IBM To Buy Red Hat, the Top Linux Distributor, For $34 Billion (bloomberg.com)
International Business Machines (IBM) is acquiring software maker Red Hat in a deal valued at $34 billion, the companies said Sunday. From a report: The purchase, announced on Sunday afternoon, is the latest competitive step among large business software companies to gain an edge in the fast-growing market for Internet-style cloud computing. In June, Microsoft acquired GitHub, a major code-sharing platform for software developers, for $7.5 billion. IBM said its acquisition of Red Hat was a move to open up software development on computer clouds, in which software developers write applications that run on remote data centers. From a press release: This acquisition brings together the best-in-class hybrid cloud providers and will enable companies to securely move all business applications to the cloud. Companies today are already using multiple clouds. However, research shows that 80 percent of business workloads have yet to move to the cloud, held back by the proprietary nature of today's cloud market. This prevents portability of data and applications across multiple clouds, data security in a multi-cloud environment and consistent cloud management.
IBM and Red Hat will be strongly positioned to address this issue and accelerate hybrid multi-cloud adoption. Together, they will help clients create cloud-native business applications faster, drive greater portability and security of data and applications across multiple public and private clouds, all with consistent cloud management. In doing so, they will draw on their shared leadership in key technologies, such as Linux, containers, Kubernetes, multi-cloud management, and cloud management and automation. IBM's and Red Hat's partnership has spanned 20 years, with IBM serving as an early supporter of Linux, collaborating with Red Hat to help develop and grow enterprise-grade Linux and more recently to bring enterprise Kubernetes and hybrid cloud solutions to customers. These innovations have become core technologies within IBM's $19 billion hybrid cloud business. Between them, IBM and Red Hat have contributed more to the open source community than any other organization.
IBM and Red Hat will be strongly positioned to address this issue and accelerate hybrid multi-cloud adoption. Together, they will help clients create cloud-native business applications faster, drive greater portability and security of data and applications across multiple public and private clouds, all with consistent cloud management. In doing so, they will draw on their shared leadership in key technologies, such as Linux, containers, Kubernetes, multi-cloud management, and cloud management and automation. IBM's and Red Hat's partnership has spanned 20 years, with IBM serving as an early supporter of Linux, collaborating with Red Hat to help develop and grow enterprise-grade Linux and more recently to bring enterprise Kubernetes and hybrid cloud solutions to customers. These innovations have become core technologies within IBM's $19 billion hybrid cloud business. Between them, IBM and Red Hat have contributed more to the open source community than any other organization.
comes back eventually
IBM is gonna send a bunch of dev jobs overseas. And no, quality doesn't decline - they have proved it. They have been doing it for over 40 years and it's been very successful.
Why pay an American when you can get someone smarter for half the price? Wage arbitrage - still a lot of life in it.
So begins the slow bleed of IP, human capital, and other other remaining value of a major Linux maintainer.
Why not start your own distro instead? Buy some clients? What for?
And good luck getting the putrid poettering putty out of everything.
I'm going to have to switch to Ubuntu.
I should use this sig to advertise my book ISBN-13 : 978-1501515132.
decent businesses always getting bought out by some behemoth and eventually becoming junk?
Tivoli Linux is the best Linux.
Once upon a time, IBM pretty much invented the monolith. Just goes to show, the wannabe doesn't fall far from the tree.
IBM said its acquisition of Red Hat was a move to open up software development on computer clouds, in which software developers write applications that run on remote data centers.
It's all open source. What's stopping them from developing to the Cloud, NOW?
Shai Schticks:"You don't make peace with friends, you make peace with enemies"
Damn...
Hopefully, this will have little effect on Cent and Fedora
The next version will be branded IBM(R) SystemD/2.
They'll make great bed fellows. One is the king of making bureaucratic nightmare software and having it well adopted in the Linux community, and then you have IBM. I wonder where IBM will lead systemd.
Is $20 billion. WTF?
Henceforth, it’ll be known as “Big Blue Hat”.
#DeleteChrome
IBM is failing. IBM needs Red Hat to try to keep IBM's business going. While IBM has publicly been a longtime supporter of Linux (unlike Microsoft, yuck!), IBM also has been one of the top companies to file software patents. Plus, other companies IBM bought were assimilated (not unlike the Borg) and then brought down far below they were before IBM bought them (e.g. Lotus). So I don't see this as anything good for Red Hat.
Probably.
One can only hope this was IBM taking one for the team in spending $34 billion to shitcan Poettering
IBM hates the olds! All People aged 50+ will be fired and replaced with coders fresh out of blockchain bootcamps! Also, all operations will be moved to a shanty town in India, those not willing to take a pay cut and relocate will be replaced with Indians.
IBM acquisitions never go well. All companies acquired by IBM go through a process of "Blue washing", in which the heart and soul of the acquired company is ripped out, the body burnt, and the remaining ashes to be devoured and defecated by its army of clueless salesmen and consultants. It's a sad, and infuriating, repeated pattern. They no longer develop internal talent. They drive away the remaining people left over from the time when they still did develop things. They think they can just buy their way into a market or technology, somehow completely oblivious to the fact that their strategy of firing all their acquired employees/knowledge and hoping to sell software they have no interest in developing would somehow still retain customers. They literally could have just reshuffled and/or hired more developers to work on the kernel, but the fact they didn't shows they have no intention of actually contributing.
Those who do not learn from commit history are doomed to regress it.
Not cloud ready? I actually did like AIX back the day. The documentation was pretty good. jfs was fairly innovative.
the possibilities ... OS/2 compatibility, Presentation Manager instead of Gnome/KDE, systemd for AIX?
Kanga: That's not a fish, that's a bird.
Pooh: Yes, but is it a starling or a mackeral?
I havent used a RHEL based distro in years.... This is a hard pill to swallow. It's quite unfortunate because now we'll definitely see the decline of all things RHEL.
Oh, wait, /. is a US joint. Ok, forget about what I said.
And now attention: ... :-)
Getting modded into earths core in 3,2,1
We suffer more in our imagination than in reality. - Seneca
For buying Red Hat!?
Red Hat closed Friday at $116.68 per share, looks like the buy out is for $190. Not everyone will be unhappy with this. I hope the Red Hat employees that won't like the upcoming cultural changes have stock and options, it may soften the blow a bit.
I wonder when Oracle Linux will fork or re-base on another distro?
As soon as M$ starts distributing GPLed software, their IP lawsuits would fall apart.
I went out to *BSD's grave on Decoration Day. The old forgotten cemetery is to be found adjacent to the dark woods beyond the edge of town. There within olfactory distance of the municipal treatment plant you will find *BSD's final resting place.
*BSD's tombstone was shrouded by thick mosses and knots of noxious ivy. A mournful funerary crow sounded the requiem, as I gently pulled aside the tangled twists of thorns, and cleaned the decaying marker the best I could. A suffocating melancholia filled my heart, while I pondered that this indeed was *BSD's figurative charnel house of which so many have plaintively spoken.
Nothing is so pitiful as an untended grave, a loved one now forgotten. The short sad life of this doomed and fated OS makes us realize that there but for the grace of God go all of us.
I planted some wilting marigolds, found discarded in the waste heap behind the caretaker's shack, wishing that by some miracle these fleurs de mort might take root and bring a modicum of cheer to *BSD's God forsaken plot. My fervent hope is that the torpid colored boy, who so carelessly mows the grounds, doesn't slice them down, inadvertently mirroring *BSD's own doomed encounter with death's irresistible scythe.
Funny how things work out. Linux, that brilliant novam stellam, now runs the Internet and the world's fastest computers, while *BSD lies moldering within its forgotten crypt. Let the barren silence of *BSD's tomb be a mute reminder that hubris and braggadocio were no defense on that woeful day when the Angel of Death's bleak umbra was cast upon *BSD.
All RedHat employees will be fired and replaced by foreign workers. Of course, RedHat employees will train their replacements.
was related to this deal being worked out behind the scenes...
Oh, good. Now IBM can turn RH into AIX while simultaneously suffocating whatever will be left of Redhat's staff with IBM's crushing, indifferent, incompetent bureaucracy.
This is what we call a lose - lose situation. Well, except for the president of Redhat, of course. Jim Whitehurst just got rich.
I can think of two: Lotus Development and ROLM Telecom. Readers can probably name others. Will Red Hat be next? Depends how much they leave Red Hat alone, but I'm not betting they'll do that.
In a time of universal deceit, telling the truth is a revolutionary act. George Orwell
With systemd how can they fuck it up worse than it already is?
Only the State obtains its revenue by coercion. - Murray Rothbard
That's actually a good comment. Linux has really declined in the last few years. Yes, there are some good distros, but Linux is balkanized beyond belief, one reason why it never gets desktop traction outside of tech circles. The new Linux CoC is straight from the pits of hell and not needed. OpenBSD has the best mantra: "Shut up and hack!"
Notice the fast acquisition of smaller/medium-sized tech companies lately. GitHub, RedHat and many others. Pretty soon, the big 5 will own everything worthwhile. Debian looks really good now, and perhaps even Slackware and Arch and Gentoo.
This buy may have Linux distros dropping systemd, which makes good sense. Now, anything Linux that is IBM-affiliated may actually be compromised.
OpenBSD is dead. It's the Halloween OS.
Death to corporatist looters.
All these lamentations! But this might be the opening we need to kill systemd!
As if Canonical was without sin.
I personally have more faith in IBM.
Long live FreeBSD
'I don't know what it's called. I just know the sound it makes, when it takes a man's life.' ~ Four Leaf Tayback
Good one!
Now with Presentation Manager!
for India!
Don't trust ether of these 2 all that much, but I dont have the level of mistrust that i have with Microsoft.
Shouldn't it be nova stella
Need i say more?
Long live WebSphere?
Microsoft will next merge with IBM.
Think about it. Makes sense. Microsoft couldn't purchase Redhat directly, that would make too many people upset.
But if IBM purchases Redhat, then Microsoft purchases IBM, they get Redhat by proxy. Then they have what they want - direct control over one of the most important Linux distros in the world. That, along with Github, gives them a pretty strong position in the F/OSS ecosystem.
It is pitch black. You are likely to be eaten by a grue.
Could've left away the "... at the company".
The whole point of holding and trading stock, interest, "intellectual property" and in fact, profit itself (as opposed to earned income), is that you do not have to work to take somebody else's money (or even to make money up on the spot, which is equal to lowering everyone's salary, and a form of inflation).
IMHO, it should be a crime, to have me working hard, and then somebody just making up those $1000 out of thin air, that he pays me with. (How banks and stocks work.) And it should also be a crime, when I worked hard for x hours to earn $1000, and somebody works much less than x hours, and much less hard, yet still expects to take my $1000 for it. (Aka profit.) Finally, it should definitely be a crime, if somebody did not work AT ALL, and only puts the result of his work on the copier, yet still expects money for it. ("intellectual property"... which already is the combination of two crimes: a monopoly, and artificial scarcity.)
I hope RHEL don't become like Rosetta.
Count me as one of the people who *like* IBM. I was on board the OS/2 train for years until the company so badly mismanaged & mishandled it that they effectively surrendered to Microsoft. The software engineers at the company are top notch. I can only hope that upper management has learned a few lessons in the past twenty years.
> I can see it being in IBM's best interests to keep the RedHat model alive, maintaining a first class distribution and selling support to fund it.
Well yes, it would be in IBM's best interest to not destroy companies they buy. If they weren't stupid, they wouldn't do that.
Unfortunately history shows IBM does wreck companies that they buy.
RIP Red Hat
Nice try. OpenBSD is alive and well and is the premiere security research OS. OpenSSH, LibreSSL, pf and many others are all OpeBSD inventions and are used literally by billions of devices. Every router, every switch, every Linux distro, every BSD distro uses OpenSSH alone. Try again...
As a very early member of the Red Hat team, I feel a huge mix of emotions with this announcment. My years with Red Hat were amongst the most exciting and satisfying of my varied career as we built Red Hat and took it public. Red Hat's achievements since then have been huge - and their stock price reflects their success.
In those eary days, in the unlikely event that someone wanted to buy this upstart company that gave away its software, I doubt that the staff would have been on board with such a move. The company ethos was totally Open Source and there was a huge commitment to showing the world that Open Source did have a business model. I remember sitting at meeting with Sun (remember them?) as they tried to shoehorn their non-Open Source Java on to the Red Hat Linux distribution CD. Their senior management could not believe that Red Hat was refusing - and was prepared fund the writing of a truly open alternative!
Things are different now. Red Hat is a key part of an enterprise IT system rather than an unproven upstart. I have read the comments about this being the end of Red Hat as we know it, but it is worth remembering that the Red Hat as I remember it disappeared years ago. Things change and that does not necessarily mean for the worse. I admit to having reservations about the IBM acquisition, but it is also a significant opportunity for Red Hat to leverage itself in the enterprise space.
I hope it all goes well and I look forward to reading about Red Hat's continuing success.
The guys directly responsible for Gnome and systemd will be IBM employees very shortly. This will be interesting.
"cock smoking teabaggers" not "maggot" you newfag
What do you get when you add a Red Hat to Big Blue? You get a big purple hat, obviously. I wonder if they're thinking of adding an ostrich feather? Heheheh
Our reign has gone on long enough. Indeed. Summon the meteors.
So much for Redhat's fight against software patents, IBM is the biggest patent troll of them all. Traditionally goes easy on open source projects but some flipping idiot might decide at any time that monetizing patents is the new get rich quick scheme of the month.
When all you have is a hammer, every problem starts to look like a thumb.
Now maybe I'll be able to run Domino in 64 bit on Linux without IBM hardware.
-- I have a private email server in my basement.
$34 billion for systemd.
Next, IBM will buy APK for $13 billion.
First systemd.
Then a CoC.
Now Borged by IBM.
They'll probably be ok for a few years. Watch for the rebranding. When they start calling it IBM Enterprise Linux, you'll know they've been throughly assimilated. Then after about five years of steady market decline, it'll just quietly disappear.
Progressivism: Parasites helping parasites to help themselves - to other people's stuff.
Not every damned thing is about your personal case of Trump Derangement Syndrome.
Nearly two years is a very long tiime for a case of temporary insanity to rage on.
Normal people can read a tech news story and not immediately see it as pro-Trump or anti-Trump; indeed normal people read such a story without the name Trump going through their minds at all.
n/t
Footnote: $699 License Fee applies to your systemP server running RHEL 7 with 4 cores activated for one year. To activate additional processor cores on the systemP server, a fee of $199 per core applies. systemP offers a new Semi-Activation Mode now. In systemP Semi-Activation Mode, you will be only charged for all processor calls exceeding 258 MIPS, which will be processed by additional semi-activated cores on a pro-rata basis. RHEL on systemP servers also offers a Partial Activation Mode, where additional cores can be activated in Inhibited Efficiency Mode. To know more about Semi-Activation Mode, Partial Activation Mode and Inhibited Efficiency Mode, visit http://www.ibm.com/systemp or contact your IBM systemP Sales Engineer.
What will their Linux group do now that they can no longer steal Red Hat's patches and slap a new name on the resulting product?
the last I heard they'd gotten rid of most of them to focus on being a contractor company that doles out H1-Bs. I'm not saying that facetiously, it was big news several years back when they said they were going to back off new tech to focus on being a "consultancy firm"; and it was no secret their "consultants" were all folks on work visas.
I know they've got some engineers around for vanity projects like Big Blue, but is there any real tech (of the sort that is meant to become a product in the next 3-5 years) coming out of them like there is with say Intel, AMD, ARM? I guess if they're buying Red Hat that'll change, assuming they don't just gut the company...
Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
everyone who could jump ship did with the result being that Microsoft got nothing of value when all was said and done. All it took was one game (Grabbed by the Ghoulies) and folks knew Rare was toast.
Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
The cloud, what a joke.
Here I was, trying out some new stuff which didn't work on my Ubuntu test system. Manager looks over my shoulder and asked what it takes to get the thing running, to which I replied "we need to buy Redhat". Guess I should have added "licences".
They should have bought Ubuntu and then invested a billion in it.
They contributed JFS and ported DB/2. They ported Linux to their mainframes and ran the first Linux TV ads. During a superbowl, I think.
On the other hand, their maintenance of these projects, other than their mainframe, has been limited.
It's a small world and it smells funny; I'd buy another if it wasn't for the money; Take back what I paid (SoM)
Real news is: wow! IBM has $34b!
Slashdot, fix the reply notifications... You won't get away with it...
Well at least it't not Microsoft buying Red Hat..
I wonder how many shares one Linus T. still has? When red hat first went public they gave him a significant amount of shares. As a thank you of sorts. It would be well deserved if he got seriously wealthy from this take-over.
Please login to access my lawn
IBM may be moving to a broader lower end market with this acquisition. If so they should release a SystemX. Stuff with an X sells, the more X the better.
The UNIX code belonged to Novell not to SCO. SCO had nothing else than hot air and bluff. Or so the courts decided without consulting you.
Sucked into the alternate reality of IBM - software and processes everyone hates, petty bureaucracy, and layoffs.
As a viable operating system OpenBSD is dead. It doesn't even show up on Netcraft's survey of installed servers. Even FreeBSD shows up at about 1%, and we all know FreeBSD is used 1000 times as much as OpenBSD. Nice try, but naming random softwares does not an operating sytem make.
Fact: OpenBSD is D E A D.
So now how soon will Oracle buy Ubuntu?
-- I ignore anonymous replies to my comments and postings.
If RedHat wanted t commit suicide, we could have found a less painful way for them to do it. I mean they want to make amends for Lenanrt Pottering and all, but really?
I'm done with Redhat. I will make make best effort to get my company to adopt Debian/Ubuntu
Nobody here is old enough to remember the project between IBM and SCO (do any of you remember the evil Daryl McBride) to port Linux to their mainframe. It was IBM's abandonment of the project and their release of the software into the public community that stirred the anger in SCO and prompted the lawsuit. In fact, IBM was named as a defendant in that suit. Nobody here remembers the SCO lawsuit that claimed Linux infringed on their Unix copyright? You have IBM to thank for that cluster fsck.
I am running OpenSuse on my P7. For virtualization I am using native IBM Power virtualization. My website is www.nfnnet.org
If you want to stream my SDR weather station it's www2.nfnnet.org:8073
My son gave me the p720 for a fathers day gift. I'm sure IBM bought Redhat to try to get a piece of the action and charge a yearly subscription.
Due to the nature of the GPL I doubt IBM will be able to squash the free distributions of Linux for the Power platform.
And since RedHat has a lock on government Linux we're going to be paying through the
nose for it now.
more licensing to pile on top of an already bad licensed software stack...
Comment removed based on user account deletion
$34b for a company that consults and sells free software being bought by a company that consults and can download the source code to the software for free? Am I missing something?
It's a bit hard for IBM to make money when it sells its productive modern divisions.
See Q3 earnings.
Cognitive Solutions (Software) $4.4B
Global Business Services (Consulting & Outsourcing) $4.1B
Technology Services (S/W Services) & Cloud $8.5B.
IBM makes more money via S/W than consulting. And Cloud matches both combined.
This gives SCO another good opportunity to sue IBM again.
IBM is going to pay $34B for a company with a market cap of $20B. That is nearly a 60% premium. That sort of fiscal stupidity has been rare since the boom of the 1990s.
I can think of two: Lotus Development and ROLM Telecom. Readers can probably name others. Will Red Hat be next? Depends how much they leave Red Hat alone, but I'm not betting they'll do that.
Cognos. I used to work for them, worked for IBM for a short while after acquisition as well and blue washing. Watched as all development got ripped out, all QA got shipped to India, and IBM had no clue what to do with the product afterwards beside keep cutting and rebranding. Then slapping their other products into it and calling it something else.
I hate to see anybody lose money, so to all those glorious warriors who keep the markets in check by betting on failure I offer my sincere condolences! A $70 loss per share has got to sting.
Time is what keeps everything from happening all at once.
Then RedHat is dead for me. There are two companies I do not want to deal with - IBM and Oracle. We freed ourselves from any IBM product and are on the way to phase out oracle. This deal is a kick to the balls for us... we really hate dealing with both of these companies.... I hoped IBM was dying, unfortunately it is not the case...
I see a lot of comments about AIX. So I'm just getting a funny picture in my head of running SMIT or SMITTY to manage RHEL, lol. Not sure that is totally a bad thing tho, as long as its just a front end to the existing tools like yum, etc.
I'm not sure how I feel about IBM, but I never disliked AIX. It was an odd beast but once I got used to it I didn't dislike it. Granted it has been 10 years since I managed an AIX system.
1. Ignoring the political posts, I skimmed past a log o folks who I'll bet $5 don't use Linux, and never have.
2. IBM's contributed a *lot* to Linux and o/s.
3. I've said for almost 20 years that Linux was IBM's silver bullet all along: I mean, really, would *yuo* want to support system/36 (bet there's still some running), system/38, AS4000, RISC 69000, AIX, DOS/VSE/SP/whateverotherlettershavebeenadded, MVS.... or Linux? "Sure, folks, you say your company has grown, and needs more power? Buy our next size up computer... and the worst you have to do with all the software you're running is recompile; everything else will just *run*"
4. Finally, it could have been far, far worse: It could have been MS, or Apple, or (horrors) Oracle that bought it.
At least we still got Emacs.
I'm unemployed, I have shares of red hat, which now will keep me going for about 7 months more of being unemployed. I just sent the FSF $100 for HURD development. This has to stop, Linux is finished now.
I've Been Mislead
they buy a customer portfolio. Large customers that cannot easily switch to another product stack.
Read your username and then practice it. "Industrial design" is the most intuitive thing you can design. It has to be dumbed down to 2 switches and 3 lights or your minimum wage dropouts can't operate the machine. I agree with your apple hate, but don't put this shit on engineering.
I'm currently an IBM employee and have been running RHEL (which is the officially supported Linux deskrop distro within IBM) for years. The last time I was due for a new laptop, I had the option of a ThinkPad with Windows, a ThinkPad with Linux, or a Macbook Pro, however when one of my co-workers was recently due for his, the only option available was the Macbook Pro (he didn't want to switch from Windows). But with this acquisition, I'll likely be able to once again choose Linux for my next laptop, so that makes me happy.
Cloud dur Cloud cloud, cloudy McCloudsalot. Cloudry cloud re-cloud cloudology. Cloud. Cloud. Cloud. Hurpaderp der cloudy cloud. Bort! Bort! Bort!
Cloud.... Cloud. Cloud...............Cloud.
Cloud.
RAD is a premium product based on Eclipse. IBM *gave Eclipse to the open source community.*
Anyone who thinks IBM takes more than they give to open source simply doesn't know of IBM's contributions.
No it went like this
Heading: Don't forget...
Body: to pay your $699 licencing fee you cock smoking teabaggers!
Idiot