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Tech Update 
Red Hat server software woos businesses
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Reuters
March 26, 2002


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Red Hat, a distributor of the open-source Linux computer operating system, on Tuesday unveiled a powerful new server product aimed squarely at the large enterprises that the company sees as its market sweet spot.

As earlier reported, Raleigh, N.C.-based Red Hat is hoping that its new Advanced Server will offer enough computing power to convince more large companies to switch their corporate networks to Linux.

The open-source software is freely available and modifiable, unlike proprietary operating systems that include Microsoft's Windows and various versions of the Unix application, such as Solaris by Sun Microsystems.

"Red Hat Linux Advanced Server is the obvious choice for enterprises that want to break out of the stranglehold of proprietary software and high-cost hardware," Red Hat's Vice President of Engineering Paul Cormier said in a statement.

Companies such as Red Hat make money by bundling software tools, support and other services with their Linux products.

Starting at a base price of $800, the Advanced Server package will include a one-year subscription to the Red Hat Network for setting up and maintaining the software.

With companies such as Internet and media giant AOL Time Warner and online superstore Amazon.com signing up for Red Hat services, large enterprises are now the most important market for the company.

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://www.redhat.com/software/linux/advanced/">Advanced Server will offer enough computing power to convince more large companies to switch their corporate networks to Linux.

The open-source software is freely available and modifiable, unlike proprietary operating systems that include Microsoft's Windows and various versions of the Unix application, such as Solaris by Sun Microsystems.

"Red Hat Linux Advanced Server is the obvious choice for enterprises that want to break out of the stranglehold of proprietary software and high-cost hardware," Red Hat's Vice President of Engineering Paul Cormier said in a statement.

Companies such as Red Hat make money by bundling software tools, support and other services with their Linux products.

Starting at a base price of $800, the Advanced Server package will include a one-year subscription to the Red Hat Network for setting up and maintaining the software.

With companies such as Internet and media giant AOL Time Warner and online superstore Amazon.com signing up for Red Hat services, large enterprises are now the most important market for the company.

Of the $18.6 million in revenue Red Hat reported for its last quarter, $16.1 million of that came from enterprise customers, up from $15.7 million in the prior quarter.

Story Copyright © 2002 Reuters Limited. All rights reserved.

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Copyright (c) 1996-2003 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
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