Here’s the meat of the announcement:

It’s worth pointing out what’s missing in the list above: we have no plans to create a traditional desktop product for the consumer market in the foreseeable future.

An explanation: as a public, for-profit company, Red Hat must create products and technologies with an eye on the bottom line, and with desktops this is much harder to do than with servers. The desktop market suffers from having one dominant vendor, and some people still perceive that today’s Linux desktops simply don’t provide a practical alternative. Of course, a growing number of technically savvy users and companies have discovered that today’s Linux desktop is indeed a practical alternative. Nevertheless, building a sustainable business around the Linux desktop is tough, and history is littered with example efforts that have either failed outright, are stalled or are run as charities. But there’s good news too. Technical developments that have become available over the past year or two are accelerating the spread of the Linux Desktop.

But I have been thinking, why would RH want to do this? Over the years, RedHat was *the* brand that was almost synonymous with Linux which has support. Corporates and businesses when asked the techies “who will support open source” almost always got some pointers in RedHat’s direction. And then this!

What is Red Hat really scared of - Microsoft? But this exit of RedHat will announce in no uncertain terms the victory of Ubuntu too! Today, if XP etc rule the desktop market, Ubuntu has slowly got the mindshare of the Linux users and is the most dominant Linux distribution today.

Does Red Hat’s exit now leave the desktop Linux field open to Ubuntu? I would say, yes!