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Thread: How profitable is selling linux?

  1. #1
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    Default How profitable is selling linux?

    https://finance.yahoo.com/news/ibm-n...180812533.html

    IBM is paying $34B for Redhat Linux.

    ??????????
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    What I wonder is... How profitable is reliably servicing Linux installations?

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    They may turn Red Hat Linux into the official replacement for AIX (IBM's version of UNIX), which was last updated in 2015.

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    Quote Originally Posted by Unknown_K View Post
    https://finance.yahoo.com/news/ibm-n...180812533.html

    IBM is paying $34B for Redhat Linux.

    ??????????
    Linux itself is not profitable, support and services is, quite a bit actually.

    But this purchase is interesting for more reasons than that. RHEL/CentOS runs just about the entire internet, there are few enterprises out there that are not using it (similar to how Debian/Ubuntu have the lion share of the desktop Linux market). So this purchase would makes IBM very much relevant again, and it could mean a re-emergence of IBM hardware running the world again. It'll be very interesting how this acquisition would change the server and enterprise landscape.

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    I would say their bid price tells us a lot of just how badly they want to acquire Red Hat. A premium price of 63% is almost unheard of, even in very hostile takeovers. This was friendly. IBM is trying to reinvent itself and I would estimate that Red Hat's brand and service model/revenues are just the sort thing they want/need to add to their portfolio if they are going to survive.

    I'm of two minds about this deal. On the one hand, I feel sorry for the folks at Red Hat who are going to discover that IBM's culture is not Red Hat's and a collision is will be imminent in the not too distant future. On the other hand, the fact that Linux has displaced almost every proprietary version of UNIX pleases me to no end. AIX and Solaris were basically the last hold outs and I predict both will be gone in the next 20 years. The idea that a product could be developed by and for an entire ecosystem of users to be used in whatever purpose they need is extraordinary. I've never regretted my first installation of Slackware 3.0 and have never looked back.

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    Quote Originally Posted by vwestlife View Post
    They may turn Red Hat Linux into the official replacement for AIX (IBM's version of UNIX), which was last updated in 2015.
    I think that is very unlikely. AIX started to align itself with Linux with AIX 5L (in 2001), with it's "Linux Affinity" model. And it got more "compatible" with each version. But at the same time AIX moved in a different direction, with focus on clusters and partitioning (of various kind of resources). They're probably buying RedHat to try to "own" the cloud part of what their customers are using.

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    Quote Originally Posted by lutiana View Post
    Linux itself is not profitable, support and services is, quite a bit actually.

    But this purchase is interesting for more reasons than that. RHEL/CentOS runs just about the entire internet, there are few enterprises out there that are not using it (similar to how Debian/Ubuntu have the lion share of the desktop Linux market). So this purchase would makes IBM very much relevant again, and it could mean a re-emergence of IBM hardware running the world again. It'll be very interesting how this acquisition would change the server and enterprise landscape.
    I can see red hat becoming more cloud orientated knowing how IBM does things. Just about everything I see form them in the is more cloud orientated.
    Still the idea of IBM becoming more mainstream with servers and workstations would be nice. Can't see this happening however.
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    That's what several observers believe--IBM has foundered a bit in the area of cloud-based services and RH is a way forward.

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    Dare we hope that this leads to the de-systemd-ing of the Great Fedora-ed Satan?
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  10. #10

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    Quote Originally Posted by commodorejohn View Post
    Dare we hope that this leads to the de-systemd-ing of the Great Fedora-ed Satan?
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