IBM has announced its US$34 billion acquisition of open source leader Red Hat. The move has been dubbed a “game-changer” by Ginni Rometty, IBM Chairman, President and Chief Executive Officer, who added that it changes everything about the cloud market.“IBM will become the world’s number one hybrid cloud provider, offering companies the only open cloud solution that will unlock the full value of the cloud for their businesses,” she said.
“Joining forces with IBM will provide us with a greater level of scale, resources and capabilities to accelerate the impact of open source as the basis for digital transformation and bring Red Hat to an even wider audience – all while preserving our unique culture and unwavering commitment to open source innovation,” said Jim Whitehurst, President and CEO, Red Hat.
Upon closing of the acquisition, Red Hat will join IBM’s Hybrid Cloud team as a distinct unit, preserving the independence and neutrality of Red Hat’s open source development heritage and commitment, current product portfolio and go-to-market strategy, and unique development culture.
Red Hat will continue to be led by Whitehurst and Red Hat’s current management team. Whitehurst also will join IBM’s senior management team and report to Rometty. IBM intends to maintain Red Hat’s headquarters, facilities, brands, and practices.