IBM announced this Tuesday the closure of the historic $ 34 billion acquisition of Red Hat with an eye toward substantially increasing its cloud computing business. Although the purchase was announced in October last year, it has not been until now that it has materialized.
The acquisition of Red Hat by IBM brand the completion of IBM’s largest deal and one of the largest in the history of the technology market in the United States and the world. An operation that becomes the second of its kind, after the acquisition of another great player in the open source such as GitHub by a historical computing giant, such as Microsoft.
It is one of the largest acquisitions in the history of the technology market
IBM and Red Hat, why?
And how will IBM and Red Hat benefit from joining forces? “Because they will offer the next-generation hybrid multi-cloud platform,” the companies say in a series of questions and answers posted on the IBM website.
“By combining the power and flexibility of Red Hat’s open hybrid cloud technologies with the scale and depth of IBM innovation and industry expertise, you now have access to the tools and talent you need to accelerate your journey to the cloud.
IBM is committed to preserving Red Hat’s independence, neutrality, culture and industry associations to give customers and partners freedom, choice and flexibility, and Red Hat’s unwavering commitment to open source will remain unchanged. ” .
According to the agreement reached by both of the companies, Red Hat to become a unit of IBM’s Hybrid Cloud division. A strategic sector for them and their race to catch up with Amazon and Microsoft, at the forefront of this type of solutions and infrastructure. Hence, they promote the closure of the operation securing that their union “will unlock the true potential of the hybrid cloud for the business sector and the world.”
This movement will cause the top leader of the company dedicated to open source, Jim Whitehurst, joins IBM’s senior management team and reports to the top leader of the legendary company, Ginni Rometty.