Red Hat, Inc. (NYSE:RHT)

CAPS Rating: 3 out of 5

The Company provides open source software solutions to the enterprise, including its core enterprise operating system platform, Red Hat Enterprise Linux, JBoss Enterprise Middleware Suite and other Red Hat enterprise technologies.

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Player Avatar JUMPKIS (96.61) Submitted: 2/4/2007 10:57:36 AM : Underperform Start Price: $22.79 RHT Score: -120.79

They made a company....based upon open source material.

That's like developing drugs for immediate production by generics companies. Let google and the indie programmers handle the open source, guys.

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Member Avatar higgy331 (78.26) Submitted: 3/12/2007 11:11:45 AM
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In reality they base their company on providing support for their version of widely used and reliable open source software and have been doing just that for over ten years.Google uses it.NSA has made contributions to it.Not sure what the Indie programmer comment is about.......Many companies these days have RedHat Enterprise software as their underlying operating sytem.Why,simple it is reliable on many different architectures and works seemlessly.

Member Avatar ViDLuV (60.79) Submitted: 8/19/2011 11:19:18 AM
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unless something catastrophic occurs with their datacenters, or some scandal breaks out... I think they will keep growing. At what pace? dont know. Also curious what role if any their IP portfolio will play?....

Member Avatar RedTux (< 20) Submitted: 10/31/2011 12:04:05 PM
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If anything Red Hat is akin to a disruptive technology. Many Solaris (Oracle), HPUX (HP) and AIX (IBM) systems are being replaced with RHEL (Red Hat Enterprise Linux). What's interesting is those three mentioned flavors of Unix require their own dedicated hardware which is sold by the respective vendors. Meaning if you want to spin up another AIX system you will need to purchase both the OS license and hardware from IBM which is by no means cheap (AIX runs on the PowerPC or rs6000 RISC processor). With RHEL (Red Hat Enterprise Linux) a customer can choose to purchase their hardware through Dell, HP, IBM or buy the parts and build their own. This can allow the customer to follow price efficiencies, and encourage the hardware vendors to be accountable through competition. Red Hat is also encouraged to be accountable through this competition as a company can migrate to a different Linux vendor of they wish to. One thing to note Operating System migrations are never simple swap outs, look at the problems companies can have migrating from one version of Windows to another. However the effort needed to switch from RHEL to another Linux vendor is less than that needed to move from Solaris to RHEL. I would argue that it is this ability for companies to switch Linux vendors that forces Red Hat's management to keep their eye on the prize. If the customer is not pleased with the level of support they receive, or the quality of the Red Hat products or Red Hat's responsiveness to the customer's business needs they will take their money and walk. It is also worth noting that Red Hat does not sell Operating Systems, they sell support and an update service their own packaged version of Linux. If you want to modify RHEL to fit your own unique needs you can, that is something not easily possible with Solaris, HPUX or AIX.

As for leaving the development to Google and other "indie programmers" as you phrase it I would argue that is a very simplistic and short sighted view. Google is not in the business of making an Operating System, they are in the business of using Operating Systems such as Linux to further their own business interests.

Member Avatar ikkyu2 (99.15) Submitted: 8/28/2012 3:56:29 PM
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No, actually, it's more like selling generics that someone else has already done the hard work of developing. There is money to be made in generics; there's money to be made in providing reliable, robust turnkey open-source solutions.

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