IBM buys Linux giant Red Hat to thrive in the cloud

29 October, 2018, 17:28 | Author: Dave Hampton
  • S&P Global Ratings cut the grade for IBM by one notch following the massive acquisition of cloud computing firm Red Hat for a staggering $34 billion in cash

IBM announced today that it will acquire open source firm Red Hat for approximately $34 billion in cash and debt. Or CentOS which takes Red Hat and debrands it.

Even Microsoft Azure is now more than half Linux and Red Hat dominates those installs. Presumably the acquisition will have to jump various regulatory hurdles before it is set in stone. "It changes everything about the cloud market", IBM Chief Executive Ginni Rometty said.

The deal, once it goes through, will make IBM top Hybrid Cloud provider in an emerging $1 trillion growth market.

IBM has unveiled plans to acquire open source specialists Red Hat, in a blockbuster US$34 billion deal created to bolster the tech giant's hybrid cloud capabilities.

In May the two companies unveiled a collaboration agreement to target the hybrid cloud sector through technology and services integration in a move to accelerate cloud adoption.

Afghans risk their lives to vote in delayed Kandahar poll
More than 2,500 candidates, including mullahs, journalists and sons of warlords, are competing for 249 seats in the lower house. Election officials could not immediately determine the turnout from the 567,000 registered voters in Kandahar .

This announcement is the largest software company acquisition to date.

IBM said it will make the purchase with cash, credit and bridge lines, but did note that it would be disciplined to preserve its credit rating.

Red Hat is one of the pioneers to commercialize open-source software, in which code is made freely available for others to redistribute and modify.

IBM's decision to acquire Red Hat for US$34 billion is a bold stroke, an admission of weakness and a mighty complication. Yet IBM and VMware are partners, with vSphere-powered clouds being one of IBM's bigger cloud successes.

IBM hopes the acquisition will help it expand its position in the enterprise cloud computing market to better compete with the likes of Amazon, Google and Microsoft.

Tesla faces "deepening criminal investigation" into Model 3 production
The company's shares settled after the markets opened but were still up by about 6% the next morning. Tesla has reported a quarterly profit for just the third time in its 15-year history.

Both companies stressed the importance of cloud computing to the deal. "In doing so, IBM will support open source technology wherever it runs, allowing it to scale significantly within commercial settings around the world".

At the same time, sales last quarter overall missed analysts' expectations and the forecast for the current quarter also fell short, fuelling concerns Red Hat may be losing deals to rivals and growth may be slowing.

Red Hat now has more than 95 offices worldwide, including major software-engineering groups in San Francisco and Boston and a public-policy operation in Tyson's Corner, Va., near the nation's capital. "Imagine Red Hat with greater resources to grow into the opportunity ahead of us", Whitehurst told employees in an email Sunday afternoon. Red Hat governance, brands, headquarters and facilities will also be retained.

"Our unwavering commitment to open source innovation remains unchanged".

Red Hat shareholders still have to approve the deal, but the board of directors at each company has signed off, and it's hard to imagine strong protests from Red Hat shareholders given the premium over its most recent closing price.

What we know about pipe bomb packages
He further added, "Additionally, there was an envelope containing white powder, discovered as part of that original packaging". A similar pipe bomb was delivered earlier this week to the home of George Soros , a major Democratic Party donor.

Recommended:

  • Modi, Abe build ties amid concerns

    Modi, Abe build ties amid concerns

    Following Prime Minister Kishi's visit to India in 1957, yen loans to the country began in 1958. Prime Minister Modi was an outstanding leader of his great country, the Japanese premier said.
    11 killed in US synagogue shooting in Pittsburgh Photogallery

    11 killed in US synagogue shooting in Pittsburgh Photogallery

    The Islamic Center Of Pittsburgh offered its deepest sympathy and condolences, and called on its community to donate blood. Around the time, three congregations amounting to about 100 people would have been using the building, Mr Eisenberg said.
    Dhoni dropped from T20I squad; Parthiv, Rohit back for Oz Tests

    Dhoni dropped from T20I squad; Parthiv, Rohit back for Oz Tests

    Mahendra Singh Dhoni will not be a part of the Indian T20I squads which will take on the West Indies and Australia in November. In the limited-overs set-up, left-arm spinner Shahbaz Nadeem received his maiden call-up for the T20s against West Indies .
  • Game 3, Red Sox vs. Dodgers

    Game 3, Red Sox vs. Dodgers

    Pearce even scored Boston's ninth run on Xander Bogaerts' single, celebrating wildly with his teammates in quiet Chavez Ravine. Then in the home half of the inning , Nunez tumbled into the seats by third base while catching Cody Bellinger's pop.
    Trump dismisses NYT report on intercepted calls

    Trump dismisses NYT report on intercepted calls

    Chinese Foreign Ministry spokeswoman Hua Chunying said the New York Times report was " fake news". The White House did not immediately respond to requests for comment about the Times report.
    Valverde praises Barca for stepping up in Messi's absence

    Valverde praises Barca for stepping up in Messi's absence

    Lionel Messi - out with a broken arm - watched from the stands at the Nou Camp as Barca dominated the Group B tie on Wednesday. "We are very happy for the match, against a team that was going to make things very hard for us, we played very well".
  • Mahinda sworn in as PM

    Mahinda sworn in as PM

    A United Nations report found that up to 40,000 ethnic Tamil civilians may have been killed in the final months of the war alone. The speaker said he was seeking legal advice and would announce Saturday if he recognises Rajapakse as the new prime minister.
    United Nations  expert: Jamal Khashoggi’s killing was ‘extrajudicial execution

    United Nations expert: Jamal Khashoggi’s killing was ‘extrajudicial execution

    However, even US President Donald Trump has cast doubt on MBS's claim he had nothing to do with Khashoggi's murder. A White House spokeswoman said Haspel would meet with Trump later today to brief him on the case.
    Raiders TE Smith: Players work to win now

    Raiders TE Smith: Players work to win now

    As the National Football League trade deadline gets closer to its conclusion Tuesday at 4 p.m. It's no secret that he got a 10-year contract.
  • How man's broken hip led to him winning major lotto prize

    How man's broken hip led to him winning major lotto prize

    For the victor , options include an immediate cash payment of $877.8 million, or the $1.537 billion prize paid out over 29 years. There were 36 second-tier winners, those who picked five winning numbers but did not match the Mega Ball.
    Trump says he's 'bringing out the military' at border

    Trump says he's 'bringing out the military' at border

    It's not yet clear from reports if the 800 new troops will be from the National Guard or a different branch of the USA military. Defence Secretary Jim Mattis is set to sign an order sending at least 800 troops to the US-Mexico border, officials said .
    Joel Embiid gets Andre Drummond ejected with Oscar-worthy flop

    Joel Embiid gets Andre Drummond ejected with Oscar-worthy flop

    The league also rescinded a technical foul issued to Pistons center Andre Drummond on the play in which Embiid flopped. Drummond responded by referencing Embiid's inability to stay healthy and play in back-to-back games in the past.


Popular

Pistons improve to 4-0 with win over Cavaliers
Kyle Kuzma scored 22 points and JaVale McGee added 21 to complement James' 74th career triple-double, his first with his new team. Cleveland ultimately dropped the game by the scored of 102-86 and has been outscored by a combined 58 points in four games.

Killing of Saudi journalist was 'savagely planned,' Turkish president says
On Saturday, Saudi Arabia publicly said the insider turned critic had died after an altercation at the consulate. The poll has a margin of error of 2.5 percentage points.

White man shoots two black customers at Kentucky grocery, police say
After leaving the store, the alleged gunman shot the second victim, later identified as Vicki Lee Jones, 67, in the parking lot. When deputies tried to subdue him, Bush fought off attempts to handcuff him and punched a deputy twice.

Strong 6.8 magnitude quake strikes off Greece
The quake was felt in all the islands of the Ionian Sea , in western Greece and in Athens , in south Italy, on Malta and in Libya. The island's port was damaged as well as a 15th century monastery, but no major injuries were reported. "Calm is being restored".

Jamal Khashoggi's Fiancée Turns Down Trump Invitation To White House
Al Jubeir also praised the current USA administration's Middle East strategy, especially when it comes to containing Iran . Saudi media had shown Khashoggi's son meeting with the crown prince, who reportedly expressed his condolences.

Dodgers defeat the Red Sox in a marathon World Series Game 3
Since the Red Sox were out of position players, Nunez stayed in the game and hit a weak dribbler toward the first base side. It should have been a routine play to end the game, but instead, Kinsler's throw was off target and LA levelled the game.

China-Japan drawing closer amid trade pressure from US
Mr Xi, in turn, sees Japan as a way to mitigate the risk of a trade war with the US. China is now the world's second largest economy and Japan the third.

Chelsea vs. BATE Borisov - Football Match Report
The Belgian suffered a back injury, the Mirror reported, which understandably sparked fears among the Chelsea faithful that we were going to lose our talisman for the foreseeable.

U.S. officials believe China and Russian Federation listening to Trump's calls
Chinese telecoms firms, including Huawei, have previously come under scrutiny in the U.S. because of spying fears. The Chinese are regularly listening to Donald Trump's mobile phone calls .

Christian Eriksen shines but Hugo Lloris' blunder dooms Tottenham vs. PSV
Eriksen slid a diagonal ball through the PSV defence for Kieran Trippier , who cut the ball back for Moura to finish. When you are in a good situation to kill the game and you don't kill it, you have to blame yourself.