The news IBM acquired Red Hat in a $34 billion dollar deal ground the technology world to a rare halt. The deal is the largest software acquisition in history as the two companies merged in late October this year.
Both companies stand to gain much from this merger. IBM gains Red Hat’s extensive knowledge and expertise in the open-source software field. This move marks IBM as a serious player in the multicloud world.
“The acquisition of Red Hat is a game-changer,” Ginni Rometty, IBM’s Chairman and CEO, said in a statement. “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.”
Red Hat, on the other hand, benefits from IBM’s massive global network and leadership experience.
“It puts us several years ahead of where we have been — or where we would have been, frankly. Our intent is that, with IBM, we’ll become the leading hybrid and multicloud provider in the world,” said Mike Ferris, VP of technical business development and business architecture at Red Hat.
It couldn’t be clearer what the joint objective is: becoming the world’s leading hybrid and multicloud provider.
Combining IBM’s extensive resources, leadership, and network with Red Hat’s expertise in open-source software, enterprise software, and the hybrid, multicloud world definitely sounds like a winning combination. As the bombshell of this merger settles, the tech world will no doubt be watching to see what happens with IBM and Red Hat moving forwards.
For now, this is what Red Hat has to say.
“Our focus is what it always has been,” Ferris said. “Let’s build the best enterprise products using the open-source development model and make those available across all public and hybrid cloud environments.”