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IBM Closes Acquisition of Red Hat for $34B

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141–150 of 303 posts

Re: IBM Closes Acquisition of Red Hat for $34B

#141

IBM basically has control of all of Linux now. They've gotta love that sweet, sweet strategic leverage over the entire Web and cloud ecosystem.

Sarcasm? If not, I’d say Debian and Ubuntu still have a large market share and most Linux is still open source. Perhaps you mean Enterprise Linux?

Re: IBM Closes Acquisition of Red Hat for $34B

#142

So IBM buys Red Hat for $34B, of which $20B are borrowed monies. The debt is priced at 1.05 percentage points above Treasury yield rate [1] which would be somewhere around 3.5% which puts interest on bond debt at ~$700m every year. Now consider that Red Hat had a net income of $433m. Even if they reach $500 this year, Big Blue will still be $200m short, every year. At the moment, IBM is trading down at -0.5% on an ot…

Red Hat is an incredibly valuable property that didn't sell aggressively enough.

Just by pushing on it's customer base, IBM will make alot of money on Red Hat, both with new business and blowing up legacy junk at IBM.

Re: IBM Closes Acquisition of Red Hat for $34B

#143

IBM basically has control of all of Linux now. They've gotta love that sweet, sweet strategic leverage over the entire Web and cloud ecosystem.

Sarcasm? If not, I’d say Debian and Ubuntu still have a large market share and most Linux is still open source. Perhaps you mean Enterprise Linux?

I don't think he was being sarcastic. systemd came from Red Hat employees. It's now effectively everywhere, even in Debian and derivatives. This is not meant to be a systemd sucks rant, but if a distro is using systemd, and most do, they are using Red Hat-developed software, and a most critical piece at that. Gnome, the usual DE for enterprise Linux installs is heavily tied into systemd now. It goes on and on.

Re: IBM Closes Acquisition of Red Hat for $34B

#144

Earlier quoted context omitted.

I certainly don't want to argue or appear confrontational, but wanted to ask you this: Have there ever been any situations where the acquisition of a smaller company by a larger one has resulted in the smaller company remaining independent? Or has there been any positives for companies like Red Hat when they get bought? Usually I hear or read the positive-yet-bland press release talking about how wonderful this is, a…

I usually put it this way: "Name one company that was better after a merger." I've yet to find any affirmative answer. It's good to have hope, but it's not good to be unrealistic.

I bite: NeXT/Apple and Pixar/Disney. I wonder if RedHat management could take over IBM...

Re: IBM Closes Acquisition of Red Hat for $34B

#145

IBM basically has control of all of Linux now. They've gotta love that sweet, sweet strategic leverage over the entire Web and cloud ecosystem.

There is a lot of truth to this. Since Fedora is the upstream for Red Hat, and IBM historically kill off anything not making a profit, how long before this happens? I wonder if they'll split the two? Red Hat does "control" a disproportionate amount of Linux development. Everything is also now basically dependent on systemd. I'm seeing more and more IT guys I know move over to Free/OpenBSD because they don't like the…

The userland is absolutely not dependent on systemd _at all_. Have a look at Devuan, and you'll see that almost all of the userland remains exactly the same. See: https://unix.stackexchange.com/q/433159/34868

Re: IBM Closes Acquisition of Red Hat for $34B

#146

Earlier quoted context omitted.

Sarcasm? If not, I’d say Debian and Ubuntu still have a large market share and most Linux is still open source. Perhaps you mean Enterprise Linux?

I don't think he was being sarcastic. systemd came from Red Hat employees. It's now effectively everywhere, even in Debian and derivatives. This is not meant to be a systemd sucks rant, but if a distro is using systemd, and most do, they are using Red Hat-developed software, and a most critical piece at that. Gnome, the usual DE for enterprise Linux installs is heavily tied into systemd now. It goes on and on.

It's not in Devuan. With some community effort - that means _you_ - putting pressure on Debian to reverse their decision, it can go out of Debian, easily.

Re: IBM Closes Acquisition of Red Hat for $34B

#147

I don't doubt the committment of RH to Open source, but looking at IBMs rather chequered history with regards to how they look to minimize costs, there must be some concern that next time there's a bad set of results, executive management will be looking for cost savings. There are plenty of examples https://www.thelayoff.com/international-business-machines specific example related to RH https://www.thelayoff.com/t/Z…

As the very good comment above points out, IBM will need to cut costs very significantly regardless, as they've paid so much the interest on the debt is more than Red Hat makes.

They could easily make it up by cross selling to Red Hats consulting customers and likewise for Red Hat to IBM customers. They shouldnt have to gut Red Hat to extract additional value from an M&A. Plus other intangibles like access to talent and access to new markets in the future for both sides.

Cost cutting isn’t the only business strategy. Although one that modern (public shareholder driven) businesses became obsessed with since the 1980s.

Re: IBM Closes Acquisition of Red Hat for $34B

#148

IBM basically has control of all of Linux now. They've gotta love that sweet, sweet strategic leverage over the entire Web and cloud ecosystem.

There is a lot of truth to this. Since Fedora is the upstream for Red Hat, and IBM historically kill off anything not making a profit, how long before this happens? I wonder if they'll split the two? Red Hat does "control" a disproportionate amount of Linux development. Everything is also now basically dependent on systemd. I'm seeing more and more IT guys I know move over to Free/OpenBSD because they don't like the…

> Linux has become what it hated in Windows.

People have been claiming this for the past 20+ years that I've been working with Linux.

I'd take it with a grain of salt.

Re: IBM Closes Acquisition of Red Hat for $34B

#149
IBM now has control over systemd, and as other users here point out, also pulseaudio, dbus, gnome, wayland, and a significant share of kernel.

IMHO this is a good time for the Debian project to reconsider the decision to rely on systemd. If you also think so, consider letting them know.

Re: IBM Closes Acquisition of Red Hat for $34B

#150

Earlier quoted context omitted.

There is a lot of truth to this. Since Fedora is the upstream for Red Hat, and IBM historically kill off anything not making a profit, how long before this happens? I wonder if they'll split the two? Red Hat does "control" a disproportionate amount of Linux development. Everything is also now basically dependent on systemd. I'm seeing more and more IT guys I know move over to Free/OpenBSD because they don't like the…

The userland is absolutely not dependent on systemd _at all_. Have a look at Devuan, and you'll see that almost all of the userland remains exactly the same. See: https://unix.stackexchange.com/q/433159/34868

Devuan is but one fork among many. It has zero traction in the enterprise space. Devuan, Gentoo, et al, are niche players. While their userlands may be "pure", they represent a minuscule fraction of Linux users.

And yes, systemd is a dependency for quite a few userland programs. Here is one of the best articles I've read on why systemd is really bad.

https://chiefio.wordpress.com/2016/05/18/systemd-it-keeps-ge...

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