Red Hat, Rackspace higher following report of Red Hat/Dell partnership

AllThingsD reports Red Hat (RHT +1.3%) will announce a major cloud infrastructure (IaaS) partnership with newly-private Dell later today that revolves around Red Hat's OpenStack IaaS offerings. Red Hat has moved higher, and so has major OpenStack supporter Rackspace (RAX +7%).

Dell and Red Hat, who already have a long-standing Linux partnership, will reportedly "develop an enterprise-grade version of OpenStack" based on the new Havana release. Dell will sell systems featuring Red Hat's OpenStack software, and provide related services.

Such a tie-up would help Dell counter rivals such as H-P and IBM, who have aggressively rolled out and/or acquired IaaS platforms. It would also help Red Hat gain IaaS share as it contends with tough competition from Amazon and a slew of smaller players.

While Amazon towers over the public cloud IaaS market, the Red Hat/Dell solution would focus on enabling private/hybrid cloud deployments. Microsoft and VMware (among others) provide direct competition in this space.

Red Hat's FQ3 report arrives on Dec. 19.

Update: Dell and Red Hat have made their partnership official. Red Hat has given up its early gains, but Rackspace remains sharply higher.

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Comments (2)
  • omarbradley
    , contributor
    Comments (966) | Send Message
    Redhat is a Linux product as i recall...thus representing another "unique take" on the advantages of rolling out a cloud infrastructure...namely not being tied down to one operating system. not only that but Linux is open source so in theory could represent a threat to Google's Android operating operating system that could be quite hard to "lever up" relative to the commercial "cloud" infrastructure space. this is not true with Linux...and offshoot of AT&T's unix based software platform.
    12 Dec 2013, 11:28 AM Reply Like
  • don'tbugmeplease
    , contributor
    Comments (183) | Send Message
    Linux is a kernel, not an operating system. Android is built on that Kernel, so is RedHat. Android is a "linux product" as much as redhat is.
    12 Dec 2013, 11:35 AM Reply Like
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