In the context of the software industry, partnerships are incredibly important because they create a sales network for both companies. They also help to cement customer relationships and give both firms a chance to share their expertise with each other. This is good news for Red Hat, as it strengthens its competitive position against Oracle and SAP.
Oracle has always been a company known for its databases, but lately they’ve been branching out into other areas as well. This particular deal is a win-win for both Oracle and its customers, who are now able to get their hands on Oracle’s products in an even more versatile way.
IBM’s acquisition of Red Hat will give IBM customers one more supported cloud option, providing them with greater choice in their IT infrastructure. Oracle is also reported to be interested in acquiring Red Hat, giving its customers even more options for running their workloads.
Oracle’s decision to make its own Linux distribution signals the company’s desire to gain a greater foothold in the cloud-based corporation market. With Microsoft and Google leading the way in this area, Oracle wants to be sure that it can provide its customers with the best possible software options.
RHEL is popular among large, enterprise-oriented organizations because of its robust security and management capabilities. SAP’s decision to move some of its internal workloads to RHEL lends credence to this claim, as it suggests that RHEL is well-suited for running modern enterprise applications.
This move by Red Hat is likely to make life a lot easier for SAP, who have been struggling to find a Linux replacement for their existing SUSE installation. Mueller says that the two companies share a “strong relationship” and that the team of engineers available from Red Hat will be keen to help out with implementation and interoperability issues.
IBM’s reliance on Red Hat to bolster its financial standings has not gone unnoticed by the software giant. In a most recent earnings report, IBM reported flat revenue, but this could wind up being a positive moving forward due to deals struck by IBM and Red Hat in recent months. The two companies have teamed up to create an assortment of new products that aim to boost each other’s revenues. With IBM counting on Red Hat more than ever, these deals are sure to boost both companies’ bottom lines in 2017.
CEO Arvind Krishna’s plan is to grow the company over time with a slow, but steady approach. Revenue from outside the U.S. was stronger than expected in 2016, and the CEO is optimistic about the future prospects of the company. While it may not be as rapid as some investors would like to see, Krishna believes that 6% growth overall is achievable over time if governance and performance standards are met
IBM’s acquisition of Red Hat has been a resounding success for Big Blue. The investment has paid off in terms of revenue growth, as Red Hat had revenue up 10% and translated into 15% in constant currency in the most recent report. IBM continues to analyze how best to use the capabilities of Red Hat’s semi-autonomous software within its own organization, while also looking out for other businesses that may benefit from this type of software.
One of the key factors contributing to Skype’s recent success is their partnership with Microsoft. The new deals announced today will give developers even more opportunities to build applications using Skype’s messaging platform and help increase revenue in the coming quarters.
