IBM just purchased Red Hat, for how much? $38bn cash in a landmark transaction. It is Yuuuuge! The IBM Red Hat deal is the hardware giant’s largest transaction as it makes a triumphant entry into the software market. The cloud services market having experience exponential growth over the years, seems interestingly poised to achieve continuing growth as IBM and Red Hat responds to the newer technologies from AWS, Google, and Microsoft that provide significant competitive advantages in the cloud markets.
In a statement, IBM said the acquisition is a move towards its key growth driver of cloud computing. This move is a clear indication to the super heroes of enteprise cloud services, that there is a new ‘Super’ coming to the playground. We just might be witnessing a ‘Captain Marvel’ entry in the global cloud-universe.
Under the deal, Red Hat, a giant Software key player will retain it’s independent status, current management, and open-source focus. However, expectations are high with regard to the potential hybrid cloud integrations which will get IBM an edge over enterprise competition like VMware.
IBM’s game plan is to boost its own cloud unit by turbocharging Red Hat’s growth. This plan greatly benefits Red Hat as well by giving an instant global profile.
The IBM Red Hat deal will no doubt define IBM CEO Gina Rometti’s tenure. The big question is; how much growth should we expect from this? On another note, Network World does a good job of asking big hairy questions of Red Hats survival under the deal here