Wednesday, December 21, 2005

Red Hat makes tons more profit than Sun

The Register's story Subscriber love drives Red Hat in Q3 details Red Hat's surging revenue and profit - respectively to $73m and $23m for the quarter. Red Hat's excellent execution of the Red Hat Network (Linux update/distribution service) and its related subscriptions have returned excellent numbers.

Now it's Sun's turn. Solaris really needs the ability to run Red Hat Enterprise Linux, and at a lower price than a Red Hat subscription. It sounds crazy, but it's both possible and legal. First, Solaris needs "BrandZ" containers which can host any compatible operating environment (e.g. Linux). Second, you need a free copy of Red Hat - and here's where CentOS comes in handy. From information at InternetNews.com, it appears Sun is hosting CentOS via BrandZ containers.

To summarize, the ABC for competing with Red Hat is:
A: AMD Opteron server (this won't run on Sparc)
B: BrandZ containers in Solaris
C: CentOS, the free Red Hat Linux clone

...then the revenue (profit?) comes from the service contracts with Sun.

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