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The whitepaper on the groups site makes for an interesting read:
The four distros mentioned are RPM based, they are also relatively small compared to the girth of Redhat. From a business perspective I see this as a way that these four smaller vendors cold chip away at redhat dominance.
I can't see distributions like gentoo, slackware, and debian jumping on board.
I think it is a good idea, but I really just see it as a way to develop a standard that is not redhat, a way to combine market shares to collectively tackle the big kid in the playground.
Suse is a somewhat big german company, I'd say the strongest of the coalition.
I'd call that coalition a way to heal the finances of comercially weak companies.