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I can't help but reply to this. While I will put some time into researching the strategic plan of the company, I can't help but notice one problem. If there is such a cost savings, and there obviously is, how can Red Hat make money. In addition to that, once I am a customer, I pay for no upgrades, so how are the going to be making money off of me on a repeat business. This is where I feel they will have to change to stay competitive. Micrsoft can operate on economies of scale vs. Linux because they can operate at a longer time than can Linux making less money. It is hard to battle a giant, and it is next to impossible to compete on price alone. Since you quoted Warren Buffett, you should think along his lines. He doesn't just buy and hold eveything just for buy and hold sake. As a matter of fact, he owns some Microsoft, just not within Berkshire. You have to look at long term, how will Red Hat compete with Microsoft. Any headwind that Red Hat makes can be negated by an identical move by Microsoft. As soon as Red Hat is taken out to deep water to drown, what is to stop Microsoft from going back to the same old profitable company it always was? Nothing. This is why, in my opinion, all of the companies are backing Red Hat. But how keen are they going to be on providing support to battle with a giant like Microsoft on a long-term basis. Unfortunately, as an example in the airline industry, the same thing happened to Western Pacific. United simply lowered their rates on their routes, took away customers, took WestPac out to deep water to drown, and then proceeded to raise their rates right back to the same level. Unless Linux is leaps and bounds more consumer friendly than Windows, and I haven't used it myself, they will lose the game because they are competing on simply price, which won't work. I love Windows and see it as a tough task to switch a nation in love with Microsoft to Red Hat. But Stranger things have happened, and if Microsoft doesn't play there cards right, I guess it could be conceivable. For me, I have to do more homework. Out.
Derek
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