Red Hat will be acquired inevitable

U.S. investment firm Jeffries analyst Katherine Egbert said that despite facing many problems - the competition from Oracle, the acquisition rumors and economic weakness, Linux software vendor Red Hat seems to be very "soft." However, the long term, Red Hat will be the acquisition of big companies - the most likely acquirer is IBM. According to foreign media reported that Egbert said in a report, an analysis of investment in Red Hat's short-term and long-term prospects. She pointed out that the short term, in the context of economic slowdown, Red Hat Enterprise Linux and Jboss very strong demand, sales to government agencies will also stimulate the growth of sales of Red Hat. Market research firm Piper Jaffray analyst Mark Murphy also made a point of view the same report. Murphy of 70 Red Hat customers survey found that, Red Hat is increasing market share. Red Hat very good performance. Wall Street expected, as at the end of May of this year's first quarter, Red Hat earnings per share of 14 cents, revenues of 171.7 million U.S. dollars. Red Hat performance but there are also a number of variables, which is Oracle's largest acquisition of Sun, Oracle, Red Hat will continue to support the product? Although Oracle CEO Larry Ellison said publicly that the company will continue to support Red Hat Enterprise Linux, Red Hat-house filled with such a sentiment: Open Solaris Oracle to pay more attention instead of Red Hat Enterprise Linux is inevitable, because Oracle will "protect" Solaris to maintain the business revenue. It is estimated that, Red Hat one-third of new business from Unix to Linux migration. Red Hat is facing the danger is that Oracle will provide customers with attractive terms to enable them to continue to use Solaris. Egbert said, "taking into account the Red Hat Enterprise Linux on the importance of data centers, we believe that Red Hat has been a major acquisition is inevitable - and may be IBM. Red Hat's main reason for success is that its software is relatively cheaper, Unix software, the ability to easily migrate to Linux class. Red Hat is not a large company, there is no ability to lock customers. the majority of customers will be regarded as Red Hat Enterprise Linux is to break the monopoly of the tools for large-scale manufacturers. Oracle after the Sun acquisition, Red Hat will have to face two Big Mac-style competitors, their pricing has infinite potential, we believe that Red Hat and Oracle will become more and more difficult competition. " Oracle can provide low-cost hardware / software combination, a high discount, so that customers continue to use or migrate to Open Solaris, and even paid to customers, not allow them to use RHEL to get Solaris to maintain a stable income. Red Hat has a great need for a price of capacity, good customer relations, a large number of data center business partners, against Oracle / Microsoft threat, IBM was appropriate. IBM to help Red Hat to resist the threat of Microsoft and Oracle. IBM to buy Red Hat is the importance of: IBM to bundle Red Hat Enterprise Linux; Jboss with Websphere complementary; IBM can benefit from Red Hat's development community; IBM can be applied to all levels of the operating system infrastructure and virtual tools; soft / hardware bundle is increasingly becoming a trend, Red Hat to IBM to provide more software tools.