Red Hats planned acquisition of open-source server provider JBoss - announced last week - puts the Linux vendor on a collision course with two of its most important partners, Oracle and IBM, an analyst has said.
The Goldman Sachs report says the dominance Red Hat Linux among North American business users along with the coming purchase of JBoss a rumoured acquisition target of Oracles is now stirring the two large enterprise software vendors out of their on-the-sidelines stance.
The JBoss acquisition is a catalyst event, signalling a fundamental market repositioning for Red Hat and recent comments from Oracle confirm our concern that Oracle now views Red Hat as a competitor, wrote Rick Sherlund, a Goldman analyst.
IBM and Oracle had long supported Linux as a way of combating Solaris Unix vendor Sun and the rising, lower-cost player, Microsoft. But doing so helped launch Red Hats logical ambitions to start acquiring related technologies to offer all-in-one packages, which corporate customers prefer, wrote Sherlund.
He also predicted that Red Hat will buy an open-source database and/or tools applications to round out its offerings.
The report follows an interview today in the Financial Times where Oracle chairman and CEO Larry Ellison disclosed his ambitions to either build or buy a Linux distributor as the foundation of a complete stack of open-source infrastructure software. Ellison said he considered buying Novell, but not Red Hat because it was too expensive.
The combination of the Goldman report and Ellisons comments hit Red Hats stock price, which fell more than 7 percent in mid-afternoon trading. The company still has a market capitalisation of about US$5 billion, versus about $3 billion for Novell.
Besides Novells SUSE Linux, other distributions of Linux that Sherlund named as potential Oracle targets include Debian and Ubuntu.