Red Hat: Wait a Minute, EU, What about Us? - Open Source Software Up the Stack

« IBM Plays Symphony Again after 20 Years | Main | Red Hat Q2 Financial Results Illustrate Convergence of OSS, non-OSS Software Markets »

September 18, 2007
Red Hat: Wait a Minute, EU, What about Us?

I said in my posting yesterday that I didn't understand Red Hat's (and FSFE/Samba's) exuberance over the European Union (EU) Court of First Instance's ruling against Microsoft. The EU CFI press release specifically said the EU Competitive Commission did not intend to force Microsoft to open source its code in both the 0-4/1-10 Free Software Foundation (FSF)/Open Source Inititiave (OSI) senses of the term, open source software (OSS).

Today it looks like Red Hat at least has had second thoughts, based on this press release of a few hours ago:

RALEIGH, N.C.--(BUSINESS WIRE)--Red Hat ....again congratulates the European Commission in yesterday's judgement from the Court of First Instance in the Microsoft matter. Access to interoperability information and the ability to provide alternative technologies are essential elements to restoring the competitive landscape of the information technology market. However, open source solutions, such as those delivered by Red Hat, are critical to this competition.

“Microsoft continues to deny open source providers access to and use of the interoperability information that now clearly must be provided. Red Hat strongly encourages the Commission to take the steps required to assure rapid implementation of a remedy that gives broad and equitable access to Microsoft interoperability information to all competitors, including open source providers. Red Hat firmly believes that competition, not questionable patent and trade secret claims, drives innovation and creates greater consumer value,” said Michael Cunningham, Executive Vice President and General Counsel at Red Hat.

With wording such as "… are essential elements to restoring the competitive landscape of the information technology market. However, open source solutions, such as those delivered by Red Hat, are critical to this competition," I think Red Hat is now agreeing with me despite yesterday's press release.

The initial Red Hat/FSFE exuberance is probably based on 2- or 3-year-old quotes by Neelie Kroes, now EU Competitive Commissioner but not involved in the 2004 rulings, in favor of OSS. She also said earlier this year basically that Microsoft's prices for its technology is too high and in fact the protocol code should be given away. But as Red Hat has slowly figured out, I think, that still doesn't make it open source.

Stay tuned. I am trying to understand these issues better technically and in terms of its underlying marketing research.
-- I have always felt the whole EU 2004 ruling was technically flawed because of the primitive 1980ish way in which it defined interoperability.
-- Its research premise is flawed because it defines a functionality-based market in usage terms, a methodological/taxonomical no-no (I was the co-author of the IDC Software Taxomony until this year).

I also didn't think any of this mattered because all the relevant technology parties (Novell, Sun, Microsoft, and so forth) had settled their differences by 2004. And the market taxonomy has changed dramatically with Software as a Service (SaaS), blades, Web 2.0 and a lot of other trends. I admit I am scrambling here.

I am also trying to cut through all the legal mumbo jumbo. I never thought that to do my job in technology research as well as to understand modern day sports in 2008, I should have gone to law school after passing the LSAT in 1968.