History is in the making because for the first time ever Red hat is about to go beyond Sun microsystems in terms of market capitalization. Sun perhaps represents Unix market which is continously going down , on the other hand Red hat represents the rising Linux market. This could well be the main reason for the current downfall of Sun microsystems.
As these lines are being written down, the market capitalization for red hat is 2.62 billion US dollars whereas Sun microsystems is just slightly ahead with 2.7 billion US dollars. One thing that red hat successfully managed is that they have gained the confidence of Wall Street which has played a major role in this huge success.
It is not that Sun just represents Unix and Red hat represents Linux. Both companies, ofcourse, do have other products as well for example Sun has been developing full systems that comprise software (OS, database, storage, portals, etc), services, and hardware. Experts say that if given time, Sun microsystems could quickly rise and recover from this position and may well leave Red Hat way behind but for the time being who cares? Jubilation time for the Red Hat guys.