IBM has planned to strengthen its cloud empire against the giants like Amazon, Facebook, Microsoft etc. In order to make their cloud venture a strong one, they have decided to acquire the biggest open source player Red Hat. They have announced the acquisition on 29th October 2018 for a whopping 34 billion dollars.
Red Hat being the premium open source provider will become a part of IBM hybrid cloud decision. IBM has made it clear that the Red Hat will continue functioning at his present headquarters. The culture and the employees will be retained. IBM gas assured that the company will function as a stand-alone division. It’s more like the past joint ventures the company has been magnified through this acquisition.
Red Hat looks forward to reaching a wider audience with their services through this acquisition whereas IBM looks forward to shifting its businesses online & expand its cloud computing services. The deal is expected to be closed by mid-2019. The deal is expected to help IBM grow by taking in the ever-growing shares of Red Hat as the IBM shares have been dropped since past 5 years.
Reuters reported that this is one of the biggest acquisitions in IBM history. We need to wait and see the impact the acquisition sets in the clouding business world. Only future can say whether this will start a war between the cloud giants like Amazon, Microsoft etc & IBM