IBM just gobbled Red Hat for USD$34Bn or at USD$190 per share out of a market valuation of USD$116.
When I attended SUSECon 2014 IBM was there showing their System Z running SUSE tailored for SAP. The niche market for System Z and SAP is the financial and banking industry. But also in SuseCon I could see how companies were looking to run their aging and expensive AiX and System Z systems in commodity Hardware and OS.
Now with IBM acquiring Red Hat they have a strong OS, Virtualization, and Cloud offering that was missing on the IBM portfolio, filling that gap and fulfilling that need to their clients.
For SUSE who ported their system to PowerPC and Z architectures, is that effort lost? Still they are the only certified Linux to run SAP.
Now the real loser here is Oracle. They have been selling their “Oracle Unbreakable Linux” which was no more than a branded Red Hat 5. This acquisition is a death knell hit for Oracle, who now doesn’t have any OS offering to run their Database.
On the cloud front, in Red Hat Summit 2018, Red Hat was announcing new partnerships with Microsoft Azure and Google Cloud. How will this play with Big Blue entering the Cloud ecosystem?
I still have mixed feelings for this acquisition, and the Red Hat Summit 2018, which I attended, shall go down in history as the last independent Summit.
How will the spirit of Open-source, and collaboration that poured out of the Red Hat Keynotes play with Big Blue?
Only time will tell.