One of the things that YC is always talking about is that founders looking for ideas should look to identify situations where most people think it’s going to turn out one way, but most people are wrong and it’s actually going to turn out another way. In the context of the late 90s, where virtually all software was proprietary, they bet on open source software and support plans, and made a sustainable company on it. They contributed to open source so that they would have the expertise, gave all the software away for free, and then sold the expertise through support plans.
And then the business people came along and they’re showing a deep misunderstanding of why Redhat was able to sell support plans in the first place. People on RHEL are going to stay on RHEL, but people on CentOS — the market of people who are not paying customers but could theoretically become customers, are almost certainly going to go to Canonical. This will kill Redhat.
