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Red Hat CEO touts open-source during 'world tour'

He also acknowledged competition from Novell

By Paul Roberts
March 30, 2004 12:00 PM ET

IDG News Service - Red Hat Inc. CEO Matthew Szulik had the air of a motivational speaker last night, citing his company's improving finances and growing user base as evidence of a sea change in the IT industry and promising more Red Hat jobs for beleaguered Massachusetts workers.
Szulik, who was in Cambridge, Mass., on the tail end of a three-week "world tour" to promote the company's products, services and plans for the future, exhorted a mixed audience of IT industry veterans and fresh-faced college students to commit themselves to a coming struggle between proprietary and nonproprietary operating systems that will "change the world." But he also quietly conceded that Red Hat faces tough competition in the open-source market from Novell Inc. and is years away from displacing Microsoft Corp.'s Windows on the desktop.
The tour was co-sponsored by Hewlett-Packard Co. and IBM and included stops in Tokyo, Munich, London and the Australian cities of Brisbane and Sydney.
Speaking just blocks from the campus of MIT, Szulik said open-source companies such as Red Hat have to recruit the "best minds" in order to supplant an economic model based on proprietary software with one based on an open-source development.
"Our challenge is not to build the infrastructure, but to find the talent to change the world and compete against the best in the world," he said.
Red Hat plans to focus its investment in parts of the country, such as Massachusetts and Research Triangle Park in North Carolina, where high-tech companies have easy access to talent from local universities and can partner with higher education and state government, he said.
Noting Red Hat's healthy corporate balance sheet and Massachusetts' enthusiasm about using open-source software in state government, Szulik said Red Hat is hiring and plans to increase the number of employees at its engineering and research and development center in Westford, Mass.
While optimistic about the future of open-source software, Szulik also acknowledged that the company will face stiff competition from competitors, including Novell, which purchased rival SUSE Linux AG in November.
"They're a new competitor, absolutely," Szulik said about the combined companies, adding that competition is good for the Linux community and for customers. However, he cast doubt on Novell's ability to make the open-source model profitable in the long term.
"The issue is one of different economic models. ...With Red Hat, you have a company that has been working in the open-source world for 11 years and providing service to our customers. Compare that to a company that has been selling proprietary software for 20 years but is now calling itself an

Reprinted with permission from Story copyright 2014 International Data Group. All rights reserved.
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