IBM-Red Hat deal: What the companies say


IBM announced yesterday that it is buying Red Hat for $34 billion, making it IBM’s largest deal to date and the third largest in the history in the US tech industry.

After announcing the plan to close the deal sometime in the second half of next year, executives from the two companies held a joint conference call fleshing out the details. Here’s what they had to say.

According to Arvind Krishna, Senior Vice President of Hybrid Cloud at IBM, this move represents a “game changer” that will redefine the cloud market. Krishna was joined by Paul Cormier, Executive Vice President and President of Products and Technologies at Red Hat.

As a result of the acquisition, Red Hat will become a unit of IBM’s Hybrid Cloud division while Red Hat CEO Jim Whitehurst joins IBM’s senior management team, reporting directly to Chairman, President and CEO Ginni Rometty.

According to Rometty, “IBM will become the world’s Number 1 hybrid cloud provider, offering companies the only open cloud solution that will unlock the full value of the cloud for their businesses.” Krishna said Red Hat will be important to helping IBM reach that goal.

In some ways, the acquisition of Red Hat by IBM is not a complete surprise. Last year the companies announced a partnership to insure that Red Hat’s OpenStack private cloud platform and its Ceph Storage would run in IBM’s cloud and be managed by the same tools they use to manage their on-premises deployments.

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