Red Hat and JBoss: The Good, the Bad, the Ugly

 
 
By Steven Vaughan-Nichols  |  Posted 2006-04-10
 
 
 
The news has hit the Linux world like a thunderbolt--two of the biggest names in open source were coming together. Red Hat was acquiring JBoss. What does this deal really mean?

As Scott Donahue, a VP for technology analyst firm The 451 Group, said, "The acquisition comes as a bit of a surprise."

What was really surprising, though, was that Red Hat was the company doing the buying.

"Red Hat did not seem like a likely buyer on many fronts ranging from the relative small size of Red Hat, to their cash position, to cultural differences," said Donahue.

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Still, the deal will "significantly expand Red Hats portfolio beyond its core Linux server market, create revenue and earnings upside, and help solidify the company as the primary commercial open source software."

According to Tim Yeaton, Red Hats senior VP of Enterprise Solutions, the deal was something of a surprise to Red Hat as well.

The companies had only been "working together on the deal for several weeks," said Yeaton. Of course, "the companies have had a working relationship for years," he added.

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Its also a deal that makes a great deal of sense to the analysts.

Read the full story on Linux-Watch: Red Hat and JBoss: the good, the bad, the ugly

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