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How Red Hat Decides Which Open Source Companies To Buy 20

Posted by Soulskill
from the putting-that-dartboard-to-use dept.
darthcamaro writes "You don't really buy an open source company — since the tech is all open. But then again, Red Hat 'buys' open source companies all the time, they just bought one this week. So when does it makes sense for Red Hat to buy a company versus just building it on their own? Apparently, it all comes down to community. 'When you buy an open source company, if the people aren't coming and passionate about staying then you spend a lot of money for what? Because you don't get a lot of intellectual property,' Red Hat CEO Jim Whitehurst said."
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How Red Hat Decides Which Open Source Companies To Buy

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  • by HarrySquatter (1698416) on Friday June 29, 2012 @05:37PM (#40499747)

    You don't really buy an open source company — since the tech is all open.

    What a dumb statement. Buying an open source company is buying their copyrights, possibly any patents they hold and getting to acquire their people.

  • by Anonymous Coward on Friday June 29, 2012 @05:47PM (#40499821)

    Absolutely. I won't speak of all that legal stuff, however the human capital of not just individuals well trained, but trained also in working well with their team is worth a LOT of money. It can take years to get that cohesion that comes from developing good work atmosphere and team familiarity. Getting a whole shop that has years of experience together is extremely valuable.

  • by Anonymous Coward on Friday June 29, 2012 @05:52PM (#40499857)

    Not to mention their customers, prospective customers, and the non-paying community of happy users who find and fix bugs, suggest enhancements, and spread the word about what a great product it is.

  • by rgbrenner (317308) on Friday June 29, 2012 @06:53PM (#40500347)

    Buying an open source company is buying their copyrights

    ^ This... plus.. you have to read between the lines of what red hat is saying.

    If a project has a large community, it is because they have a lot of users.

    Red Hat sells support.

    A large community == users to sell support to.

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