IBM Buys Red Hat Open-Source Company for $34 Billion

Nesh (Steven Puddephatt) Senior Solutions Engineer @ GlobalDots
1 Min read

IBM confirmed that it would be acquiring open source Linux firm Red Hat for $190 per share in cash, working out to a total value of approximately $34 billion.

Reduce your AWS costs by over 50%

Discover your Cloud Saving Potential – Answer just 5 simple questions. AppsFlyer, Playtika, Lufthansa, IBM, top leading companies are already using our FinOps services.

Reduce your AWS costs 
by over 50%

Red Hat, known for its Red Hat Enterprise Linux (RHEL) operating system, is a leading software company that offers open-source software products to the enterprise community. Even Oracle uses Red Hat’s source code for its Oracle Linux product.

Red Hat’s last year revenue was $2.4 billion, and this year the company has earned $2.9 billion. But if Red Hat products are open source and updates are free, you might be wondering how does the company earn.

Red Hat was one of the first companies who found a successful way to make money from free open-source software. It offers consulting services—including assessments, implementations, platform migrations, solution integration, and application development.

Like other big tech companies, IBM has also been a major supporter of Linux and contributor to the kernel and other open source projects, but the company has been left behind Amazon, Alphabet (Google) and Microsoft when it comes to cloud computing.

The accusation deal will help IBM expand its reach as an enterprise cloud computing provider.

Image Source

Read more: The Hacker News

Latest Articles

3 IT Infrastructure Costs Increasing in 2024:

As we navigate through the evolving landscape of IT infrastructure, a closer look at the cost trends for 2024 reveals significant shifts. From cloud expenses feeling the pressure of economic changes. With global cloud spending expected to hit over $1 trillion and various sectors facing unique challenges, staying informed is more crucial than ever.  Dive […]

Miguel Fersen Iberia & LATAM Regional Manager @ GlobalDots
26th February, 2024
Justt – IaC

Justt is a chargeback mitigation startup based in Tel Aviv. Chargebacks, as defined, are demands by a credit card provider for a retailer to reimburse losses on fraudulent or disputed transactions. Justt’s objective is to assist merchants worldwide in combating false chargebacks using its proprietary artificial intelligence technology.

GlobalDots
22nd February, 2024
8 FinOps Best Practices for Cutting Cloud Costs

The cloud used to be viewed as a place of significant cost savings: rather than purchasing and maintaining dozens of server stacks, organizations could outsource this and purchase compute power on an as-needed basis. In the ensuing rush to cloud architecture, however, many companies simply lifted-and-shifted their old financial bad habits. The sheer speed of […]

GlobalDots
22nd February, 2024

Unlock Your Cloud Potential

Schedule a call with our experts. Discover new technology and get recommendations to improve your performance.

Unlock Your Cloud Potential