10/29/2018 3:00:24 AM
IBM is buying Red Hat: What they want you to know
RedHat Open Source,IBM and Red Hat
https://appdevelopermagazine.com/images/news_images/IBM-Purchases-Red-Hat-App-Developer-Magazine_mlwl4xjn.jpg
App Developer Magazine

IBM is buying Red Hat: What they want you to know



Richard Harris Richard Harris in Cloud Services Monday, October 29, 2018
10,319

IBM's most significant acquisition, the purchase of Red Hat represents a landmark moment for both companies and is a major step forward in IBM’s ongoing focus on high-value business, the transformation of their portfolio, and their leadership in the emerging era of AI and cloud.

IBM announced plans to acquire Red Hat, the world’s leading provider of open source technology for approximately $34B. 

According to Mergermarket data, this is the second-largest computer software deal ever recorded globally, which dates back to 1998.

As IBM’s most significant acquisition, and the most significant tech acquisition of 2018 - this deal represents a landmark moment for both companies and is a major step forward in IBM’s ongoing focus on high-value business, the transformation of our portfolio, and our leadership in the emerging era of AI and cloud. With this acquisition, IBM will become the world’s leading hybrid cloud provider. 

The news comes as a game-changer for cloud as it completely redefines the cloud debate as “open” vs “proprietary”. Most companies today are only 20 percent along their cloud journey, renting compute power to cut costs. The next 80 percent will be about unlocking real business value and driving growth. This is the next chapter of the cloud.

But while companies want to move their business applications to hybrid cloud, they remain worried about data security as they migrate applications across multiple clouds. And the proprietary nature of most clouds means moving data and services across clouds is a complex, expensive, manual process of stitching clouds together. They need open cloud technologies, that enable them to move applications and data across multiple clouds - easily and securely. IBM and Red Hat will be strongly positioned to address this issue and accelerate hybrid multi-cloud adoption.

IBM is acquiring Red Hat, completely changing the cloud landscape and making IBM the world’s #1 hybrid cloud provider.
This deal represents IBM’s most significant acquisition (by a multiple of six), and the most significant tech acquisition of 2018.
This acquisition represents the latest and most significant move in IBM’s shift to higher value business.

Details about IBM purchasing Red Hat

  • The acquisition will be accretive to IBM free cash flow and gross margin within 12 months, and operating EPS within 24 months. It will accelerate revenue growth
     
  • IBM is acquiring one of the most highly-prized, premium software companies in the IT industry, recognized as a world leader in open source development, including Linux, which has become the #1 platform for applications across on-prem and cloud environments.
     
  • IBM is acquiring the world’s largest portfolio of open source technology.
     
  • This acquisition positions IBM to address emerging client demand to move their business applications to the cloud. Most companies today are only 20 percent along their cloud journey, renting compute power to cut costs.
     
  • The next 80 percent is about unlocking real business value and driving growth. This is the next chapter of the cloud. It requires shifting business applications to the hybrid cloud, extracting more data and optimizing every part of the business, from supply chains to sales.
     
  • To accomplish this, businesses need an open, hybrid cloud approach to developing, running and deploying applications in a multi-cloud environment. With this acquisition, IBM is uniquely positioned to address this emerging demand.
     
  • The follows more than a year of evolving a long-standing partnership with Red Hat. This includes a joint Hybrid Cloud collaboration announcement in May, a key precursor to today’s announcement.

The cloud industry chatter

Sacha Labourey, CEO of CloudBees commented on the acquisition, "I’m not surprised by Red Hat being acquired. I am, however, much more surprised by who the acquirer is. This is a bold move by IBM, which might prove to be their best single bet to remain relevant for another few decades. In this new cloud era, developer mindshare is as important as enterprise mindshare. Bottom-up meets top-down. Developers vote with their feet. In this subtle dance, successful public cloud vendors have been able to get their steps right. IBM on the other hand, while very strong in top-down motions, hasn’t been able to really build up developer love. The impact has led IBM to be in the second tier of cloud vendors, along with Oracle, after AWS, Microsoft and Google."

Elizabeth Lim, Senior Analyst at Mergermarket says, “IBM has been in need for some time of catching up with other tech giants such as Amazon and Microsoft in making a sizeable investment like this in the cloud, and it makes sense that IBM would pay such a large amount for a company like Red Hat, to try to outbid any potential competition. The deal with Red Hat marks a transformation for the company more toward hybrid cloud computing after years of seeking growth with mixed results, such as when it made big bets on its AI system Watson while its traditional IT business has shrunk. It’s clear that CEO Ginni Rometty intends, with this deal, to try to propel IBM back into the ranks of the industry’s top players after falling behind in recent years, and that the company also felt the need to acquire outside tech instead of spending years trying to develop it in-house. The question now is how IBM will successfully integrate Red Hat."



Google Cloud Platform in Action

Google Cloud Platform in Action teaches you to build and launch applications that scale, leveraging the many services on GCP to move faster than ever. You'll learn how to choose exactly the services that best suit your needs, and you'll be able to build applications that run on Google Cloud Platform and start more quickly, suffer fewer disasters, and require less maintenance.

Data Science on the Google Cloud Platform

Learn how easy it is to apply sophisticated statistical and machine learning methods to real-world problems when you build on top of the Google Cloud Platform (GCP). This hands-on guide shows developers entering the data science field how to implement an end-to-end data pipeline, using statistical and machine learning methods and tools on GCP. Through the course of the book, you’ll work through a sample business decision by employing a variety of data science approaches.

475 Tax Deductions for Businesses and Self-Employed Individuals

Are you paying more taxes than you have to as a developer or freelancer? The IRS is certainly not going to tell you about a deduction you failed to take, and your accountant is not likely to take the time to ask you about every deduction you’re entitled to. As former IRS Commissioner Mark Everson admitted, “If you don’t claim it, you don’t get it.

A hands-on guide to mastering mobile forensics for iOS and Android

Get hands-on experience in performing simple to complex mobile forensics techniques Retrieve and analyze data stored not only on mobile devices but also through the cloud and other connected mediums A practical guide to leveraging the power of mobile forensics on popular mobile platforms with lots of tips, tricks, and caveats.

Gps tracker for kids

The Chirp GPS app is a top-ranked location sharing app available for Apple and Android that is super easy to use, and most of all, it's reliable.

The Latest Nerd Ranch Guide (3rd Edition) to Android Programming

Write and run code every step of the way, using Android Studio to create apps that integrate with other apps, download and display pictures from the web, play sounds, and more. Each chapter and app has been designed and tested to provide the knowledge and experience you need to get started in Android development.