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Cloud Native/NFV

IBM Buying Red Hat for $34B, Turning Cloud Upside Down

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Early days for cloud
"Most companies today are only 20 percent along their cloud journey, renting compute power to cut costs," Rometty said in a statement. "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 hybrid cloud, extracting more data and optimizing every part of the business, from supply chains to sales."

Red Hat's Whitehurst 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."

IBM and Red Hat share strategic focus in Linux, containers, Kubernetes, multicloud management and cloud management and automation, the companies said. The companies have partnered for 20 years, with IBM supporting Linux early on and their partnership helping drive IBM's $19 billion hybrid cloud business.

The two companies expanded that partnership in May, with tools to allow users to build applications spanning IBM Cloud Private and Red Hat OpenShift. (See Red Hat Partners With Microsoft & IBM for Hybrid Cloud Power.)

Until now, IBM competed as well as partnered with Red Hat, with its Cloud Private platform going up against OpenShift. Cloud Private is a centerpiece of IBM's hybrid cloud strategy; it's a software stack based on Kubernetes, with operational, telemetry and management utilities, as well as containerized MQ messaging, open source DevOps tools and IBM's own WebSphere and Watson AI Tools. The software is designed to give developers everything they need to get up and running on cloud applications. It runs on bare metal, virtual machines, OpenStack, the IBM Z Series mainframes, Power Systems and public cloud infrastructures. (See IBM: We're Beating Red Hat Private Cloud Growth.)

OpenShift is Red Hat's cloud platform for running Kubernetes containerized applications on both public and private cloud. Red Hat acquired CoreOS in January for $250 million to enhance Red Hat's toolset for day-to-day Kubernetes application operations. (See Red Hat Beefs Up OpenShift Automation, Based on CoreOS Acquisition and {740164}.)

"IBM and Red Hat also will continue to build and enhance Red Hat partnerships, including those with major cloud providers, such as Amazon Web Services, Microsoft Azure, Google Cloud, Alibaba and more, in addition to the IBM Cloud. At the same time, Red Hat will benefit from IBM's hybrid cloud and enterprise IT scale in helping expand their open source technology portfolio to businesses globally," the companies said.

"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," the companies said. "IBM intends to maintain Red Hat's headquarters, facilities, brands and practices."

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Atlantis-dude 10/29/2018 | 10:57:18 PM
wht happens to soft layer cloud
mhhf1ve 10/29/2018 | 12:11:19 PM
Remember when open source wasn't worth anything? MSFT has github. IBM has Red Hat. Oracle has MySQL... Hmm. Open source tools aren't free as in not owned by a giant multinational company anymore.
Mitch Wagner 10/29/2018 | 10:35:53 AM
Re: Name change?
[email protected] 10/29/2018 | 4:50:53 AM
Name change? Will we soon be talking about Big Blue Hat?
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