The news that recently broke has surprised everyone : IBM bought Red Hat for a whopping $34.000 billion.
According to IBM, the offer is priced at $190 per share of Red Hat . IBM CEO Ginni Rometty sees IBM as the number one provider of hybrid cloud solutions.
International Business Machines, or IBM is a United States company oriented to the computer science area.
This company is a veteran in the field of information technology, as it is one of the few with a continuous history dating back to the 19th century.
Red Hat, Inc. is a United States company, offering solutions based on the Linux operating system, including Red Hat Enterprise Linux, in addition to other software solutions.
Now, imagine what would result from the combination of those two companies ... well, you don't have to imagine, that is already becoming a reality.
About IBM's purchase of Red Hat.
Following the acquisition, Red Hat will become an independent entity within IBM's hybrid cloud team.
This should serve to preserve the open source nature of Red Hat.
Red Hat CEO Jim Whitehurst will continue to lead the new unit, reporting directly to IBM CEO Ginni Rometty as a member of IBM's senior executives. The rest of the Red Hat leadership team will remain, IBM says.
The supervisory boards of both companies have already approved the trade. Red Hat shareholder approval is still pending.
Necessary approvals from antitrust and regulatory authorities are also pending. IBM expects to complete the deal by mid-2019.
IBM reached an agreement in which it will pay US$190 per share of Red Hat, which represents a little over 60% of its share price at the close of trading last Friday.
All this movement was carried out during this weekend.
Red Hat will continue to act independently of IBM
Therefore, the large open source software company now becomes an IBM business unit within its hybrid cloud division, as the company's CEO Jim Whitehurst will join IBM's management team.
Ginni Rometty, President, President and CEO of IBM (right). Jim Whitehurst, Red Hat CEO
In its press release, Red Hat said the following:
“Joining forces with ibm will provide us with a greater level of scale, resources and capabilities to accelerate the impact of open source as a foundation for digital transformation and bring red hat to an even wider audience, preserving our unique culture and unwavering commitment to open source innovation. «
Red Hat will remain independent and operate as a distinct unit within the IBM Hybrid Cloud team.
A hybrid cloud is an integrated service that uses clouds, both its own and those of third parties, to solve different functions within an organization.
The pan-European telecommunication service Interoute points out that there are three ways to implement hybrid cloud models:
- Collaboration between different cloud service providers to provide services that combine public and private cloud features as one integrated service.
- A complete hybrid package provided by a single cloud service provider.
- Organizations that manage their own private clouds that in turn contract a public cloud service and later integrate it into their infrastructures.
Ginni Rometty, president and CEO of IBM, said the following:
“The acquisition of red hat is a coup d'etat. this changes everything in the cloud market. ibm will become the world's number one hybrid cloud provider, offering enterprises the only open cloud solution that will unlock the full value of the cloud for their businesses. "
Jim Whitehurst, CEO of Red Hat, published an article on the topic, highlighting the new possibilities that are opening up both for the company in the progress within IBM with open source and in the enterprise sector.