Can Red Hat Survive?

Oracle’s bid to steal business away from Red Hat has thrust the world’s largest Linux software distributor into an extremely challenging position. It might even signal the beginning of the end for Red Hat, industry analysts and insiders said.
Red Hat’s shared tumbled 25 percent Thursday after Oracle, the giant database software company, said it would offer support services for Red Hat’s open source Linux software—at half the price Red Hat currently charges. The move was almost certain to cut into the lucrative support contracts that Red Hat relies upon for the bulk of its revenues, prompting some industry watchers to suggest the Linux upstart could become a takeover target for Oracle.

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