Linux vendor to go public

Red Hat Software is set to become the first Linux vendor to make an initial public offering (IPO).

According to US reports, the company is planning a $96m flotation. Red Hat CEO, Bob Young, filed a registration statement with the US Securities and Exchange Commission (SEC) on Friday. The filing claims that most of the company's money has been made from selling boxed software, rather than from services and support.

Bloor research director, Rob Hailstone, isn't surprised by the news. "Red Hat seems to be the first-choice partner for most of vendors of both hardware and software," he commented, noting that major players like Compaq, HP, IBM and SAP have partnered with the company - Intel owns 5 per cent of Red Hat.

But Hailstone doesn't think Red Hat's IPO will give Linux a boost. "Linux was going to happen anyway," he said. "This is a reflection of the fact that Linux is being taken seriously."