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

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

Steven Puddephatt, Senior Cloud Architect @ 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

Read More

Inform every aspect of your product & business with CDN Monitoring
Monitoring, Logging & Observability
Snir Ambar, Head of AI & Innovation @ GlobalDots 22.09.22

Extract actionable real-time insights, optimize performance and identify issues before they become problems – by unlocking the hidden value of CDN logs! Get 14 days free access to all features right now.

Watch more
Cybersecurity takes center stage
DevOps as a Service
Artem Mescheryakov, Senior DevOps Engineer, GlobalDots 20.09.22

In recognition of National Coding Week, Geektime.com, a top media channel covering tech, startup, venture capital, internet, mobile, development and more – featured a guest post by Artem Mescheryakov, Senior DevOps Engineer at GlobalDots:  “National Coding Week is about learning the value and importance of digital skills as well as nurturing the increasingly important skill of coding. Developer shortages […]

Read more
A CISO’s Essential Guide to API Security
API Security
Admin Globaldots 15.09.22

Learn how to reduce the business risk of API attacks – and maximize the value of digital innovation.  APIs are the entry point to your organization’s most critical data and services. Their protection is crucial to reduce risks, maximize program value, and generate growth. In this guide, we take a close look at the special […]

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