Tech Industry

Red Hat inks IBM, Motorola deals

Red Hat (Nasdaq: RHAT) got a boost Tuesday from news it has entered deals with Motorola (NYSE: MOT) and IBM (NYSE: IBM). Financial details of neither deal were released.

Shares were up 2 to 23 13/16 or 9 percent.

Motorola Computer Group, part of Motorola's (NYSE: MOT) Integrated Electronic Systems Sector (IESS) has inked a deal that will make Linux ready for always-on telecom applications.

Under terms of the agreement, Motorola will package and market the Red Hat Linux operating system, which will be shipped with its carrier-grade embedded computing platforms.

With Motorola's HA-Linux integrated with Red Hat Linux 6.2, telecom OEMs now get the carrier-grade features -- along with the third-party support -- they need to build telecom applications designed for 99.999% availability, equivalent to five minutes or less of downtime per year, planned and unplanned.

Motorola said the deal will also eliminate software compatibility issues.

Shipments of HA-Linux with Red Hat Linux 6.2 are slated to start in September.

Red Hat also announced Tuesday that it has a deal with IBM Corporation (NYSE: IBM) that will enable a commercial Linux developer to bundle all of IBM's Linux-based software into e-business software.

IBM and Red Hat will jointly market, distribute and support bundled IBM, Lotus, Tivoli and Red Hat software offerings.

Officials from both companies said the deal signals wide customer acceptance of open source software and Linux into mainstream computing.