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RHT now part of the S&P500 July 21, 2009

Posted by Sacha in IT, JBoss.
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As of this week, RHT replaces CIT in the famous S&P500 index, the second most widely followed index of large-cap American stocks (after the DJIA).

While I am not a Wall Street specialist, I don’t expect that change to mean much factually. It will certainly bring more credentials to the company (which might be useful with some stratospheric CIOs) and will most probably increase the trading volume of the stock since it will now be part of index funds activity, but that’s pretty much it.

Now, from symbolic standpoint, that’s really an achievement, since it is the first time an Open Source company joins the ranks of this very popular index.

Onward,

Sacha

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Comments»

1. Ronald van Kuijk - July 22, 2009

🙂

I know from some ‘communications classes’ that you should end with the positive news since that is what people mostly remember.

This is one of the few cases I would *not* have tried to play down/trivialize this news. The first two paragraphs should have been left out… period… it IS an achievement by itself. But ok.. I won’t hold it against you, being an ‘external advisor’ now according to linked in 🙂

Sacha - July 22, 2009

Ronald,

My blog is not RHT’s official PR engine nor http://www.prnewswire.com/. Hence, when writing blog entries, I express my thoughts and hope those are credible to the reader.

Also, as a RHT shareholder I am always interested to see how RHT-related news might impact its valuation.

Ronald, outside of the glamorous part of the announcement, what are your thoughts on how RHT being part of the S&P 500 might impact RHT? (positively or not)

2. Ronald van Kuijk - July 29, 2009

Sacha,

Sorry for the delay. I missed the notification that you replied.

RHT becoming part of the S&P 500 is indeed a symbolic achievement, but maybe even in a broader sense then you think. Business schools around the world can’t ignore the fact any more that with some modern business models you can achieve growth, good profits etc. and be a serious player. They, at least in The Netherlands at the most renowned one, already started teaching these models in MBA courses. From what I’ve heard, RHT is frequently mentioned as an example.

From a more business perspective, I’m also not sure what the impact might be. Additional growth? Maybe. Getting scrutinized on you what you actually do? Spotlights are not always nice, they can show impurities (Gartner Reports?) Getting to ‘the top’ is not the hard part they always say, staying there is.

For the JBoss division imo this means overcoming ‘growing pains’ and puberty. Becoming really mature without loosing the freshness, creativity and enthusiasm of youngsters is the challenge I think. Don’t become a second Oracle (Big Blue improved the last years I think) with buying companies that have the same solutions you already have yourself, it frightens customers. Don’t become a second Apache with multiple (almost) identical solutions for the same problem, it confuses (potential) customers. Make sure marketing information on the *product* site is up to date (a five year old whitepaper?).

Lots of challenges left I think for the C*O people.


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