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IBM is now Linux superpower, acquires Red Hat at $34 Billion

By Digital Edge Bureau, 31.10.2018, 11:25
 
Acquisition_1

The $34 Billion acquisition of Red Hat by IBM would create a formidable Linux entity in the would

Love, hate have been the defining chemistry between IBM and Red Hat, but finally the latter acquiesces to another big Linux connoisseur and practitioner in IBM. In a major international development, IBM acquires Red Hat, world’s biggest player in the field of Linux, at $34 Billion. For many years, the world knew Red Hat as Linux, and Linux as Red Hat.

As per media report, Red Hat would become a unit of IBM’s Hybrid Cloud division, with Red Hat CEO Jim Whitehurst joining IBM’s senior management team and reporting to IBM’s CEO Ginni Rometty. IBM has made it clear that that the acquisition would further strengthen its already strong hybrid cloud business.

Unarguably, no other software company has added business value to Linux as an operating systems (OS) as Red Hat has done—from the geeky corridors of open source warriors, Red Hat took it to commercial turfs.

Now, Linux is a serious industrial grade operating system that runs today’s enterprises and organizations, and is even being used in high performing computing. Interestingly, both the worlds related with x86 and RISC processors maintain cordial relations with Linux. They live in complete harmony.

For IBM, Red Hat is the biggest trophy, which can make the company perhaps the mightiest player in the non-x86 domain. Already IBM has the best practices around Linux flavors, the coming of Red Hat to its fore would add extraordinary killing instincts to IBM. Now, only SuSE is the chief competition left for IBM in the sphere of Linux.

IBM and Red Hat have reportedly said that the deal would enable enterprises and organizations to do even more work in the cloud—keeping their apps and data portable and secure.

The acquisition would also give IBM deeper access to datacentres of enterprises and organizations in the world. In the Indian context, the acquisition of company would give IBM strong dividends as the existing customers of Red Hat would bring a plethora of business opportunities to it (IBM). Moreover, with Red Hat, IBM now brings much wider solutions portfolio to the datacentre market in India.

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