Red Hat only does servers. No desktop Linux at all. They use Fedora to test on
and keep the most stable stuff for the server market. Novell does both, servers
and desktop. They also market Suse as an enterprise solution.

Canonical is a small player because there is no money in desktop Linux and most
of what they do is for the desktop. Novell with Suse and Red Hat are better
positioned because they own most of the server and enterprise market already.
Canonical is hoping to break through, but it is a tough market to crack as
business is slow to adopt and don't like to mix OSes in order to keep it simple
and consistent. Most of Canonical's revenue comes from selling support.

When you read stats about Ubuntu's dominance, just remember that they have come
from nothing to this position in four years. They started as a desktop Linux
with one flavor and have branched out. To most people they think of desktop
Linux when they hear Ubuntu and when they hear Red Hat they think servers. When
they think of Novell they think of enterprise Linux.

They still lose money on Linux. Money is there to be made, but you need to prove
yourself first. IT experts will not bolt from the Red Hat or Novell stable
unless they have good reason to. What many users see as a benefit with the six
month new releases, scares IT people off of Ubuntu.