Coming Soon: GET:IT Endpoint Management 1-Day Conference on September 28th at 9:30 AM ET Coming Soon: GET:IT Endpoint Management 1-Day Conference on September 28th at 9:30 AM ET
Hybrid Cloud

IBM is buying Red Hat in $34 billion Bid to Rule the Hybrid Cloud

For the past decade, IBM has been trying to transition its aging on-premises operations and grab a slice of the cloud pie. While their efforts have been mostly without large-scale success, there have been a few bright spots during the past decade.

That being said, the company does still build servers and its Watson solution has become the public face of the company. But, the company is about to make a massive change as it has announced that it will be buying Redhat for $34 billion.

IBM is buying Redhat for $190 per share and is pending regulatory approval.

Sponsored Content

Say Goodbye to Traditional PC Lifecycle Management

Traditional IT tools, including Microsoft SCCM, Ghost Solution Suite, and KACE, often require considerable custom configurations by T3 technicians (an expensive and often elusive IT resource) to enable management of a hybrid onsite + remote workforce. In many cases, even with the best resources, organizations are finding that these on-premise tools simply cannot support remote endpoints consistently and reliably due to infrastructure limitations.

This is a significant change for IBM and if their acquisition is successful, will help IBM offer a significantly wider range of software and services to its portfolio. In addition, Red Hat has a number of high-value partnerships with companies like Microsoft that should help IBM expand its footprint.

In the announcement, the company notes that after this acquisition, the company will be the top hybrid cloud provider in a growing market that is expected to crest $1 trillion in the future. While cloud operations have been all the talk of late, hybrid environments are proving to be the preferred model of most large companies and this acquisition plays into that growing scenario.

This is a massive bet for IBM on nearly every front, from a financial outlay to pivoting their business. As of the time of this posting, IBM has a market cap of about $113 billion and Redhat has a market cap of around $20 billion.

Related Topics:

BECOME A PETRI MEMBER:

Don't have a login but want to join the conversation? Sign up for a Petri Account

Register
Comments (2)

2 responses to “IBM is buying Red Hat in $34 billion Bid to Rule the Hybrid Cloud”

    • <blockquote><em><a href="#15796">In reply to elape:</a></em></blockquote><p>Other than shareholders, I can't see too many people excited about this.</p>

Leave a Reply

Brad Sams has more than a decade of writing and publishing experience under his belt including helping to establish new and seasoned publications From breaking news about upcoming Microsoft products to telling the story of how a billion dollar brand was birthed in his book, Beneath a Surface, Brad is a well-rounded journalist who has established himself as a trusted name in the industry.

Live on Tuesday, September 28th, at 9:30 AM ET!

GET-IT: EndPoint Management 1-Day Virtual Conference

The management of endpoints is complicated and the risks associated with having unsecured devices roaming outside the firewall are quickly becoming a targeted vector for malicious users. In this Petri one-day virtual conference, we will be diving deep into how you can improve the way you manage your endpoints and learn from industry experts and MVPs about best practices, available tools to streamline your operations, and what's coming soon with Windows 11.

RSVP Now!

Sponsored By

Live Webinar: Active Directory Security: What Needs Immediate Priority!Live on Tuesday, October 12th at 1 PM ET

Attacks on Active Directory are at an all-time high. Companies that are not taking heed are being punished, both monetarily and with loss of production.

In this webinar, you will learn:

  • How to prioritize vulnerability management
  • What attackers are leveraging to breach organizations
  • Where Active Directory security needs immediate attention
  • Overall strategy to secure your environment and keep it secured

Sponsored by: