Two big names in the enterprise segment are set to merge soon. IBM is acquiring Red Hat, a famous distributor of open-source software for a reported bid of US$32 billion (~RM142 billion).
In a joint statement made by the two companies, “The acquisition of Red Hat is a game-changer. It changes everything about the cloud market,” said Ginni Rometty, IBM Chairman, President and Chief Executive Officer. “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.”
Under the deal, Red Hat will be incorporated into IBM’s Hybrid Cloud division. Red Hat will still be helmed by Jim Whitehurst and Red Hat’s current management team. “The announcement is the evolution of our long-standing partnership,” said Rometty. “This includes our joint Hybrid Cloud collaboration announcement in May, a key precursor in our journey to this day.”
IBM hopes with the acquisition it will be one of, if not the leading ‘Hybrid Cloud’ providers in the market. Hybrid cloud offers both local and online cloud services for customers. As opposed to cloud-only services provided by other companies.
The two brands also re-affirmed that the open-source nature of Red Hat will be maintained, and codes will still be contributed to the community. This is a great indication that Red Hat as an operating system will continue on. The question is how IBM’s might and largesse in the digital world will influence the open source OS.