IBM to Acquire Red Hat, Plan to Provide Open Approach to Cloud

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IBM to Acquire Red Hat, Plan to Provide Open Approach to Cloud

By CircleID Reporter
October 29, 2018, 7:39 pm PDT Views: 11,528 Add Comment

Ginni Rometty, Chairman, President, and CEO of IBM, at right, and James M. Whitehurst, CEO of Red Hat, left, announced, Sunday, October 28, 2018, Armonk NY, that the companies have reached a definitive agreement under which IBM will acquire all of the issued and outstanding common shares of Red Hat.

IBM and Red Hat, leading provider of open source cloud software, have announced that IBM will acquire all of the issued and outstanding common shares of Red Hat representing a total enterprise value of approximately $34 billion. This changes everything about the cloud market, says Ginni Rometty, IBM President and CEO. “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 will continue to run as a standalone business unit within IBM, the company told reporters and that it “will remain committed to Red Hat’s open source ethos, its developer community and its open source community relationships.”

Rometty on the next chapter of the cloud: “Most companies today are only 20 percent along their cloud journey, renting compute power to cut costs. The next 80 percent is about unlocking real business value and driving growth. This is the next chapter of the cloud. It requires shifting business applications to hybrid cloud, extracting more data and optimizing every part of the business, from supply chains to sales.”

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By CircleID Reporter — CircleID’s internal staff reporting on news tips and developing stories. Do you have information the professional Internet community should be aware of? Contact us.
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