IBM buys Red Hat to tap into Hybrid cloud

31 Oct 2018_campuscad

red hat

IBM has acquired the Red Hat company which provides open source solutions in cloud computing to enterprise level.    

The cost of the acquisition is approximately $34 billion in all cash deal.

This is the largest purchase by IBM in its history of 107 years. But Red Hat will work as independent entity.

IBM will use the open source solutions and Multi cloud development solutions of Red Hat to deploy in its own client base.

Red Hat has more than 8 million developer’s community which contributes software development around Linux operating system and Red hat will implement them in an order to distribute it at Enterprise level to earn revenue.

IBM is competing with Amazon web services and to stay relevant with newest technology in public, private and hybrid cloud and also help to bring the new revenue to the company.

“The acquisition of Red Hat is a game-changer. It changes everything about the cloud market,” said Ginni Rometty, IBM Chairman, President and Chief Executive Officer.   

The acquisition will be completed by the latter half of 2019.

Microsoft acquired the Github, the coding depository in June to support the open source platform.

Red Hat compete with VMware, Tibco, Oracle , SAP, HP, Microsoft, Salesforce etc.


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