[OT] Was: Re: [SLL] SCO goes after Google

Chuck Wolber chuckw at quantumlinux.com
Wed Jan 14 20:11:38 EST 2004



> Actually they didn't start making it into the black until very very late
> in the game, after some of the decreased errata length announcements.  
> Inside information gleaned from friends at work there show that they
> were losing a _lot_ of money on the RHL line.

Interesting. I've heard just the opposite regarding the boxed set line.  
I'm assuming they were just referring to publishing costs et al, and not
all of the investment in errata. I'd not disagree with you there.

RH used the RHL line to create their enterprise line, which was showing a
$22 million dollar profit[1] this last quarter. You really can't have one
without the other. But you *CAN* reduce the amount of support given to the
old RHL line, hence Fedora. I think your original statement, though
technically correct, misses the point. RHL was basically a loss leader. A
lot of benefits were derived from having such a powerful market
penetrator.

-Chuck


Sources: 
[1] http://biz.yahoo.com/e/040106/rhat10-q.html


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