[H-GEN] Red Hat IPO

[Raymond Smith]

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On Thu, 12 Aug 1999, Frank Brand wrote:
> Just thinking about it...how do the punters reckon Red Hat is going to make 3
> billion bucks out of Linux? Or $300 million per annum on a P/E of 10 say. At
> RH's recommended retail of $80 a copy that is 3.75 million copies to be sold a
> year before any commissions, expenses etc.

Don't forget support, training, and consulting. IIRC Oracle makes nearly
half its revenue out of services, and makes more money out of consulting
than it does out of product sales of Oracle.
 
> Oh well maybe they will...then again!

Indeed. It does seem to be an overly high valuation IMHO. Is RedHat really
that much better than, say, MINCOM?

Cheers,

Raymond

---
raymond at humbug.org.au              The early bird catches the worm, 
                                       but the second mouse eats the cheese


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