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Red Hat's Open-Source Software Lowers Costs

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Cloud computing has been compared to an electricity grid, mainly because end users can access power and services without having to set up and run the infrastructure.

With the cloud, software and applications are stored on remote servers and delivered over the Internet rather than individual computers.

Cloud service providers take on the role of utilities. They sell the products that let clients use the cloud and charge fees for technical support, software upgrades and the like.

That's where the similarities end. In most cases, electricity users have no choice over who supplies their power. They also don't have a lot of wiggle room on price.

Not so with cloud computing. Clients can choose from different service providers. They also can choose from different ranges.

Lately, many of those clients, spooked by economic uncertainty, have opted for lower-cost service.
This trend figures to benefit Red Hat (RHT) . It provides open-source software solutions as well as enterprise-ready open-source operating-system platforms.

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