I was checking stock quotes on several companies I checked rhat to see how
redhat was doing.
I read the company news section and this was there.
RISK FACTORS
You should carefully consider and evaluate all of the information in this
prospectus, including the risk factors set forth below and the documents
incorporated by reference into this prospectus, before investing in the
shares being offered.
Risks Related to our Linux-based Open Source Business Model
Our open source software business model is unproven.
We have not demonstrated the success of our open source business model,
which gives our customers the right to freely copy and distribute our
software. No other company has built a successful open source business. Few
open source software products have gained widespread commercial acceptance
partly due to the lack of viable open source industry participants to offer
adequate service and support on a long term basis. In addition, open source
vendors are not able to provide industry standard warranties and indemnities
for their products, since these products have been developed largely by
independent parties over whom open source vendors exercise no control or
supervision. If open source software should fail to gain widespread
commercial acceptance, we would not be able to sustain our revenue growth
and our business could fail.
I sincerely hope that this changes pretty quickly.
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