United States, April 30, 2001

IBM and Red Hat team up to deliver Linux solutions to small and midsized businesses through the business partner network

Red Hat and IBM today launched a joint channel programme - the first IBM partnership on a joint channel strategy with a leading Linux company. This enables Value Added Resellers (VARs) to deliver Red Hat Linux-configured IBM eServer xSeries platforms directly to customers as plug and play e-business application servers. Reflecting demand from SMBs in particular for Intel-based infrastructure systems, the partnership combines the strengths of the two technology leaders to enable organisations investing in e-business to confidently choose a Linux solution.

The programme, 'red on blue', enables IBM business partners to take advantage of the expanding Linux server operating system market. According to IDC research, Linux was the fastest growing server operating system in 1999-2000, increasing its market share to 27 percent compared to 25 percent in the previous year, and this trend is forecast to continue. VARs involved in the programme will be able to offer certified eServer xSeries hardware with Red Hat Linux 6.2, 7.0 or 7.1. The reseller can then configure the system to provide the required Internet server platform, whether Internet gateway, firewall or web server. These configurations are fully certified and are backed by a 12 month support package from Red Hat. The programme also benefits the business partners through comprehensive training and services, including IBM/Red Hat certified configuration training, sales and marketing assistance and professional support.

"Many companies are reassessing their IT systems to take advantage of Internet and e-business opportunities," said Colin Tenwick, VP and General Manager for Red Hat in Europe. "Where total cost of ownership is a critical factor - particularly in small and medium-sized businesses - companies are turning to Linux for a stable and secure, yet low-cost, platform for their Internet applications. Red Hat's open source innovation with IBM's leading technology enables resellers to meet the increasing demand with an affordable, business-ready solution."

"When an organisation takes its first steps towards e-business, it needs to know that its IT will be able to accommodate future growth," said Erich Clementi, VP IBM Enterprise Server Group. "Extending our relationship with Red Hat will enable our business partners to deliver proven and secure entry-level technology solutions to customers. And because it is powered by Linux on IBM eServers, customers will be able to build a future-proof infrastructure that delivers seamless e-business computing throughout their organisation."
The programme is currently being rolled out across Europe, with plans to extend it on a worldwide scale. The IBM and Red Hat tested configurations include:

IBM eServer xSeries and Red Hat Internet Gateway:
A configuration which combines the security of Red Hat Firewall with the services of proxy and cache to provide a total Internet solution.

IBM eServer xSeries and Red Hat Linux Web Server:
A pre-configured platform for the deployment of web solutions/applications.

IBM eServer xSeries and Red Hat Linux Firewall Server:
A firewall server providing data and information security which can be integrated into the underlying e-business systems infrastructure.

IBM eServer xSeries and Red Hat Linux File and Print Server:
A platform for the delivery of file and print services across a multi-vendor hardware and software infrastructure.

For more information about the joint channel programme, please visit






About IBM eServer

IBM is the number one server vendor in the world. For more information, visit the IBM servers Web site at

For more information relating to Linux at IBM, please visit


About IBM eServer xSeries

The eServer xSeries is IBM's line of scalable industry-standard, Intel-based servers that enable customers to confidently run their e-businesses. The xSeries leverages IBM's x-architecture leadership to to provide highly scalable servers for multiple operating environments incorporating the latest mainframe technologies at the right price for customers of all enterprises.


About Red Hat, Inc.

Red Hat is the leader in developing, deploying and managing solutions built on the benefits of an open source platform. These solutions include an open source product platform for devices to mainframes, a complete end-to-end set of Professional Services, and the Red Hat Network as the Internet-based backbone for deployment and management of the products and services. Red Hat's open source platform includes the award-winning Red Hat Linux operating system platform, the Interchange e-Commerce platform, Stronghold Secure Web Server, Credit Card Verification software, High Availability Server, GNU-based developer toolkit for embedded development and embedded run-time Linux, eCOS and RedBoot solutions.

Red Hat backs up their open source offerings with end-to-end services that include: Red Hat Professional Consulting focused on multiplatform infrastructure and engineering services; Red Hat Engineering services for software development and porting of the operating system and for embedded platforms and devices; Red Hat Enterprise support services for installation services and Web and telephone support and Red Hat Learning services for Linux certification (RHCE) and courses for Apache, Embedded systems, Advanced Developer and e-Commerce. Red Hat Network provides Red Hat's unique managed services capability to deploy and manage open source products, services, support and management information on-line in real-time to more cost effectively and reliably maintain open source-based solutions.

Red Hat is headquartered in Research Triangle Park, N.C. and has offices worldwide. For investor inquiries, contact Gabriel Szulik at Red Hat, +1-919-547-0012.

Red Hat Europe was established in July 1999 with its European headquarters based in Surrey, United Kingdom and offices throughout Europe. Red Hat Linux is sold and supported through a number of major distribution and industry partners throughout Europe and from


LINUX is a trademark of Linus Torvalds. RED HAT is a registered trademark of Red Hat, Inc. The IBM logo and eServer xSeries are trademarks of IBM Corporation. All other names and trademarks are the property of their respective owners.


Forward-looking statements in this press release are made pursuant to the safe harbour provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this press release that are not strictly historical statements, including, without limitation, management's plans and objectives for future operations, and management's assessment of market factors, constitute forward-looking statements which involve risks and uncertainties. These risks and uncertainties include, without limitation, Red Hat's dependence on the continued development of the Linux kernel, and the contribution of key individuals within the Linux community who are not associated with Red Hat, reliance upon strategic relationships, management of growth, the possibility of undetected software errors, the risks of economic downturns generally, and in Red Hat's industry specifically, the risks associated with competition and competitive pricing pressures, the viability of the Internet, and other risks detailed in Red Hat's filings with the Securities and Exchange Commission, copies of which may be accessed through the SEC's Web site at