"One of the ideas behind Red Hat is to take a $10 billion market and turn it into a $10 million market".
His point being that hiding the source creates the inefficiency of having to get every little bug and feature fixed by the one company that has access to the secret source. This inefficiency is lucrative if you're that one company, but a vast drag on the economy for everyone else.
It's very easy to see this as the destruction of value. Microsoft, certainly, pushes this interpretation. Another way to see is that it's taking 10 billion out of the cost of doing business. Those 10 billion will be translate into more R&D, greener manufacturing or lower prices.
Today, the Redmond giant has seen its market share erode; Red Hat has become the world's open-source leader.
Microsoft profit: $14,569 million http://www.google.com/finance?q=NASDAQ:MSFT&fstype=ii
Redhat profit: $87.25 million http://www.google.com/finance?q=NYSE:RHT&fstype=ii