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|Originally Published: Wednesday, 1 September 1999||Author: Ronny Ko|
|Published to: columnists/Ronny Ko||Page: 1/1 - [Std View]|
Maximizing Shareholder Value
It's amazing how far and fast the Linux community has come. In my previous editorial at 32BitsOnline.com, I expressed grave concern towards the commercialization of something which was grown out of the heart and soul of everyone in the Linux community....
In the race to enhance share value for many investors and, seeing the success of Red Hat Software's IPO, many companies such as VA Linux Systems and Caldera Systems are considering having their own IPO.
Red Hat Software intends to be the largest distributor of Linux. Like ketchup, there are many brands, but most people associate ketchup with Heinz. Have you seen any other brands used at your local restaurant? In the business world, when a company gets the lion's share of the market and mind share, it doesn't matter how many distributions are available. The point is, for Red Hat to succeed and enhance share value, it is important that Red Hat saturate the market as fast possible. And Red Hat is already doing that.
In a recent report by AsiaBizTech , Red Hat has recently terminated an agreement with Itsutsubashi Research Co., Ltd., which created and distributed a version of Red Hat for the Asian market. Red Hat is planning to take development back in-house. Going even further, Red Hat has set up offices in Europe to compete directly with SuSE.
So, my question to everyone in the Linux community is this. If the commercialization of Linux is good for operating system choice, will the money made from Red Hat's market saturation benefit the community, or only the few who were able to participate and buy shares in Red Hat's recent successful IPO?
Will Red Hat become the next Microsoft now that Bill Gates is battered after a harsh fight with the Department of Justice?
I would like to hear your comments.
Ronny Ko (firstname.lastname@example.org) is the Editor-in-Chief at 32BitsOnline Magazine, a multiplatform online magazine whose purpose is to bring unbiased, honest and timely information to experienced and novice users alike.