Feeds

Rattled Red Hat battles support impostors

Death of a thousand cuts?

Intelligent flash storage arrays

Red Hat is rattled. Sure, it remains the world's biggest Linux company by revenue market share. But it's beginning to feel that it's under pressure - and that it must respond.

That pressure is coming not from Microsoft, but from fellow Linux vendors. Individually, they aren't causing too much trouble, but collectively, they could be creating an environment in which customers are starting to question why they should pay Red Hat to support their Linux at all.

Since last November, Novell has tied a Linux migration service to SuSE Linux Enterprise, with support for existing Red Hat Linux systems for up to three years.

Novell's Red Hat customers can save 50 per cent on their subscriptions through its unified management tools and interoperability with Windows. In an email to The Reg, a Novell spokesperson claimed “strong demand” for the service, with customers including Moneygram, Baker Hughes, and VTI Technologies.

Novell has acted three years after Oracle chief executive Larry Ellison launched his company’s support business in an effort to bleed Red Hat dry. With it came Oracle's version of Red Hat, minus the Red-Hat logos, called Oracle Enterprise Linux.

Though they were launched with great fanfare, Oracle's service and its Linux distro haven't upset Red Hat, and last year, Ellison was notably muted in his assessment of both.

Ellison talked like a middle-aged mum, not his usual Alpha male self. He said he was "very, very proud of where we are today" with 4,000 customers. "Uptake of Oracle Enterprise Linux has been better than we anticipated," he claimed.

Despite Oracle, Red Hat has managed to defy gravity and convince customers to keep signing the checks. Its third-quarter results saw revenue increase 18 per cent to $194.3m, while revenue from subscriptions grew 21 per-cent to $164m.

And yet, there are signs the company is rattled.

Internet Security Threat Report 2014

More from The Register

next story
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
You stupid BRICK! PCs running Avast AV can't handle Windows fixes
Fix issued, fingers pointed, forums in flames
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
Microsoft: Your Linux Docker containers are now OURS to command
New tool lets admins wrangle Linux apps from Windows
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
Soz, web devs: Google snatches its Wallet off the table
Killing off web service in 3 months... but app-happy bonkers are fine
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.