[LINK] Oracle & Open Source

[Deus Ex Machina]

http://weblog.ipcentral.info/archives/2006/08/oracle_open_sou_1.html

"Tech Trader Daily says:

	It certainly would ironic if the core principle of Linux - the open
	source model - contains the seeds of disaster for Red Hat (RHAT), the
	software company that has built its fortune selling Red Hat Linux. But
	it could happen. Rick Sherlund, software analyst at Goldman Sachs,
	observes in a research note today that Oracle (ORCL) has asserted its
	right to re-distribute the Red Hat implementation of Linux. .We continue
	to believe Oracle will soon announce intentions to distribute a Red Hat
	compatible product, possibly for free and also offer support services
	for this product at a fraction of the price of Red Hat,. Sherlund
	writes.

But why would this be "ironic"? This possibliity is exactly what the
open source licenses allow, and it is a prime reason for skepticism of
open source as a business model -- it permits a continuing loop of
free-riding, which in the end must stifle enterprise and investment. 
UPDATE (10:30 A.M.): Here is a contrary view. But Tech Trader has not
changed its mind. And the original post included this insight into Larry
Elliison's thinking:

Sherlund also points to an an interview last week that Oracle Chairman
Larry Ellison did with Forbes.com. In the interview, Ellison made it
clear that he has interest in the market - and that he has no reason to
buy Red Hat: 

	.[T]he interesting thing about open source is that the intellectual
	property is available to all of us,. Ellison told Forbes. .So what that
	means is that any company can take the Red Hat Linux and use it at no
	cost, so long as they.re willing to support themselves. Well, that
	actually includes us. We could take the Red Hat Linux, as long as we.re
	willing to support it. In fact, we can redistribute it to others and
	provide support. So why would we buy Red Hat Linux, when we can just
	take it for nothing?. "