Red Hat to focus on enterprise market, not consumer Linux
In a nutshell, the company has concluded that while Linux has come to be popular as an operating system for servers, it's hard to build a business model around Linux desktop software. If you look at the desktop OS field, Linux is starting to make mild gains on Windows and OS X, but desktop Linux users are still few and far between when compared with users of the two more dominant platforms. And most of the popular Linux desktop operating systems are not just open source, they're free as in beer.
The Fedora desktop Linux operating system is based on Red Hat and will continue to be developed. But all of Red Hat's commercial software will now be designed to compliment the company's server and middleware software.