Red Hat

“IBM is still around because they went and bought Red Hat and HashiCorp, and now they're buying Confluent.”

“To back all this effort, we've actually created an open source project called Agency. And this, you know, became a Linux Foundation project with the backing of a few large formative members. Google, Oracle Red Hat were with us and Dell as well.”

“You know, you see this content, like, oh, I built a SaaS company and, you know, Three hours with four prompts. Like, that's just not gonna make it in a place like Red Hat, right?”

“Vercel maybe has not invented this, but certainly kind of is the most successful at a model where you say, okay, I have this software library and it's truly open source. Everyone can run it. It comes with like adapters for every place on the planet, and that m…”

“I just think you're gonna see, just like you saw Kimmy and Zipu pop up. I wouldn't be shocked if you see other new entrants pop up that are trying to be like sanctioned or, you know, cleaned, you know, use Red Hat as an example, Sonny version of these things, …”

“They sold this enterprise search deal to Red Hat for 20,000 dollars.”

“And I would expect there to be even more in AI. We'll have kind of like the MongoDB, the Elastic, the Red Hat of AI, which are going to be like open source AI, AI companies.”

“And then you fast forward to 2010 and 2020, and you find that, ah, you know, Red Hat is only 10% Of valuations. Valuations today of open source based companies are close to 300,000,000,400 billion, and climbing.”

“We thought there was one example of a good one, which was Red Hat, but there weren't many other examples that were doing well, and now we've seen Red Hat, you know, also, you know, did not survive as an independent company.”

“35 X revenue multiple paid for what is a fantastic business by one of the leaders of cloud with Salesforce really showing that this was the second largest enterprise software acquisition in history after only IBM's purchase a red hat, but also the largest mult…”

“This record acquisition by IBM of Red Hat is really all about Amazon Web Services crushing them in public cloud, them trying to make a play for hybrid cloud more aggressively and essentially draw a buffer line where they can be relevant and aspirationally they…”

“Thirty-three billion dollars for Red Hat. Because IBM was jammed, they were late to the cloud party, and hybrid cloud is their attempt to be relevant again in the cloud universe.”

“Red Hat kinda got lucky and find a commoditizing change, which was Unix to Linux. That's an rare event to have a major, you know, chip system re platforming see change.”

“The whole support model really not being very viable outside of what Red Hat has done.”

“And that model has worked, in my opinion, exactly one time. That's worked for Red Hat and not so great for everyone else.”

“There haven't been standalone franchises other than Red Hat that have really been able to, quote unquote, monetize open source.”