Qualcomm Opts for Red Hat Platform - Analyst Blog

Qualcomm Inc. (QCOM), the largest worldwide mobile chipset developer for CDMA technology, extended its long-term relationship with Red Hat Inc. (RHT). Since 2003, Qualcomm has been using the Red Hat Enterprise Linux operating system and its virtualization technology.
 
Qualcomm will now use Red Hat's latest technology, ‘Enterprise Virtualization' for its production facilities. Red Hat's Enterprise Virtualization platform for Servers is an end-to-end virtualization solution that provides persistent datacenter virtualization, significantly enhancing operational efficiency. Virtualization technology allows companies to set up multiple servers on a central machine, resulting in immense cost savings.
 
Business organizations are exploring markets across the globe to pursue growth opportunities. As an after-effect of globalization, corporations are allowing more flexible work arrangements in order to retain valuable employees and cut overhead costs. Workers are increasingly enjoying the option to operate from home or work while traveling. As a consequence, companies require the IT infrastructure to support this virtual office. Hence, large and medium sized enterprises will increasingly move toward more dynamic and converged infrastructure, in our opinion.
 
Recently, Red Hat launched the latest version of Enterprise Virtualization, called ‘Enterprise Virtualization 2.2', which introduces several new features, including desktop virtualization with the Red Hat Enterprise Virtualization for Desktop add-on subscription.
 
Customers can import and export Open Virtualization Format (OVF) virtual machines using Red Hat Enterprise Virtualization. OVF is an industry-standard specification developed by a number of vendors, including VMware Inc. (VMW), Citrix Systems Inc. (CTXS), HP, International Business Machines Corp. (IBM) and Microsoft Corp. (MSFT).
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We maintain our long-term Neutral recommendation for Qualcomm. Currently, it is a short-term Zacks #3 Rank (Hold) stock.

 
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