IBM and Red Hat Collaborate to Deliver E-Business Software Solutions for Linux

San Jose

United States, August 15, 2000

IBM and Red Hat To Market, Distribute and Support Bundled Offerings

IBM Corporation (NYSE: IBM) and Red Hat, Inc. (NASDAQ: RHAT) today announced an agreement that will enable, for the first time, a commercial Linux* developer to bundle all of IBM's Linux-based software into e-business solutions.

Through the far-reaching collaboration, IBM and Red Hat will jointly market, distribute and support bundled IBM, Lotus, Tivoli and Red Hat software offerings. IBM will provide the software for Red Hat Linux** solutions through products such as IBM DB2*** Universal Database, IBM WebSphere*** family of e-business servers, Lotus Domino***, Tivoli Framework***, and IBM's Small Business Pack for Linux.

The agreement is unique for both companies in two respects:

  • This marks the first time that Red Hat and IBM will embrace and promote each other's Linux offerings providing both enterprise and small-business solutions for its customers worldwide.
  • Through a first-of-a-kind comprehensive marketing agreement, IBM and Red Hat will jointly fund marketing and channel recruitment and enablement efforts focused on IBM/Red Hat solution bundles for the worldwide Linux market.

"We are delighted that Red Hat has embraced IBM software for building e-business solutions for our mutual customers," said Steve Mills, general manager, Solutions and Strategy, IBM Software. "By working together and having the breadth of software available for Linux from IBM, Lotus, Tivoli and Red Hat, we can offer customers more choices for complete e-business solutions faster and with global availability and support."

Initially, Red Hat will sell Red Hat Linux and Red Hat services bundled with IBM software such as DB2, WebSphere Application Server, Lotus Domino and the IBM Small Business Pack for Linux. The agreement allows Red Hat to use any IBM, Lotus or Tivoli software available on Linux in future solutions. These complete e-business and Internet solutions will be available through Red Hat's online marketplace at redhat.com, beginning September 1, 2000. IBM and Red Hat will work jointly to enable channel partners to sell these solutions. Additionally, IBM intends to sell these same solutions through its "ShopIBM" Web site.

The announcement extends and strengthens the relationship between Red Hat and IBM that began in early 1999, when IBM led the industry in announcing support for Red Hat Linux. Since then, the two companies have worked closely on several projects designed to advance the adoption of Linux and open source software.

"The past year has seen an accelerating pace of development that signals wide customer acceptance of open source software and Linux into mainstream computing," said Matthew Szulik, chief executive officer, Red Hat, Inc. "This agreement is perhaps one of the most significant developments so far. IBM is the gold standard for computing. With Red Hat and IBM working together to develop and market e-business solutions for Linux in enterprises around the world, and with IBM now selling Red Hat Linux with its products, it's clear that open source software is fully capable of handling critical business computing needs."

Linux momentum
According to International Data Corp. (IDC) research, paid Linux shipments grew faster than any other server operating system over the past two years. Figures for 1999 show Linux shipments held 24.6 percent of the server operating system market, up from 15.8 in 1998.

Research firm Netcraft, Inc. (www.netcraft.com) states that as of May 2000, 30 percent of all public Web sites run on Linux-based operating systems, making Linux the most popular choice for deploying public Web sites. IDC research shows 40 percent of all spending on Linux servers is for Internet-related applications, firmly entrenching Linux servers in the Internet infrastructure.

There is no default locale or translation available for this content.

About Red Hat, Inc.

Red Hat, the world's leading open source and Linux provider, is headquartered in Raleigh, NC with satellite offices spanning the globe. Red Hat is leading Linux and open source solutions into the mainstream by making high quality, low cost technology accessible. Red Hat provides operating system software along with middleware, applications and management solutions. Red Hat also offers support, training and consulting services to its customers worldwide and through top-tier partnerships. Red Hat's open source strategy offers customers a long term plan for building infrastructures that are based on and leverage open source technologies with focus on security and ease of management. Learn more: http://www.redhat.com

Forward-Looking Statements

Forward-looking statements in this press release are made pursuant to the safe harbor 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, 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 http://www.sec.gov.

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