The open road: Red Hat “deeply undervalued,” Oracle Linux “has failed”

5 December, 2008 (10:56) |

I find Matt Asay’s new article about Mark Murphy’s analyzes on Oracle enterprise linux very interesting, quoting part of the article.

Oracle has failed in its attempt to enter the Linux market. Our recent survey of Oracle database customers reveals that only 1 out of 32 customers currently uses Oracle Unbreakable Linux. This one customer also commented that “support is terrible, it is difficult to get an answer to my problems, Oracle’s agents never understand my company.” The survey reflects a very low penetration rate in the 2-year period since Oracle unveiled Unbreakable Linux with much fanfare, including live penguins running around onstage with Larry Ellison. Resellers continue to characterize Unbreakable Linuxas a failure because Oracle ultimately cannot control the future direction of RedHat Enterprise Linux, upon which it is based.

While the Street has expected Unbreakable Linux to severely impact Red Hat, its failure ironically serves as a proof-point of the underlying defensibility of RedHat’s business model. In fact, in the two years since Oracle introduced Unbreakable Linux, Red Hat’s billings have grown at an average rate of 31%–representing clear market share gains.

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Date: December 7, 2008, 0:22

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