Document:                       EVT-287
Date of Publication:          October 30, 2006
Number of Pages:             5
Lead Author(s):                B. Guptill, M. West
Price:                              $195 USD

Perspective Summary:

Oracle Corp. has announced plans to license, brand, and distribute RedHat Linux. As part of its branded Linux distribution, Oracle plans to offer technical support at half of what RedHat itself charges to customers. Technical support services, including implementation and bug fixes, are a primary source of RedHat's revenue.

 Due to the terms of its open source license, RedHat cannot effectively prevent Oracle from licensing, reselling, and supporting its version of Linux. In effect, RedHat - and almost any other open source software developer or distributor - provides well-positioned competitors, especially large IT "Master Brands" such as Oracle, with the ability to compete directly, and possibly to put them out of business.

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