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BearItAll <spam@xxxxxxxxxxxxx> espoused:
> Roy Schestowitz wrote:
>
>> Analyst: Red Hat's Cash Flow Likely to Hold Steady
>>
>> ,----[ Quote ]
>> | In a note to investors Monday, Pacific Crest analyst Brendan Barnicle
>> | noted that even if Red Hat were to cut prices to counter Oracle's
>> | entry into its Linux maintenance space, cash flow would remain strong.
>> | He estimates that the company's operating cash flow could be shaved by
>> | 19.5 percent in 2007, to US$227.7 million, while cash flow would remain
>> | at $203.7 million.
>> `----
>>
>> http://www.linuxinsider.com/rsstory/53986.html
>>
>> Oracle: storm in a teacup.
>
> Oh, he must read this news group, I suggested that they undercut Oracle and
> it seems he heard (or maybe he thought of it all on his own), customers
> will stay with RH because it's a known and anyway IT people like the easy
> life (fill in an online form to join Oracle when you don't have to? Not us
> mate.), then in a year or so's time the Oracle threat would be gone so RH
> could go back to riping off their customers with over high prices again and
> we're all happy.
>
> RH were kicked in the balls and the problem they have is that Oracles plan
> from a buisiness perspective was blooming good. I bet your left sock that
> all over the world where RH is you will get companies offering support for
> much less than RH. It's easy, all they have to do is pass on the normal
> updates to their snatched customers, then blame RH if anything major goes
> wrong so that they own reputation stays intact. Those companies are in such
> a Must-Win situation that I can't see the oppertunity being passed up.
>
>
I'm quite sure that we'll see a growing, dynamic market in linux
support. What will keep it dynamic is that lock-in as a model is just
not going to work. This means that companies like Red Hat can pick a
USP or a set of USPs and stick to them. For example, if they want to
offer eg., top-quality support at a premium, then they can. Others
might go for companies offering call-centre-based support at half the
price, but if the quality is /not good enough/, then some customers will
stick with Red Hat for their support.
This is the natural evolution of free software, and is precisely what
I've been expecting for some time, and precisely what I've been
emphasizing about what will happen in this market to my colleagues at my
day job.
--
| Mark Kent -- mark at ellandroad dot demon dot co dot uk |
Yes, I've now got this nice little apartment in New York, one of those
L-shaped ones. Unfortunately, it's a lower case l.
-- Rita Rudner
|
|
