Microsoft will get the headlines tomorrow with the release of Windows 7, but, on the server side of life, Red Hat is quietly becoming the dominant player. Don’t think that Microsoft doesn’t know that. I find it fascinating just how many of Windows 7’s best business networking features, like DirectAccess and BranchCache, requires you to also have Server 2008 R2.

While Microsoft, as always, wants to tie you down, desktop, laptop, server and all to Windows, Red Hat is continuing to show that an open-source, open-standards Linux server company can deliver the IT goods to business customers. Besides owning the lion’s share of the Linux server market, Linux’s overall market-share of the server market continues to grow. According to the latest IDC Worldwide Quarterly Server Tracker numbers, despite the fact that everyone in the server biz’s revenue is taking a hit, Linux server revenue actually continues to grow. It’s now up to 13.8% of all server revenue, which, in practice, means that Red Hat is continuing to gain on Windows’ server revenue lead.

You don’t have to take mine or IDC’s word for it. The stock market agrees. On October 19th, 2009, at the end of the NASDAQ day, Red Hat’s share price was $28.46 with Microsoft lagging behind it at $26.36. Yes, that’s right. Red Hat’s shares were worth more than Microsoft.

More >