With Oracle on a spending spree, Dr. Tim
notes that Red Hat’s recent troubles might make Red Hat ripe for
acquisition. Tim cites this article with the sensational title
Rattled Red Hat Battles Support Impostors .
Even though this is
a British periodical (British papers are notorious for publishing
exaggerated stories), there may be grain of truth that North
Carolina-based Red Hat is feeling the pinch of the tough economic
times and competition from Oracle Enterprise Linux, a Red Hat
"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 percent to $194.3m, while revenue from subscriptions grew 21 percent to $164m.”
Personally, I don’t
believe that Oracle would want to buy Red Hat since their own Linux
distribution has seen lackluster adoption from the marketplace.
In late 2009,
Oracle hung their customers out to dry with lousy Oracle
support, and as an IT manager myself, I would be leery of adopting
any product that has had so many complaints from their own user
community. If Oracle wants to buy Red Hat at all, it will be
to get their support services, something that Oracle has a very poor
- I was stunned
at how badly the migration was implemented.
- Incredibly bad
In sum, Oracle may
continue their buying spree, just like Computer Associates did in
the late 1980’s, a strategy that ultimately blew-up in their face
and created a class of people who vowed never to use CA products
again. While Oracle may be cash rich now, it could all end
overnight as they alienate their customers the way that George Wang
did with IDMS database users back in the 1980’s.