HPE's "spin-merge" of its non-core software assets with Micro Focus seemed, at first glance, to be more about repositioning its software programs to work better in an increasing cloud and software-defined network and storage stack world. Here's how the HPE-Micro Focus deal works in two slides.
Could it also be that HPE wants a house-blend Linux to better serve its long-term hardware infrastructure and cloud goals? It seems likely to me.
Even before this deal, SUSE has been performing better in the marketplace. SUSE revenue in the last fiscal year grew more than 18 percent, and the employee base grew 23 percent, primarily in areas dedicated to development, customer care, and sales and marketing.
SUSE and HPE are still hammering out the fine details of how they'll work together. They expect this to be completed in the fourth quarter of 2016. The two companies have a long history of working together on Linux.
More recently, SUSE and HPE started work on a vertical hardware/software storage stack. This Linux-based package combines SUSE's Ceph-based SUSE Enterprise Storage 3 with HPE's storage-optimized Apollo servers and HPE general-purpose ProLiant servers.
Looking ahead, SUSE and HPE will be working hand in glove. If the deal works out well for both companies, I foresee serious acquisition offers heading Canonical and Red Hat's way.