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Red Hat Software Businesses Linux Business Software Linux

Dell Calls For Red Hat To Lower Prices 526

VaultX points to an article on CNET (linked below), writing "According to Dell, Red Hat needs to lower pricing. 'We believe Red Hat Enterprise Linux 3, for the small and medium-sized business market, was out of the price range of these customers.' With Dell's strong presence in the Linux server market, Red Hat may want to listen."
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Dell Calls For Red Hat To Lower Prices

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  • by Anonymous Coward on Tuesday December 07, 2004 @10:32PM (#11027744)
    here's one of them. It's a personal account of working inside of the "dell beast." Written by the site maintainer of www.amdzone.com it was written only a few days ago. Most of the thoughts reflect my sentiment and experience with dell..

    here it is [amdzone.com]

    John Allen Mohammed
  • RedHat screwed (Score:3, Interesting)

    by duffbeer703 ( 177751 ) * on Tuesday December 07, 2004 @10:33PM (#11027748)
    Way too arrogant of a company for what they do... they are losing OEM support and customers who don't feel like being extorted.

    As faras IBM is concerned, Suse is the only linux. And Novell is willing to discount things very heavily.
  • by El Cubano ( 631386 ) on Tuesday December 07, 2004 @10:37PM (#11027773)
    They could always add support for something like Debian, which is known for its outstanding stability in spite of its lack of big commercial backing. Dell could then offer graduated support options, including, no support. I'm sure lots of businesses that would jump at the opportunity to get a server with Linux preinstalled (that way they are sure all hardware is working and configured out of the box) even if they have no need of a full support package.
  • by 0racle ( 667029 ) on Tuesday December 07, 2004 @10:42PM (#11027828)
    "Oh, you don't carry Red Hat? Well we were kinda looking to get a Linux box. Thanks, we'll be talking to IBM."

    Sorry but Red Hat IS Linux to many businesses. Thats why Sun directs its challenges to Red Hat, thats why MS talks about Red Hat when they do the TCO arguments, Red Hat is the most visible company selling a Linux system. If you want to aim big, and Dell does, if your not going to carry Red Hat, there's no point in carrying Linux at all.
  • Redhat arrogance (Score:2, Interesting)

    by Anonymous Coward on Tuesday December 07, 2004 @10:59PM (#11027968)
    The OpenSSH developers won't support Redhat users, because of their messing around [theaimsgroup.com] with the distribution tarball and ongoing refusal to discuss the issue in public.
  • by Anonymous Coward on Tuesday December 07, 2004 @11:12PM (#11028080)
    Duh... if the Hardware is cheaper, the Software guys can profit more.... if the software is cheaper the hardware guys can profit more.

    If Dell isn't happy with RedHat's value, they're welcome to support Gentoo and Debian instead.

    My bet is that RedHat does provide decent value for the dollar, so Dell'll stick with them.

  • by smick ( 568734 ) on Tuesday December 07, 2004 @11:13PM (#11028086) Journal
    Speaking of Redhat support how is it? I've used Redhat Enterprise Server before, but never had a reason to call their tech support line. Only reason I reccomended it to the client was that he wanted something that had support. Which of course he never used either(Just called me).
  • by Percy_Blakeney ( 542178 ) on Tuesday December 07, 2004 @11:20PM (#11028135) Homepage
    For those that do want support, 3 digits is nothing

    It depends on who you are. If you're Pixar, then you're right -- $350-$1500 per year per server is manageable. If you (like me) work for a mid-size corporation with a hundred servers, a shrinking IT budget, and a need for only the security updates, $35,000 per year for just the support on the operating system is too much. We have always used Red Hat products in the past and are very satisfied with them, but we simply cannot pay that much money.

    Dell is right; Red Hat has lost us as a customer. We would love to stay with them, but it doesn't matter now. We are now choosing between SuSE and Debian, with Red Hat not being part of the equation.

  • by IANAAC ( 692242 ) on Tuesday December 07, 2004 @11:37PM (#11028332)
    The prices are a little bit on the high side, but you are buying support not the software for the most part and they are certainly not higher that Windows Server 2003 which they are setup to compete with.

    A better comparison would be with something like SUSE Enterprise server - their direct competition.

    The price difference, as well as the number of options available is an eye-opener.

  • by DA-MAN ( 17442 ) on Tuesday December 07, 2004 @11:56PM (#11028511) Homepage
    Did that include the price of renewing the RHEL support contract for the next five years? You do realize, of course, that you can't just buy it once and be done with it; you have to pay that $350-$1500 every single year that you use the operating system. Nor do you have the option of dropping the contract -- once you buy in, you're legally hooked for life.

    Or you can buy it bare and install TaoLinux/WhiteBox/CentOS, which is binary compatible. This works for 99% of server installation.

    Or buy with RHEL and then switch to TaoLinux/WhiteBox/CentOS via yum for updates after your subscription expires.

    Either way you have options, perhaps you have the infrastructure to support your own linux servers then why pay for support. Perhaps you don't, then getting RH is a great deal.
  • RHEL ES vs. W2K3 SBS (Score:5, Interesting)

    by Dink Paisy ( 823325 ) on Wednesday December 08, 2004 @12:14AM (#11028674) Homepage
    I think these are the two products we're talking about when Dell says that Red Hat Linux is too expensive. Comparing prices...

    RHEL ES has two versions, priced at $350 and $800, depending on the support level. W2K3 SBS (Small Business Server) is available at different prices from different vendors, but is typically around $500. All prices in US dollars. The prices are quite similar. If you need support for more than installation and basic configuration, Windows 2003 is actually cheaper.

    If small businesses find Windows easier to setup and maintain, then it could be worthwhile. I'm not able to personally confirm this one way or the other, but various people I know who have configured both Linux and Windows 2003 as servers claim that Windows is easier to configure and tune for performance.

    Perhaps Dell simply means that for the market they are selling into and the price they are charging, there is a better product available from Microsoft. It's hard to see how Red Hat could compete on price; they really aren't charging a huge amount. For businesses that can't afford a full time server administrator and don't have any Linux expertise, it is quite possible that Windows just plain is a better choice.

    Going off topic, Red Hat's website has the Ghandi quote that Slashdot loves: "First they ignore you, then they laugh at you, then they fight you, then you win." A year ago, Microsoft was fighting Red Hat. Now they are laughing at Red Hat. Linux still has a chance, but this battle definitely isn't going the way that Red Hat planned.

    I hate to say it, but with IBM preferring Novell and SLES, I think Red Hat has lost.

  • by jrcamp ( 150032 ) on Wednesday December 08, 2004 @12:14AM (#11028678)
    You're actually considering rolling out Fedora for server hosting? Are you crazy?
    1. it's not meant for server use
    2. comes with a bunch of extra cruft installed
    3. the GUI tools never have enough features so you resort to hand configuring anyway
    4. poor (read, small) package repository
    5. short release cycle
    6. short security fix lifespan
    7. not safe (according to developers) to update without rebooting into the installer/upgrader--have fun updating those 100 servers every year!

    Thse are all the reasons not to use it for a server.

    To my brother poster: Gentoo on the server? If you were my employee I'd have you fired. And no, I don't want to hear about building then distributing binary packages.

    The only truly free options for servers is Debian stable. Long release cycle, vast package repostiories, security backports so your servers don't break, seamless upgrades in place. Everything Fedora is not. Use it or at least something actually meant to be stable, be it Whitebox, SuSE, etc.

  • by Anonymous Coward on Wednesday December 08, 2004 @12:19AM (#11028706)
    From GNU General Public License Version 2, Clause 1:
    ... give any other recipients of the Program a copy of this License along with the Program.
    Dell has made several examples of how they are above honoring the GPL. One of Dell's GPL violations still available for download [dell.com] was created an year and a half ago. Despite the fact that all they have to do is add a copy of the GPL to the tar (and they have been notified of this fact multiple times), they have choosen to continue to ignore the obligations on the GPL.

    Now Dell wants to act as if it is a friendly member of the Linux community and suggest what the pricing should be? Hey! Violating the GPL is not what a member of the Linux community should ever do. Doing it for over a year and a half is a clear indication that Dell doesn't give a damn about the linux community or the licensing terms they have choosen.

    Bottom line: Dell has terminated the grants of the GPL by violating the license. Regards of what price Red Hat chooses, Dell has no legal rights to be redistributing the Linux kernel who's license they decided to actively (and continues to) violate.

  • by brianosaurus ( 48471 ) on Wednesday December 08, 2004 @12:23AM (#11028737) Homepage
    My guess is that Dell has decided it wants a larger Linux customer base, and their small business customers are balking at the Redhat price. Dell is merely saying that they could sell more computers if Redhat was cheaper. (Maybe Dell should shop around and offer more than one Linux option... I hear you can get it for free some places* ;)

    And Steve Ballmer wants a $100 PC so people can afford to spend $200 on Windows.

    And I want a pony.

    * - free linux doesn't come with the Redhat enterprise support, but presumably a small business doesn't need as much support as a large company. I haven't looked to see if they do this, but perhaps a less expensive support options for smaller installations?
  • Amen (Score:4, Interesting)

    by BoomerSooner ( 308737 ) on Wednesday December 08, 2004 @12:35AM (#11028834) Homepage Journal
    When are people going to realize the best support you can have is hiring someone actually qualified to do the damn job in the first place. Just for fun I like to apply for jobs and get interviews to see how the market is doing in my area. I always get the "How important is it that you make what you currently do?" line. My favorite part is when other employees interview and are so proud of their projects that are minor at best.

    When you hire the best that is what you get. When you hire the cheapest that is what you get. Quality isn't free. I guess when all the software development jobs are in India/China we might start to understand there is more to being an excellent employee/partner than just understanding how to program. Or maybe not! Either way I'm on my way out of programming asap.
  • by petrus4 ( 213815 ) on Wednesday December 08, 2004 @01:30AM (#11029201) Homepage Journal
    I have suspected for a long time that Red Hat have had aspirations about being the Microsoft of the Linux world.

    There are plenty of other distributions available which are not only technologically superior, but also more open than Red Hat's offerings. I think anyone who uses a Red Hat product in future also needs to think about what they are contributing to with their money as well...This does not seem to be a company with the best of intentions.

    In short, I definitely recommend a boycott of Red Hat's products. You'll be doing yourself a favour in terms of just about any other distro out there being more technically sound, and you'll be doing Linux as a whole a favour by not giving money to a commercialist who wants to take the OS in a direction which is the opposite of what most of us stand for.

    On a related issue, we need to find a way to do something about Red Hat's having moved the development of several GNU projects to their own servers as well, IMHO. This is a company in urgent need of a reminder that it surely is desirable to give back rather than just take.
  • Price Point? (Score:2, Interesting)

    by joebolte ( 704665 ) on Wednesday December 08, 2004 @01:47AM (#11029298) Homepage
    "Novell was able to step in and offer us that price point." WTF is up with people saying "price point" instead of just "price" all of sudden. Go back and re-read the sentence without the point. Did it mkae any less sense? Didn't think so.
  • by Local Loop ( 55555 ) on Wednesday December 08, 2004 @04:09AM (#11029959)


    Actually I've had CISCO support reps in the Phillipines stay on the phone with me ALL NIGHT fixing our firewall problems. And these guys REALLY knew what they were doing.


    And the commercial support that I've gotten from DELL was great when it came to advice, and staying on the phone until my RAID was back in one piece, even though I was using an unsupported OS (FreeBSD).


    new web cartoon, now featuring Bitey, the pound cat: Jendini.com [jendini.com]

  • by RollingThunder ( 88952 ) on Wednesday December 08, 2004 @04:15AM (#11029980)
    I've seen HP fly out a new motherboard from Toronto, then the two they kept in the city were found problematic.

    I've seen Microsoft fly up people to help with Exchange servers.

    I've been on the phone with top level Sun techs within five minutes of the event.

    I do, however, work for a very big customer. I don't even pretend that anyone a tenth the size would get this support.
  • by Lumpy ( 12016 ) on Wednesday December 08, 2004 @07:46AM (#11030619) Homepage
    I even had a netapp guy say "don't call us anymore" despite the fact that our company had paid for top level support.

    I also had that happen, I snagged my vioce memo recorder and held it to the speaker and asked him again... "what did you say?"

    I then sent that tape to our VP of operations with a letter that the vendor refuses to work with us anymore despite what contracts we have with them.

    I had a phone call 4 weeks later from that tech saying how sorry he was and that from now on I need to call him directly for any and all problems at any time.

    if your company is big enough, the legal department is simpl,y waiting for crap like that.

    a support contract IS a contract, and if your company has any teeth, it's nice to force a vendor to do what they say.

    we hold DELL's feet over the fire almost monthly.

    the companies you deal with have no right to not provide what they promised, you simply have to bypass the idiots you are talking to and go to where the money is.
  • by Rich0 ( 548339 ) on Wednesday December 08, 2004 @08:30AM (#11030790) Homepage
    I would imagine that in most shops, the clients are running some flavor of windows.

    The issue with CALs isn't that the clients aren't free. It is that you have to pay for not only the OS on the client but also for their right to connect to a server.

    I don't know all the details, but if you have a server and 100 workstations you pay for:

    1. Server license
    2. 100 workstation licenses
    3. 100 CALs to enable server to talk to 100 workstations at once.

    If you had 10 servers my guess is that you'd pay:

    1. 10 Server licenses
    2. 100 workstation licenses
    3. 1000 CALs to enable each server to talk to 100 workstations at once.

    You see that the CALs are more of a server-related expense than a client-related, since they go up as you add servers as well as clients.

    The other problem with all of this is license managment. If you don't have CALs all you need is to tape a copy of the OS license to the top of each computer and you know that you are fully legit. With CALs thrown in you also need to analyze who is connecting to what server at what time to figure out how you're doing.

    With Samba there are no CALs, so you can pick the server and clients on their own merits, and mix and match them however you want...
  • by Anonymous Coward on Wednesday December 08, 2004 @11:12AM (#11031957)
    Too bad you ended up being the boob on this one. His post was quite funny, and in order to complete the joke, needed to be moderated up.
  • by Anonymous Coward on Wednesday December 08, 2004 @11:25AM (#11032094)
    Come on, it was a joke. Since funny mods can end up costing people karma, considerate moderators try to find something else to to apply to non-AC jokes.

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