IBM acquires open-source software company Red Hat for $34 billion
IBM acquires open-source software company Red Hat for $34 billion
IBM completes $34 billion acquisition of Red Hat
10 July, 2019, 18:01
'With the acquisition of Red Hat, and IBM's commitment to Red Hat's independence, IBM is well positioned to help enterprises differentiate themselves in their industry by capitalizing on open source in this emerging hybrid and multi-cloud world, ' said Gens.
Red Hat's headquarters, facilities, brands, practices, and leadership team will remain the same under IBM's wing, with Whitehurst set to join IBM's senior management team in addition to his role at Red Hat. Red Hat President and CEO Jim Whitehurst will join IBM's senior management team, reporting to IBM Chairwoman, President and CEO Ginni Rometty.
In an interview, Rometty said the deal was driven by what its customers wanted and helping companies "move mission-critical work" to the cloud, offering a variety of hybrid public and private clouds.
"When we started on this journey of Linux many years ago, of making Linux the ubiquitous platform out there and then further on down the line really building our portfolio around that to build a truly hybrid cloud product portfolio, our goal had always been to make that the ubiquitous set of technologies and platforms across the enterprise", said Paul Cormier, executive vice president and president of products and technologies for Red Hat. "I think today what we've seen and what we start on is that journey on steroids". The company allows customers to integrate new and existing IT applications, develop cloud-native applications, standardize on operating system, and automate, secure, and manage complex environments. IBM also stated that it will remain committed towards Red Hat's open governance, open source contributions and participation in the open source community.
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Both companies have consistent revenue growth. But the Red Hat acquisition will hopefully change that by driving growth in this area. The official spin is that it is all about hybrid cloud.
IBM had received the European Union antitrust approval for its acquisition last month, as it looked forward to combating its declining sales of software and mainframes, by expanding its subscription-based software portfolio. "The platform we are talking about has to run on other people's clouds too", Rometty said. "We believe that hybrid cloud unlocks tremendous value and is the only way forward for our clients". According to Kirshna, there are many organizations that use both JBoss and WebSphere. On May 3, the U.S. Department of Justice concluded its review of IBM'sRed Hat acquisition, and by posing no objections basically approved IBM's acquisition of Red Hat.
Red Hat has inked sales deals with IBM competitors including Amazon Web Services (AWS), Microsoft Azure, Google Cloud and Alibaba.
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