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A Formula for Launching the Red Hats of the Future

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Last week Peter Levine, former XenXource CEO and current Andreesen Horowitz partner, wrote an article for TechCrunch: Why There Will Never be Another RedHat: The Economics of Open Source. In that article he makes a reasonable case for opining that the likelihood of another company achieving Red Hat-scale success based on wrapping services around an open source offering is very low. Instead, he proposes that the model that can lead to significant success is to include open source components in a service that includes additional (presumably proprietary) functionality and/or services.

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