Remember Linux? The Red Hat Penguin Still has Wings (RHAT, MSFT)

 |  Includes: MSFT, RHT
by: The Stalwart

With all the talk of Google (NASD: GOOG) replacing Microsoft (NASD: MSFT) Windows as the soul of the computer, and a host of web-based applications replacing Office, it's easy to forget that about 1-year ago we were talking about a different threat to Redmond, writes The Stalwart. Today headlines like Microsoft Feeling Heat from the Penguin seem downright quaint.

Ballmer even vowed to strangle the Penguin. But he's changed his tune, re-directing his ire to a more human target saying, "I'm going to f***ing bury that guy (Eric Schmidt), I have done it before, and I will do it again. I'm going to f***ing kill Google."

It would seem that the biggest loser in Google's ascent has been Linux, losing its perch as Microsoft's top-contender.

Has anything changed, or has the media just switched its flavor of the year?

Today's quarterly report from Linux distributor Red Hat (NASD: RHAT) suggests that The Penguin still has wings with revenue growing at 42% clip, and earnings growth of over 50%. The market likes it, with Red Hat shares rising nearly 20% at press-time.

Perhaps, all that's changed is that Microsoft is now battling on two-fronts.

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