Skip to main content

IBM Buys `Red Hat` Open-Source Software Company for $34 Billion.

Automated Publishing Via Osuta Yusuf Robot Trigger.


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 Hat for $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.


Red Hat's last year revenue was $2.4 billion, and this year the company has earned $2.9 billion. But if Red Hat products are open source and updates are free, you might be wondering how does the company earn.


Red Hat was one of the first companies who found a successful way to make money from free open-source software. It offers consulting services—including assessments, implementations, platform migrations, solution integration, and application development.


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.


"Importantly, Red Hat is still Red Hat. When the transaction closes, as I noted above, we will be a distinct unit within IBM, and I will report directly to IBM CEO Ginni Rometty. Our unwavering commitment to open source innovation remains unchanged," said James M. Whitehurst, CEO at Red Hat.


"The independence IBM has committed to will allow Red Hat to continue building the broad ecosystem that enables customer choice and has been integral to open source’s success in the enterprise."




According to IBM, the deal between IBM and Red Hat has already been approved by both of the companies' boards of directors, but it is still subject to Red Hat shareholder and regulatory approvals.


If all goes as planned, the acquisition deal is expected to close in the second half of 2019.


Comments

Post a Comment

Popular posts from this blog

Arrested Arua City Officials Taken to Kampala this Night.

Wednesday 8-November-2023. 📸: The arrest of Arua City Physical Planner Mr Findru Moses on 6-Nov-2023 at around 2pm. 📸: Mr Jobile Cornelius the City Deputy town clerk who was arrested on 7-Nov-2023 at around 4pm. 📸: Mrs Lillian Aleni (in red cloth) and Mr Edoni Benard being handcuffed by police officer on 6-Nov-2023 at around 6pm. The bail that was to be issued last night 8pm 7-Nov-2023 to release the arrested City Deputy town clerk Mr Jobile Cornelius and CFO Mr Sam Adriko over mismanagement of government properties and monies was canceled, and by this time of the night 11pm, highly placed sources leaked that, all the arrested suspects (Mr Findru Moses the Arua City Physical Planner, Mr Jobile Cornelius the Deputy City clerk, Mr Adriko Sam the CFO, Mr Edoni Benard the PDM BOG Chairperson for Pangisa ward and Mrs Lillian Aleni the parish chief for Pangisa ward) are being transported by State House Anti-corruption Unit officers who will soon be reac
Post a Comment
Read more

Wedded Ayivu West MP Lematia John Fights Over Another Woman.

  📸: Hon Lematia John. By URN. Police in Arua district are investigating a case of assault and threatening violence involving the Member of Parliament for Ayivu West Constituency John Lematia and James Ariko, a DSTV technician in Arua city. Drama ensued on Easter Sunday 31-3-2024 at Dream Land Hotel located at Kuluva trading center along Arua-Nebbi highway in Arua district when the legislator and the technician engaged in a fight reportedly over a woman identified as Faith Eyotaru 25, a relationship officer at Victoria University Kampala. The scuffle started after Ayivu West Mp John Lematia went to swim at Dreamland Hotel with Faith Eyotaru only to find Ariko, who had gone to the same hotel earlier. However, upon seeing the duo coming out of the vehicle, Ariko confronted Lematia with both men claiming to be having a relationship with the lady. It took the intervention of the staff at the hotel who intervened and separated the fight between the men. Josephine Angucia, the West Nile re
Post a Comment
Read more

41-Years-Old Man Digs His Own Grave in Maracha District.

Story by Osuta Yusuf.  Maracha District.  📸: The grave been dug by Mr Opiga Michael, a victim of frustration. Photo taken by Osuta Yusuf , on Wednesday 11-September-2024. The residents of Ebapi village, Baria Parish in Nyadri Sub-county, Maracha east constituency, Maracha District are in shock after a 41 year old man started digging his own grave. The man, identified as Mr Opiga Michael, who seems to be frustrated over some challenges in life, started digging his own grave on Tuesday 10-September-2024 until he was stopped by the elders in Nyaria clan. 📸: Opiga Michael, the Victim of Frustration. Photo by Osuta Yusuf , Information is Power. While speaking to our reporter on Wednesday evening 11-September-2024, Mr Opiga Michael, said, his main plan  was to commit suicide after finishing digging the grave for burying himself, explained that, he feels frustrated, abandoned and hated by his own clan people, whom he accused of piling lies against him and some even a
Post a Comment
Read more