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

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

Nesh (Steven Puddephatt), Senior Solutions Engineer @ GlobalDots
29.10.2018
image 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.

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

Learn More

You’ll Need Zero Trust, But You Won’t Get It with a VPN
SD-WAN and SASE
Eyal Webber Zvik, Cato Networks 12.01.23

Properly implemented, a zero trust architecture provides much more granular and effective security than legacy security models. However, this is only true if a zero trust initiative is supported with the right tools. Legacy solutions, such as virtual private networks (VPNs), lack the capabilities necessary to implement a zero trust security strategy. Zero Trust Security is […]

Read more
4 Ways Where Remote Access VPNs Fall Short
SD-WAN and SASE
Eyal Webber Zvik, Cato Networks 09.01.23

The Global Content Delivery Network (CDN) market is expected to grow by $42.4 billion between now and 2032.

Read more
slider item
Content Delivery Network (CDN)
Francesco Altomare, Southern Europe Regional Manager @ GlobalDots 04.01.23

A Content Delivery Network (CDN) is a globally distributed network of web servers or Points of Presence (PoP) whose purpose is to provide faster content delivery. The content is replicated and stored throughout the CDN so the user can access the data that is stored at a location that is geographically closest to the user. […]

Read more
Unlock Your Cloud Potential
Schedule a call with our experts. Discover new technology and get recommendations to improve your performance.
Book a Demo