Monday, April 10, 2006

Red Hat agrees to buy open-source upstart (FT)

The fast-growing open-source software industry took a big step towards the mainstream on Monday as Red Hat, the biggest distributor of the Linux computer operating system, agreed to buy upstart JBoss for up to $420m.

The acquisition creates the first open-source company able to offer a broad array of the so-called “infrastructure” software on which corporate IT systems are based. As such, it could pose a long-term challenge to companies like Oracle, IBM and Microsoft, all of which sell traditional commercial alternatives, said Rick Sherlund, software analyst at Goldman Sachs.

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