Last December, Red Hat execs said that its sales cycles had shortened, transaction size had mushroomed, and its operations were scaling nicely now that the company was flush with cash to invest in new opportunities. The tech cycle is cranking up for major new hardware and software updates. Many companies and government units, as in federal governments and state and local governments around the world are starting to buy new servers and network systems. Many have not made any new purchases in this area since 1999 -- 2006 will see huge new expenditures for servers and Red Hat Linux software.
We're in the sweet spot of the computer hardware, network, software cycle.
The ramp up is just getting underway -- Red Hat should see $35.
RHAT 1-yr Chart
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