A Slightly Skeptical View of Major Commercial Unixes
The biggest recent development in commercial Unixes space is that Oracle
pledged to support Red Hat Enterprise Linux -- charging less than half of Red Hat's
support prices ($99 for minimal level -- patches and RPMs only). See:
As a news this was certainly on par with Google buying UTube for $1.6B hoax,
which might be Sequoia capital trick of selling one of its properties to the other
making 2 billions on 15 million investment in the UTube and helping Google to maintain
its exorbitant share price a bit longer; or for a change with IBM hoax of buying
ISS for over a billion. Still this is was an interesting development that reminds
dot-com bubble mergers and acquisitions. Reminds us that the traditional Open Source
(GPL-based Open Source), is a very problematic business model. It is often used
as a smoke screen for the VCs to get software engineers to work for free, NOT EVEN
Minimum Wage, but for free! Then they take their hard work, pump $20M in marketing
and either sell the resulting company to one of their other portfolio companies
or take it public and dump the shares on the public. Meanwhile the software engineers
that worked to develop that software for FREE, aka Slave Labor, get $0.00 for their
hard work while the VCs and Investment Bankers make a killing. And of course then
they get their buddies in Big Media hype the GPL-based Open Source id the best thing
after sliced bread.
Oracle will also supply a RHEL clone. Oracle pledged Linux support from its own
army of employees--including several Linux kernel programmers. Internally Linux
is used by Oracle as a development platform along with Solaris. That makes the move
somewhat similar to Sun buying Star Office: cutting internal costs.
Anyway a good news is that the price of Linux support will be 50% lower and RHEL
AS support model with its fat margins essentially died by quick painless death:
customers now have a viable way to drive down the cost of maintaining RHEL and are
likely to use this information in contract negotiations, even if they don't switch.
Eventually this move might divert major part of Red Hat's support subscription
revenue stream into Oracle coffers.
Along with Red Hat, Novell is also under new pressure. There is no longer
much sense to use Suse as an enterprise distribution as its main selling point was
lower support costs in comparison with Red Hat.
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About: iogen is an I/O generator. It forks child processes that each run
a mix of reads and writes. The idea is to generate heavily fragmented files to make
the hardware suffer as much as possible. This tool has been used to test filesystems,
drivers, firmware, and hardware devices. It is by no means meant as a performance
measuring tool since it tries to recreate the worst case scenario I/O.
Changes: This release adds a timeout parameter for I/O runs.
Dan Farber & Larry Dignan
December 21st, 2006
When Red Hat holds court with financial analysts later today to discuss
the company's fiscal third quarter results the conversation is likely
to go like this:
Analyst: What is the impact on Oracle's Unbreakable Linux on your
business? How can you compete?
Red Hat exec: We're not seeing any direct threat. Billings are
looking up.
Analyst: What about this Microsoft-Novell partnership?
Red Hat exec: Can't we talk about our quarter just a little here?
And then you'll get a lot of questions about Red Hat's forecast for
future billings so analysts can surmise the answers on their own. Red
Hat, which provides Linux and open source software, is expected to report
earnings of 12 cents a share on sales of $104 million.
The competition is circling around Red Hat, but it's too early to
see the effects. Are folks going to jump from Red Hat? Possibly, but
it won't be this quarter. Or the next.
How do I know? Let's evaluate what those aforementioned Red Hat killers
are saying lately. Oracle said it had 9,000 downloads of Unbreakable
Linux in the first 30 days after announcing it. Big question is what
happened beyond that 30 days and were the downloads front-end loaded
indicating waning interest.
As for the Microsoft-Novell deal, the two parties
announced
that three financial services firms are getting
SUSE Linux
Enterprise Subscription certificates from Microsoft.
What's all of this mean for Red Hat? Probably a decent quarter after
a lot of worrying. What's it mean for technology buyers? Some
serious leverage as Red Hat subscriptions expire in a few months.
UBS analyst Heather Bellini said it will take about six months to
see any dent in Red Hat's business.
"Our conversations with Linux channel partners indicate that
Red Hat's business in the third quarter was largely unaffected and
any impact will take at least six months to play out. While the
resellers were equally split on whether Red Hat will have to lower
prices, we believe pricing pressures
are inevitable as customers will at the very least use Oracle's
pricing to negotiate deeper discounts."
WR Hambrecht analyst Robert Stimson said in a research note that
Red Hat's products are "sticky and deeply embedded within its enterprise
customers."
"We are expecting a roughly in-line quarter to both our and Street
estimates, as we believe recent concerns over competitive pressures
from Oracle and
Novell/Microsoft have been overblown. We believe investors will
be most closely focused on billings growth as the most meaningful
metric to determine any negative effect from competition, as well
as management's commentary on the JBoss integration process."
In fact, the integration of open source software maker JBoss is the
more immediate worry about Red Hat. Rumors have swirled for weeks about
Marc Fleury leaving, but thus far no formal announcement.
The skinny from Stimson:
"Comments from JBoss head Marc Fleury in late November regarding
a perceived lack of investment from Red Hat raised investors'
concerns about the integration of the JBoss business into the
Red Hat stack. Shortly after, Fleury
took paternity leave, which some investors read into as a sign
of discord. Although we believe these concerns
are overblown, we will be looking closely at commentary from
management regarding the progress of the JBoss integration."
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Don Ferguson
- Subject: Excellent Points ( Dec 21, 2006, 17:07:53 )
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I am no fan of glossier, fancier and more processor and
memory intensive user interface graphics. But a lot of people
are. More importantly, there is real movement on the Mac and
Windows front from a user interface perspective and these changes
will define computing experiences and desires.
I do not think Windows Vista is a Linux killer. But, Leopard
is. Apple has proven you can do *nix and make it a visually
pleasing, easy to use, and productive environment for people.
Macs run Linux programs, Mac programs, and Windows in VMs or
as a dual boot option. Apple has created everything that Linux
ever wanted to be but couldn't achieve because it was unable
to attract enough people to the KDE and/or Gnome.
I almost wonder if what we are seeing with KDE and Gnome
is symptomatic of "open source". The movement relies on coolness
to bring in new, young coders, and its anti-establishment exture
to bring in rebels.
Linux, KDE or Gnome are getting less cool by the day. And
Linux and several open source projects are so tied into corporations
that the work of rebels is simply being used to increase the
fortunes of billionare wannabees.
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This rates as a stroke of cruel genius--right up there with Bill Gates' decision
to gut his
Borland nemesis Philippe Kahn in the early 1990s. Old-timers may recall
that Borland once was a high-flier in the software business. But when Microsoft
slashed prices on its Excel spreadsheet and Access database programs, Borland
stumbled. The company failed to find a way to compete against a bigger, better
financed rival that could afford to pursue a beggar-thy-neighbor strategy.
Hand it to Ellison for taking a page out of his arch-rival's playbook. Oracle's
offer of
free support for Red Hat Linux was designed to inflict maximum pain on Red
Hat. So it did. One day after the announcement, Red Hat shares lost 24 percent
of their value. After watching his stock take a
tumble, Red Hat's CEO Matthew Szulik is in a bind. He has just absorbed the
equivalent of a cyber-kick in the groin from a bigger, badder bully.
"This is capitalism, we are competing," Ellison later said during the question-and-answer
session following his announcement. "We are trying to offer a better product
at a lower price."
It's also a veiled threat to any open-source software vendor within earshot
that Oracle's declaring a support price-war. Outside
of an IBM, I don't know of any open-source supplier with the financial wherewithal
to absorb that kind of profit margin punishment.
[Oct 26, 2005] Oracle as new Robin Hood
#16594350)
That Unfakeable page is act of desperation...
Red Hat spreading FUD about another open source product, how noble!
And let's not forget how they sent that cease-and-desist letter for
CentOS for stating they're based on RHEL...
Let's see what they have to say:
Q: Does Oracle's announcement include support for the Red Hat Application
Stack, JBoss, Hibernate, Red Hat GFS, Red Hat Cluster Suite, Red Hat
Directory Server, or Red Hat Certificate System?
A: No. Oracle does not support any of these leading open source products.
-
Uhm, that doesn't matter.
The point is this: for any any Unbreakable Linux bug that is submitted
to Oracle and can be duplicated on "golden" RHEL 4 system in Oracle's
office (for which Oracle has valid support contract), Oracle can submit
it to Red Hat Support as Red Hat bug and require quick fix. Then, as
RH fixes it, they can fix it in their own Unbreakable Linux.
Q: Oracle says their Linux support includes the same hardware compatibility
and certifications as Red Hat Enterprise Linux. Is this true?
A: No. Oracle has stated they will make changes to the code independently
of Red Hat. These changes will not be tested during Red Hat's hardware
testing and certification process, and may cause unexpected behavior.
Hence Red Hat hardware certifications are invalidated.
--
Well, yes. They don't say that Red Hat h/w certs will be considered
valid (actually, they don't care, to be exact) - as long as you've got
one, they'll support your RH cert on their Unbreakable Linux. The same
goes for ISVs. And Oracle isn't that stupid to screw things up so that
they don't work.
Q: Oracle says they will provide the same updates as Red Hat Enterprise
Linux. Can they do this?
A: There are multiple requirements to building binary compatible software.
One piece is the source code; another is the build and test environment.
While Oracle may be able to take the source code at some point after
a Red Hat update release, obviously their build and test environment
will inherently be different than that for Red Hat Enterprise Linux.
For similar reasons, there is no guarantee that the source code for
the Red Hat Enterprise Linux update will work correctly when integrated
into Oracle's modified Linux code base.
--
Hah, this one is hilarious! So this is Red Hat's secret sauce - the
unreproducible build environment. Are they trying to say that their
build environment is different from what's available to everyone else
(which wouldn't be too good for compatibility which they emphasize all
the time)?
Q: Does Red Hat allow you to tailor your support level to your workload?
A: Yes. Many customers match their Red Hat Enterprise Linux subscription
level to their application SLA requirements. For example, customers
may choose a Basic subscription for non-mission critical file and print
servers, while selecting Premium subscriptions for database servers.
Oracle does not allow this flexibility - their support policy reads:
"If acquiring Enterprise Linux Premier Support, all of your Oracle supported
systems must be supported with Enterprise Linux Premier Support."
---
Nice try. On the other hand Oracle's Linux is free and updates only
are $99/year. Match that, Red Hat! Basic support for RHEL Workstation
is $279.
As for Oracle DB servers - yes, you'd probably want to have premium
Linux support for those.
BTW, did RH mention that their support agreement requires that support
must be purchased for all copies of OS used by the customer?
Self-tuning SLAs can also be achieved by using CentOS (community and
basic support), RHEL and UL.
Q: Can Oracle produce timely security updates to Red Hat Enterprise
Linux as they stated?
A: No. There will be a delay between the time a Red Hat Enterprise Linux
update is issued, and the time the source code makes its way to Oracle.
And there is no guarantee that the source code for the Red Hat Enterprise
Linux update will work correctly when integrated into Oracle's Linux
code base; this integration and test may take additional time. In the
case where the update corrects critical security flaws, Oracle customers
may be exposed to additional risk.
--
Yes, if the bug is submitted to Red Hat, there might be a delay of 1-2
hours.
If it's submitted to Oracle or to CentOS, RH and Oracle, there's no
reason why Oracle couldn't issue their own fix before RH and, if change
doesn't require reboot, re-issue RH's update after they get it from
Red Hat. It's great to know that Linux requires timely security updates
because it seems prone to frequent critical security problems, though.
Q: Will Oracle's Linux customers have the same degree of influence over
Oracle's Linux as Red Hat's customers do with Red Hat Enterprise Linux?
A: The support we provide for Red Hat Enterprise Linux starts when Red
Hat and its customers collaborate in the design of new versions. This
collaboration extends through the development, test, and production
deployment of Red Hat Enterprise Linux. Vendors of a derivative distribution
are simply not positioned to provide their customers the same collaboration
opportunity.
-
Oh yes, Red Hat is well-known for their excellent collaboration with
ISVs and IHVs... And they're very easy to work with...
Q: Hardware vendors such as Dell, HP, and IBM provide support for Red
Hat Enterprise Linux. How is Oracle's support offering different?
A: Red Hat's hardware partners provide front line support to customers,
backed by Red Hat. Red Hat has a close contractual relationship with
these partners, which requires training, well defined escalation paths,
Red Hat back-line support, and cooperative customer issue management.
Our joint customers enjoy the same degree of collaborative participation
as any Red Hat customer.
--
According to HP's stats (you can google news.com for that article) in
2005 about 4,000 Linux support issues escalated to the HQs, less than
100 had to be escalated to Linux vendors.
Besides, all major OEMs endorsed Oracle's Unbreakable Linux, see today's
news.com article on UL.
Maybe they don't give a damn but hey - why not get yourself in a position
which helps you get a better price for RHEL
:-)
In any case, each dollar invested in UL makes RH cheaper by more than
one dollar, so this is a nice move by Larry. So far, so good - (http://finance.google.com/finance?q=RHAT
- not a pretty sight).
And isn't it great that someone can take the Fedora -> RHEL model, where
RH profits from work done by others (open source community, in RH's
case) and make it work for the enterprise customer (RHEL -> UL) while
profiting only from the rich. Unbreakable Linux = Robin Hood Linux
:-)
... The Red Hat Enterprise Linux 5 Beta 1 release contains
virtualization on the i386 and x86_64 architectures as well as a technology
preview for IA64.
... ... ...
Aside from Xen, Red Hat Enterprise Linux 5 Beta 1 features AutoFS and
iSCSI network storage support,
smart card integration, SELinux security,
clustering and a cluster
file system, Infiniband and RDMA support, and Kexec and Kdump, which replace
the current Diskdump and Netdump. Beta 1 also incorporates improvements to the
installation process, analysis and development tools SystemTap and Frysk, a
new driver model and enablers for stateless Linux.
The goal of this IBM Redbook is to provide a technical planning reference
for IT organizations large or small that are now considering a migration to
Linux-based personal computers. For Linux, there is a tremendous amount of “how
to” information available online that addresses specific and very technical
operating system configuration issues, platform-specific installation methods,
user interface customizations, etc. This book includes some technical “how to”
as well, but the overall focus of the content in this book is to walk the reader
through some of the important considerations and planning issues you could encounter
during a migration project. Within the context of a pre-existing Microsoft Windows-based
environment, we attempt to present a more holistic, end-to-end view of the technical
challenges and methods necessary to complete a successful migration to Linux-based
clients.
Jun 24th, 2004 Open Source Blog:
Open Sourcery by
Blane Warrene
I recently spent some time speaking with a popular
Yankee Group analyst who covers the enterprise sector in the US, focusing in
on open source and where the movement may go in the next few years.
Just to be clear, I differentiate, as most industry
watchers do, between Linux and open source. While Linux is open source, the
primary Linux distributors have caught on to how they need to position themselves
for success and are starting to run their businesses just as any proprietary
software company does.
Red Hat and SUSE make prime examples, realizing
the path to long term success and revenue streams resided in proving themselves
enterprise worthy to larger businesses and institutions, have shifted business
models or been acquired by organizations with roots in the enterprise.
Her views, while not always popular in the open
source community. are right on point if open source seeks widespread adoption
and a permanent seat at the table for longer term financial success.
There are a few obstacles open source proponents
need to accept and move forward on:
- It will be more costly for a company
to migrate away from Windows to Linux, even in light of slightly reduced
ongoing maintenance and improved security and uptime. While I have
not always agreed that the costs are higher, having migrated corporate systems
to Linux in the past, their research showed it to be true in many cases
-- especially when migrating beyond standard web hosting and email systems.
The costs are higher when factoring in re-certifying drivers, application
integrity and training.
- To truly become entrenched as a viable
financially-rewarding option (meaning open source companies make money and
create jobs), a shift toward commercial software models is necessary.
This does not mean forgoing open source, however, what it does mean is developing
a structure for development, distribution, patching and support that passes
muster with corporate IT managers who could be investing substantial amounts
of money in open source.
What it boils down to is that while open source
has definitely revolutionized software, and it is found internationally in companies
large and small, businesses still pick software because it provides a
solution not just because it is open source.
The fact that it is cheaper or free simply
means the user will save money, but this does not win the favor of those buyers
who could be injecting millions into open source projects rather than proprietary
software makers.
I would use Firebird as a model. In an interview
with Helen Borrie, forthcoming in my July column on SitePoint, she noted that
since many Fortune 500 companies are using an open source database like Firebird
speaks volumes to the maturing of their project and open source at large.
The reason as I see it, is due to the treatment
of Firebird like an enterprise scale proprietary software project. They have
a well managed developer community and active support lists, commercial offerings
for support through partnerships with several companies, and commercial development
projects for corporate clients.
If more open source projects looked at Borrie's
team model and discipline in development and support, we just might see more
penetration that attracts longer and more profitable contracts and work for
those like us in the SitePoint community.
(Post
a comment)
Comments
HP Throws Weight Behind MySQL,
JBoss
By
Clint Boulton
HP (Quote,
Chart) stepped up its commitment to open source software Monday by pledging
to offer and support the MySQL database server and JBoss application server
software in its servers.
The Palo Alto, Calif. systems vendor said it has inked agreements with those
open source purveyors to certify and support MySQL and JBoss software on its
servers.
Jeffrey Wade, manager of Linux Marketing Communications at HP, said the certifications
factor in the company's Linux reference architecture is a software stack that
covers everything from the hardware to the operating system, drivers and management
agents.
Deployed on HP ProLiant servers, the open source Linux Reference Architectures
are based on software from MySQL, JBoss, Apache, and OpenLDAP. The company's
commercial Linux Reference Architectures are based on product from Oracle, BEA
and SAP.
Both MySQL and JBoss will join the HP Partner Program and receive joint testing
and engineering support on HP's hardware systems.
Wade told internetnews.com the added layer of MySQL and JBoss support
addresses one of the largest concerns customers have today in opting to pick
open source technology over mainstay proprietary products such as Microsoft
(Quote,
Chart)Windows, Sun Microsystems' (Quote,
Chart) Solaris or UNIX.
"We can provide support for that entire solution stack and we're also now
giving our customers flexibility in choice and the types of solutions they want
to deploy whether that's a commercial or open source application," Wade said.
Bob Bickel, vice president of strategy and corporate development at JBoss,
said commercial use remains somewhat constrained because a CIO doesn't know
whom they can turn to for support.
"They don't know who they can turn to for indemnification," Bickel told
internetnews.com. "Yeah, it works great and it's cheap but what happens
in the middle of their big selling season if something goes down. Who do they
turn to and get it from. What HP's doing is taking an all encompassing view
of this with certification and testing."
Testing keeps customers from guessing what version of a Java virtual machine,
operating system, MySQL or JBoss product can all work together in a guaranteed
way, Bickel explained.
MySQL Vice President of Marketing Zack Urlocker said companies such as Sabre
are using an open source stack for business applications. Partnering with HP,
then, provides great validation for MySQL and JBoss software.
"A couple of years ago the big knock on open source was that it might be
good on the periphery or Web applications, but was not quite ready for business
critical applications," Urlocker told internetnews.com. "Now, the No.
1 issues have been support. People who have had a lot of success with Linux
are now looking at how to use a whole open source stack."
The deal is truly symbiotic. While MySQL and JBoss get backing from a technology
driver such as HP, HP gets the added credibility of being cozy with open source,
a label many enterprises and HP rivals, such as IBM (Quote,
Chart) and Dell (Quote,
Chart), are working toward.
Linux sales are trending tall regardless; according to recent hardware server
and database software studies from high-tech research outfit Gartner.
Despite legal threats from SCO Group and competition from Microsoft, Gartner
said Linux continued to be the growth powerhouse in the operating systems
server market, with a revenue increase of 57.3 percent in the first quarter
of 2004.
Gartner also
found that Linux siphoned market share from UNIX in the relational database
management system (RDBMS) market, a niche that grew 158 percent from $116 million
in new license revenue in 2002 to nearly $300 million in 2003.
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June 05, 2008
Is this the end of the OSS "Sell the Support" mode
This is not going to be an easy battle for Redhat. I suspect they are going to have to find a new business model if they are to survive.