Red Hat has deals with several other major computer and software companies, but "Big Blue" is the plum.
Linux supporters are a demanding lot. They even want their money back forMicrosoft Windows operating systemsloaded on their computers.
The open code Linux operating system is preferred by more than ten million computer professionals worldwide.
IBM sees growth in Linux and will begin supporting the Red Hat Linux on its servers and other computers, which is great news for Red Hat and its big corporate accounts.
"Those accounts no longer have to take responsibility for the hardware that they're running Red Hat Linux on," says Robert Young, CEO of Red Hat. "IBM will take responsibility for that hardware."
Work is underway to develop a user friendly version for home users.
"It will give the end user the ability simply to use a mouse," Young said. "It'll give the technical user the ability to get beyond that mouse and configure this to set up web sites and other technical applications."
Linux's popularity is growing as are the number of applications. Backers want Linux to be the dominant operating system. The free nature of Linux lets Red Hat developers work in a virtual workplace.
"We build better technology working cooperatively with tens of thousands of developers across the world by using the Internet," Young said.
The IBM deal is huge for Red Hat and further solidifies the company's position as the leading seller of Linux.
Red Hat Software has grown so quickly it had to move into new offices last month.