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Yankee Group: Time Is Ripe For Oracle Linux

Oracle Corp. building or buying its own Linux stack offers possibilities that would allow the company to compete with established open-source market leaders Red Hat Enterprise Linux and Novell SUSE Linux, according to an analyst.

Yankee Group research fellow Laura DiDio estimates Red Hat already owns between 75 percent and 80 percent of the commercial open-source distribution market.

"If Oracle's going to do it, they need to get product out before Red Hat runs away with the race," DiDio said. "Unless they have a secret lab somewhere and they've been building and testing a complete stack for the past two years, they need to buy into the space this year."

A Linux distribution stack would do a lot for the company, said DiDio, as 80 percent of Linux databases already run Oracle.

Oracle has the financial power to make the deal. The company posted solid financial quarterly earnings and revenue gains boosted by increased demand for its traditional business applications. Last week, Oracle posted a profit of $1.3 billion for the fourth quarter, ended May 31, and revenue rose 25 percent to $4.85 billion.

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