IBM successfully completes acquisition of Red Hat for USD 34 billion
Category: #business  By Saipriya Iyer  Date: 2019-07-10
  • share
  • Twitter
  • Facebook
  • LinkedIn

IBM successfully completes acquisition of Red Hat for USD 34 billion

The proliferation of the hybrid cloud – a world within itself, has brought about a slew of changes in the global technology and industrial landscape. Having recognized the eventual potential of cloud computing, companies spanning numerous sectors have been betting big on the technology, attempting to catch up with industry leaders Microsoft and Amazon, in offering computing services. Travelling along a similar path is the globally renowned International Business Machines Corp., which has been striving to adopt cloud-related technologies.

Having already tagged along the public cloud, IBM is now wanting to bet its stakes on the hybrid cloud – which actually enables companies to run programs on big public cloud providers as well as their own internal servers. In offer to its clients the opportunity to merge their private and public clouds, IBM has finally closed the purchase of open-source software provider Red Hat, for a staggering USD 34 billion.

Touted to be IBM’s largest acquisition so far, the buyout of the enterprise software maker is apparently speculated to be one of the biggest deals in the U.S. tech history and the second-largest technology deal worldwide. Analysts affirm that Red Hat’s acquisition in conjunction with its new hybrid cloud strategy may, in all probability, aid IBM enhance its revenue that has been on a downward spiral since the last six years.

Ginni Rometty, Chief Executive Officer, IBM, claims that the company will be in a position to offer the first hybrid multi-cloud platform, helping to connect various clouds together. Connecting the public cloud to private clouds is not really helpful for client, Rometty says, further affirming the significance of the multi-cloud.

IBM had received the EU 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. Incidentally, the month of June also saw the IBM Cloud, Cisco, and IBM Global Technology Services joining hands to develop a hybrid-cloud architecture integrating IBM’s cloud offerings with Cisco’s data center, networking and analytics platforms. The partnership quite obviously, reinforces IBM’s interest in enhancing its cloud infrastructure to align its strategy with major cloud service providers.

Apparently, Red Hat will continue to operate as a distinctive unit within IBM, reporting as a part of IBM's Cloud and Cognitive Software business. The firm’s brands, facilities, and open organization leadership style will also remain as is.

Source Credits:

https://www.cnbc.com/2019/07/09/ibm-closes-its-34-billion-acquisition-of-red-hat.html

  • share
  • Twitter
  • Facebook
  • LinkedIn


About Author

Saipriya Iyer    

Saipriya Iyer

A content developer by choice, Saipriya Iyer holds a rich experience portfolio of more than five years in the content creation domain. Equipped with substantial expertise across the business, technology, and finance domains, Saipriya currently pens down insightful art...

Read More

More News By Saipriya Iyer

Ford, GE Healthcare to ramp up production of much-needed ventilators
Ford, GE Healthcare to ramp up production of much-needed ventilators
By Saipriya Iyer

With the COVID-19 situation quickly escalating in the U.S. over the past several weeks, healthcare facilities are facing a shortage of medical equipment, including ventilators and test kits. Auto major Ford Motor Company is reportedly partnering wit...

ScanSource to offer Avaya’s work from anywhere Cloud solution
ScanSource to offer Avaya’s work from anywhere Cloud solution
By Saipriya Iyer

ScanSource, Inc., and Santa Clara, California-based Avaya Holdings Corp. have reportedly announced plans to deliver Avaya Cloud Office™ by RingCentral®. ScanSource and Intelisys have been the largest software distributors for Avaya over th...

Zymergen acquires enEvolv to accelerate biomanufacturing efforts
Zymergen acquires enEvolv to accelerate biomanufacturing efforts
By Saipriya Iyer

Synthetic biology startup Zymergen has reportedly acquired enEvolv, a leading developer of ultra-high throughput microbial screening & engineering solutions. The acquisition could accelerate the ability of Zymergen’s to deliver innovative ...