The 100+ year old technology empire and cloud software provider best known as International Business Machines (IBM), has just bought the multinational software company, and largest commercial distributor of Linux, RedHat. The acquisition cost IBM $34 million but provided them with all of Redhat’s issued and outstanding stock, which was set at $190.
IBM Chairmen, President and Chief Executive officer, Ginny Rometty made a statement saying “The acquisition of Red Hat is a game-changer. It changes everything about the cloud market, IBM will become the world’s #1 hybrid cloud provider, offering companies the only open cloud solution that will unlock the full value of the cloud for their businesses.
But what does this really mean for the industry?
In this day and age more and more business are starting to use cloud computing to transfer, process, store and analyze data. Because there are still about 80% of businesses who have yet to move to the cloud, IBM and Redhat are using this opportunity to dominate the game. Joining together two of the leading hybrid cloud providers means that companies will have more access to an accelerate multi cloud solution. IBM has positioned itself to provide business with greater data security, portability as well as the ability to create cloud-native business applications faster, more efficiently and better accessible.
According to Jim Whitehurst, President and CEO of Red Hat, the deal benefits both sides. He made a statement saying “Joining forces with IBM will provide us with a greater level of scale, resources and capabilities to accelerate the impact of open source as the basis for digital transformation and bring Red Hat to an even wider audience – all while preserving our unique culture and unwavering commitment to open source innovation.”
“Today’s announcement is the evolution of our long-standing partnership,”- Ginny Rometty.
IBM and Redhat have had a mutually beneficial partnership for the past 20 years. From IBM’s early support of Linux to the constant growth and collaboration of cloud based software solutions, both companies have been the prime contributors to the open source community. They both plan on growing their partnerships with other cloud based software providers such as Amazon Web Services, Microsoft Azure and Google Cloud, in order to expand and revolutionize the use of open source software and cloud computing on a global scale. This is just the first step.