it can't "burst like the Internet bubble" (Score 2)

... because it was never as big and bloated as the Internet bubble. Furthermore, unlike all those Internet services and software packages that have just disappeared without a trace, open source software stays around: the investment in it isn't lost.

Of course, I do have my doubts that a company like Red Hat makes sense. Open source is best for specialized, highly-skilled consultants and professionals. It also makes sense for a few hardware vendors and large, established consulting shops like IBM. But companies like Red Hat and VA Linux aren't in that league.