IBM is buying open-source software company Red Hat in a $34 billion deal, one of the biggest deals this year. The puchase could change the face of the cloud computing industry.
16most significant tech acquisition of 2018according to CNN.
38The acquisition of Red Hat is a game-changer. It changes everything about the cloud market
The deal will be completed by the second half of 2019.
Several software and services that run on cloud, like Dropbox, Netflix, Flickr, Google Drive, Microsoft Office 365, and Yahoo Mail, do not allow transfer of data between them.
Red Hat says its software solves that challenge by allowing data to be more easily moved around services and applications.
67strongly positioned to address this issue.68
IBM buying Red Hat means it will partner with some of its biggest competitors, including Amazon, Microsoft and Google, by providing technology. Red Hat partners with all of them, and IBM said it will continue the partnerships after the acquisition and work to grow them.
IBM CFO Jim Kavanaugh told investors during a conference call earlier this month that its cloud unit brought in $19 billion, a growth of 20 percent year on year.