27
Oct

Oracle and Red Hat: capitalism in evolution?

Escrito el 27 Octubre 2006 por Ricardo Pérez Garrido en Open Source / Linux

A business model based on open source code means that you need to be good at giving your customers support and problem solving capacities at any time. Red Hat, after many years trying to get to that point, is in the right path to that quality of support that gives them the ability to compete with bigger companies. The combination of low cost development, low prices for the software, and high level maintenance for a fairly low price is a great business proposition for many companies.
That is probably what Larry Ellison though when Oracle decided to take Red Hat’s code, give it a different name and offer an even higher level of support and maintenance, something in which they are good, really good, with many clients in the fortune 500 list.
The business model is only another sign of the potential that open source code offers for new business models. Is the movement ethical? Well, the code is supposed to be free, so if you are good enough to offer a better level of support than the original company selling that service, why not? But also, how does this change the rules in the open source world?

Comentarios

Alvaro Prendes 10 Noviembre 2006 - 18:25

This will probably take a hit on RedHat, Mandrake, SuZe and the likes but will enrich the open source movement by throwing a ton of money to it.
Its clear this trend is gaining momentum and will become Microsoft’s nightmare (even more so) in no time. With the launch of Vista, MS will try to sell (as they usually do) based on more service, reliability and accountability of it’s products.
Moral issues aside, this is a great impulse to OS.

Sharon 5 Noviembre 2012 - 03:45

I think everything said was actually very logical.
But, what about this? suppose you were to create a killer post title?
I mean, I don’t wish to tell you how to run your website, however what if you added a post title to maybe grab a person’s attention?
I mean Oracle and Red Hat: capitalism in evolution?
| Digital Convergence is a little vanilla. You should glance at Yahoo’s home page and see how they create news titles to get viewers to open the links. You might try adding a video or a pic or two to get readers excited about everything’ve written.
In my opinion, it would make your posts a little
livelier.

Sharon

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