Finally, it’s done! IBM closed the deal of acquiring Red Hat for $34 billion, making it world’s second-largest IT deal. After IBM acquires Red Hat, the company can directly take on other IT giants such as Microsoft and Amazon. IBM has promised to keep its new addition, Red Hat, independent and deliver innovative hybrid cloud stacks.
IBM acquires Red Hat: What next?
Now since IBM and Red Hat are one unit, the two companies are promising to open source, developer programs and multi-cloud deployments, which would be delivered to the customers, developers, and partners. This merger will let the clients of IBM merge their private and public clouds, regardless of which provider they use.
After IBM acquires Red Hat, IBM can easily adopt cloud-related technologies, in which it was lagging. Now the 108-year-old company can catch up with the leaders like Amazon and Microsoft and offer cloud-based computing, software, and services to its clients.
It is certainly a deciding moment for the company.
IBM CEO Ginni Rometty mentions,
“This is about hybrid cloud — it is the future, it is the destination of the cloud. This market is a trillion dollars, it’s emerging and it’s very interesting to me that since our announcement now you hear everybody else talking about it too.”
According to the leaders from IBM, this deal doesn’t make IBM the competitors of Amazon or Microsoft. But, IBM will serve as their partner, because the hybrid cloud is the prime focus of the company. The hybrid cloud allows enterprises to simultaneously run programs on both their own internal servers and the big public cloud providers; i.e. Microsoft Azure and Amazon Web Services.
IBM CEO Ginni Rometty also mentions that after IBM acquires Red Hat, the company will provide a platform that will run on other clouds as well. She mentions,
“Today people have five to 15 different public clouds and move data between them. The platform we are talking about has to run on other people’s clouds too. You’ll hear others say hybrid cloud and then only connect their public to their private clouds. Well, that’s not that helpful for a client. It has to be multi-cloud.”
IBM will offer the first hybrid multi-cloud platform, providing the glue to connect various clouds together.