Red Software + Blue Hardware = Purple Private Clouds

ZDNet.com has a cool article about the alliance between Red Hat and IBM starting to bring something to the market. It appears that what they have been working on is a packaged appliance like Cloud solution.  With Red Hat KVM Based virtualization and IBM Hardware they plan to make devices and sets of servers to compete with the ones being created by Cisco, EMC and VMWare.  Competition is cool but can they unseat the VMWare team?  Only time will tell.