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Re: [News] Red Hat's Cash Cow (Linux) Under No Threat

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.



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