Dell and Redhat

Now this was an interesting move on Dells part. While it has been speculated that the 99 million dollars Dell has sunk into Red Hat may be to short sell the convertible bonds, I doubt that is the case. It would be foolish of Dell to make such a move. There was definite strategy behind this but I personally think it was done to capture early the server market Linux seems to be enjoying so much growth in and the fact that Red Hat is a formidable foe to Microsoft. While I personally do not care for Fedora core Linux in favor of Debian, I see it as a wise venture. Red Hat shares are depressed currently but they are enjoying a good growth rate and broader acceptance. With China's Red Flag capturing Asian market share it will have a hard time competing with the deeply entrenched Red Hat. Turbo Linux of Japan is another option as well. Dell beat people to the punch and it has some scratching their heads. Dell will be well positioned to capture some market share from Sun Microsystems with this move which may explain why Sun has concentrated more of its development overseas.