Red Hat grabs JBoss for US$350m

Linux software firm Red Hat announced last week it would buy open-source vendor JBoss in a US$350million deal that it claimed would pave the way for next generation web-based applications running on open source platforms.

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By  Diana Milne Published  April 16, 2006

Linux software firm Red Hat announced last week it would buy open-source vendor JBoss in a US$350million deal that it claimed would pave the way for next generation web-based applications running on open source platforms. The combination of two of the most high-profile open source companies shows the growing importance of the open source movement to the business software market. The two firms have similar business models, with products available for free download and corporate customers offered subscription support services. The acquisition will give Red Hat a suite of open source Java middleware, which will complement its Linux distribution products. Both companies are committed to advancing open source software and believe the acquisition will accelerate the shift towards service-orientated architecture (SOA) and enterprise adoption of open source infrastructure. “It is at Red Hat’s very core to help unlock the power of open source and open communities to innovate across industries, geographies and economies,” said Matthew Szulik, chairman and CEO of Red Hat. “Red Hat and JBoss are fully aligned around the belief that the open source development model continues to change the economics of enterprise IT in favor of the customer, and we truly believe in the potential of software innovation, once freed from the fetters of proprietary development,” he added. Marc Fleury, CEO of JBoss said that its customers were increasingly standardising their infrastructures on open source technologies and that they are seeking a stable global open source vendor to support them. The acquisition will enable Red Hat to better compete with larger and more established software corporate software companies, analysts said last week. Firms such as Micro- soft, IBM, Oracle and Sun Microsystems are also trying to build similar “stacks” of infrastructure products, supported with a strong partner network.

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