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Monday, April 10, 2006

Red Hat Buys JBoss

Red Hat buys Jboss in a 350 million dollar deal. After a near marriage with Oracle,which failed surprisingly on price considerations, comes the news of JBoss acquisition by Redhat.JBoss middleware along with the linux centric Redhat would form a combination to become a truly open source centric application server that would potentially compete with the likes of BEA, IBM & Oracle. The Common Bond of Open Source has brought these together more than anything else. Gartner predicts that the Application Integration and Middleware and Portal (AIM) markets for license revenue is preliminarily estimated to more than $6.5 billion in 2006. Together with Red Hat's proven portfolio of enterprise solutions, the combination, once consummated, is expected to help accelerate the shift to SOA by making innovative, powerful solutions available to developers and customers that seek to lower development and deployment costs.This acquisition is expected to accelerate enterprise adoption of open source infrastructure .The acquisition would be seen as revenue neutral for the combined entity assessed from an annual perspective. This could solidify the opensource grip on the lower end of the infrastructure gap. It would also be interesting to see what shape JBoss rules, Jboss Messaging, JBPM 3.1 takes in the days to come.

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