Red Hat has handpicked open-source partner DLT Solutions to serve as its exclusive reseller for the government market.

The Herndon, Va.-based reseller on Monday said it will serve as lead sales partner on Red Hat's General Services Administration (GSA) schedule and direct efforts to drive sales into federal, state and local government sectors. DLT Solutions resells only Red Hat Linux on the operating system side.

While some solution providers contend that Red Hat isn't channel-friendly--evidenced by the fact that the Raleigh, N.C.-based Linux distributor stalled on a plan to launch a U.S. channel program last year--others like DLT Solutions say they're successfully partnering with Red Hat, at least on the sales side.

For example, DLT Solutions expects to see its Red Hat Linux sales increase 140 percent in 2004, but service opportunities are funneled back to Red Hat directly, said Jennifer Baker, director of sales for DLT's Red Hat Division. Though Baker declined to reveal the margins DLT earned on those sales, she indicated that the business is strong and growing.

DLT's other technology vendor partners include Adobe Systems, AutoDesk, Oracle, Quantum, Veritas Software, Symantec and Red Hat. "We live and die by Red Hat and mirror their sales team," Baker said, adding that the upselling opportunities for Red Hat, Oracle and Veritas training are huge.

Baker declined to comment directly on anti-Red Hat sentiment in the channel, but she agreed that Red Hat would grow its business significantly if it handed over some of the services business to channel partners, as Novell is doing with SUSE Linux. "Absolutely," Baker said about the potential channel opportunity.