New Red Hat collaborations with SAP and Oracle may benefit owner IBM

Red Hat has had a successful week, as has IBM, the organisation that owns it. Red Hat entered into two partnerships this week, one with Oracle and the other with SAP.

These are some major players, and if it leads to additional Red Hat Enterprise Linux (RHEL) deployments, IBM may benefit greatly.

Let's start with Oracle, which, to be completely honest, makes for some odd bedfellows. However, the client wants what the client wants. According to Constellation Research analyst Holger Mueller, who believes the merger benefits both firms, Oracle may have catered to user demand.

“For Oracle it’s all about offering customers choice. And this allows customers to bring their Red Hat workloads to Oracle. For IBM customers, it means one more supported cloud.”

According to the business, SAP is expanding an existing agreement by transferring some of its internal workloads to operate on RHEL. According to SAP, the alliance would enable it to better effectively manage modern workloads, including RISE, its cloud-based ERP application. The ultimate objective is to make it easier for SAP clients to operate in a hybrid cloud environment.

These transactions have the potential to raise Red Hat revenue at a time when IBM is depending more than ever on it to boost its revenues, which is something IBM has been relying on Red Hat for. IBM revealed $16.7 billion in revenue in its most recent earnings report, which was released last week. Although it remained flat, the corporation had been experiencing negative sales growth for many years and had once reported 22 consecutive quarters of decline.