I still disagree with your description of Red Hat re the cloud vs traditional server sales, but let's let that slide.
So Red Hat could buy Canonical? I actually think the resulting company would have an awesome market position (but a terrible challenge to unify their tech-worlds). I think the linux world would be less rich and exciting as a result though. Still it won't happen, because it rather depends on the shareholders of Canonical don't you think? I suspect it wouldn't be as easy as all that to convince them (him!). I saw an article recently suggesting Microsoft should buy Canonical. An even worse idea IMHO - Ubuntu users wouldn't go for that. They might even see Red Hat as a bit too corporate.
Re: Canonical's financials. Which do you want, bigger revenues or profitability? Canonical could be profitable with it's current revenue levels, if it stopped investing in new things (an idea you seem to support, but be careful killing the cloud products if you're after a profit). They could also have tried to make a lot of money from limited utilisation with mandatory support, at a higher price, a la Red Hat - but how would they have competed with Red Hat if they used exactly the same model? Someone, somewhere must have a reason not to do that, don't you think?
Here's another question. Why hasn't Mark Shuttleworth just given up and walked away after 10 years of not making a profit? There's a tendency to look from the outside and assume that this must be a terrible business decision, but I find it dangerous to make assumptions about the motivations and strategies of others, especially those with a track record of success. You might be mistaking ambition for delusion. If you're wondering about Mr Shuttleworth's understanding of the current market place check out these two headlines:
Guess what - that means Red Hat just gave Mark Shuttleworth a bunch more cash for his share of InkTank, at a much higher market valuation than he bought them at. Foolish business man that he is. Maybe it's dumb luck. Or maybe Mark Shuttleworth saw the potential and invested in it at a relatively early stage, and even got the thing into Ubuntu and supported it so that customers could get to grips with it painlessly. Two years later InkTank had a decent customer list and Red Hat acquired it to try and gain a foothold (and some control) in the OpenStack market.
Now, the desktop. No one has ever said Canonical isn't going to do Desktop, just that you shouldn't necessarily focus on it as the main source of potential revenue for Canonical. What about those finite resources? Canonical has more resources today than it did 5 years ago, you have to do something with those millions of revenue to stay in the red! ;-) It may still be a smallish company, but it's not the case that Canonical sacrifices one thing to do the other. You'll notices that there are new partners shipping Ubuntu machines , especially in the developing nations - there's a reason for that and it wouldn't be happening if Canonical didn't care about it's desktop. Is Canonical overstretched? Well, it could be, but that's the fight, that's the nature of every start-up, every business perhaps. There are probably people at Apple right now moaning that they don't have enough resources.
So Red Hat could buy Canonical? I actually think the resulting company would have an awesome market position (but a terrible challenge to unify their tech-worlds). I think the linux world would be less rich and exciting as a result though. Still it won't happen, because it rather depends on the shareholders of Canonical don't you think? I suspect it wouldn't be as easy as all that to convince them (him!). I saw an article recently suggesting Microsoft should buy Canonical. An even worse idea IMHO - Ubuntu users wouldn't go for that. They might even see Red Hat as a bit too corporate.
Re: Canonical's financials. Which do you want, bigger revenues or profitability? Canonical could be profitable with it's current revenue levels, if it stopped investing in new things (an idea you seem to support, but be careful killing the cloud products if you're after a profit). They could also have tried to make a lot of money from limited utilisation with mandatory support, at a higher price, a la Red Hat - but how would they have competed with Red Hat if they used exactly the same model? Someone, somewhere must have a reason not to do that, don't you think?
Here's another question. Why hasn't Mark Shuttleworth just given up and walked away after 10 years of not making a profit? There's a tendency to look from the outside and assume that this must be a terrible business decision, but I find it dangerous to make assumptions about the motivations and strategies of others, especially those with a track record of success. You might be mistaking ambition for delusion. If you're wondering about Mr Shuttleworth's understanding of the current market place check out these two headlines:
1. http://www.inktank.com/ceph/mark-shuttleworth-believes-ceph-...
2. http://techcrunch.com/2014/04/30/red-hat-buys-ceph-provider-...
Guess what - that means Red Hat just gave Mark Shuttleworth a bunch more cash for his share of InkTank, at a much higher market valuation than he bought them at. Foolish business man that he is. Maybe it's dumb luck. Or maybe Mark Shuttleworth saw the potential and invested in it at a relatively early stage, and even got the thing into Ubuntu and supported it so that customers could get to grips with it painlessly. Two years later InkTank had a decent customer list and Red Hat acquired it to try and gain a foothold (and some control) in the OpenStack market.
Now, the desktop. No one has ever said Canonical isn't going to do Desktop, just that you shouldn't necessarily focus on it as the main source of potential revenue for Canonical. What about those finite resources? Canonical has more resources today than it did 5 years ago, you have to do something with those millions of revenue to stay in the red! ;-) It may still be a smallish company, but it's not the case that Canonical sacrifices one thing to do the other. You'll notices that there are new partners shipping Ubuntu machines , especially in the developing nations - there's a reason for that and it wouldn't be happening if Canonical didn't care about it's desktop. Is Canonical overstretched? Well, it could be, but that's the fight, that's the nature of every start-up, every business perhaps. There are probably people at Apple right now moaning that they don't have enough resources.