Purple Hat introduced a new CEO last month when it promoted 16-year veteran Matt Hicks, who’s been on the job for a number of weeks now. His predecessor, Paul Cormier, stepped down to maneuver into the chairman position.
It’s by no means simple making a transition like this, however Hicks has Cormier, his longtime mentor, to lean on as he takes the Red Hat reins. In his new position, Hicks has to stroll the road between reassuring prospects and staff that there will probably be stability within the firm’s management whereas shifting it ahead and placing his personal mark on issues.
For probably the most half, Hicks mentioned he’ll proceed on the same path as Cormier. IBM has allowed Red Hat to be independent for probably the most half since purchasing it for $34 billion in 2018. IBM sells Purple Hat companies to benefit from its gross sales clout, however Purple Hat has remained unbiased, with many companions moreover IBM.
As Cormier informed me about his relationship with IBM CEO Arvind Krishna in a May interview: “The best way Arvind characterizes Purple Hat is that IBM will probably be opinionated on Purple Hat, however it could possibly’t work the opposite approach round. So what which means is IBM has fully standardized on Purple Hat because the [company’s] hybrid platform,” Cormier mentioned.
Underneath Cormier, Purple Hat helped IBM return to growth after an extended interval of stagnation. Huge Blue’s income was up 9% in its most recent earnings report final month. Purple Hat grew 12% and has been a giant contributor to IBM’s development technique
It’s as much as Hicks to maintain that going whereas taking Purple Hat wherever it’s going to go subsequent. I spoke to him just lately concerning the transition to his new position and what it means for all events concerned, from prospects and staff to dad or mum firm IBM.