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Red Hat



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DEFINITION - Red Hat is a leading software company in the business of assembling open source components for the Linux operating system and related programs into a distribution package that can easily be ordered. Red Hat provides over 400 different software packages, including the C language compiler from Cygnus, a Web server from Apache, and the X Window System from X Consortium. The advantages to buying the distribution from Red Hat rather than assembling it at no cost yourself from various sources is that you get it as a single assembled package. Red Hat also offers service that isn't provided as quickly by the individual component developers, including members of the Free Software Foundation. Like all free software, Red Hat's packages allow the buyer to modify and even resell modified versions of code as long as they do not restrict anyone else from further modification.

Red Hat was one of the first companies to realize that "free" software could be sold as a product. After examining the successful marketing campaign of Evian water, Red Hat concluded that to achieve success, the company had to create more Linux users and brand Red Hat as the Linux name that customers preferred. Today, the "Red Hat Plan" is discussed as a model in business schools.

LAST UPDATED: 10 Jul 2006

Read more about Red Hat:
- Red Hat's Bob Young offers an explanation of how Red Hat works as a business model.
- Red Hat Software has proven adept at convincing the corporate world that it needs Red Hat Linux.


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