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Red Hat under threat from Oracle.
(From AFX Europe (Focus))
RALEIGH, N.C. (AFX) -
One move by rival Oracle Corp. has turned Red Hat Inc. from a celebrated leader in open-source software to a fragile underdog.
Shares of Red Hat tumbled 24 percent Thursday on the news that Oracle will move aggressively onto Red Hat's turf by selling maintenance services for Red Hat products.
Oracle's brawn threatens an undersized Red Hat, which has benefited from a relative shortage of competition in the Linux sector -- until now.
"Red Hat needs a new business model fast," said Rob Enderle, principal analyst at the Enderle Group tech consulting firm. "Oracle's organization is …
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