Reply to post: Re: But *Why* did they buy them?

Official: IBM to gobble Red Hat for $34bn – yes, the enterprise Linux biz


Re: But *Why* did they buy them?

"I'm still trying to figure out "why" they bought Red hat."

What they say? It somehow helps them with cloud. Doesn't sound like much money there - certainly not enough to justify the significant increase in debt (~US$17B).

What could it be then? Well RedHat pushed up support prices and their customers didn't squeal much. A lot of those big enterprise customers moved from expensive hardware/expensive OS support over the last ten years to x86 with much cheaper OS support so there's plenty of scope for squeezing more.

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