IBM to Sell Red Hat’s Linux Software
Associated Press
Red Hat Inc. has formed a partnership with computer giant IBM Corp. under which the Linux company will strike up a cozier relationship with Big Blue’s hardware, services and software divisions, the companies said.
Under the alliance, Red Hat’s new and more expensive software, called Red Hat Advanced Server, will be sold by IBM’s consulting division and run across four lines of IBM servers and mainframes.
In trading on Nasdaq, shares of Red Hat were at $5.84, up 59 cents, or 11%. IBM shares were down 18 cents to $72.32 on the NYSE.
The agreement addresses what has become a troubling issue for the 8-year-old Red Hat: how to make money on the Linux operating system, which is essentially available free on the Internet.
