CA, Red Hat in Pact

Computer Associates International Inc., the No. 3 U.S. software supplier, and Red Hat Inc., a distributor of Linux software, said they entered a sales and distribution pact that gives Linux more credibility in business software management. Under the agreement, Red Hat will distribute CA’s business management software with its Red Hat Linux Enterprise Edition series. In turn, CA’s sales force will sell Red Hat’s business support agreements to its Unicenter TNG clients. CA’s systems management software gives Linux, an open-source operating system popular with technical users, a vehicle for wider entry to larger business customers. By itself, Linux is viewed as not having developed the level of capabilities to rival other, industrial-strength Unix software. Red Hat closed off 84 cents at $113.38 on Nasdaq, and Computer Associates closed up 31 cents at $75 on NYSE.