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Red Hat revamps premium Linux plan

Daniel Fleshbourne   on 12 March 2003 - 13:38 · 7 comments & 417 views

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Linux seller Red Hat on Wednesday will unveil a new phase in its plan to profit from a premium product, introducing a new lower-priced version of its Advanced Server software, along with a new brand name. Red Hat is renaming its Advanced Server product Red Hat Enterprise Linux AS and introducing an Enterprise Linux ES version for lower-end servers that have one or two processors, said Mark De Visser, vice president of marketing for the Raleigh, N.C.-based company.

Red Hat is becoming increasingly aggressive with its high-end Advanced Server software plans, but the company wasn't successful in persuading companies to pay $1,500 to $2,500 per year for a subscription to use the Linux version on low-end servers. The new Enterprise Linux ES product costs $349 or $800 per year, depending on support levels, De Visser said. "We needed to introduce an entry-level version of the enterprise platform," De Visser said. "Advanced Server was just shooting too high."

The Enterprise Linux line also includes a WS version for workstations with one or two processors, De Visser said. It costs $179 or $299 per year for basic and standard subscription plans. The Enterprise Linux products are certified to work with computers from IBM, Dell Computer and Hewlett-Packard and with software from Oracle, Veritas, BMC, Borland and others. Red Hat guarantees that software certified to work with one version will work on future versions as well, such as the version 3.0 product coming this fall.

View: The full story
News source: c|net


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Post a comment · Send to friend Comments · There are 7 additional comments
#1 Chicane-UK on 12 Mar 2003 - 15:31
Funnily enough, I have just had Red Hat on the phone about this very thing...
(3 replies) #2 mintll on 12 Mar 2003 - 20:19
How do you sell somthing you can download for free?
#2.1 JaggedFlame on 12 Mar 2003 - 21:28
The advanced server is far from free. It costs thousands of dollars.
#2.2 mintll on 13 Mar 2003 - 01:06
so how is it Linux?
#2.3 tuxracer on 13 Mar 2003 - 07:12
Because redhat does not offer a download of the advanced server. It is configured and setup with unique RedHat packages that you cannot download for free. But the main reason for paying is for support. If you just download RedHat "Download Edition" and set up a server, it might work on the small scale if you know what you are doing. But when you are trying to set things up on the enterprise level company support is essential. Microsoft knows this, and that is why they are setting up experation dates of sorts for their software, because after the experation date passes Microsoft will no longer offer support, and as I said, on an enterprise level this is essecial, so they are forced to upgrade. I say this not to bash Microsoft, because RedHat does the same thing. I am just trying to help you understand the answer to your question. You have the classic misconception that open source = "freeware". Check out the FAQ at http://opensource.org/advocacy/faq.php it should help clear up at least one of the misconceptions you have.
(1 reply) #3 jizness on 12 Mar 2003 - 21:48
It seems Red hat is trying to counter Microsofts Windows 2003 pricing plan. Maybe they will be succesfull, but it will take alot more then lowering your prices to compete with microsoft.
#3.1 Chicane-UK on 12 Mar 2003 - 21:52
Well Red Hat already has an excellent product.. I use their operating system on a few servers (and I am not talking some old desktop system serving a few web pages from under my desk) and find it to be fast, flexible, and rock solid reliable. I guess the same is true of any Linux distribution (I also use Slackware) but I just like what Red Hat is trying to do for the Linux community!

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