IBM buys Red Hat

The Linux vendor doesn’t come cheap either, with IBM confirming a US$34 billion cash deal.

IBM and Red Hat have collaborated for over two decades, driving innovation in hybrid cloud computing. Now, with IBM’s acquisition of Red Hat, the company is set to strengthen its position as a leading hybrid cloud provider.

This strategic move cements IBM’s commitment to hybrid multi-cloud solutions, enabling businesses to modernize infrastructure, enhance security, and scale applications across public and private clouds. Red Hat has emphasized that “four out of five business workloads have yet to migrate to the cloud,” highlighting the vast potential for hybrid cloud adoption.

By integrating Red Hat’s open-source expertise into IBM’s Hybrid Cloud platform, IBM aims to accelerate enterprise digital transformation and solidify its standing as the world’s largest hybrid cloud provider.

Red Hat’s Open Source Commitment Remains Strong

IBM has assured that Red Hat’s open governance, open-source contributions, and community-driven development will continue unchanged. The acquisition will integrate Red Hat into IBM’s Hybrid Cloud team, ensuring a seamless transition while maintaining Red Hat’s management structure.

IBM Becomes the Largest Hybrid Cloud Provider

Ginni Rometty, IBM chairman and chief executive, described this acquisition as a “game-changer”, positioning IBM as the world’s largest hybrid cloud provider. By leveraging Red Hat’s expertise in open-source technologies, IBM seeks to accelerate cloud adoption across businesses that have yet to migrate.

With the increasing demand for hybrid cloud solutions, this move underscores IBM’s strategy to compete with tech giants like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud in the evolving cloud computing industry.

Read more: Why IBM’s acquisition of Red Hat is a game-changer for the cloud industry