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Oracle To Support, Indemnify Red Hat Linux: Page 2 of 6

Customers need not even be running Oracle databases or middleware to purchase this option. Ellison characterized Oracle's support organization as the largest software support group in the world, spanning 145 countries and 27 languages.

In Ellison's analysis, Oracle support will cost $399 per year for a two-CPU box vs. $999 per year from Red Hat. A Premium Oracle option is $2,499 per year vs. $999 for Red Hat. And until Jan. 31, 2007, customers can get the Oracle support for a 50 percent discount. Existing Oracle customers can try the new support options free for 90 days.

Red Hat, which could not be reached for immediate comment later e-mailed a response putting the news in the best possible light.

"Oracle's announcement
further validates open source and Red Hat's technical leadership. We will continue to optimize Red Hat Enterprise Linux for Oracle and compete on value and innovation," a spokeswoman wrote.

Red Hat's stock suffered, falling more than 16 percent to $16.32 per share in after-hours trading.