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Yeah, like if there's a contract between them or a regular amount of spending, that's an amount of money that IBM's saving each year, but that's also money that
by jedimastert 7y ago
Yeah, like if there's a contract between them or a regular amount of spending, that's an amount of money that IBM's saving each year, but that's also money that RedHat won't be earning each year. I don't know how important, percentage-wise, that number would be for either side. I imagine any amount of money would be a far bigger deal for RedHat than IBM.
- aksss 7y agoWell, it's a bit like renting an apartment vs paying down a mortgage, right? On the books they (IBM) will almost certainly still be paying the subsidiary (RH), and the subsidiary will still record and report the revenue. But IBM is now building equity with its payments up at the consolidated reporting level rather than shoveling the cash out the window.