In an aim to solve key problems holding back the development of Linux among big corporate customers Oracle Corp. (ORCL) is offering half-price support to Red Hat Inc. (RHAT) users.
With support costs less than half what Red Hat charges they hope to enhance and speed up the adoption of Linux.
Linux, the most popular version of open-source software, allows developers to share code in order to focus on creating new features themselves. Open-source software like Linux allows customers to use the programs for free, paying only for custom feature options, maintenance and technical support.
The question has been asked if with Red Hat shares falling by 11 percent and Oracle shares rising slightly, after the announcement by Oracle Chairman and Chief Executive Larry Ellison, will this kill Red Hat? His answer, as reported in this WashingtonPost.com article, "This is capitalism, we are competing. We are trying to offer a better product at a lower price. Maybe Red Hat may choose to cut its prices too."
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