[HN Gopher] Paul Cormier Replaces Jim Whitehurst as Red Hat CEO
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       Paul Cormier Replaces Jim Whitehurst as Red Hat CEO
        
       Author : ldng
       Score  : 87 points
       Date   : 2020-04-09 17:33 UTC (5 hours ago)
        
 (HTM) web link (www.itprotoday.com)
 (TXT) w3m dump (www.itprotoday.com)
        
       | fanatic2pope wrote:
       | Wow, for the first time in decades I see a sliver of hope for
       | IBM's relevance.
        
         | mathattack wrote:
         | RedHat shares IBM's model of "change the terms and product
         | definitions every year and audit folks to death who can't
         | switch providers"
         | 
         | They are going to irrelevance together.
        
           | linuxftw wrote:
           | I've worked with several large firms that had large
           | footprints of Red Hat products and never heard about them
           | being audited. You're confusing them with Oracle.
        
             | stuff4ben wrote:
             | I worked for Cisco who were big RH users (RHEL, OpenStack,
             | OpenShift, Quay, etc). We were audited and it basically
             | comes up when contracts are renewed. It's not a bad thing,
             | you just need to be honest about what you're using and how
             | much and then just pay the man. Or don't and switch to
             | other offerings. One thing I liked about RH is that they
             | worked with you vs Oracle which was pure evil when it came
             | being audited.
        
         | acruns wrote:
         | lol!
        
       | zapita wrote:
       | Good for Paul. He has wanted the CEO job forever, and was
       | notoriously bitter about being passed over last time.
       | 
       | Don't expect a revolution in Red Hat's strategy or culture. Paul
       | was already extremely influential, especially on product and R&D
       | which are not Jim's strong suits.
       | 
       | Things to know about Paul:
       | 
       | - He is very competitive and has a zero-sum approach to
       | competition: for him to win, someone else has to lose.
       | 
       | - He has a bad temper. If you work on the same floor as him, you
       | will hear yelling.
       | 
       | - He doesn't shy away from Oracle-style tactics. Expect customer
       | audits to get more hardball; more aggressive use of anti-
       | competitive bundling ("if you use this competitor's product on
       | RHEL, we will not support that RHEL host").
        
         | BaronVonSteuben wrote:
         | As someone who is a big fan of Red Hat, it horrifies me to see
         | the new CEO be described like that. He sounds like one of the
         | worst people for Red Hat. I admit I despise power seekers and
         | people with tempers, so that's coloring my view a lot.
         | 
         | I have always been optimistic about Red Hat's future, but this
         | has me very worried. Red Hat has done so much good in the
         | world, and it would suck to see them shrink or disappear. That
         | said tho, I'd rather they go extinct than become evil. The
         | latter suddenly seems like a possibility. I sure hope I'm
         | wrong.
        
           | zapita wrote:
           | A counter-point is that, if you like Red Hat today, you will
           | probably still like Red Hat in 5 years, because the new CEO
           | played a key role in getting Red Hat to this point.
        
           | barkingcat wrote:
           | Yah similar to zapita's reply below, if this person is a
           | driving force in redhat's past, you probably won't see any
           | changes if you liked what they were doing in the past.
           | 
           | Brings to light an understanding of things like systemd
           | though. I can understand how a culture like this would
           | promote systemd's "all or nothing" approach.
           | 
           | The thing is, this is how Redhat Wins and has been winning
           | ... I think redhat won't disappear because of this leadership
           | style, but this is how it has been getting contracts, making
           | money, getting sponsorships, and being attractive enough to
           | be bought by IBM.
        
             | zapita wrote:
             | > _The thing is, this is how Redhat Wins and has been
             | winning ... I think redhat won 't disappear because of this
             | leadership style, but this is how it has been getting
             | contracts, making money, getting sponsorships, and being
             | attractive enough to be bought by IBM._
             | 
             | Very true. Red Hat is a very successful company by any
             | measure. Paul played an important role in making that
             | happen.
             | 
             | At the same time, Red Hat also has a major problem which
             | limits its long-term growth potential: lack of meaningful
             | diversification. RHEL is still the lion's share of their
             | revenue. It's a powerhouse of a business, but its growth is
             | definitely reaching a plateau. So what comes next? As far
             | as I can tell, the answer is: Openshift and Ansible. Both
             | are successful products, for different reasons. But can
             | they grow revenue fast enough to compensate for RHEL's
             | gradual decline? The answer seems to be "not yet". I think
             | Red Hat reached the same conclusion, realized that their
             | stock price would likely peak in 2019/2020 as markets
             | realize the problem, and decided to sell.
             | 
             | And here's the thing: Paul also owns this problem. The
             | failure to differentiate happened on his watch. If you
             | believe Openshift/Ansible revenue is already on the same
             | growth trajectory as RHEL, then success is a matter of
             | execution, and Paul is the right guy for the job. But if
             | you believe that Ansible and Openshift, while good, are
             | just not as game-changing as RHEL once was - then no amount
             | of execution will solve that problem.
             | 
             | EDIT: I meant "diversification", not differentiation! My
             | bad.
        
               | oso2k wrote:
               | DISCLAIMER: I work for Red Hat Consulting.
               | 
               | Red Hat almost doesn't sell RHEL by itself anymore
               | [0][1]. RHEL is lumped into OpenShift, Quay, OCS,
               | OpenStack, RHV and more often than not sold along side
               | Ansible, Tower, JBoss, AMQ, Fuse, DecisionManager, etc.
               | So, the revenue streams are being bundled together which
               | makes it harder to tease out which product is pushing the
               | Total Revenue line. Our integration with IBM might make
               | that even harder to tell since they love to bundle
               | everything into Cloud Paks [2]. You can review our 10Qs
               | to understand our Revenue performance.
               | 
               | What do you mean we lack differentiation? From who or
               | what? Microsoft? AWS? Google? Canonical? SuSe? Apple?
               | VMware? Pivotal? Docker?
               | 
               | When we got acquired, we were the first $3B Open Source
               | company with double-digit percentage growth [3]. And I
               | think there is a brawl going on for big Corporate IT
               | Cloud $$$. You might make the case that Red Hat was
               | completely outgunned in a scenario where a $3B company
               | wanted to compete against $100B companies (AWS, Google,
               | MS, IBM).
               | 
               | [0] https://www.redhat.com/en/store/linux-platforms
               | 
               | [1] https://www.redhat.com/en/store/red-hat-middleware
               | 
               | [2] https://www.ibm.com/cloud/paks/
               | 
               | [3] https://www.redhat.com/en/about/press-releases/red-
               | hat-repor...
        
               | zapita wrote:
               | My bad! I meant to say "lack of diversification", as in:
               | too much revenue coming from the flagship product.
               | 
               | I did not mean to say there was a lack of differentiation
               | - that is a much more subjective and controversial topic.
               | 
               | What I'm talking about is much more straightforward: most
               | of the money comes from RHEL. RHEL is not growing as fast
               | as it used to. And other sources of revenue, like
               | Openshift and Ansible, are not growing fast enough to
               | fill the gap.
        
           | [deleted]
        
           | notacoward wrote:
           | When I joined Red Hat, I was pretty surprised to find such an
           | "old school DEC" hardball player in charge of engineering.
           | That's what Paul is, but he's not evil. He's effective, and
           | at the most important level he does represent the values we
           | associate with Red Hat (which he helped shape after all). I'd
           | be far more worried if they'd brought in somebody from
           | outside, or from another part of IBM.
        
         | rurp wrote:
         | >Good for Paul
         | 
         | Followed by:
         | 
         | >zero-sum approach to competition
         | 
         | >bad temper
         | 
         | >Oracle-style tactics
         | 
         | Sounds like what's good for Paul is going to be bad for a lot
         | of employees and customers.
        
         | CrankyBear wrote:
         | Paul's very good at what he does, but no one who knows him
         | would say he's easy to work with.
        
         | AdmiralAsshat wrote:
         | And this is supposed to be a good thing for the company that
         | supposedly has open source and collaboration at its core?
         | 
         | Sounds like he'd be better suited to the IBM CEO role.
        
           | cachestash wrote:
           | He was the reason for the company being so open source
           | focused, he managed RH engineering for near on 20 years.
        
             | aquaticsunset wrote:
             | He famously likes to emphasize the "enterprise" aspect of
             | Red Hat's product offerings. Red Hat is not an open source
             | company - it's an enterprise software company through open
             | source development. It's a really big difference.
        
         | Longhanks wrote:
         | Sounds like a unhealthy place to work at.
        
           | BaronVonSteuben wrote:
           | Indeed, that is my thought as well. If I worked there I'd
           | want to stay as far away from this guy as possible. Red Hat
           | seems like a pretty big company tho, so probably the average
           | person never interacts with the CEO. But still, the tone gets
           | set at the top, and will filter down.
        
             | op00to wrote:
             | You decide your opinion on the leaders of your company
             | based on unverified bogeyman stories on a message board? Oh
             | boy.
        
           | cachestash wrote:
           | Big over reaction and this is making him sound far worse than
           | he is. Its more passion than rage with Paul as Red Hat is
           | everything to him an he believes in the company 100%. There
           | is also a lot more to Red Hat for its leadership. Jim is
           | still up a level and then you have Chris Wright the CTO, a
           | genuinely soft spoken sweet man.
        
           | rwmj wrote:
           | As an actual Red Hat employee (also someone who has seen Paul
           | C both at a distance and close up for over a decade), it's a
           | healthy and happy workplace. Also Paul has been effectively
           | doing day to day running of Red Hat as long as I've been
           | here, so I don't expect that much to change.
        
           | zapita wrote:
           | Like most large companies, it depends on your team and
           | assignment.
        
         | cachestash wrote:
         | Agree with this, he is no wall flower. Its harder to meet
         | someone more passionate about Red Hat than Paul.
        
           | dralley wrote:
           | There is certainly different flavors of "passion", and I'd
           | personally prefer a different one. Oh well.
        
         | _jal wrote:
         | > He doesn't shy away from Oracle-style tactics
         | 
         | And that will be the end of RH products in my shop. Fuck that
         | noise, if you treat your customers like adversaries, I won't be
         | one of them.
        
         | notacoward wrote:
         | Oh, he's not going to like the phrase "Oracle-style" at all.
         | Another thing people should know about Paul Cormier is that his
         | hatred for Oracle knows no bounds. There's certainly no love
         | lost between the two companies at any level, but even in that
         | context the depth of his loathing for them seemed notable. Some
         | might say excessive. I was there for eight years BTW.
        
           | zapita wrote:
           | That is true - the hatred of Oracle runs deep. But when it
           | comes to competitive tactics, they have more in common than
           | the Red Hat marketing brochure would have you believe.
        
       | MelioRatio wrote:
       | If anyone wants to find out more on what Cormier wants to focus
       | on over the coming years, he did a small QnA:
       | https://www.redhat.com/en/blog/get-know-red-hat-president-an...
       | 
       | It will be interesting to see, how his management style is going
       | to impact Red Hat over the coming years. Considering his
       | background and acumen, I feel like there is going to be a
       | stronger focus on tailored services and specific solutions for
       | organizations. They are already very active in the health care
       | and financial industry, so this could be an area they might
       | expand.
        
         | stuff4ben wrote:
         | A lot of IBM products are in the cloud and the focus from
         | Whitehurst as IBM president is that cloud,
         | containers/K8s/RHOSP, and edge are the big things that will be
         | going on. It will be very interesting to see how RH plays into
         | the broader IBM strategy. Will RH become the platform and IBM
         | becomes tooling, services, and products on top of that
         | platform? Or will RH move to more consultancy and enterprise IT
         | services? Coming from Cisco where the acquired company always
         | gets folded into the mothership, I find it very interesting to
         | see IBM's stance of keeping RH alone and mostly separate. At
         | least for now...
        
           | cachestash wrote:
           | its very possible and widely touted that it could go the
           | other way, in that Red Hat takes over IBM (culturally. Red
           | Hat certainly has a strong enough culture to do that.
        
       | texascloud wrote:
       | Is this good for IBM?
        
         | rwmj wrote:
         | In the sense that we hope Red Hat takes over IBM and makes it a
         | success again, yes.
        
       | brian_herman__ wrote:
       | Hopefully this will be like when Apple bought Next.
        
         | person_of_color wrote:
         | Or Greece's reverse invasion of Rome!
        
         | syshum wrote:
         | I hope is not like when IBM bought the Weather Company then
         | proceeded to destroy all the good things Weather Underground
         | did
        
           | abrowne wrote:
           | Did anyone from the Weather Company join IBM senior
           | leadership?
        
             | aquaticsunset wrote:
             | David Kenny ran Watson for a couple years.
        
       | williamstein wrote:
       | Even more interesting
       | 
       | > "Red Hat's CEO for the past 12 years moves to take on the role
       | of IBM president"
        
         | dang wrote:
         | Has the article buried the lede? Should we make this the title
         | above?
        
           | CameronNemo wrote:
           | Whitehurst becoming IBM president is sort of old news, but I
           | cannot find a discussion on HN about it. (only a few posts
           | without discussion).
           | 
           | https://news.ycombinator.com/item?id=22205335
           | 
           | https://news.ycombinator.com/item?id=22198016
           | 
           | https://news.ycombinator.com/item?id=22200653
           | 
           | There was discussion about the matter on the post about
           | Arvind Krishna becoming IBM CEO, but it was somewhat buried:
           | 
           | https://news.ycombinator.com/item?id=22196489
        
         | abrowne wrote:
         | Here's IBM release about that:
         | https://newsroom.ibm.com/2020-01-30-Arvind-Krishna-Elected-I...
         | 
         | President seems like second-in-command, below CEO. (And the
         | outgoing CEO was both.) Am I understanding that right?
        
           | cpetty wrote:
           | Correct -- Ginni Rometty was CEO, President, and Chairman of
           | the Board. She remains Chairman, while Arvind Krishna is now
           | CEO and Whitehurst is President.
           | 
           | This is the first time in a while that the IBM President &
           | CEO roles have been divided among two different people.
        
             | lowdose wrote:
             | The president title was a thing for people claiming the top
             | spot without being the founder. It doesn't make sense to
             | split CEO & President role between two people, but when the
             | fable is told long enough the people who tell believe it
             | themselves.
        
               | cachestash wrote:
               | Its the co-CEO strategy, or two in box. Its becoming
               | quite popular as of late.
        
               | stingraycharles wrote:
               | Why is that? I can't imagine it going well for an
               | extended period of time.
        
               | lowdose wrote:
               | It's a safety scapegoat, just throw the president under
               | the bus.
        
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