6 posted on 02/19/2007 7:26:11 AM PST by ikka
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To: N3WBI3
ALL YOUR DISTROS ARE BELONG TO US !!!

 

7 posted on 02/19/2007 7:26:43 AM PST by Incorrigible (If I lead, follow me; If I pause, push me; If I retreat, kill me.)
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To: JCEccles
RedHat has not been a consumer based Linux for more than four years (Fedora took that Role). Redhat is for Business servers and sells far more to enterprises than Novell does. My last shop was, on the UNIX side, 99% RedHat Linux with only some AIX and Solaris floating around in niche roles.
8 posted on 02/19/2007 7:27:16 AM PST by N3WBI3 ("Help me out here guys: What do you do with someone who wont put up or shut up?" - N3WBI3)
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To: Mr. K
Depends on how you use it. Any configuration becomes expensive when you try to do enough with it. But Linux has a very low buy in cost for start up businesses and is very price / performance competitive for even very large enterprises.
9 posted on 02/19/2007 7:30:23 AM PST by N3WBI3 ("Help me out here guys: What do you do with someone who wont put up or shut up?" - N3WBI3)
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To: N3WBI3

Source, Distrowatch.com :scroll down a little bit..

Microsoft, helping Linux limp across the line as they continue to bash the man.. ;)

10 posted on 02/19/2007 8:20:06 AM PST by Echo Talon
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To: ikka

->Solaris 10 for x86 and x64 is faster and better architected.

Solaris support costs significantly less as well.

http://www.infoworld.com/article/07/01/16/HNsunundercutsredhat_1.html?APPLICATIONS

Sun's Solaris annual support contracts range from $240 to $1,180 for one- or two-socket x86 servers, depending on whether the buyer chooses the "basic" or "premium" plan. Sun's basic plan costs about 40 percent less and the premium plan about 50 percent less than comparable Red Hat plans, said Sun spokesman Bob Wientzen.

Red Hat's Web site lists Red Hat Linux ES basic for $349 per year per system and Red Hat Linux AS premium for $2,499. A Red Hat spokesman did not return calls and an e-mail requesting comment, but after Oracle's move last fall, Red Hat chief executive officer Matthew Szulik said Red Hat would not lower its prices due to a competitor's price cuts.


11 posted on 02/19/2007 8:51:59 AM PST by Golden Eagle
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To: Echo Talon

Marc Fleury took his $300 million and left Red Hat and is now even supporting Vista on his blog.

http://marcf.blogspot.com/


12 posted on 02/19/2007 9:10:57 AM PST by Golden Eagle
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To: Golden Eagle

lol, did you read what happened to him with his apple monitor?
hilarious!


13 posted on 02/19/2007 9:26:35 AM PST by Echo Talon
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To: Golden Eagle

BTW, I have a blogspot blog and you don't have much control over what what "ads" are posted on your website(Ad-Sense)... (I removed my adds because I couldn't filter them correctly)


14 posted on 02/19/2007 9:34:52 AM PST by Echo Talon
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To: Golden Eagle
Hmm Where to start...

"Sun's Solaris annual support contracts range from $240 to $1,180 for one- or two-socket x86 servers"

Redhat Premium puts *no* restrictions on CPU's and Memory, if you want to talk about one or two CPU systems you'll have to talk about Enterprise Server not Advanced Server. RHEL ES cost $349 for basic which includes full web support (ie submit tickets to RedHat engineers with a two day response ns $849 for 5x12 four hour response. Why the author would compare apples and oranges (Enterprise solution from RedHat vs MidRange from sun) is curious.

Comparing Apples to Apples suns Premium support with unlimited sockets is 1980$ a year vs Redhat at 2400$ a year (Sun Comes in at about 20% cheaper).

Where Redhat wins out is long term. When you are involved at any kind of volume or for any period of time Redhat cuts their costs significantly and guarantees prices. If you're running more than 25 servers take 25% off of the cost, if your involved in a three year contract knock off another 20% and for the term of that contract RedHat *contractually* can not raise their prices so the 890 you're paying for ES now is guaranteed until 2010.

Finally lets talk about the lowest level of service. Redhats development entitlements which provide any release patch and upgrade support for 60$ per server per year. Far cheaper and more powerful than Suns lowest entry point.

You have been shown all of this before yet you continue to propagator a lie.
15 posted on 02/19/2007 9:34:58 AM PST by N3WBI3 ("Help me out here guys: What do you do with someone who wont put up or shut up?" - N3WBI3)
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To: N3WBI3
yet you continue to propagator a lie.

LOL, you continue to have bad English. I simply posted a recent link from a respectable source, which concurs with my experience. You can post as much wishful BS as you want that Linux is better, but the fact you've admitted to recently taking a job at a Solaris shop yourself is hilarious.

16 posted on 02/19/2007 10:16:09 AM PST by Golden Eagle
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To: Echo Talon
lol, did you read what happened to him with his apple monitor?

He sounded pretty cheap considering he just took $300 million from Red Hat. If I was him I would have just given it away so I never had to look at it again and bought something bigger.

17 posted on 02/19/2007 10:29:44 AM PST by Golden Eagle
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To: Golden Eagle
Wow, attacking my English how smart of you....

While that author may have been ignorant about the fact his numbers did not accurately compare the licenses you have been told otherwise.

"You can post as much wishful BS as you want that Linux is better, but the fact you've admitted to recently taking a job at a Solaris shop yourself is hilarious"

Funny, please find a post *anywhere* where I slam on technical merits solaris? I have questioned suns commitment to x86 (and historically they have given reasons to question that) but never how good solaris is.

I have said on this forum that I cut my UNIX teeth on Solaris and I would always love working with it. My last shop was Linux so thats what I used, This shop is Solaris / AIX so thats what Ill use, down the road I might end up at another Linux shop and *thats what Ill use*.

The opportunity to escape a degrading management environment (outside of IT) and to work within a hand full of miles (running distance come the summer) from my home was a Godsend and I would have come here as a Windows admin if need be.

I, unlike you, don't invest my self too much one way or the other with a particular tool. I use the best tool for the job. In my post above I said nothing about Linux being 'better' than Solaris just corrected massive errors by the author (which he may not have know) used in a downright deceptive post by you.
18 posted on 02/19/2007 10:46:19 AM PST by N3WBI3 ("Help me out here guys: What do you do with someone who wont put up or shut up?" - N3WBI3)
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To: Golden Eagle

$400 for a cord? sheesh...


19 posted on 02/19/2007 10:57:27 AM PST by Echo Talon
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To: Golden Eagle
You could get a whole computer(with Vista "Home Premium" installed on it) for what he paid to get his monitor repaired... LOL
20 posted on 02/19/2007 11:01:34 AM PST by Echo Talon
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