IBM closes $34B Red Hat deal, vaults into multi-cloud

IBM has completed its acquisition of Linux giant Red Hat in a move the companies say will allow them to tackle larger projects for customers and create more partnerships with other vendors.

ibm cloud lab
IBM

IBM has finalized its $34 billion purchase of Red Hat and says it will use the Linux powerhouse's open-source know-how to enable larger scale customer projects and to create a web of partnerships to simplify carrying them out.

"A lot of our mutual clients are interested in doing a lot more," says Arvind Krishna, Senior Vice President, IBM Cloud & Cognitive Software in a blog post. "Many see this as an opportunity for us to create large industry ecosystems with other providers who are optimized on this common infrastructure. ...If Red Hat were to do this on their own, there would be a limit to how much they can scale. Together, we can put a lot more resources into optimizing other partners."

The combined companies will also be able to smooth out the challenges of multi-cloud environments where each cloud provider's implementation differs from the others, says Paul Cormier, Red Hat Executive Vice President and President, Products and Technologies, in the same blog post.

"[All] the clouds, even though they have the same underlying technology, they’re all different," says Cormier. "And so, as customers want to span clouds, they’re realizing now that they have to have four or five different islands of technology stacks that developers have to develop for, and that operations people have to operate. That’s really unsustainable from a management perspective."

By combing the two companies, their development teams will also be able to work on making their products easier to delploy, Krishna says. "Capabilities such as recovery, monitoring, security, and auditing are rarely built in. And they often cannot be deployed in a single click. Typically, all of these configurations have to be done manually," he says. "So, a massive problem our clients need us to solve is to make the whole process a lot easier."

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