Red Hat delays release of Linux software, Aug 03, 2007

Software maker Red Hat Inc said on Thursday it delayed its August release of a version of its Linux software for personal computers that would compete with Microsoft Corp.'s Windows operating system.

Red Hat Inc. and IBM formed a partnership to develop, sell and support Red Hat's Linux software for IBM's mainframe computers, people familiar with the arrangement said on Tuesday.

Red Hat Inc. plans to create a Web store to boost sales of its own open-source software and of compatible open-source products from other companies, a person familiar with the plan said on Thursday.

Oracle Corp. promised to take the Linux software world by storm last October, but the major expansion by one of the world's largest software companies so far has failed to show momentum.

The partnership between Microsoft Corp. and Novell Inc. has delayed completion of a new license that will govern rights to key parts of the Linux operating system.

The Free Software Foundation is reviewing Novell's right to sell new versions of Linux after the open source community criticised the company for teaming up with Microsoft.

Red Hat Inc. lost nearly a quarter of its market capitalization on Thursday after software giant Oracle Corp. offered half-price technical support to lure away the smaller company's customers.