IBM closes acquisition of Red Hat for $34 Billion to boost innovation by offering a next generation hybrid multi-cloud platform

New York: IBM, an integrated technology and services company, acquired Red Hat, the world’s leading provider of enterprise open source software solutions. This acquisition will accelerate IBMs business model and help it to be the leading hybrid cloud provider. Red Hats’ neutrality and freedom will be preserved by IBM and it will strengthen its existing partnerships to give customer freedom, flexibility and choice. Red Hat’s unwavering commitment to open source will also remain unchanged. Together, the companies will deliver next generation hybrid multi-cloud platform. This platform will be based on open source technologies such as Linux and Kubernetes and will allow businesses to safely deploy, run and manage data and applications on-premises and on private and multiple public clouds.

Chairman, President and CEO of IBM stated that, “Businesses are starting the next chapter of their digital reinventions, modernizing infrastructure and moving mission-critical workloads across private clouds and multiple clouds from multiple vendors. They need open, flexible technology to manage these hybrid multi-cloud environments. And they need partners they can trust to manage and secure these systems. IBM and Red Hat are uniquely suited to meet these needs. As the leading hybrid cloud provider, the companies will help clients forge the technology foundations of their business for decades to come.”

President and CEO of Red Hat further said that, “When we talk to customers, their challenges are clear: They need to move faster and differentiate through technology. They want to build more collaborative cultures, and they need solutions that give them the flexibility to build and deploy any app or workload, anywhere. Red Hat thinks open source has become the de facto standard in technology because it enables these solutions. Joining forces with IBM gives Red Hat the opportunity to bring more open source innovation to an even broader range of organizations and will enable us to scale to meet the need for hybrid cloud solutions that deliver true choice and agility.”

According to TechSci Research, acquisitions have always been IBM’s key growth strategies. IBM’s sustained focus on expanding its business through strategic acquisitions and investments will drive growth over the long run. Further, the Red Hat buyout will help IBM fortify its competitive edge against rivals like Hewlett Packard, Xerox, Accenture, Oracle, SAS, SAP and others.

Red Hat is an enterprise software company with an open source development model. By joining forces with IBM, the company’s reach will substantially increase, and it would be able to drive open enterprise technology a lot further. IBM and Red Hat have been partners for quite some time, but now existing IBM customers will have even more direct access to next-generation open source-based technologies that are at the cornerstone of hybrid cloud innovation.

According to the published report by TechSci Research, “Global Cloud Endpoint Protection Market, By Solution (Antivirus, Firewall, Anti-Spyware, Anti-Phishing, Endpoint Application Control and Others), By Services (Managed Services, Maintenance & Support and Training, Consulting & Integration), By Organization Size (Small & Medium-Sized Enterprises and Large Enterprises), By Vertical (It and Telecom, and Others), By Company and By Geography, Forecast & Opportunities, 2014-2024”, the global cloud endpoint protection market is projected to reach USD1.9 billion by 2024, at a CAGR of over 12% during 2014-2024 owing to advancement in technologies and rising cases of hacking, which has increased the need for endpoint security system. Moreover, benefits such as cost-effectiveness and scalability are further pushing the demand for cloud endpoint protection solutions across the globe.

According to the published report by TechSci Research, “ Global Cloud Storage Market, By Type (Solution and Services), By Deployment Model (Public, Private and Hybrid Cloud), By Organization Size (Small & Medium-Sized Enterprises and Large Enterprises), By Vertical (Telecommunications & ITES, Manufacturing, BFSI’s, Healthcare & Life Sciences, etc), By Company and By Geography, Forecast & Opportunities, 2014-2024”, the global cloud storage market is expected to reach USD92.58 billion by 2024 at a CAGR of over 29% in value terms, owing to increasing adoption of cloud storage gateways, growing requirement for enterprise mobility for improved efficiency and increasing technological advancements.