Oracle shows no momentum in Linux effort
Oracle Corp. promised to take the Linux software world by storm last October, but the major expansion by one of the world's largest software companies so far has failed to show momentum.
Tiny rival Red Hat Inc., which over a decade built a services business around Linux and legitimized the free, cooperatively developed operating system for corporate computing, has survived the onslaught and even grown.
It is still early days, but Oracle has not disclosed any major deals, and Wall Street remains cautious on the future of Oracle Linux.
"We haven't seen any announcements about customer wins. That's very telling," says 451 Group analyst Raven Zachary.
Redwood Shores, California-based Oracle declined to comment on its Linux program.
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Oracle's Linux failure could hurt Redhat and Novell
But the problem runs deeper than that. Linux has been a bust. Redhat's entire revenue in its last fiscal year was only $278 million. Novell, the other player in enterprise Linux, watched its revenue fall to $230 million in the last quarter compared to $240 million a year ago. Microsoft has set up a joint-venture with Novell to offer Windows and Linux together for corporate customers, but the benefits to Novell and its shareholders so far has been nil.
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