4 ms·
I don't doubt the committment of RH to Open source, but looking at IBMs rather chequered history with regards to how they look to minimize costs, there must be
by raesene9 7y ago
I don't doubt the committment of RH to Open source, but looking at IBMs rather chequered history with regards to how they look to minimize costs, there must be some concern that next time there's a bad set of results, executive management will be looking for cost savings.
There are plenty of examples https://www.thelayoff.com/international-business-machines https://www.thelayoff.com/international-business-machines
specific example related to RH https://www.thelayoff.com/t/ZJ4vNfo https://www.thelayoff.com/t/ZJ4vNfo
TBH I hope I'm wrong and that IBM corporate leaves RH alone long term, but that's not the general trend with acquisitions...
- Mindwipe 7y agoAs the very good comment above points out, IBM will need to cut costs very significantly regardless, as they've paid so much the interest on the debt is more than Red Hat makes.
- dmix 7y agoThey could easily make it up by cross selling to Red Hats consulting customers and likewise for Red Hat to IBM customers. They shouldnt have to gut Red Hat to extract additional value from an M&A. Plus other intangibles like access to talent and access to new markets in the future for both sides. Cost cutting isn’t the only business strategy. Although one that modern (public shareholder driven) businesses became obsessed with since the 1980s.
- sumoboy 7y agoI give IBM two quarters before they start layoffs regardless how RH performs.