Red Hat (NYSE:RHT) is about to release earnings. Ponder this Bear Case Scenario:
Rapid rise of cloud computing will marginalize Red Hat offering. Amazon, Microsoft and Google among others are starting to eat Red Hats lunch.
If the open source community does not develop the Linux Kernel Red Hat will be forced to start spending serious capital on research and development. something they are not supposed to have to do.
Competing Linux OS service providers are popping up and competing for service revenue. So if the service revenue dries up where does the cash for R&D come from.
George Gutowski writes from a caveat emptor perspective.