From Big Blue to Big Red? IBM to acquire Red Hat

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IBM has agreed to acquire Red Hat:

IBM will acquire all of the issued and outstanding common shares of Red Hat for $190.00 per share in cash, representing a total enterprise value of approximately $34 billion.

IBM Is presenting this as a hybrid cloud play, with the claim that businesses are held back from cloud migration “by the proprietary nature of today’s cloud market.”

IBM and Red Hat will be strongly positioned to address this issue and accelerate hybrid multi-cloud adoption. Together, they will help clients create cloud-native business applications faster, drive greater portability and security of data and applications across multiple public and private clouds, all with consistent cloud management. In doing so, they will draw on their shared leadership in key technologies, such as Linux, containers, Kubernetes, multi-cloud management, and cloud management and automation.

Notably, the announcement specifically refers to multi-cloud adoption, and that the company intends to “build and enhance” partnerships with Amazon Web Services (AWS), Microsoft Azure, Google Cloud and Alibaba.

Red Hat will be a “distinct unit” within IBM, the intention being to preserve its open source culture and independence.

My own instinct is that we will see more IBM influence on Red Hat, than Microsoft influence on GitHub, to take another recent example of an established tech giant acquiring a company with an open source culture.

IBM is coming from behind in the cloud wars, but with Linux ascendant, and Red Hat the leader in enterprise Linux, the acquisition gives the company a stronger position in today’s technology landscape.

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