On 28 Oct, IBM and Red Hat, titans of open source cloud software providers, made an announcement about a mutual agreement. Under this agreement, for $190 per share, IBM will gain all the excellent common shares of Red Hat, creating a total company worth  almost $34 billion.

“The acquisition of Red Hat is a game-changer. It changes everything about the cloud market”

said Ginni Rometty, IBM Chairman, President and Chief Executive Officer. “IBM will become the world’s #1 hybrid cloud provider, offering companies the only open cloud solution that will unlock the full value of the cloud for their businesses.”

On the other hand, President and CEO of Red Hat, Jim 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.”

This acquirement brings closer the top class hybrid cloud suppliers and will allow the enterprises to safely shift all business applications to the cloud. Survey shows that 80% of the company’s jobs are not yet shifted to the cloud, because of the copyrighted environment of present cloud marketplace. This inhibits transfer of data and applications through different clouds, safety of data in multi-cloud surroundings and steady cloud management.

Red Hat and IBM will stand firmly to confront with this problem and speed up adoption of hybrid multi-cloud. They will assist users develop cloud-native business applications quicker, charge superior transfer and safety of data and applications through many private and public clouds, along with steady cloud management. By doing so, they will allure in important techs, such as multi-cloud management, containers, Kubernetes, Linux, and cloud management and automation.

“Today’s announcement is the evolution of our long-standing partnership,” said Rometty. “This includes our joint Hybrid Cloud collaboration announcement in May, a key precursor in our journey to this day.”

IBM will continue its commitment to Red Hat’s open source contributions, open governance, involvement in the open source development model and community, and raising its extensive developer network. Furthermore, Red Hat and IBM will continue their commitment of providing non-stop freedom of open sources, through efforts like GPL Cooperation Commitment, the Open Invention Network, Patent Promise and the LOT Network.

Red Hat and IBM will also carry on to create and advance Red Hat partnerships, also including with main cloud providers, such as IBM Cloud, Google Cloud, Alibaba, Microsoft Azure and Amazon Web Services. Simultaneously, Red Hat will gain benefit from IBM by growing their open source tech to companies world-wide.

“IBM is committed to being an authentic multi-cloud provider, and we will prioritize the use of Red Hat technology across multiple clouds” Arvind Krishna, Senior Vice President at IBM Hybrid Cloud, claimed. “In doing so, IBM will support open source technology wherever it runs, allowing it to scale significantly within commercial settings around the world.”