Red Hat broadens its influence in Linux software

Leaders of Red Hat Software Inc., a Linux operating system distributor in Research Triangle Park, N.C., are bolstering their clout in the Linux software market with their acquisition of Cygnus Solutions of Sunnyvale, Calif. Red Hat got Cygnus in a stock swap announced Nov. 15 worth $674 million. Leaders of both companies say they plan to continue developing open-source software. Open-source software provides the inner workings of software free of charge to developers. Red Hat and Cygnus officials say they have partnerships with computer vendors Compaq, Dell, IBM, Intel, and Hewlett-Packard to support their adoption of open-source software. Ray Alderman, executive director of the VME International Trade Association in Scottsdale, Ariz., advises board manufacturers to "keep an eye" on Linux industry consolidation. "I think Red Hat and Cygnus will be a powerful factor in the embedded software markets," he says. — J.K.