Oracle press release on Oct. 25, 2006:

Today Oracle announced that it would provide the same enterprise class support for Linux as it provides for its database, middleware and applications products. Oracle starts with Red Hat Linux, removes Red Hat trademarks, and then adds Linux bug fixes. […] Oracle is offering its Unbreakable Linux program for substantially less than Red Hat currently charges for its best support

I saw this announcement on two blogs: BusinessWeek Online — Tech Beat and Nicholas Carr’s Rough Type.

It is very interesting to compare first the titles: “Oracle Drops the Bomb on Red Hat” versus “Larry Ellison and the business of social production” and then the comments.

While Steve Hamm is a journalist from title to the last line:

It’s a ruthless and brilliant act of capitalism.

Nicholas Carr plays the analyst card:

It illuminates a much broader and deeper tension in the digital world, a fault line that runs not only through the software industry but through every industry whose products or services exist, or can exist, as software.

Nicholas Carr analyze this from a product industry perspective. Readers of “The Magic Cauldron” of Eric S. Raymond will recognize the mistake: most of the open source related business models are about services not products.

It is not about providing a better mousetrap; it is about learning people how to catch mice.

If RedHat sees it’s core business as providing services then it stand a chance. If not, not!

What do you think? Is RedHat doomed? Is Oracle move an attack to open source philosophy?

Leave a comment and let us know what you think.