IBM’s $34B Red Hat Aquisition Makes It the World’s Largest Hybrid Cloud Provider

International Business Machines Corp (IBM) on Tuesday announced the completion of its $ 34 billion acquisition of the software company Red Hat Inc making it IBM’s largest acquisition ever in its 100-year-plus history. The acquisition positions IBM as the world’s leading hybrid cloud provider. Ginni Rometty, IBM chairman, president and CEO says businesses are headed towards modernizing infrastructure and moving mission-critical workloads across private clouds and multiple clouds from multiple vendors. “IBM and Red Hat are uniquely suited to meet these needs,” says Rometty.

Worth noting are a couple of observations made by Forbes’ Jason Bloomberg:

The open source caveat: “Red Hat’s products are unapologetically open source [meaning] Red Hat’s business model centers on support, training, and professional services, rather than software licenses or subscriptions. If not the software itself, then, what is IBM getting? The most common answer: Red Hat’s people.”

OpenShift to the rescue: “[T]his acquisition is all about OpenShift, which I believe IBM sees as the key to hybrid IT. Hybrid IT — a workload-centric abstraction across multiple public clouds, private clouds, virtualized infrastructure, and legacy assets — is shaping up to be the modern enterprise IT paradigm for the next decade.”

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