Biggest Linux Company of Them All Still Pushing To Become Cloud Power
An anonymous reader shares a report: For Red Hat, which turned 30 on March 27, it was a cause for celebration. From a business that got started in one of its co-founder's wife's sewing room, it became the first billion-dollar pure-play open-source company and then the engine driving IBM. It has been a long strange trip. Sure, today, the tech world is dominated by Linux and open source software, but in 1993, Linux was merely an obscure operating system known only to enthusiasts. Red Hat played a significant role in transforming the "just a hobby" operating system into today's major IT powerhouse. Red Hat co-founder Bob Young, who previously ran a rental typewriter business, was one of those who became intrigued by Linux. In 1993, he established ACC Corporation, a catalog company that distributed Slackware Linux CDs and open-source software. [...] In 2003, Paul Cormier, then Red Hat's vice president of engineering and now the company's chairman, spearheaded the shift from the inexpensive prosumer Red Hat Linux distribution to the full business-oriented Red Hat Enterprise Linux (RHEL). At the time, many Linux users hated the idea. Even inside Red Hat, Cormier said that many engineers were initially opposed to the new business model, causing some to leave the company while others stayed. The change also upset many users who felt Red Hat was abandoning its original customers. However, enterprise clients had a different perspective. Whitehurst, who became Red Hat CEO in 2008, said, "Once RHEL was in the market, we had to fully support it to make it truly consumable for the enterprise." They succeeded, and Red Hat continued to grow. This is the model that turned Red Hat into the first billion-dollar-a-quarter pure open-source company. Impressive for a business built around an operating system once considered suitable only for the "lunatic fringe." Then, in 2018, IBM acquired Red Hat for a cool $34 billion. There was nothing crazy about that move. [...] Another change that was already present in Red Hat, a shift towards supporting the cloud, has accelerated. Today, while RHEL remains the heart of the business, the Linux-powered cloud has become increasingly important. In particular, Red Hat OpenShift, its Kubernetes-powered hybrid cloud application platform, is more important than ever. Where does Red Hat go from here? When I last talked to Cormier and Red Hat's latest CEO, Matt Hicks, they told me that they'd keep moving forward with the hybrid cloud. After all, as Cormier pointed out, "the cloud wouldn't be here" without Linux and open source. As for Red Hat's relationship with IBM, Cormier said, "The red lines were red, and the blue lines were blue, and that will stay the same."
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