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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.

194 of 398 comments (clear)

  1. I don't get this by Anonymous Coward · · Score: 1

    Why not start your own distro instead? Buy some clients? What for?

    And good luck getting the putrid poettering putty out of everything.

    1. Re:I don't get this by Anonymous Coward · · Score: 5, Insightful

      I think it's more for Red Hat's cloud infrastructure, than the Linux distro itself.

    2. Re:I don't get this by redmid17 · · Score: 2

      Lol you don't have to think. It's literally in the press release:

      IBM and Red Hat will be strongly positioned to address this issue and accelerate hybrid multi-cloud adoption.

    3. Re:I don't get this by link-error · · Score: 1

      I'm not sure how much legs the whole 'hybrid multi-cloud' actually has. Our company looked at the RedHat platform and decided to jump to straight cloud. We'll be running some small IAAS software on-prem for a brief period while we transition. We'll see how much lock-in they can get for the customers that do buy into it.

      --
      -Unresolved symbol? Byte me!
    4. Re:I don't get this by zdzichu · · Score: 1

      This is interesting, in a bad way. The only reason listed is that Red Hat develops OpenShift - a Kubernetes distribution with fancy Web UI.

      --
      :wq
    5. Re:I don't get this by slashdot_commentator · · Score: 1

      IBM isn't buying a distro. They are buying a computer services company.

      Red Hat doesn't make its money from its distro. That's why you can get it for free. Red Hat produces its distro as a form of "branding", and then sells support services off of its flavor of distro. Red Hat could eliminate its distro and just work off of Debian, but then they would lack the ability to prioritize infrastructure issues and development, and they would have a harder time of convincing paying companies to purchase their services. The sad truth is its cheap to hire coding monkeys, even industry leading monkeys, and that's why Red Hat is providing them for free. The real money is being made attracting customers with real money to part with it for their support services.

      --
      There is no America. There is no democracy. There is only IBM and AT&T and DuPont, Dow, General Electric, and Exxon
    6. Re:I don't get this by slashdot_commentator · · Score: 1

      The company that ends up dictating the cloud industry will not be doing so by infrastructure lock in. Forget about industry leaders like Amazon, Google, and (way behind) Microsoft. The company that "wins" will do it by offering the best ROI, and constructing a set of cloud services that seem indispensable and intrinsic, at the lowest operational cost.

      --
      There is no America. There is no democracy. There is only IBM and AT&T and DuPont, Dow, General Electric, and Exxon
  2. Damn. by TechyImmigrant · · Score: 4, Insightful

    I'm going to have to switch to Ubuntu.

    --
    I should use this sig to advertise my book ISBN-13 : 978-1501515132.
    1. Re: Damn. by Anonymous Coward · · Score: 1

      Until someone buys them too.

    2. Re: Damn. by Anonymous Coward · · Score: 1

      Debian then?

    3. Re:Damn. by sanf780 · · Score: 1

      And I would have to move to Suse. Otherwise I will not get support for the EDA software.

    4. Re:Damn. by 93+Escort+Wagon · · Score: 5, Insightful

      I'm going to have to switch to Ubuntu.

      Why? Is there some specific IBM behavior you object to? If so, please explain it here.

      If it’s just a dislike of corporate involvement with Linux... Red Hat was the wrong distro for you in the first place.

      --
      #DeleteChrome
    5. Re:Damn. by williamyf · · Score: 1

      Or switch to suze

      --
      *** Suerte a todos y Feliz dia!
    6. Re: Damn. by Anonymous Coward · · Score: 5, Insightful

      IBM license fees are predatory. Plus they require you to install agents on your servers for the sole purpose of calculating use and licenses. IBM exploits workers by offshoring and are slow to fix bugs and critical CVEs (WAS and DB2 especially)

    7. Re: Damn. by Anonymous Coward · · Score: 1

      They manage to ruin support for everything they buy. Their licensing is convoluted and extremely inefficient. I have started asking vendors if there is any chance that they will be bought by IBM...

    8. Re:Damn. by Anonymous Coward · · Score: 1

      IBM bitches fire every worker (95%) over 45 years old. Pricks need a ... ONO better not say that ... but UNO what I mean ...

    9. Re: Damn. by jabuzz · · Score: 1

      Not noticed that for either TSM or GPFS, or Spectrum Protect and Spectrum Scale as IBM like to call them these days.

    10. Re:Damn. by redmid17 · · Score: 2

      IBM has a history of, uh, aggressive lawsuits with respect to IP and bend companies over barrels with licensing fees and legal fees. They are valid more often than not, but having a history of corporate shakedowns doesn't make you many friends.
      Some of those patents are, well, not as sound as a lot of tech people would prefer.

    11. Re:Damn. by The+Evil+Atheist · · Score: 3, Insightful

      IBM buys a company, fires all the transferred employees and hopes they can keep selling their acquired software without further development. If they were serious, they'd have improved their own Linux contribution efforts. But they literally think they can somehow keep selling software without anyone with knowledge of the software, or for transferring skills to their own employees. They literally have no interest in actual software development. It's all about sales targets.

      --
      Those who do not learn from commit history are doomed to regress it.
    12. Re:Damn. by 0100010001010011 · · Score: 4, Informative

      If so, please explain it here.

      IBM Rational DOORS: Starting at $5,460.00 USD
      IBM Rational DOORS Next Generation: Starting at $164.00 USD per user per month

      And that's pricing I can find. I don't even want to know what we're paying for IBM ClearCase.

      IBM buys companies (Like Rational) and milks by exorbitant fees. They're only slightly 'better' than Oracle.

      I expect anyone that doesn't have an IBM RedHat Certification(tm) won't have the 'full warranty'. Here let us direct you to one of our training centers.

    13. Re:Damn. by Luthair · · Score: 1

      Red Hat hired the CentOS developers 4.5 years ago.

    14. Re: Damn. by Anonymous Coward · · Score: 5, Informative

      IBM license fees are predatory.

      I don't know about that, none of the open source IBM software I use has any license fees, predatory or otherwise. Some are GPL but I don't count that as predatory.

      Dragon is a pretty nice OpenStack backup system I've been using in house for some time now.
      Got it off github too

      LLVM in the kernel is pretty amazing stuff for managing LVM, RAID, and other similar systems.
      Far more stable than ZFS has ever managed to reach.

      I've even played with their Watson speech-to-text stuff, which is a service offering not a software download, and even that is free as in doesn't cost money if you aren't going to be sending them a massive number of API requests every minute.

      Plus they require you to install agents on your servers for the sole purpose of calculating use and licenses.

      Simply not true, I've never had to do this. The closest "evil software" I've ever had to install to run some IBM software is Java, and that's Oracles fault not IBMs.

      IBM exploits workers by offshoring and are slow to fix bugs and critical CVEs (WAS and DB2 especially)

      So does RedHat, and many companies for that matter. If you are against off shoring, then nothing at all has changed here.

      I can't comment on "WAS" or DB2 bugs, never used them. But I guess sure, RedHat fixes CVEs damn fast and is a high bar to stand up to.

    15. Re: Damn. by Gabest · · Score: 1

      Back to Slackware then.

    16. Re: Damn. by Anonymous Coward · · Score: 4, Informative

      Debian is not a public company. They are a community of developers, authors, artists, etc. There are not an entity in the business sense to be acquired. Debian will be one of the last distros left that is not commercialized. Slackware is another. Perhaps Arch and Gentoo.

      I've been giving thought to switching over to OpenBSD and NetBSD for my personal needs, as Linux is really balkanized these days. systemd and the new CoC are really icing on the cake for my decision.

    17. Re: Damn. by unixisc · · Score: 1

      FreeBSD finally seems to have stabilized TrueOS so that it now works smoothly on my laptop.

    18. Re:Damn. by StormReaver · · Score: 1

      I'm going to have to switch to Ubuntu.

      Since Red Hat has only ever been good as a server operating system (and it ceased being good at that around Redhat 5), I recommend going straight to the mother of operating systems: Debian.

    19. Re: Damn. by ClickOnThis · · Score: 2

      Better Microsoft than IBM. Funny how things end up

      Not sure about that. I suspect MS bought github as a way to migrate those developers over to Visual Studio Online.

      --
      If it weren't for deadlines, nothing would be late.
    20. Re: Damn. by kriston · · Score: 1

      Has not been like this for decades, sir.

      --

      Kriston

    21. Re:Damn. by kriston · · Score: 1

      Are we forgetting who contributed the proprietary UNIX code from SCO UNIX to the Linux project?

      I'll hang up and listen for your answer.

      --

      Kriston

    22. Re:Damn. by Billly+Gates · · Score: 1

      I'm going to have to switch to Ubuntu.

      Why? Is there some specific IBM behavior you object to? If so, please explain it here.

      If it’s just a dislike of corporate involvement with Linux... Red Hat was the wrong distro for you in the first place.

      IBM charges Cadillac prices and consulting fees and then onshores Indians fresh out of college with no experience for 10x the cost it would be to do it yourself. We had a call center at another employer get wired by IBM and they put in spaghetti wires where to this day 13 years later we have ethernet cables taped to the floor. We caused an outage by moving the cart in the server room over one of them. 1 million dollars!

      What makes matters worse is we can't fix the wiring EVER as we need 24 x 7 uptime as we have latin American call centers get routed through the spaghetti wiring on the floor to the dialer IVR. IBM couldn't have done a worse job!

      In 2002 companies consulted with IBM as they were deamed superior over competition even if they are ultra expensive. Today, they use Oracle or smaller companies and have learned the message. IBM is a has been from a different era.

      At least Oracle didn't buy them. That would enrage me to know end but still all the good people will be fired and outsourced by cheap Indians and Russians and it will go to die soon.

    23. Re: Damn. by Billly+Gates · · Score: 1

      IBM aint stupid ... ok well maybe. The stuff that is profitable you can bet your ass won't be free. Example is IBM's java you cited. In Gentoo in 2004 I remember using portage to install it.

      Today it aint free anymore as management wanted to capitalize on it and prevent Oracle from stealing their trade secrets (like they are worth anything). They are a company not your friend or open source organization. If they spent $34,000,000,000 you bet your ass they want to maximize their investment to pay for it!

      Remember Oracle bought Java to sue Google and ruin copyright law forever to fuck over Mysql and MariaDB.

    24. Re:Damn. by Anonymous Coward · · Score: 3, Informative

      My advice to Red Hat engineers is to get out now. I was an engineer at a company that was acquired by IBM. I was fairly senior so I stayed on and ended up retiring from the IBM, even though I hated my last few years working there. I worked for several companies during my career, from startups to fortune 100 companies. IBM was the worst place I worked by far. Consider every bad thing you've ever heard about IBM. I've heard those things too, and the reality was much worse.

      IBM hasn't improved their Linux contribution efforts because it wouldn't know how. It's not for lack of talented engineers. The management culture is simply pathological. No dissent is allowed. Everyone lives in fear of a low stack ranking and getting laid off. In the end it doesn't matter anyway. Eventually the product you work on that they originally purchased becomes unprofitable and they lay you off anyway. They've long forgotten how to develop software on their own. Don't believe me? Try to think of an IBM branded software product that they built from the ground up in the last 25 years that has significant market share. Development managers chase one development fad after another hoping to find the silver bullet that will allow them to continue the relentless cost cutting regime made necessary in order to make up revenue that has been falling consistently for over a decade now.

      As far as I could tell, IBM is good at two things:
      1. Financial manipulation to disguise there shrinking revenue
      2. Buying software companies and mining them for value

      Yes, there are still some brilliant people that work there. But IBM is just not good at turning ideas into revenue producing products. They are nearly always unsuccessful when they try and then the go out and buy a company the succeeded in bring to market the kind of product that they tried and failed to build themselves.

      They used to be good at customer support, but that is mainly lip service now. Just before I left the company I was tapped to deliver a presentation at a customer seminar. The audience did not care much about my presentation. The only thing they wanted to talk about was how much they had invested millions in re-engineering their business to use our software and now IBM appeared to be wavering in their long term commitment to supporting the product. It was all very embarrassing because I knew what they didn't, that the amount of development and support resources currently allocated to the product line were a small fraction of what they once were. After having worked there I don't know why anyone would ever want to buy a license for any of their products.

    25. Re:Damn. by TechyImmigrant · · Score: 1

      And I would have to move to Suse. Otherwise I will not get support for the EDA software.

      My day job is designing chips, so I use Suse at work all day.
      Running the same distro at home as at work is poor form.

      --
      I should use this sig to advertise my book ISBN-13 : 978-1501515132.
    26. Re:Damn. by TechyImmigrant · · Score: 1

      To switch to Ubuntu from what? Fedora, Centos? It would be the right move, even if IBM didn't acquire RedHat

      Fedora mostly. Not because it's better. Just because I've been using it daily for 15 years and inertia is a thing.

      --
      I should use this sig to advertise my book ISBN-13 : 978-1501515132.
    27. Re: Damn. by houghi · · Score: 1

      Why, so you can give power to another company? Why not SUSE, not owned by Novell anymore.

      --
      Don't fight for your country, if your country does not fight for you.
    28. Re:Damn. by thegarbz · · Score: 1

      Why? Is there some specific IBM behavior you object to? If so, please explain it here.

      This is IBM we're talking about. Why would you need to be specific? The result would be environmentally unfriendly. The amount of power consumed by my computer during the time I spend listing specific objectional behaviour from IBM could solve global warming. That and even if I didn't have a job I would need to sleep at some point too.

      There's not enough hours in the day to complain about IBM.

    29. Re: Damn. by Gavagai80 · · Score: 2

      IBM is a services company. Has been for a long time now. They're not about software sales.

      --
      This space intentionally left blank
    30. Re:Damn. by houghi · · Score: 1

      I asume you mean Suse. Suze is either a drink or you are thinking of Suze Randall. That is something completely different.

      --
      Don't fight for your country, if your country does not fight for you.
    31. Re: Damn. by pnutjam · · Score: 1

      OpenSuse has some Sure merged into it. It's a fine choice for home, but hard to defend as a corporate server.
      Even the long term version requires you to switch repos every 18 months and perform a 'distribution upgrade'. Minor releases don't seem to be fully risk free either.

    32. Re: Damn. by kiphat · · Score: 1

      Then IBM's acquisition of Rehat is a perfect fit, since Redhat doesn't sell software either.

    33. Re:Damn. by 0100010001010011 · · Score: 1

      A carpenters tools equivalent of doors would be a brick for a hammer and what ever they could dig out of the dumpster.

      DOORS quality and pricing is on par with Craftsmen these days. Both now made in the same hemisphere too.

      That's cheaper than our Mathworks licenses but we actually get decent value out of them, unlike DOORS.

    34. Re: Damn. by lactose99 · · Score: 1

      I'm buying Debian next week.

      -Symantec

      --
      Fully licensed blockchain psychiatrist
    35. Re:Damn. by shadowknot · · Score: 1

      I concur. I work on both z/OS and z/VM and have never felt any pressure to get any kind of certification. Quite the opposite in fact, they have provided me with no-strings, gratis education so I can work on the products more efficiently. IBM isn't perfect but this particular problem is very much made of straw.

    36. Re:Damn. by slashdot_commentator · · Score: 1

      One day you'll be fifty years old, and you won't be doing technology for funsies. At that point, you'll be looking for the "stablest" environment that requires the least amount of technical apochrypha necessary to accomplish your basic tasks. I have seen so many old technologists move to Apple products for that reason.

      --
      There is no America. There is no democracy. There is only IBM and AT&T and DuPont, Dow, General Electric, and Exxon
    37. Re:Damn. by shadowknot · · Score: 1

      While I understand this suspicion and it may be true, IBM has a track record of contributing code back to the mainline kernel after investing substantial amounts of money in that development. It's true that I'm referring to them contributing money for development specifically for platforms they own (Z and P systems) but I hope they follow a similar model now that they have an ownership stake in the biggest x86 server side distro. I don't really see how they could say "no more derivatives" given that much of what Red Hat has done is likely derivative of GPLd projects itself. Frankly, if they take systemd and tie it up in a proprietary license I'll be happy since it'll turn it into the MiniDisk/BetaMax of init systems!

    38. Re:Damn. by slashdot_commentator · · Score: 1

      I'd say IBM and all the Microsoft haters missed their chance at schadenfreude by not wielding the knife while Ballmer was the CEO.

      --
      There is no America. There is no democracy. There is only IBM and AT&T and DuPont, Dow, General Electric, and Exxon
    39. Re: Damn. by Billly+Gates · · Score: 1

      Easy. It was late and it had to be completed. We were told we can fix it later but the CEO promised to the Client it would be done by 4am for 6am calls. That time never came to fix it as I would get in trouble if I spoke up

    40. Re:Damn. by TechyImmigrant · · Score: 1

      One day you'll be fifty years old, and you won't be doing technology for funsies. At that point, you'll be looking for the "stablest" environment that requires the least amount of technical apochrypha necessary to accomplish your basic tasks. I have seen so many old technologists move to Apple products for that reason.

      I'll be 50 years old before Christmas happens. I'm a principal engineer at a large semiconductor company and I've done techy things in a variety of techy discipines.
      I use an Apple laptop because it's decent hardware with a unix like environment under the hood. I can bring up a bash shell and write in a variety of languages using Vim and compile my latex all on the command line. My servers run Fedora usually. I have a new desktop (technically subdesk - I build the PC and water cooling loop into the desk to keep it quiet and out of the way) running Ubuntu.

      I still do technology for funsies - Messing with my Apple ][, building high tech guitar electronics, writing programs for fun. Then I go to work and get to work on bleeding edge technical problems, designing circuits, analyzing data, scouring research papers generally pretending to be smarter than I feel I am.

      --
      I should use this sig to advertise my book ISBN-13 : 978-1501515132.
    41. Re:Damn. by slashdot_commentator · · Score: 1

      generally pretending to be smarter than I feel I am.

      My God, I'd hate working with you. Your ego could probably fill the building. j/k

      As for tech for funsies, God bless. We all do tech for funsies, but there's too much out there to master to retain a functional level one could consider competence. And no one gives you the heads up that your mental faculties decline with age. You learn to cut out low value pursuits from your bucket list; kind of like when you get married and have kids.

      --
      There is no America. There is no democracy. There is only IBM and AT&T and DuPont, Dow, General Electric, and Exxon
    42. Re:Damn. by TechyImmigrant · · Score: 1

      Kids went to college.

      Ego Schmeego. That's for psych types.

      --
      I should use this sig to advertise my book ISBN-13 : 978-1501515132.
  3. Anybody else sick of by Anonymous Coward · · Score: 1

    decent businesses always getting bought out by some behemoth and eventually becoming junk?

  4. IBM Linux is the best Linux by Anonymous Coward · · Score: 1

    Tivoli Linux is the best Linux.

    1. Re: IBM Linux is the best Linux by jabuzz · · Score: 1

      Keep up at the back there, it will be Spectrum Linux. With a bit a luck I might not need separate licenses for my Spectrum Protect (nee TSM) servers in the future. Though oddly Spectrum Protect for Virtual Enviroments seems to be a SuSE based VM.

  5. A Cloudy argument. by Ostracus · · Score: 5, Interesting

    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"
    1. Re:A Cloudy argument. by alvinrod · · Score: 2

      Probably capital investment and lack of talent. It's not as though you can magically build a massive cloud infrastructure from the ground up in short order if you don't already have people who know what they're doing. You're going to need data centers, equipment, technicians, etc. It might take several years for everything you need to be build, delivered, and installed. Then you need to attract customers away from Red Hat, which may not be easy and while you've been building up just to reach the position where Red Hat is right now, they're unlikely to sit there and watch all of it happen.

      IBM likely ran the numbers and concluded it was safer for them to buy Red Hat than to try to build a comparable business unit from within the company. Red Hat currently does about $3 billion annual in terms of revenue, so if IBM thinks that they can grow that further and cut some operation costs, then it might be more viable than sinking billions into their own solution and watching it struggle to gain market traction.

    2. Re:A Cloudy argument. by gtall · · Score: 4, Insightful

      So you are saying that IBM has been asleep at the wheel for the last 8 years. Buying Red Hat won't save them, IBM is IBM's enemy.

    3. Re:A Cloudy argument. by The+Evil+Atheist · · Score: 5, Insightful

      IBM engineers aren't actually crappy. It's the fucking MBAs in management who have no clue about how to run a software development company. Their engineers will want to do good work, but management will worry more about headcount and sales.

      --
      Those who do not learn from commit history are doomed to regress it.
    4. Re: A Cloudy argument. by Anonymous Coward · · Score: 1

      RedHat hasn't either. Unless you're still trying to make OpenShit work.

    5. Re:A Cloudy argument. by Aighearach · · Score: 2

      They're already one of the large cloud providers, but you don't know that because they only focus on big customers.

    6. Re: A Cloudy argument. by illiac_1962 · · Score: 1

      Or they could have held in to thier PC division and dwarfed all those numbers selling laptops. I think the world is literally going crazy.

    7. Re:A Cloudy argument. by Thelasko · · Score: 1

      IBM engineers aren't actually crappy. It's the fucking MBAs in management who have no clue about how to run a software development company. Their engineers will want to do good work, but management will worry more about headcount and sales.

      That's the story for every product development company ever.

      It could be worse. IBM could have decided buying Red Hat was too expensive, and buy Red Star instead. Rename it "Big Blue Linux" and sell it for a premium because it has the IBM name. Profit!

      That's what really terrible companies do.

      --
      One of our competitors trademarked the term "hypothesis". From now on, we will call them "boneheaded ideas".
    8. Re:A Cloudy argument. by Rick+Schumann · · Score: 1

      IBM likely wants to accomplish the same thing Microsoft wants to do, which is to 'own' Linux, but they're taking a different track to that goal by buying Redhat outright, rather than subverting it like Microsoft is doing.

    9. Re:A Cloudy argument. by The+Evil+Atheist · · Score: 1

      I have not seen evidence that MBAs run good companies either.

      --
      Those who do not learn from commit history are doomed to regress it.
  6. Re:Please God No by alvinrod · · Score: 2

    Yeah once they're done, they're done. It's not like they couldn't just get together and and start a different distribution. Alas.

  7. Re:Please God No by Anonymous Coward · · Score: 1, Interesting

    Look on the bright side: Poettering works for Red Hat.

  8. systemd by Anonymous Coward · · Score: 4, Funny

    The next version will be branded IBM(R) SystemD/2.

    1. Re:systemd by Artemis3 · · Score: 1

      If they remove Poettering, i'd take a look!

      --
      Artix
      Your Linux, your init.
  9. They’ll be rebranding the distro by 93+Escort+Wagon · · Score: 4, Funny

    Henceforth, it’ll be known as “Big Blue Hat”.

    --
    #DeleteChrome
    1. Re:They’ll be rebranding the distro by TFlan91 · · Score: 1, Funny

      You joke... but...

      I could honestly see Trump reading a headline "IBM rebrands Red Hat to Blue Wave" and going bat-shit over it

    2. Re:They’ll be rebranding the distro by jzarling · · Score: 1

      The new OS2 WARP!

      --
      It is better to be the hammer than the anvil.
  10. At least it's not Google or Microsoft by wet-socks · · Score: 1

    Probably.

  11. Re:Please God No by alvinrod · · Score: 4, Insightful

    Depends on the state. Non-compete clauses are unenforceable in some jurisdictions. IBM would want some of the people to stick around. You can't just take over a complex system from someone else and expect everything to run smoothly or know how to fix or extend it. Also, not everyone who works at Red Hat gets anything from the buyout unless they were regularly giving employees stock. A lot of people are going to want the stable paycheck of working for IBM instead of trying to start a new company.

    However, some will inevitably get sick of working at IBM or end up being laid off at some point. If these people want to keep doing what they're doing, they can start a new company. If they're good at what they do, they probably won't have much trouble attracting some venture capital either.

  12. All Redhat employees over 50 to be fired! by Anonymous Coward · · Score: 4, Funny

    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.

    1. Re:All Redhat employees over 50 to be fired! by Luthair · · Score: 1

      More likely sent off-shore to India.

    2. Re:All Redhat employees over 50 to be fired! by Anonymous Coward · · Score: 1

      IBM hates the olds! All People aged 50+ will be fired and replaced with coders fresh out of blockchain bootcamps!

      No, age discrimination is bad. Can't do that.

      First you require all employees to update their current skill information in a spreadsheet for some random reason.

      Then you do level 4 + employees are encouraged early retirement. It's just cheaper than the aggravation.

      Then you start the selective purge, that just happens to target all the old people...

      So technically its not age discrimination. Its salary discrimination.. :)

    3. Re:All Redhat employees over 50 to be fired! by Anonymous Coward · · Score: 3, Funny

      How long till IBM ships Poettering to India? weeks/months? Can we buy futures based on his declining health? This is great news.

    4. Re:All Redhat employees over 50 to be fired! by hcs_$reboot · · Score: 1

      All People aged 50+ will be fired

      You mean everyone, mostly.

      --
      Slashdot, fix the reply notifications... You won't get away with it...
  13. Re:Please God No by gtall · · Score: 5, Insightful

    "A lot of people are going to want the stable paycheck of working for IBM instead of trying to start a new company. "

    Errrrmmm....I see you haven't been getting the memos. IBM has been bleeding their U.S. personal as fast as they can. Red Hatters would do well to eyeball their exit strategies.

  14. Goodbye Redhat. by The+Evil+Atheist · · Score: 5, Insightful

    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.
    1. Re:Goodbye Redhat. by brunes69 · · Score: 1

      While what you say is true of acquisitions in the past, I think if you looked at more recent acquisitions from the past 10 years you will find a lot more success.

  15. possible outcomes by radux · · Score: 3, Funny

    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?
    1. Re:possible outcomes by kriston · · Score: 1

      I know you're kidding, but AIX, like Solaris and MacOS X, already have their own suites of tools that provide all that systemd does and more. Solaris, in particular, has had theirs since 2002.

      --

      Kriston

    2. Re:possible outcomes by xanthos · · Score: 1

      and a Micro Channel kernel driver

      --
      Average Intelligence is a Scary Thing
  16. Re: It all by cayenne8 · · Score: 5, Insightful
    So, sadly, I"M guessing IBM will acquire and fuck up RHEL just like they've done with every other tool they've bought and "IBM-ized"......

    :(

    --
    Light travels faster than sound. This is why some people appear bright until you hear them speak.........
  17. Who still uses Red Hat?!?? by Qbertino · · Score: 1

    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
    1. Re:Who still uses Red Hat?!?? by ARos · · Score: 1

      Clearly you are not employed in tech; otherwise you wouldn't ask such a dopey question.

    2. Re:Who still uses Red Hat?!?? by quantaman · · Score: 3, Interesting

      Oh, wait, /. is a US joint. Ok, forget about what I said.

      And now attention:
      Getting modded into earths core in 3,2,1 ... :-)

      Virtually anyone running an actual production system.

      I hope IBM keeps them pretty separate. One of the reasons RHEL is so successful is they've done a good job of maintaining a good relationship with the hobbyist crowd. They're not as cool as Ubuntu but they have a lot of fans in the community, both devs and users, and that helps them get into the server rooms.

      Probably Red Hat's biggest liability has been their size, the more Free Software aligned crowd is very nervous about big corporations. If they ever start losing the community some other distro is going to start popping up in the server room.

      --
      I stole this Sig
    3. Re:Who still uses Red Hat?!?? by Anonymous Coward · · Score: 1

      RHEL is LTS to the max.

      We people that run the actual production servers for software that has been available for more than six months and is expected to be available for at least the next six months love LTS. Change is the devil. The longer we can stave off change in a documented, tested system, the more money we save.

      The end.

    4. Re:Who still uses Red Hat?!?? by Areyoukiddingme · · Score: 1

      Why would you fire an employee that produced systemd, pulseaudio, and contributed to many other projects that were widely successful and adopted by the majority of Linux distributions?

      Because his code is shit. Pulseaudio is laughably broken on 90% of the distros that include it, and can not be fixed.

      You don't get rid of successful productive employees.

      You do get rid of drooling morons whose total lifetime code output couldn't make up for the tens of thousands of hours wasted by sysadmins trying to deal with his shit.

  18. Re:Well at least we'll still have Cent by guruevi · · Score: 1

    Fedora is fully owned by Red Hat and CentOS requires the availability of the Red Hat repositories which they aren't obliged to make public to non-customers..

    --
    Custom electronics and digital signage for your business: www.evcircuits.com
  19. Re: It all by NFN_NLN · · Score: 4, Funny

    Nuh uh, look at the market share of OS/2 and AIX. /s

  20. Re:Please God No by ir0nHat · · Score: 2

    Red Hatters would do well to review history how IBM treated ROLM, and how IBM was able to handle a start up culture. IBM sales team and Red Hat's will be a shotgun marriage for sure. CentOS should already feel the cold of hell, as they have a short TTL.

  21. Re:Please God No by Anonymous Coward · · Score: 1

    Given that IBM is more interested in providing services I would expect them to just stop CentOS and make RHEL free.

  22. Re:Well at least we'll still have Cent by Luthair · · Score: 2

    Red Hat hired the CentOS developers 4.5-years ago.

  23. Re:Well at least we'll still have Cent by quantaman · · Score: 4, Informative

    Fedora is fully owned by Red Hat and CentOS requires the availability of the Red Hat repositories which they aren't obliged to make public to non-customers..

    Fedora is fully under Red Hat's control. It's used as a bleeding edge distro for hobbyists and as a testing ground for code before it goes into RHEL. I doubt its going away since it does a great job of establishing mindshare but no business in their right mind is going to run Fedora in production.

    But CentOS started as a separate organization with a fairly adversarial relationship to Red Hat since it really is free RHEL which cuts into their actual customer base. They didn't need Red Hat repos back then, just the code which they rebuilt from scratch (which is why they were often a few months behind).

    If IBM kills CentOS a new one will pop up in a week, that's the beauty of the GPL.

    --
    I stole this Sig
  24. Re:Well at least we'll still have Cent by infolation · · Score: 4, Informative

    requires the availability of the Red Hat repositories which they aren't obliged to make public to non-customers

    ...and this is why Richard Stallman Calls Open Source Movement 'Amoral'. But RH must make the source publicly available under the GPL.

  25. Cha-Ching by Nkwe · · Score: 2

    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.

  26. Re: Please God No by wyattstorch516 · · Score: 4, Informative

    The people getting handed 34 billion dollars are the stockholder not the employees. The vast majority of that money goes to people who do not work at the company.

  27. Re:Please God No by wyattstorch516 · · Score: 1

    Red Hat went public in 1999, they are far from being a start-up. They have acquired several companies themselves so they are just as corporate as IBM although significantly smaller.

  28. Re:Please God No by squiggleslash · · Score: 2

    Well, CentOS is right there already.

    TBH, I don't see a problem. What IBM sells these days is consultancy and support, they do have a few "packaged" products but even then the way they make a lot of the money is through integration. 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.

    --
    You are not alone. This is not normal. None of this is normal.
  29. BSD is the City of the Dead by Anonymous Coward · · Score: 1

    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.

  30. Re: It all by Anonymous Coward · · Score: 5, Informative

    Lennart already fucked up RHEL, I hope IBM will get rid of him and systemd.

  31. Re:Please God No by Anonymous Coward · · Score: 5, Funny

    Look on the bright side: Poettering works for Red Hat. (Reposting because apparently Poettering has mod points.)

  32. Re:What's wrong with AIX? by acroyear · · Score: 1

    jfs was good, and so was SMIT, their software management tool. No GUI based admin system has ever come close to what they had in 1992 and 1993, from any vendor*...and every time RedHat got close, oh so close, they threw it all away in the next distro and started over. Repeatedly. This constant need for something new instead of actually improving what you have so far has been the killer to desktop linux more than 'apps' are. (yes, I understand much of that is the fact that the services and other features being configured keep changing their file formats in massively incompatible ways and so any parser to provide a UI has to be totally rewritten every 3 months...but that's ANOTHER problem with open source...)

    * Chromebooks are only 'good' here because the options they allow you to configure are so few.

    --
    "But remember, most lynch mobs aren't this nice." (H.Simpson)
    -- Joe
  33. Re: It all by plopez · · Score: 1

    +1

    --
    putting the 'B' in LGBTQ+
  34. Re: It all by KiloByte · · Score: 1, Interesting

    So, sadly, I"M guessing IBM will acquire and fuck up RHEL

    Uhm, Gnome3, systemd, NetworkManager? Or, have you seen people try to upgrade Red Hat boxes? The only way for RHEL is up.

    --
    The creatures outside looked from Alt-Right to Antifa; but already it was impossible to say which was which.
  35. Re:Enjoy yer jerbs wile uze can! by plopez · · Score: 1

    The work I have seen from overseas, reviewing pull requests, have not borne that out. Usually the AMerican staff did the wrong thing and fixed it for the overseas staff.

    --
    putting the 'B' in LGBTQ+
  36. AIX Redux by DougDot · · Score: 4, Interesting

    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.

    1. Re:AIX Redux by ArchieBunker · · Score: 4, Insightful

      Redhat is damn near AIX already. AIX had binary log files long before systemd.

      --
      Only the State obtains its revenue by coercion. - Murray Rothbard
    2. Re:AIX Redux by DougDot · · Score: 1

      Redhat is damn near AIX already [...]

      Yes, but now they also get IBM's crushing, indifferent, incompetent bureaucracy.

    3. Re:AIX Redux by Tough+Love · · Score: 1

      Worse than Redhat's crushing, indifferent, incompetent bureaucracy? Maybe, but it's close.

      --
      When all you have is a hammer, every problem starts to look like a thumb.
    4. Re:AIX Redux by DougDot · · Score: 2

      Worse than Redhat's crushing, indifferent, incompetent bureaucracy? Maybe, but it's close.

      I used to be a Redhat dev, pre IPO, and I worked with IBM for about 15 years With, not for. Trust me: IBM has top honors here re: crushing, indifferent, incompetent bureaucracies.

  37. Re: Please God No by plopez · · Score: 1, Insightful

    They are already signed by the staff, if any. Otherwise it would be contingent on employment, "sign this or you we walk you off of the property". That is what "at will" employment means. But no, Americans are too stupid to unionize.

    --
    putting the 'B' in LGBTQ+
  38. How many companies has IBM destroyed or let die? by Streetlight · · Score: 1

    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
  39. Lol by ArchieBunker · · Score: 1, Flamebait

    With systemd how can they fuck it up worse than it already is?

    --
    Only the State obtains its revenue by coercion. - Murray Rothbard
    1. Re:Lol by cayenne8 · · Score: 4, Interesting

      With systemd how can they fuck it up worse than it already is?

      Well, it *is* IBM....I'm sure they can still make it worse.

      The only company I know that ruins software they acquire worse than IBM, is CA.....it may survive IBM, but if CA buys them, it is an instant mark of death for the software.

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
    2. Re:Lol by Anonymous Coward · · Score: 2

      Merge SystemD with traditional AIX management tools with binary configuration database?

    3. Re:Lol by cheesybagel · · Score: 4, Informative

      You forgot Oracle.

    4. Re:Lol by Anonymous Coward · · Score: 2

      With systemd how can they fuck it up worse than it already is?

      Well, it *is* IBM....I'm sure they can still make it worse.

      The only company I know that ruins software they acquire worse than IBM, is CA.....it may survive IBM, but if CA buys them, it is an instant mark of death for the software.

      Symantec. It's where good software goes to die.

    5. Re: Lol by Anonymous Coward · · Score: 1

      The SystemD resistance comes from the basic principles, the process, the dependencies and the personalities, as I see it. Add that some dangerous, or trivial bugs, wrong assumptions and the mess is ready. I got the same feeling with the Windows 8 UI. I didn't mind the new UI as it fixed the Windows 7 startup menu bugs, or wrong assumptions of behaviour I had encountered. A Harry Potter Interface, with magical mouse gestures to pop up the active elements was my impression.

    6. Re:Lol by Z00L00K · · Score: 1

      Don't SMIT me again!

      --
      If builders built buildings the way programmers wrote programs, then the first woodpecker would destroy civilization.
  40. systemd is RH by MikeKD · · Score: 1, Troll

    All these lamentations! But this might be the opening we need to kill systemd!

  41. Linux is dead by approachingZero+ · · Score: 1

    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
  42. RH/2 Warp 3.0! by Quarters · · Score: 1

    Now with Presentation Manager!

    1. Re:RH/2 Warp 3.0! by Freshly+Exhumed · · Score: 2

      But can nuns run it?

      --
      I deny that I have not avoided attaining the opposite of that which I do not want.
  43. Re:Please God No by ir0nHat · · Score: 2

    Referring to culture; agreed Red Hat is not a start-up, but “The Open Organization” is purchased by “Product-type divisional organizational structure”. When was the last time the CEO of IBM sat on the service desk? Also ROLM was far from a start-up, but there culture was and is reflected in Silicon Valley today. “West Coast Hippies” purchase by “East Coast Button-ups”. Going from a “Great Place to Work” to a cog in the machine.

  44. Great news by Anonymous Coward · · Score: 1

    for India!

  45. Now watch by TheDarkener · · Score: 4, Interesting

    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.
  46. ... who do not work. Period. by Anonymous Coward · · Score: 1

    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.)

    1. Re:... who do not work. Period. by MightyYar · · Score: 1

      Stock, interest, profit, and intellectual property are completely different concepts. That you conflate them all tells me all I need to know about your opinion. Hell, profit is just a math operation.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    2. Re:... who do not work. Period. by Anonymous Coward · · Score: 1

      Yes imbicile, the doctor is not a skilled worker but rather a limited tool. you can patch yourself up unless the law says you have to buy into the scheme; but no Doctors aren't hero's. They work. Just like shovel guy, The only difference is shovel guy knows where to hide a cocky doctor.

    3. Re:... who do not work. Period. by Anonymous Coward · · Score: 1

      Stock, Interest, profit and IP are just variations of using others people money/labor to increase your personal wealth and screw the people actually doing the work out of most, if not all, of the intrinsic wealth of their work/labor.

      0.01% have been using the technique for thousands of years; nothing new to see here, move along...

    4. Re:... who do not work. Period. by MightyYar · · Score: 2

      Stock is simply a form of ownership. I guess we could abolish joint ownership and just let wealthy families control everything like the good 'ol days. The part you hate about it (people making money by trading) is a feature, not a flaw. It's a system where human nature works for the common good. Yes, you have people playing the market, but in exchange for that behavior that you don't like, you get the much greater good of liquidity and access to vast amounts of capital. I can be a part-owner of any company I want - I don't have to be part of the royal court or landed gentry. I can get a small share of the exact same company that they can and benefit from its growth in a way that was inconceivable to my ancestors. Companies have access to a huge pile of cash without relying on a few big holders of capital. Which brings me to...

      Interest. I voluntarily and happily pay interest on my home so that I'm building equity in something with real value rather than giving a landlord the bulk of my life's income. Yeah, the banker makes money from my labor. But so what? He makes a lot less than the landlord would if I didn't have access to capital. On the business side, businesses similarly can go to banks or the bond market to finance expansion. Yes, the bank or bondholders make a little off the top simply by possessing capital, but in exchange the business can make far more money and hire more workers.

      In other words, you are listing only the bad things, which are an order of magnitude smaller than the good things that come with easier access to capital.

      Look at countries which don't have agricultural futures markets. Farmers can't get a contract for their crops, and so are left guessing what the crop will be worth at the end of the year - far too late to make a decision. They would much rather trade a small amount of the total in exchange for an ability to plan ahead with a concrete price at the end of the season. Again, yes, someone is making money by simply having money - but the farmers do far better overall and it is easily worth the tradeoff.

      Profit is literally a math equation and has nothing to do with screwing people out of anything.

      IP... I'll grant you, that is a lot fuzzier. I think it probably has value in the short term, but we've let it get out of hand. It's hard to justify giving someone a government-granted monopoly for 100 years or so.

      I'll add another to your list: the concept of limited liability in the form of corporations. This completely screws with the whole libertarian individual responsibility concept that our country was founded upon. I can understand not wanting Granny's assets in her retirement fund to be at risk when a company she owns does a Very Bad Thing, but it seems excessive to extend this protection to activist owners.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
  47. Re: It all by gweihir · · Score: 3, Insightful

    Indeed. Maybe they will even sack Poettering. If so, they will do a ton of good.

    --
    Most ACs are not even worth the keystrokes to insult them. Be generically insulted by this and ignored otherwise.
  48. Why all the hate? by TheGoodNamesWereGone · · Score: 1

    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.

    1. Re:Why all the hate? by cheesybagel · · Score: 3, Insightful

      They were top notch you mean. Current IBM management only knows about acquiring companies and outsourcing development work.

    2. Re:Why all the hate? by Gavrielkay · · Score: 1

      I left IBM a little over 2 years ago after working there for 11 years. I don't think upper management at IBM is capable of learning anything. The current crop is all about cutting costs so that it looks like they might one day turn a profit. But they cut costs by getting rid of everyone who knew anything. There's no talent left to build or sell anything. Meanwhile, top executives rake in millions every year for steering the ship into the iceberg.

  49. Re:Well at least we'll still have Cent by bobby · · Score: 1

    If IBM kills CentOS a new one will pop up in a week, that's the beauty of the GPL.

    Probably, but would you rely on it for a production server?

    I need to build up a new server. We've had several RedHat and now CentOS running quite well. Looks like it won't be CentOS; future too uncertain.

  50. If IBM didn't screw things up by raymorris · · Score: 1

    > 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.

  51. Re:I wonder if the recent attempt to purge Linus.. by Anonymous Coward · · Score: 2, Informative

    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...

  52. End of an era by Anonymous Coward · · Score: 1

    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.

    1. Re:End of an era by d3vi1 · · Score: 1

      Among some of my clients, I administer the UNIX infrastructure of a small Telecom operator. They have about 100 Linux Servers running RHEL, JBoss EAP, FreeIPA, CloudForms, Satellite, etc. This costs about €40k/year. The alternative from Oracle would have been €500k with their incredibly bad support.

      I remember being excited when Oracle bought Sun. SUNW was running out of cash, but they had a spectacularly good software portfolio with ZFS, DTrace, Comstar, etc. It all went bust. Solaris hasn't seen any innovation in 10 years.

      Suddenly SuXE is starting to look good again.

      --
      UNIX was not designed to stop you from doing stupid things, because that would also stop you from doing clever ones.
  53. Re:Please God No by jmccue · · Score: 2

    ah - Red Hat was founded in Raleigh NC and their headquarters are still there. Last I heard Raleigh NC is on the East Coast

  54. IBM will own Gnome and systemd by danbuter · · Score: 1

    The guys directly responsible for Gnome and systemd will be IBM employees very shortly. This will be interesting.

    1. Re:IBM will own Gnome and systemd by Anonymous Coward · · Score: 1

      As long as we send the systemd team to an Indian hellhole I'm happy. If IBM wanted to get some karma points from the hard core Linux community they would ditch systemd ASAP and make CentOS 8 a refresh of CentOS 6.

    2. Re:IBM will own Gnome and systemd by hcs_$reboot · · Score: 1

      These guys were not RH employees, in the first place..

      --
      Slashdot, fix the reply notifications... You won't get away with it...
  55. Re: Please God No by jpaine619 · · Score: 1

    You don't think we have unions here? I ask because you didn't say "some Americans".... You said "Americans are too stupid to unionize".

    Kindly fuck off. You are talking out of your ass.

  56. Welcome to Big Purple Hat by Hallux-F-Sinister · · Score: 5, Funny

    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.
  57. The end of Redhat's anti-patent stance by Tough+Love · · Score: 4, Interesting

    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.
    1. Re:The end of Redhat's anti-patent stance by AnalogDiehard · · Score: 1

      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.

      How quickly you forget that IBM, Red Hat, and Novell teamed to soundly defeat the much hated copyright troll SCO over Unix/Linux Copyright Disputes

      --
      Eternity: will that be smoking, or non-smoking? I Corinthians 6:9-10
    2. Re:The end of Redhat's anti-patent stance by Areyoukiddingme · · Score: 1

      How quickly you forget that IBM, Red Hat, and Novell teamed to soundly defeat the much hated copyright troll SCO over Unix/Linux Copyright Disputes

      Copyrights are not patents. IBM files scads of useless patents. They also do some genuine R&D, but its buried under mounds of useless bullshit these days.

  58. Re: It all by HanzoSpam · · Score: 4, Insightful

    Indeed. Maybe they will even sack Poettering. If so, they will do a ton of good.

    Surely you jest. Knowing IBM, as I do, they're more likely to make Poettering the head of the division.

    --

    Progressivism: Parasites helping parasites to help themselves - to other people's stuff.
  59. Super! by Nethead · · Score: 1

    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.
  60. It was systemd. IBM had to have it. by Anonymous Coward · · Score: 1

    $34 billion for systemd.

    Next, IBM will buy APK for $13 billion.

  61. Bad things come in threes by HanzoSpam · · Score: 1, Interesting

    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.
    1. Re:Bad things come in threes by Kohlrabi82 · · Score: 1, Redundant

      If GNOME and systemd disappear with them, all the better for the Linux eco system.

  62. Re:Pay your licensing fee by red+crab · · Score: 4, Interesting

    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.

  63. Hahaha Oracle's Fucked by Anonymous Coward · · Score: 1

    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?

    1. Re:Hahaha Oracle's Fucked by hcs_$reboot · · Score: 1

      CentOS (free) == RH

      --
      Slashdot, fix the reply notifications... You won't get away with it...
  64. Does IBM still have engineers? by rsilvergun · · Score: 1

    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/
    1. Re:Does IBM still have engineers? by The+Evil+Atheist · · Score: 1

      As far as I know, IBM in the UK is still doing quality work. And allowed to do quality work.

      --
      Those who do not learn from commit history are doomed to regress it.
  65. This happened to Rare when Microsoft bought them by rsilvergun · · Score: 1

    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/
  66. Gee by the_archer666 · · Score: 3, Funny

    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".

  67. Re:Well at least we'll still have Cent by Dr.+Evil · · Score: 4, Interesting

    "... RH must make the source publicly available.."

    That's not what the GPL says.

    You only have to distribute the source code, or an offer to the source code to the recipient of the object code. It doesn't need to be public. RHEL's been good about making it public, especially since they do not publicly distribute the object code.

    For CentOS to continue receiving the complete source code from IBM, they would need to subscribe to every single product that they republish the object code for.

    This is not to say they couldn't get it from someone else who subscribed, but if IBM doesn't distribute RHEL in a similar omnibus form, it could be very difficult to set up reliable relationships with all the organizations which subscribe to every component of what is now RHEL.

  68. Re:Well at least we'll still have Cent by Dr.+Evil · · Score: 1

    Don't you mean the repackagers?

    CentOS developers were always RedHat. That's the point.

  69. Re: It all by execthis · · Score: 4, Insightful

    So, sadly, I"M guessing IBM will acquire and fuck up RHEL

    I think the more accurate term is 'ramp up' not 'fuck up' - more and more Open Source is about vendor on-ramps.

  70. IBM is mixed by jd · · Score: 2

    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)
  71. Breaking News! by hcs_$reboot · · Score: 4, Funny

    Real news is: wow! IBM has $34b!

    --
    Slashdot, fix the reply notifications... You won't get away with it...
  72. Linus got richer? by carnivore302 · · Score: 1

    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
  73. Novell is not SCO by jjohn_h · · Score: 3

    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.

  74. Re:Please God No by Anne+Thwacks · · Score: 1
    Raleigh NC is on the East Coast

    Well wave good bye. IBM will fly it to Bangalore just as soon as they can find the planes to do it.

    --
    Sent from my ASR33 using ASCII
  75. Re: It all by thegarbz · · Score: 2

    Lennart already fucked up RHEL

    In what way? Show me your evidence that systemd has in any way affected RHEL's marketshare that didn't drive it to a competitor that also uses systemd.

    The way I see it, the only people who actually think he fucked up RHEL are ACs and about 10 vocal slashdot users.

  76. Poor Red Hat workers by DrXym · · Score: 1

    Sucked into the alternate reality of IBM - software and processes everyone hates, petty bureaucracy, and layoffs.

  77. Re:Please God No by Antique+Geekmeister · · Score: 4, Informative

    The core CentOS leadership are now Red Hat employees. They're not clear of nor uninvolved in this purchase.

  78. Re: Please God No by houghi · · Score: 1

    First the Americans need to understand the difference between a Union and a Guild. From what I see, the US Unions are unions by name only. They are a guild.

    The difference is that a guild protects the jobs and a union protects the workers (Or both have that intention at least). In Europe we have had Guilds for a while. Look at any main marketplace in many cities in Europe and you will see that the most lavish houses where on the great market and where build by guilds. They protected the nakers, the bitchers and so on.
    Not a member of the Guild? Not allowed to sell or make things in the city. Stopped being a baker? Sorry, nobody to speak for you.

    Have an invention that makes your job obsolete> They will fight as hard as possible to either stop that invention or keep you occupied, even if you are redundant in that job.

    A Union is something diffreent. They will look at the people and see that they have a job. Might not be the job they had before, but still. From somebody in Belgium:
    I have been a UNion member for (I think) 10 to 15 years. I became a member the day I lost my job. Not because they would do anything about keeping my job, but because they made it easier to get my unemployment benefit. Almost no paperwork for me.

    The Unions fought for the unemployment benefit. And let it sink in: you can be a member of a Union if you are unemployed.
    And I can become a member of almost any union. There are some unions that are specific for secors, others are general. I have been a member of the same union and can be a member, regardless of what my job is, or even if I have a job.

    Say my company downsizes (Have seen that several times) the unions can step in and negotioate not only what the objective bases are who to let go. They can also negotiate the saevreance pay. That way I got one year 7 months , went to a company for a year and got 5 moths there. That was not even due to the unions. It was the companies that offered that much, because it was cheaper than negotiating with the unions.

    And the reason I say uinins, is because there are many. And every company that has more than 50 people will have union representatives.

    Yet you can join a union even if you work at a smaller company. You can also decide NOT to join a union. It is completely up to you when and if you join or leave. No person in the company will care. (Union representatives are an exception) Seriously, nobody will care. Not your cowworker, not your managere, not the CEO.

    And thanks to these unions, I have 34 days of paid holiday, a 13th month, paid sickdays, maternety and paternity leave and no overtime.

    Does that mean they can not fire me because I am in a Union? No. The fact that I am in a union is irrelevant. They can still fire me. If I steal, they can fire me on the spot. No benefits for me after that. They can also fire me because whatever reasons. Howvere they would need to do a payout of several months. And the longer you work somewhere, the more they need to pay.

    So understand that there is a difference between a guild and a union. A guild is a bad idea. A union is a good one.

    --
    Don't fight for your country, if your country does not fight for you.
  79. Oracle/Ubuntu by theshowmecanuck · · Score: 1

    So now how soon will Oracle buy Ubuntu?

    --
    -- I ignore anonymous replies to my comments and postings.
  80. Comment removed by account_deleted · · Score: 1

    Comment removed based on user account deletion

  81. Wrong. by brunes69 · · Score: 1

    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.

  82. SCO can sue them again by jfdavis668 · · Score: 1

    This gives SCO another good opportunity to sue IBM again.

  83. Re: It all by Anonymous Coward · · Score: 5, Interesting

    My feelings exactly. As a former employee for both places, I see this as the death knell for Red Hat. Not immediately, not quickly, but eventually Red Hat's going to go the same way as every other company IBM has acquired.

    Red Hat's doom (again, all IMO) started about 10 years ago or so when Matt Szulik left and Jim Whitehurst came on board. Nothing against Jim, but he NEVER seemed to grasp what F/OSS was about. Hell, when he came onboard he wouldn't (and never did) use Linux at all: instead he used a Mac, and so did the rest of the EMT (executive management team) over time. What company is run by people who refuse to use its own product except for one that doesn't have faith. The person on top of the BRAND AND PEOPLE team "needed" an iPad, she said, to do her work (quoting a friend in the IT dept who was asked to get it and set it up for her).

    Then when they (the EMTs) wanted to move away from using F/OSS internally to outsourcing huge aspects of our infrastructure (like no longer using F/OSS for email and instead contracting with GOOGLE to do our email, calendaring and document sharing) is when, again for me, the plane started to spiral. How can we sell to OUR CUSTOMERS the idea that "Red Hat and F/OSS will suit all of your corporate needs" when, again, the people running the ship didn't think it would work for OURS? We had no special email or calendar needs, and if we did WE WERE THE LEADERS OF OPEN SOURCE, couldn't we make it do what we want? Hell, I was on an internal (but on our own time) team whose goal was to take needs like this and incubate them with an open source solution to meet that need.

    But the EMTs just didn't want to do that. They were too interested in what was "the big thing" (at the time Open Shift was where all of our hiring and resources were being poured) to pay attention to the foundations that were crumbling.

    And now, here we are. Red Hat is being subsumed by the largest closed-source company on the planet, one who does their job sub-optimally (to be nice). This is the end of Red Hat as we know it. Without 5-7 years Red Hat will go the way of Tivoli and Lotus: it will be a brand name that lacks any of what made the original company what it was when it was acquired.

  84. Re:Well at least we'll still have Cent by neurovish · · Score: 1

    The RHEL/CentOS relationship is not adversarial, and the impact of CentOS on RHEL sales is likely overall or wash or maybe a net positive. It's the "first one is free" mindset. You get people using CentOS for free, so the skillset and familiarity is there for RHEL. If CentOS wasn't there, then a company that would have run it would be saying to itself "well, I guess we'll just pay for RHEL licensing", they would either use another free distro or just use Windows, which is likely cheaper anyways.

    Companies that use RHEL will also factor in CentOS to the overall environment cost. A full complement of Dev/Testing/UAT/Prod with RHEL licensing is more expensive than the same deployment with Windows. Use CentOS for all or even a portion of those outside of production and RHEL becomes more cost effective.

  85. 5 million RHT shares are shorted by EzInKy · · Score: 1

    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.
  86. Re: It all by Mordaximus · · Score: 1

    Hell, when he came onboard he wouldn't (and never did) use Linux at all: instead he used a Mac, and so did the rest of the EMT (executive management team) over time. What company is run by people who refuse to use its own product except for one that doesn't have faith. The person on top of the BRAND AND PEOPLE team "needed" an iPad, she said, to do her work (quoting a friend in the IT dept who was asked to get it and set it up for her).

    Which year of "linux on the desktop" was this? Lots and lots of Linux shops don't run Linux on their Desktop systems. At least they opted for a UNIX. Similarly, what tablet does RH offer?

  87. A little reality here... by whitroth · · Score: 1

    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.

  88. Re:Well at least we'll still have Cent by Luthair · · Score: 1

    You're being pedantic.

  89. Remember what the acronym IBM represents... by JimboWTF1360 · · Score: 1

    I've Been Mislead

  90. Re:Well at least we'll still have Cent by lactose99 · · Score: 1

    Scientific Linux is already this and very similar to CentOS, owned/administrated by Lawrence Livermore Labs.

    --
    Fully licensed blockchain psychiatrist
  91. Re: It all by Joey+Vegetables · · Score: 1

    Hear, hear.
    Sorry. Can't do that. My system runs pulseaudio.

  92. Re: It all by slashdot_commentator · · Score: 1

    Disclaimer: I don't work for IBM, so I have no first hand clue whether anything I say here is accurate.

    People associate IBM from epic computing market leader to afterthought. So they conclude that because IBM isn't as valuable as Microsoft or Google, that their management must be fuckups. But that may not be the case.

    Computing was vastly different 2 to 3 decades ago. PCs only had a presence in large companies, and were extremely uncommon in the home. In this era, IBM was the biggest beast in the industry, because the industry was all mainframes and COBOL. For IBM to have grown in the computing market in that time period, they would have had to have been market leaders in the bleeding edge of consumer technology, and it wasn't their bailiwick. Its not that IBM did a Wang, and sat comatose while the PC ate their lunch. They saw themselves as a computing infrastructure company, and they chased developments that related to their industry, like SQL and cloud. They didn't do crappy consumer products.

    You can try to fault them for not going into those fields, but those fields started as entrepreneurial endeavors, and IBM didn't do startups. PC/internet startups are also unusual in that it took them an extremely short time to become large cap industry leaders (Google went from nobody to industry monopoly in less than 5 years.). In that instance, they are too "highly valued" to even be bought out. Its not like IBM became brokeass penniless; they are still the company to go to for computing infrastructure. They are also close to the same valuation they were 10 years ago; IBM just didn't become 1000x more valuable in that market segment. If you want to call IBM management incompetent, you can say the same for any large industrial company, like GE or GM. None of them went into the consumer computing field, like Microsoft, Apple, or Google.

    The only way IBM can fuckup RHEL is if they shitcan their current CEO/COO and force RHEL to behave and price their product/services like an industry monopoly that it is not. I think its unlikely they will do that. What IBM is doing now is converting what "little" capital they still have to acquire a business they have no footprint in. IBM is a computing services company now, but they behave in a manner that makes it extremely unlikely they will become leaders in cloud or netstorage or any other nascient computijng service likely to experience explosive growth. (Basically, they provide concierge computing services, and charge unsustainable, ridiculous prices for it.) In any case, IBM is not any more likely to fuckup their acquisition than what Oracle, Google, or Microsoft has done. (But oddly, IBM is tiny compare to the market valuations of the previous three.)

    --
    There is no America. There is no democracy. There is only IBM and AT&T and DuPont, Dow, General Electric, and Exxon
  93. Re: It all by golden_hands · · Score: 2

    My feelings exactly. As a former employee for both places, I see this as the death knell for Red Hat. Not immediately, not quickly, but eventually Red Hat's going to go the same way as every other company IBM has acquired.

    Red Hat's doom (again, all IMO) started about 10 years ago or so when Matt Szulik left and Jim Whitehurst came on board. Nothing against Jim, but he NEVER seemed to grasp what F/OSS was about. Hell, when he came onboard he wouldn't (and never did) use Linux at all: instead he used a Mac, and so did the rest of the EMT (executive management team) over time. What company is run by people who refuse to use its own product except for one that doesn't have faith. The person on top of the BRAND AND PEOPLE team "needed" an iPad, she said, to do her work (quoting a friend in the IT dept who was asked to get it and set it up for her).

    Then when they (the EMTs) wanted to move away from using F/OSS internally to outsourcing huge aspects of our infrastructure (like no longer using F/OSS for email and instead contracting with GOOGLE to do our email, calendaring and document sharing) is when, again for me, the plane started to spiral. How can we sell to OUR CUSTOMERS the idea that "Red Hat and F/OSS will suit all of your corporate needs" when, again, the people running the ship didn't think it would work for OURS? We had no special email or calendar needs, and if we did WE WERE THE LEADERS OF OPEN SOURCE, couldn't we make it do what we want? Hell, I was on an internal (but on our own time) team whose goal was to take needs like this and incubate them with an open source solution to meet that need.

    But the EMTs just didn't want to do that. They were too interested in what was "the big thing" (at the time Open Shift was where all of our hiring and resources were being poured) to pay attention to the foundations that were crumbling.

    And now, here we are. Red Hat is being subsumed by the largest closed-source company on the planet, one who does their job sub-optimally (to be nice). This is the end of Red Hat as we know it. Without 5-7 years Red Hat will go the way of Tivoli and Lotus: it will be a brand name that lacks any of what made the original company what it was when it was acquired.

    Don't worry, they will all be punished for this- they will now have to use Lotus Notes.

  94. Re: It all by IWantMoreSpamPlease · · Score: 1

    Where is the "+1 Terrifying" mod when you need it?

    --
    So rise up, all ye lost ones, as one, we'll claw the clouds.
  95. Re: It all by kenh · · Score: 1

    The evidence that supports claims of Russian collusion in the 2016 election don't point to the Republicans, but you knew that, right?

    One group involved in the 2016 election passed payments thru a law firm to an opposition research group to fund an investigation of a presidential candidate based *exclusively* on uncorroborated claims made by Russian operatives with ties to Putin Admin and paid for those stories with money from a presidential campaign.

    We've known for a year about Democrat payments to buy intel from Russian intelligence officers, we have yet to hear of evidence the trump campaign colluded with the Russians.

    It's been 8 years since Democrats held the House, 4 since they held the Senate - they lost both under the previous democrat administration. Maybe - MAYBE - Democrats will take the house, big whoop. That's what normally happens in a new administration's first midterm.

    --
    Ken
  96. Summary by DarthVain · · Score: 1

    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.

  97. Re: It all by slashdot_commentator · · Score: 1

    And all indications are that IBM is going to mostly leave Red Hat alone as an autonomous unit.

    In which case, IBM will still fail. IBM needs to bifurcate its money making hardware and services section (legacy concierge computing) out of its decision making and make some "big bets" on where they think they can create new computing markets. They're advancing technological research, but they're not converting it into a money making advantage.

    Microsoft tried to do this by laying bets (investments) on various market niches like gaming hardware, developer tools, and cloud, and then forced out Ballmer for a technologist who could better advance that agenda. They understand that desktop OS will eventually be a dead duck, and are now trying to convert their market advantage into all sorts of endeavors, primarily in cloud computing (Azure). Unfortunately, I think they're only looking to convert their business customer base towards their new "products", but at least they understand they need to provide value in order to create a stable new market.

    Google's response was to recognize that their search/advertising engine is mature, and they can't allow it to "interfere" with entrepreneurial efforts, so they separated their major startups outside of Google (Alphabet), and can now "budget/invest" in those startups entrepreneurially, while not affecting the share price of their butter and egg company Google. It would be nice to think that they will still enable Google to be a form of incubator and talent pool for new, internal endeavors, but that remains to be seen. (If only they could fix their horrible, clueless marketing and operations infrastructure.)

    IBM may have figured out that their current, money making operations is a dead duck, but they still have to figure out how to transition beyond it, and they'll have to make some big gambles for them to stay relevant. Gina Rometty strikes me as someone utterly unequipped to decisively lead that kind of transition. They can't dump 3 billion dollars to acquire Red Hat, and then expect to get their money back from customer leads and business "synergy". I sort of speculate that they will see Red Hat as leading their transition towards smaller businesses with larger overall market (the customers they currently can't attract), but it won't work without RHEL providing better value (and probably small margins). And its still a losing strategy; you grow market value by creating new markets, not finding ways to better monetize acquisitions.

    --
    There is no America. There is no democracy. There is only IBM and AT&T and DuPont, Dow, General Electric, and Exxon