I was looking at Redhat's annual report to the SEC (April 19. See
http://biz.yahoo.com/e/010419/rhat.html). The "Factors Affecting Future
Results" section is amazing, and full of depressing statements (actually,
the entire report is full of depressing statements). It might be literally
true, but it looks like something taken directly from Microsoft propaganda
(like the Halloween documents).
Here are a few select paragraphs (edited slightly), for your enjoyment :)
----------------------------------------------------------------------------
Our open source software business model is unproven.
We have not demonstrated the success of our open source business model, which
gives our customers the right to freely copy and distribute our software.
No other company has built a successful open source business. Few open source
software products have gained widespread commercial acceptance partly due to
the lack of viable open source industry participants to offer adequate service
and support on a long term basis. In addition, open source vendors are not
able to provide industry standard warranties and indemnities for their
products, since these products have been developed largely by independent
parties over whom open source vendors exercise no control or supervision.
If open source software should fail to gain widespread commercial acceptance,
we would not be able to sustain our revenue growth and our business could fail.
We depend on the support of Linux developers not employed by the us to release
major product upgrades and maintain market share.
We may not be able to effectively assemble and test our software because it
consists largely of code developed by independent third parties over whom we
exercise no control, which could result in unreliable products and damage to
our reputation.
Our products will not gain widespread commercial adoption until there are more
third-party software applications designed to operate on Linux-based operating
systems. These applications include word processors, databases, accounting
packages, spreadsheets, e-mail programs, Internet browsers, presentation and
graphics software and personal productivity applications.
Our customers may find it difficult to install and implement Official Red Hat
Linux, which could lead to customer dissatisfaction and damage our reputation.
Installation and implementation of Official Red Hat Linux often involves a
significant commitment of resources, financial and otherwise, by our customers.
<<<<<< pay special attention to this >>>>>
We may not be able to generate revenue from sales of Official Red Hat Linux if
users can more quickly download it from the Internet.
Anyone can download a free copy of official Red Hat Linux from the Internet.
However, because this download can take up to 36 hours using a standard
telephone connection, many of our users choose to buy the shrink-wrapped
version of Official Red Hat Linux. If hardware and data transmission
technology advances in the future to the point where increased bandwidth
allows users to more quickly download our products from the Internet, users
may no longer choose to purchase Official Red Hat Linux. This could lead to
a significant loss of product revenue.
We are focusing our sales and marketing efforts on providing subscription-based
products and services as opposed to relying on sales of shrink-wrapped
software.
--------------------------------------------------------------------------
--
Nadav Har'El | Sunday, Apr 22 2001, 29 Nisan 5761
[EMAIL PROTECTED] |-----------------------------------------
Phone: +972-53-245868, ICQ 13349191 |You do not need a parachute to skydive.
http://nadav.harel.org.il |You only need one to skydive twice.
=================================================================
To unsubscribe, send mail to [EMAIL PROTECTED] with
the word "unsubscribe" in the message body, e.g., run the command
echo unsubscribe | mail [EMAIL PROTECTED]
