It's been quite a year for the open source platforms.
Earlier this year, Microsoft acquired popular code repository hosting service GitHub for $7.5 billion, and now IBM has just announced the biggest open-source business deal ever.
IBM today confirmed that it would be acquiring open source Linux firm Red Hatfor $190 per share in cash, working out to a total value of approximately $34 billion.
Red Hat, known for its Red Hat Enterprise Linux (RHEL) operating system, is a leading software company that offers open-source software products to the enterprise community. Even Oracle uses Red Hat’s source code for its Oracle Linux product.
Like other big tech companies, IBM has also been a major supporter of Linux and contributor to the kernel and other open source projects, but the company has been left behind Amazon, Alphabet (Google) and Microsoft when it comes to cloud computing.
The acquisition deal will help IBM expand its reach as an enterprise cloud computing provider.
It is important to be noted that Red Hat will continue to be led by Red Hat CEO Jim Whitehurst and Red Hat’s current management team, as before. IBM intends to maintain Red Hat’s headquarters, facilities, brands, and practices.
Courtesy: The Hacker News
Earlier this year, Microsoft acquired popular code repository hosting service GitHub for $7.5 billion, and now IBM has just announced the biggest open-source business deal ever.
IBM today confirmed that it would be acquiring open source Linux firm Red Hatfor $190 per share in cash, working out to a total value of approximately $34 billion.
Red Hat, known for its Red Hat Enterprise Linux (RHEL) operating system, is a leading software company that offers open-source software products to the enterprise community. Even Oracle uses Red Hat’s source code for its Oracle Linux product.
IBM Acquires Red Hat to Target Cloud Computing Giants
Like other big tech companies, IBM has also been a major supporter of Linux and contributor to the kernel and other open source projects, but the company has been left behind Amazon, Alphabet (Google) and Microsoft when it comes to cloud computing.
The acquisition deal will help IBM expand its reach as an enterprise cloud computing provider.
"The acquisition of Red Hat is a game-changer. It changes everything about the cloud market," Ginni Rometty, IBM Chairman, President, and Chief Executive Officer said in a statement.
"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."
IBM: Red Hat Will Remain Independent Unit
It is important to be noted that Red Hat will continue to be led by Red Hat CEO Jim Whitehurst and Red Hat’s current management team, as before. IBM intends to maintain Red Hat’s headquarters, facilities, brands, and practices.
Courtesy: The Hacker News
